MAN 320F Exam 3

Rational decision making process

1. Define the problem 2. identify decision criteria 3. Weigh the criteria 4. Generate alternative courses of action 5. Evaluate each alternative 6. Compute the optimal decision

Pitfalls of Planning

1. It can impede change and prevent or slow needed adaption 2. Planning can create a false sense of certainty 3. the detachment of planners - they're supposed to focus on the big picture and not concern themselves with the details of implementation or carrying out the project

Benefits of planning

1. Leads to persistence, that is, working hard for long periods 2. direction 3. encourages the development of task strategies 4. The most compelling benefit of planning is that it has been proven to work for both companies and individuals 5. It gives direction to managerial efforts

What not to do when leading change:

1. Not establishing a great enough sense of urgency (unfreezing) 2. Not creating a powerful enough coalition (unfreezing) 3. Lacking a vision for change (change phase) 4. Under Communicating the vision by a factor of ten (change phase) 5. Not removing obstacles to the new vision (change phase) 6. Not systematically planning for and creating short-term wins (change phase) 7. declaring victory too soon (refreezing phase) 8. not anchoring changes in the corporation's culture (refreezing)

How to Make a Plan that Works

1. Set goals 2. develop commitment goals 3. develop effective action plans 4. Track progress 5. Maintain flexibility

Cybernetic process

1. Set standards 2. Measure performance 3. Compare with standards 4. identify deviations 5. Analyze deviations 6. develop and implement program for corrective action

6 parts to encourage creativity:

1. challenging work 2. organizational encouragement 3. supervisory encouragement 4. workgroup encouragement 5. freedom 6. lack of organizational impediments

Dominant design can emerge:

1. if it reaches critical mass 2. if it solves a problem 3. through independent standards and bodies

General Electric workout is a special kind of results-driven change.

TRUE

Management by objectives is a management technique often used by middle managers to develop and carry out _____.

Tactical plans

Management by objectives

a management technique often used to develop and carry out tactical plans 1. Discuss possible goals 2. Collectively select goals that are challenging, attainable, and consistent with the company's overall goals 3. Jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives 4. Meet regularly to review progress toward accomplishment of those goals

Incremental change

a phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

Tactical plans

a plan created and implemented by middle management that direct behavior, efforts and attention over the next 6 months to 2 years.

Action plans

a plan that lists specific steps, people, resources, and time period needed to attain a goal (how, who, what, when)

Flow

a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to fly; balance between skills and task challenge

Control

a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.

Rational decision making

a systematic process in which managers define problems, evaluate alternatives and choose optimal solutions

Budgets are

a type of operational plan

Dissolution stage

after failing to make the changes needed to sustain the organization, the company is dissolved through bankruptcy proceedings or by selling assets to pay suppliers, banks, and creditors

Concertive control

are based on beliefs that are shaped and negotiated by a workgroup. Usually arise when companies give workgroups complete autonomy and responsibility for task completion. How concertive control is developed: -Phase 1: group members learn to work and develop values and beliefs that will guide their behavior. Work groups then feel strongly about following them -Phase 2: the emergence and formalization of objective rules to guide and control behavior

Milestones

are formal project review points used to assess progress and performance

Small-group interventions

assessing group functions and helping it work more effectively to reach goals through team building or unit goal setting

Compression approach

assumes that innovation is a predictable (certain environment) process, that incremental innovation can be planned using a series of steps, and that compressing the time it takes to complete those steps can speed up

Experiential approach to innovation

assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

Technology cycle

begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology (ex: the Ford replaced horse & carriage)

5 stages of organizational decline

blinded, inaction, faulty action, crisis stage and dissolution

Large system interventions

change the character and performance of organization, business unit or department through sociotechnical systems / interventions designed to improve how well employees use and adjust to tech in their org

Planning

choosing a goal and developing a method or strategy to achieve that goal

final step in benchmarking

collect data to determine other companies' performance standards

regulation cost

cost associated with implementing or maintaining control

Technological substitution occurs when:

customers purchase new products to replace older technologies.

Operational plans

day-to-day plans, developed and implemented by lower-level managers for producing or delivering the organization's products or services over a thirty-day to six-month period

Supplier involvement

delegating some of the pre-planned steps in innovation process to suppliers reduces the amount of work internal teams do and shortens development time.

