Management 200 Exam 2

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List and describe Lewin's change model. Suppose Bryant University wanted to decrease the incidence of underage drinking among our students both on and off campus. How should Bryant use Lewin's change model to guide its actions?

"Unfreezing": Creating the Motivation to Change- In the Unfreezing Stage, managers try to motivate employees to change by encouraging them to let go of attitudes and behaviors that are resistant to innovation. For this to be effective, employees need to become dissatisfied with the old ways of doing things. Managers also need to reduce the barriers to change during this stage. "Changing": Learning New Ways of Doing Things- In the Changing Stage, employees need to be given the tools to change (new information, new perspectives, new models of behavior). Managers can provide help here by providing benchmarking results, role models, mentors, experts, and training. Managers should also convey the idea that change is continuous process, not a one time event. "Refreezing": Making the New Ways Normal- In the Refreezing Stage, employees need to be helped to integrate the changed attitudes and behaviors into normal ways of doing things. Managers can assist by encouraging employees to exhibit the new change and then, through additional coaching and modeling, by reinforcing the employees in the desired change. If Bryant wanted to use Lewin's change model to guide its actions regarding the decrease of underage drinking on and off campus, they should: Encourage students to partake in activities that do not involve the consumption of alcohol, citing the drawbacks and dangers that come with alcohol. However, for this to be effective, students would have to become bored/uninterested with drinking alcohol. (Unfreezing) Schedule events that would attract the attendance of many students, providing them new ways to spend their time as opposed to drinking alcohol. (Changing) The new events would have to resonate with the student body to the point where they would feel no need to drink alcohol as a source of enjoyment each weekend. (Refreezing)

Explain equity theory and discuss how managers can use this model to help motivate workers. Give an example from a team experience of an inequitable situation, and use it to illustrate how people react to such circumstances.

- Equity theory is basically how employees think they are being treated compared to their peers. - A way to turn this into a motivational tool is to set a system where employee's inputs match the output they receive. Also limit the difference in outputs you give one employee over another if they both have put in the same amount of Input. - An example from my own experience has come from a past job where the tips I received were pooled at the end of every shift and distributed to the entire staff valeting that day. I found this situation inequitable because some employees did not have the same exact job I had but were still receiving the benefits of my tips through the pooling process. So what I did to get rid of the inequity was leave the situation, I quite the job.

Explain the difference between motivating factors and hygiene factors in Herzberg's theory of motivation. Using the Perfect Pizzeria case, give at least one example of each. How could a manager use this distinction in trying to motivate employees at the pizzeria?

- Motivating factors are things that will make employees satisfied and satisfied to continue doing their job. - Hygiene Factors are those that employees find unsatisfactory and could make them quit In the Perfect Pizzeria case, a motivating factor would be the bonus managers receive by having employees limit their mistakes. On the other hand a hygiene factor would be the system that would terminate employees who make a certain amount of mistakes, this led some employees to quit and all the others to perform worse than any other time period prior to the system being activated.

List, define and describe the four types of financial controls. Why are they important?

Budgets-It states an organization's planned activities for a given period of time in quantitative terms, such as dollars, hours, or number of products. Budgets are prepared not only for the organization as a whole but also for the divisions and departments within it. The point of a budget is to provide a yardstick against which managers can measure performance and make comparisons financial statements-A financial statement is a summary of some aspect of an organization's financial status. The information contained in such a statement is essential in helping managers maintain financial control over the organization. Balance Sheet and Income Statement ratio analysis-Liquidity ratios indicate how easily an organization's assets can be converted into cash (made liquid). Debt management ratios indicate the degree to which an organization can meet its long-term financial obligations.Asset management ratios indicate how effectively an organization is managing its assets, such as whether it has obsolete or excess inventory on hand. Return ratios—often called return on investment (ROI) or return on assets (ROA)—indicate how effective management is in generating a return, or profits, on its assets. audits-Audits are formal verifications of an organization's financial and operational systems. Audits are of two types—external and internal

What is control, what is its purpose, and what are the six reasons that control is needed in organizations? What are some of the downsides of tight control systems? Relate this to the Best Laid Incentives Plan case.

Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. Purpose: To make sure that performance meets objectives. Six reasons control is needed- To adapt to change and uncertainty To discover irregularities and errors To reduce costs, increase productivity, or add value To detect opportunities To deal with complexities To decentralise decision making and facilitate teamwork Tight control systems discourage creativity and innovation. Front-line employees may receive less satisfaction from their jobs and may cut corners. Harder to adapt to changing conditions in the market. In the case study, Hiram's plan led to employees cutting calls short so they could meet targets and get rewarded.

