comm midterm

how we achieve equity

- change own inputs - change our outcomes - change our perceptions - change our basis of comparison - LEAVE

changing structures

- not a silver bullet - may not resolve all issues - change is difficult, costly/time consuming, employee resistance, change fatigue

managing

- supporting and facilitating individuals to achieve individual and organizational goals - executing the strategy - "doing things right"

leading

- uniting individuals around a common goal - developing the strategy - "doing the right things"

Marlow Case Takeaways

- we tend to overemphasize incentives from a motivational standpoint (removing barriers can be just as effective) - extrinsic vs intrinsic rewards - importance of accurate attributions - importance of perspective taking - our leadership approaches may be shaped by our backgrounds and preferences

Goal-setting failure

- what gets measured is what gets done - what gets rewarded is what gets done - undermines intrinsic motivation - encourages risky and unethical behavior ex. Wells Fargo, Ford Pinto

Entrepreneurship Funding

1. own savings and cash 2. credit cards 3. family and friends 4. Banks 5. venture capital firms

ABC

Attributes, Behaviors, Context

broad differentiation

Differentiating the firm's product offering from rivals' with attributes that appeal to a broad spectrum of buyers

ways to go public

IPO, SPAC, direct listing

Matrix Pros and Cons

Pros: more customer oriented, flexible negatives: resource allocation confusion, lack of clarity reporting, complicated

Entrepreneurship misconceptions

Silicon Valley model, funding = VC, it's all about great ideas

TOWS

Threats, Opportunities, Weaknesses, Strengths

VRIO

Valuable, Rare, costly to Imitate, Organized to capture value

Context/situation

What behaviors/styles fit the context or situation

fundamental attribution error

a mistake people make when they are trying to figure out what caused someone to act in a certain way

leadership

a process involving disproportionate influence over other in the pursuit of goals

direction

achieve a goal or objective

persistence

amount of time required to reach the goal

goal-setting theory

an individuals intention to work towards a goal is a primary source of motivation

matrix structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal

team Identity inputs

assignments, common experiences, successes and failures

disproportionate influence

at a given time, one person is better able to influence others than someone else

reinforcement theory

behavior is a function of consequences - rewards increase behavior - punishments decrease behavior

debt

borrowed funds that must be repaid with interest

directive leadership

boss makes the decisions

entrepreneurial startup

build scalable business

organization

collection of people working towards a common purpose or goal

legitimate power

connected to authority inherited with a persons role

empowering leadership

decisions making is delegated to employees throughout the company

interdependence

degree and form to which team members must rely on each other to perform their task effectively

Empowerment

delegating decision making to employees at all levels of the organization

differentiation

deliver distinct value

cost leadership

deliver low costs (but balance w quality)

USES of business model canvas

design new models, start for strategic planning, historical analysis, snapshot & common language, understand competition

consensus(across people)

do other people act this way in the same or similar situation

competitive advantage

do things differently and do different things

distinctiveness(across tasks)

does this person behave similarly in other situations

attribution

doesn't tell us the actual behavior, but tells us the ways we infer causes of behavior

multiprenuers

entrepreneurs who start a series of companies

most important characteristic in a leader

extraversion and conscientiousness

Attributes/traits

extraversion and consciousness

motivation

forces within a person that affect the direction, intensity, and persistence of voluntary behavior

venture capital

from VC firms and give up equity and some control for money

Apple's structure

functional structure

equity

funds raised through the sale of stock

departmentalization

grouping specialized jobs into meaningful units or groups

functional organization

groups together people who have similar skills or do similar tasks

consistency(over time)

has this person behaved similarly in the past

business plan

help attract investors, loans, minimize risk, plan

equity theory

how fairly people are treated compared to their coworkers

expectancy theory

individual acting a way depends on the strength of belief that the act will have an outcome that is valued

social loafing ingredients

individualized inputs, only group-level rewards, large group or task

angle investors

individuals or groups that provide financing for start-ups (seed capital)