5 Aspects to Experiential approach

design iterations, testing, milestones, multifunctional teams, and powerful leaders

A-type(affective) conflict

disagreement that focuses on individuals or personal issues

C-type (cognitive) conflict

disagreement that focuses on problem- and issue- related differences of opinion

_____ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.

Generational change

Which of the following best defines an incremental change?

It is a phase in which companies innovate by lowering the cost and improving the functioning and performance of a dominant design

Results-driven change

It is the change created quickly by focusing on the measurement and improvement of outcomes.

feedforward control

It provides information about performance deficiencies by monitoring inputs rather than outputs

Which of the following statements is true of the experiential approach to innovation?

It uses intuition and hands-on experience to reduce uncertainty and accelerate learning

_____ are responsible for developing operational plans.

Lower-level managers

_____ are responsible for the creation of tactical plans.

Middle managers

true statement about self-control

does not result in anarchy

Things to manage resistance to change:

education and communication, participation, negotiation, top-management support, and coercion

The most popular approach to increase goal commitment is to:

encourage employee participation while setting goals

Balance Scorecard

encourages managers to look beyond such traditional financial measures to four different perspectives on company performance. Financial, Customer, Internal/Quality, Sustainability

Evaluation apprehension

fear of what others will think of your ideas

First step of benchmarking

figuring out what to benchmark

Resistance forces

forces that support the existing conditions in organizations

Unfreezing

getting people affected by the change to believe that the change is needed. First step in Lewin's process, the step of change process when surveys would be distributed

Flat Slope

increased efforts will only result in small tech improvements

Technological discontinuity

innovation streams begin with this. A scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function

Person-focused interventions

intended to increase interpersonal effectiveness by helping people become aware of their attitudes and to acquire new skills and knowledge.

Output control

measures the results of the managers and workers; gives managers and workers the freedom to behave as they see fit as long as they accomplish prespecified, measurable results. Often coupled with rewards and incentives

Advantage of balance scorecard

minimizes changes of suboptimization

Generational change

most incremental innovation is based on generational change which occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version

A local plumbing company installed global positioning satellite (GPS) tracking devices in all its trucks to ensure that employees were going on service calls and not running personal errands. This is an example of _____.

objective control

Technological lockout

occurs when a new dominant design (that is, a significantly better technology) prevents a company from competitively selling its products or makes it difficult to do so

Organizational decline

occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival

Technological substitution

occurs when customers purchase new technologies to replace older technologies

Work group encouragement

occurs when group members have diverse experience, education, and backgrounds, and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.

Organizational encouragement

occurs when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards and recognizes creativity, and encourages the sharing of new ideas throughout different parts of the company

Suboptimize

occurs when performance improves in one area at the expense of decreased performance in others (ex: firing employees could decrease the quality of customer service)

Supervisory encouragement

occurs when supervisors provide clear goals, encourage open interaction with subordinates, and actively support development teams' work and ideas.

Purpose statement

often referred to as the organizational mission or vision, is a statement of a company's purpose or reason for existing.

Resistance to change

opposition to change resulting from self-interest, misunderstanding and mistrust and general intolerance for change

kinds of encouragement

organizational, supervisory, workgroup

Innovation streams

patterns of innovation over time that can create sustainable competitive advantage

The compression approach to innovation management is used in:

periods of incremental change.

5 Aspects to Compression approach

planning, supplier involvement, shortening the time of individual steps, overlapping steps, and multifunctional teams

Standing plans

plans used repeatedly to handle frequently recurring events, saves managers time (ex: policies, procedures, rules & regulations)

Powerful leaders

provide the vision, discipline, and motivation to keep the innovation process focused, on time, and on target

Strategic objective

refers to a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. Once one has been accomplished, a new one should be chosen

Economic Value Added (EVA)

requires managers to outline a budget from scratch each year; the amount by which company profits (rev-exp-taxes) exceed the cost of capital in a given year. How do we look to shareholders? -It's important bc it shows if a business is actually paying for itself -Because EVA can easily be determined by subsets of the company, it makes managers and workers at different levels pay attention to their segment of the business -Doesn't tell you what should/shouldn't be done to improve performance -The amount of profits that exceed the cost of capital in a given year

the most specific type of standing plans

rules & regulations

Reasons for resistance to change

self-interest, misunderstanding and mistrust, low tolerance for change

Steep slope

small efforts will result in large improvement

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, the set of method represents a _____.

standing plan

Refreezing

supporting and reinforcing the new change so that they stick

A study conducted by the R&D team of the company revealed that the microprocessors' growth rate is initially slow, then becomes rapid, and eventually becomes slow again toward the end of the four-year cycle. In the context of technology cycles, this scenario best illustrates _____.