Explain the four perspectives of the balanced scorecard and how a balanced scorecard is related to a strategy map. How could this assist your team to better manage the service learning project?

Customer satisfaction: "How do customers see us?" The balanced scorecard translate the mission of customer service into specific measures of concerns that really matter: time between placing an order and taking delivery, quality in terms of defect level, satisfaction with products and service, and cost. Internal processes: "what must we excel at?" What must the company do internally to meet customers' expectations? Business processes such as quality, employee skills and productivity. Top management's judgements on internal processes must be linked Innovation and improvement activities: "Can we continue to improve and create value?" Learning and growth of employees is the foundation for innovation and creativity. Create a company culture the questions the status quo, make sure resources are available to employees to do their job. Financial measures: "How do we look to shareholders?" Typical financial goals have to do with profitability, growth and shareholder values. We could apply internal processes by helping our non-profit organization to perfect their internal organization.

Explain expectancy theory, and discuss how managers can use this model to help motivate employees. From the article, "8 Tips to Help First Time Managers Thrive," explain two tips that could help facilitate motivation as it relates to this theory.

Expectancy theory of motivation states that people are naturally motivated by two things: How much they want something How likely they are to get it In other words, if people are faced with a choice, they are going to make the choice with the greatest achievable reward. Expectancy theory is based on three elements: Expectancy, Instrumentality, and Valence. Expectancy is the belief that a greater amount of effort exerted will lead to a greater performance. For example, if an employee believes that spending more hours on selling t-shirts will result in more t-shirts sold, they they have a high effort-to-performance expectancy. Instrumentality is the belief that successful performance of a task will lead to a desired outcome or reward. For example, if an employee believes they will receive a raise if they sell more t-shirts than expected, they have a high performance-to-reward expectancy. Valence is the importance or value an employee puts on their desired outcome or reward. For example, if you aggressively seek a raise and/or a promotion, you are said to have high valence. Two tips from the article "8 Tips to Help First Time Managers Thrive"that could help facilitate motivation in relation to the expectancy theory are that YOU are the example and it is important to prioritize one-on-one check ins. If you as a manager are not motivated, then your employees are not likely to be motivated to achieve their goals either. Prioritizing your one-on-one check ins with employees is important for their motivation so they know you're keeping track of their goals and rewards for said goals.

List and describe the seven TQM techniques. Describe how a company would implement three of these techniques. (pg 535) Chapter 16

Outsourcing- lets outsiders handle it Reduced Cycle Time- increasing the speed of work processes ISO 9000- meeting standards of independent auditors. Consists of quality control procedures companies must install, purchasing/manufacturing, that can be audited by independent quality control experts. ISO 14000- meeting standards of independent auditors. Identifying standards for environmental performance. Statistical Process control- Taking periodic samples to see if quality is being maintained. Six sigma- rigorous statistical analysis that reduces defects in manufacturing and service related processes. Lean Six Sigma- focuses on problem solving and performance improvement. A company can outsource services and operations to an outside vendor, usually cheaper, this will allow the company to focus on doing other things more efficiently. A company can implement six sigmas by conducting analysis processes that reduce defects in manufacturing and service-related processes. This allows the company to improve quality and reduce waste to the point where errors vanish A company can implement Lean Six sigma, The company can take out steps in the design process, without loss of quality, to get the product to the customer faster.

Describe four techniques that are available for improving quality.

Outsourcing: Let Outsiders Handle It- Outsourcing is the subcontracting of services and operations to an outside vendor. Usually this is done because the subcontractor vendor can do the job better or cheaper. ISO 9000. consists of quality-control procedures companies must install—from purchasing to manufacturing to inventory to shipping—that can be audited by independent quality-control experts, or "registrars." The goal is to reduce flaws in manufacturing and improve productivity. Statistical process control, a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability. Six Sigma is a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes. By testing thousands of variables and eliminating guesswork, a company using the technique attempts to improve quality and reduce waste to the point where errors nearly vanish.

What are the two core principles of TQM? Explain the assumptions underlying each. Give a specific example of how each would be used in a business setting. Could they be used on your service learning team? How?