referent power

influence because of admiration

expert power

influence that comes from having special knowledge

IPO

initial public offering

ramen profitability

just being able to afford to cover most basic expenses

Business model canvas components

key partners, key resources, key activities, cost structure, value proposition, customer relations, channels, customer segments, revenue streams

broad cost leadership

mass market focus ex. Walmart and Mccdonald's

function structure negatives

may lack customer focus, slower response times, tribes or silos

span of control

measures the number of people reporting to a manager

mini-mini

minimize weaknesses and avoid threats

mini-maxi strategy

minimize weaknesses by taking advantage of opportunities

easy goals

miss out on capability and lower motivation

best cost provider

more value for the money ex. target and southwest

centralization

most decision making is concentrated at the top

focus cost leadership

narrow buyer segment with lower costs ex. jiffylube

focused differentiation

niche market and meets taste of consumers ex. Cracker Barrel

mutual enhancement

only discussing what we all know because sharing unique things is a risk

business

organization that seeks to provide goods and services to customers

job specialization

organizing activities into clusters of related tasks that can be handled by certain groups or individuals

extrinsic rewards

outside the individual (ex. bonuses, raises, promotions)

Too hard goals

people often get discouraged

sole proprietorship

positives: complete control, easy & inexpensive, profits are personal income negatives: liability, sole responsibility, more work, financing

division pros and cons

positives: customer oriented, faster response times, better coordination within divisions negatives: duplication of resources, increased costs, disconnect between divisions

partnerships

positives: more resources and talent, easy and inexpensive, negatives: conflict, unlimited liability, financing

corporations

positives: separate entity, limited liability, easy ownership transfer, financing negatives: double taxation, expensive & complex, regulations and oversight

Wildfire structure

project teams, functional, matrix

Behaviors/styles

relationship oriented, task oriented, change oriented

escalation of commitment and sunk costs

repeated or further investing in a poor or suboptimal course of action to avoid embarrassment, avoid losing investment, or failure

unity of command

reporting to only one boss

core competencies

resources + capabilities

confirmation bias

seeking out info that confirms or aligns with beliefs and ignoring opposing info

strategy focus

seen when an organization is very clear about its mission and vision and has a coherent, well- articulated strategy for achieving these

process

set of behaviors and responses that continue for some period of time

corporate structure

shareholders -> board of directors -> top management

divisional organizations

similar to stand alone companies, divisions formed according to products, customers, processes, or geography

Functional structure positives

specialization, efficiency, skill development and clear career paths

challenging goals

specific challenging goals optimize results

decentralization

spreads decision making throughout the organization

small business

start business, own boss, steady income, long term

team identity outputs

strong common task commitment, shared performance goals, mutual accountability

self-fulfilling prophecy

suggests that behavior is heavily influenced by the expectations of those around us

team identity components

task commitment and cohesion

social loafing

tendency for average levels of effort in a group to mask one persons lower level of output

reward power

the ability to bestow positive benefits on employees

coercive power

the ability to punish someone if they don't comply

commerce

the exchange of goos and services

want

the gap between what is and what is desired

need

the gap between what is and what is required

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

interactional justice

the perceived degree to which one is treated with respect

distributive justice

the perceived fairness of an outcome

procedural justice

the perceived fairness of the process used to determine the outcome

intrinsic rewards

the personal satisfaction and enjoyment felt after attaining a goal

Why we work in teams?

to share the workload and generate ideas

business model

unique configuration of elements through which a company creates and captures value

maxi-maxi strategy

use strengths to maximize opportunities

maxi- mini strategy

use strengths to minimize threats

heart of business model canvas

value proposition

growth-oriented entrepreneurs

want their business to grow into a corporation

low psychological safety

we don't share because we're afraid of critiques

self-serving bias

we judge our own behavior in a different way

external explanation

when behavior is the result of external or situational factors

internal explanation

when behavior is thought to be under the control of the person

influence

when others are willing to allow you to direct their attention and actions

intensity

will to put forward necessary effort

intrapenuers

work for a company and have freedom to have new ideas and create new products

business plan

written description of business's future