the S-curve pattern of innovation

Planning for incremental innovation

the goal is to squeeze or compress development time as much as possible, and the general strategy is to create a series of planned steps to accomplish that goal. Reduces misunderstandings and improves coordination

Options-based planning

maintaining planning flexibility by making small, simultaneous investments in many alternative plans (opposite of traditional planning- leaving commitments open by maintaining slack resources)

Strategic plans

make it clear how the company will serve customers and position itself against competitors in the next two to five years

Inaction stage

management may recognize the need to change but still take no action

Faulty action stage

management will announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits instead of recognizing need for fundamental change

Standards

may have to be changed if it does not help in achieving company goals

Nominal Group Technique (NGT)

A decision making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group (decreases a-type conflict)

Delphi Technique

A decision making method where members of a panel of experts respond to the questions and to each other until reaching agreement on an issue

Which of the following is true of the S-curve pattern of innovation of a product?

A flat slope indicates that increased effort brings only small improvements in technological performance

Concurrent control

Addresses the problems inherent in feedback control by gathering information about performance deficiencies as the occur; improvement over feedback as it attempts to eliminate or shorten the delay between performance and feedback (ex: Microsoft getting real-time feedback from software developers to address bug fixes as they come up)

Which of the following statements is true of resistance to change?

It decreases when change efforts receive significant managerial support

_____ is the process used to get workers and managers to change their behaviors and work practices.

Change intervention

statements is true of planning?

It intensifies the effort put in by managers and employees

Which of the following is the first step in the process of management by objectives?

Discussing possible goals

Which of the following is a difference between experiential and compression approaches to innovation?

Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of an existing dominant design.

3 strategies for waste prevention/reduction

Good housekeeping, Material/product substitution, Process modification

Controlling Quality

Quality is typically defined and measured in three ways: excellence, value, and conformance to expectations

problem

a gap between a desired state and an existing state

General Electric workout

a 3 day meeting in which managers and employees from different levels and parts of the company quickly generate and act on solutions to specific business problems (must shut down or say yes in a matter of minutes; nobody at the company can overrule the decisions)

Normative control

a company's widely shared values and beliefs guide workers' behavior and decisions (ex: JP Morgan designates 300 executives as cultural ambassadors who focus on standards; establishes that scandals and compliance concerns affect everyone in the company). Normative controls created by: -Screening potential hires -Managers and employees learn what they should and should not do by observing experienced employees and by listening to the stories they tell about the company

Slack resources

a cushion of resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes, problems, or opportunities.

Brainstorming

a decision making method in which group members build on each other's ideas to generate as many alternative solutions as possible

Dialectical inquiry

a decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution

Production blocking

a disadvantage of face to face brainstorming in which a group member must wait to share an idea because the other group member is presenting an idea

Coercion

a formal power and authority to force others to change

Product prototype

a full-scale working model that is being tested for design, function, and reliability

Design iteration

is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype

Organizational development

is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance

Testing

is a systematic comparison of different product designs or design iterations

Crisis stage

is likely to occur unless the company completely reorganizes the way it does business. At this point, however, companies typically lack the resources to fully change how they run their businesses

Behavior control

is regulating behaviors and actions that workers perform on the job. The basic assumption of behavior control is that if you do the right things (that is, the right behaviors) every day, then those things should lead to goal achievement

Bureaucratic control

is top-down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures

A drawback of planning is that:

it causes detachment, which leads planners to plan for things they do not understand

Blinded stage

key managers fail to recognize the internal or external changes that will harm their organizations

Change forces

lead to differences in the form of quality, or condition of the organization over time

standards can be determined by:

listening to customers' comments and complaints

Change agent

the person formally in charge of guiding a change effort

Decision making

the process of choosing a solution from available alternatives

Organizational innovation

the successful implementation of creative ideas

Objective control

the use of observable measures of employee behavior or output to assess performance and influence behavior

Discontinuous change

this is followed by technological discontinuity. Characterized by technological substitution and design competition.

Levels of sustainability

waste prevention and reduction, recycle & reuse, waste treatment, waste disposal

Creative work environments

where workers perceive that creative thoughts and ideas are welcomed and valued

Regulation costs

whether the cost and unintended consequences of control exceeds the benefits

Multi-functional teams

work teams composed of people from different departments

Change intervention

workers and managers change their behavior and work practices