People orientation: Focusing everyone on delivering customer values. Organization adopting TQM value people as their most important resources, both the people who create the product and who receive them. Assumptions: Delivering customers' values is most important: The purpose of TQM is to focus on people.--Starbucks always put customer in the first consideration. People would focus on quality if given empowerment: TQM assumes that employees will concentrate on making quality improvement if given the decision making power to do so. --Employees in Google have decision making power, and they are likely to contribute themselves more when compared to those in other companies. TQM requires training, team-work and cross-functional efforts: Employees and suppliers need to be well trained and they need to work as a team. -- In pizzeria case, employees were not well trained and they did not intend to work as a team, and that contribute to their failure in management. Improvement orientation: Focusing everyone on continuously improving work. Continuous improvement is defined as ongoing small, incremental improvements in all parts of organizations. Assumptions: It's less expensive to do it right at the first time. -- If you screwed up on the first time, you need to pay the same amount of cost to produce the next one. It's better to do small improvement all the time.-- Apple's products. Accurate standards must be followed to eliminate small variations.-- Starbucks has the same standards for every store all around the world. There must be strong commitment from top management.

Explain the six areas of organizational control. Relate at least three of these controls to Hiram's initiatives in the Best laid Incentives Plan case (what did Hiram do, what was the consequence, and what type of control was he using?).

Physical Area: The physical area includes buildings, equipments and tangible products. Human resource area: The control used to monitor employees including personality test and drug testing for hiring, performance test during training, performance evaluation to measure work productivity, and employee surveys to assess job satisfaction and leadership. Informational area: Product schedules, sales forecast, environmental statement. Financial areas: Financial statements such as balance sheets and income statements that show a company's financial status. Structural area: How is an organization arrange from a hierarchical or a structural standpoint. -Bureaucratic control: an approach of control that is characterized by use of rules, regulations, and formal authority to guide performance. -Decentralized control: an approach of control that is characterized by informal and organic structure arrangements, the opposite of bureaucratic control. Cultural area: an informal method of control. It influence the work process and level of performance through the set of norms that develop as a result of the values and beliefs that constitute an organization's culture. Relate to Hiram's initiatives: 1 Human resource area: We just announced the new targets, let everyone know we were going to monitor them, and put the names of the worst offenders on a great big 'wall of shame' right outside the cafeteria. Consequences: A lot of complaints from the sales organization such as "No role models.", "No mentoring", and "no knowledge sharing about accounts". 2 Cultural area: "Fat and happy" was how Hiram characterized Rainbarrel in a conversation with the headhunter who had recruited him. Consequence: Here was a company that had the potential for greatness but was held back by a lack of discipline.

What is productivity? Why is increasing productivity important? In the context of a specific job, preferably from your own experience, list and give examples of the six ways that managers can improve productivity, relating at least one to your service learning team experience.

Productivity is defined by the formula of outputs divided by inputs for a specified period of time. Outputs are all the goods and services produced. Inputs are not only labor but also capital, materials, and energy. Increasing productivity is important because outputs increase, and costs decrease. Establish base points, set goals and measure results- A manager at a car dealership sells a 100 cars a month on average in 2015. He targets an average sale of 150 car sales a month in 2016. Determines average monthly sale at the end of the year 2016, hoping to make an increase of 50 more cars. Use new technology- Using a computerized database instead of paper files in an office. Improve match between employees and jobs- The manager at a car dealership could introduce a commission system on car sales to incentivize salespeople and boost sales and productivity. Encourage employee involvement and innovation- The manager of a clothing store could ask workers in the store who interact with the customers to suggest ways to improve the clothes they supply. This way, the employees feel more involved and productivity is likely to increase. Encourage employee diversity- A manager can employ a diverse workforce to widen skill set of his or her employees and promote productivity. Our team is made up of a fair number of either gender as well as varied races and ethnicities which created different outlooks on ideas that came up during the project. Redesign the work process- Mary Barra, General Motors CEO, simplified things in the product-development department of General Motors by using the same parts in many different models

List and explain Kotter's eight steps to avoiding the eight common errors senior management usually makes when leading organizational change. Suppose Bryant University wanted to decrease the incidence of underage drinking among our students both on and off campus. How should Bryant use Kotter's eight steps to guide its actions?

Step Name Description 1 Establish a sense of urgency Unfreeze organization by creating a reason for why change is needed 2 Create the guiding coalition Create a cross-functional, cross-level group of people with enough power to lead the change 3 Develop a vision and a strategy Create a vision and a strategic plan to guide the change process 4 Communicate the change vision Create and implement a communication strategy that consistently communicates the new vision and strategic plan 5 Empower broad-based power Eliminate barriers to change, and use target elements of change to transform the organization. Encourage risk taking and creative problem solving. 6 Generate short-term wins Plan for and create short-term "wins" or improvements. Recognize and reward people who contribute to the wins. 7 Consolidate gains and produce more change The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. 8 Anchor new approaches in the culture Reinforce the changes by highlighting connections between new behaviors and processes and organizational success. Develop methods to ensure leadership development and succession.

List the steps in the control process. Relate each step to your service learning project experience thus far.

The four control process steps are (1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary. Establish standards- behaviors and specific tasks Measure performance- peer eval Compare performance to standards-Carmen's review on team & Milestone Presentation Take corrective action-Address right away & Point system

Explain the need-based perspective on motivation. Identify three of this type of theory, and list the needs that each includes. Relate one of these to the Perfect Pizzeria case. Be specific with your answer.

The need- based perspective on motivation essentially says that people will be motivated to accomplish goals if their needs are met with each goal accomplished. So using their needs is a incentive to motivate employees to accomplish goals. - o Need for achievement—"I need to excel at tasks." This is the desire to excel, to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks. o Need for affiliation—"I need close relationships." This is the desire for friendly and warm relations with other people. o Need for power—"I need to control others." This is the desire to be responsible for other people, to influence their behavior or to control them. An example from the Perfect Pizzeria would be the "need for achievement" this need reflects that of the managers in the Pizzeria. These managers got a bonus if their employees kept their mistakes to a minimum. So the need to achieve this goal and receive their bonus was the company's motivator to its managers.

What are the four common characteristics of successful control systems? What are at least four barriers to a successful control system? Relate this to Hiram's initiatives in the Best Laid Incentives Plan case. Be specific.

They are strategic and results oriented. Control systems support strategic plans and are concentrated on significant activities that will make a real difference to the organization They are timely, accurate, and objective. The information should not necessarily be delivered quickly, but it should be delivered at an appropriate or specific time. Accuracy is paramount, if decision mistakes are to be avoided. Inaccurate sales figures may lead managers to mistakenly cut or increase sales promotion budgets. Objectivity means control systems are impartial and fair. They are realistic, positive, and understandable and they encourage self-control. They should incorporate realistic expectations They should emphasize development and improvement They should fit the people involved, be kept as simple as possible, and present data in understandable terms They should encourage good communication and mutual participation They are flexible Control systems must leave room for individual judgment

Describe the barriers to the success of control systems. Consider one of your college classes as an example and your instructor as someone who would like to have good control systems in place. Explain if and how the barriers have detracted from performance in the class. (pg 537 Chapter 16)

Too much control- can lead to employee frustration. Too little employee participation- involving employees in participation can enhance productivity. Overemphasis on Means instead of Ends- too much focus or accountability for weekly production quotas. This can lead to workers and employees being pushed too hard or "beating the system"... manipulating data to fulfill short run goals. Overemphasis on Paperwork- Over emphasis on reports can lead to too much focus on quantification of results and even falsification of data. Overemphasis on One Instead of Multiple Approaches- Multiple control activities can have multiple performance measures, increasing accuracy and objectivity. If a professor tries to have too much control of the class, students can be tempted to doze off or be disengaged, based on frustration. Along with that, if a professor does not include students within the discussion, students will be disengaged and dissatisfied.

List and explain the eight tips to help first time managers thrive. How might you use any of these tips to assist you in your first management job? Article: First time managers

Understand the business- you need to be prepared to address questions from direct reports. Spend time with senior leaders and ask questions. Prioritize your one-on-one check-ins- Block time on your calendar, helps employees in career development, managing priorities, and answering questions they may have. Stay in the trenches-You can still do the "dirty work". Keep an eye out on day to day things to jump and grab the opportunity. YOU are the example- Others will act and behave like you do. You are the example, your values are demonstrated. Understand the importance of delegation- You cannot be everywhere, let others lead to grow their abilities. Find a mentor-Look across the company and approach someone to ask questions or for when you need support. Be consistent-if you flip flop on decisions, your team will start to lose trust in your ability. Take your time, you do not want to lead with emotions. Know the relationships have changed- you are now a peers boss and need to make it transparent. Set clear ground rules and have upfront conversations. (1:1s)

List at least four reasons why knowledge of motivation important to managers. Relate this to your service learning project.

What Rewards Do Your Employees Value? - Knowing what motivates each member of your team is important to getting them to achieve their goals. For example, while I am motivated by deadlines, other members of our team are motivated by incentives. What are the Job Objectives and the Performance Level You Require? - The results of an employee are directly related to their level of motivation, so it is important as a manager to make sure your employees know exactly what you expect out of there to receive their reward(s). Some employees need to be challenged in order to maintain motivation, so it is important to be mindful of the amount of responsibility put on each employee, whether too much or too little. Money does not necessarily motivate everybody; a manager needs to find what makes each individual employee work harder.


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