Management 301

Six Sigma

A highly disciplined process for creating and delivering near perfect products and services. The goal is to increase profits by eliminating variable defects and waste. Operates at 99.99966% level of accuracy

GATT (General Agreement on Tariffs and Trade)

A multilateral agreement that attempts to promote freer trade among countries

Keys to Social Skills Competency

Developing Others Leadership Influence Communication Change Catalyst Building Bonds Teamwork and Collaboration

North American Free Trade Agreement (NAFTA)

Economic pact between the US, Canada, and Mexico. Combined economies to become world's largest trading bloc.

T-group vs. Focus Groups

T-Groups... participants learn more about themselves Focus Groups... used in the early stages of a product or concept

Joint Venture

Team up with a local partner with knowledge of host country, risks include losing control over technology and subsidiary to local partner. Risk is shared equally between both parties.

Strategic Alliance

Teaming up with a host country partner with local knowledge, as in JV, but for a specified period of time with a termination clause (i.e. 5 years)

Job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

Economic Order Quantity (EOQ)

Intersection of inventory carrying costs and transportation costs. Quantity and capacity planning.

the 4 EI Competencies

Self Awareness Social Awareness Self Management Social Skills

Keys to Self Management Competency

Self-Control Trustworthiness Conscientiousness Adaptability Achievement Orientation Initiative

Franchising

Sell limited rights to use brand name to franchisees in return for a lump sum payment and a share of the franchisees' profits, has to abide by strict rules on how to run the business. (i.e. McDonald's, Hilton International) Biggest problem is quality control; can ruin reputation

Low-Context Cultures

Situation may or may not make a difference in what is considered appropriate behavior (i.e. American, Australian, Canadian, English, French, German, Nordic, Swiss)

WTO (World Trade Organization)

the only international body dealing with the rules of trade between nations

Job specification

the skills, knowledge, experience, and education needed to perform the job

Why did Britain leave the EU?

1) failure to serve domestic interest 2) loss of national identity 3) pound v. euro 4) syrian refugee crisis

Basic Components of an Effective Sexual Harrassment Polict

1. Develop a comprehensive organization-wide policy 2. Hold training sessions with supervisors 3. Establish a formal complaint procedure 4. Act immediately when employees complain of sexual harrassment 5. Discipline the offenders at once

Approaches to International Business

1. Geocentric 2. Polycentric 3. Ethnocentric

Advantages to Debt Financing

1. Interest on debt is tax deductible 2. Creditors have no say 3. Don't share profits with anyone

MNC Strategies for Going Abroad

1. International 2. Multidomestic 3. Global 4. Transnation

Graphic Rating Scales

A scale measure that uses a scale point format that presents the respondent with some type of graphic continuum as the set of possible raw responses to a given question (i.e. Excellent, Good, Average, Fair, Poor)

Balance Sheet

A summary of a firm's financial position on a given date that shows total assets = total liabilities + owner's equity

Income Statement

A summary of a firm's revenues and expenses over a specified period, ending with net income or loss for the period

Ashby's Law of Requisite Variety

A system is to be able to deal successfully with the diversity of challenges that its environment produces, then it needs to have a repertoire of responses which is (at least) as nuanced as the problems thrown up by the environment. Only variety can absorb variety. Internal diversity > external diversity

Job analysis

A tool for determining what is done on a given job and what should be done on that job

Liquidity Ratios

Ability of a firm to meet short-term obligations. Current: Meet short term obligations (=current assets/current liabilities) Quick: Meet short term obligations without relying on inventory (=current assets - Inventory/current liabilities)

Bona Fide Occupational Qualification (BFOQ)

Allows discrimination in hiring on the basis of sex, religion, or national origin when such a characteristic is necessary to the performance of the job. The burden is on the employer to prove a BFOQ. (i.e. state prison hires only men as guards in a jungle-atmosphere male-only prison, airlines require pilots to retire at age 60)

Pluralistic Organization

An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds

Control

Any process that directs the activities of individuals toward the achievement of business or performance goals

Organizational Development (OD)

Application of behvioral science knowledge to develop and improve features that reinforce orginizational effectiveness.

Brexit

Britain pulls out of the EU with a 52 to 48 vote. Syrian refugee crisis?

MNC: Transnational

Centralization of certain functions, other functions done at subsidiaries. Encourages managers to think globally and act locally. Companies may base global-scale production plants for labor intensive products in low-wage countries such as Mexico, Poland, and China and locate production plants that require a skilled workforce in high-skill countries such as Germany and Japan. This fosters communication among subsidiaries to permit transfer of technological expertise and skills.

Good Baby

Chinese producer of children's toys and baby products. 1989 opened and developed low cost strollers for the world market. Sells more than 1000 items. Creates new product every 12 hours. Meets needs of local consumers. (Folds in Japan, Looks sleek in Scandinavia, Looks like SUV in US)

Globality

Comes after globalization. Companies in other multinational areas are emerging and starting to challenge the incumbent American and Japanese companies. Faster than expected. Global playing field is leveling.

Offshoreing

Company moves jobs to another country, where there is usually lower wages. 1) increased efficiency, 2) frees funds for expansion and employment

Yes-No Control

Control similarly to concurrent control but uses decision making 'checkpoints' at which determinations are made about whether to continue, take corrective action, or stop.

Feedback Control

Control used after the operations are completed, and focuses on the use of information about previous results to correct deviations from the acceptable standard

Matching Developmental Level

D-1 Enthusiastic Beginner: low competence, high commitment D-2 Disillusioned learner: some competence, low commitment D-3 Reluctant Contributor: high competence, variable commitment D-4 Peak Performer: high competence and high commitment

Activity Based Costing (ABC)

Designed to identify streams of activity. Allocate costs on business units and processes according to the time devoted to those activities.

According to the situational leadership theory, how does a leader diagnose her followers' developmental level?

Development level = the competence and commitment of followers to perform a particular task by themselves Competence: knowledge and skills that one has to perform a particular task. Gained through education, training, or experience Commitment: A combination of confidence and motivation. Self assuredness and enthusiasm in doing a task.

Resistance to Change (RTC)

Effort to block new ways of doing things

Keys to the Self Awareness Competency

Emotional Self Awareness Accurate Self Assessment Self Confidence

Keys to Social Awareness Competency

Empathy Organizational Awareness Service Orientation

European Union (EU)

Europe is integrating economically to form the biggest market in the world

Breakeven Point

FC/Contribution Margin, where CM = Unit Selling Price - Unit Cost Total Cost = Total Revenues (no profit)

Managing Resistance to Change (RTC)

Facilitation and support Negotiation and rewards Implicit and Explicit Coercion Manipulation and Cooptation

Stages of Globalization

Globalization 1.0: 1492-1800 Country interests drove global integration Globalization 2.0: 1800-2000 Multinational corporations drove global integration Globalization 3.0: 2000-present Individuals will be the primary force driving globalization (What about you?) Empowerment (global collaboration and competition. Good for people and capital, consumers, corporation, new employees) * *Outsourcing and meaning

Peak Performer (D4)

High Competence High Commitment

Reluctant Contributor (D3)

High Competence Variable Commitment

Understanding Individualism/Collectivism

High Individualism = Individual Nation = People take care of themselves and immediate family. High emotional independence. Emphasize reward and individual achievement (i.e. US, Great Britain) Low Individualism = Collective Nation = Emotional dependence on institutions. Emphasize Group Membership (i.e. China, Venezuela, Pakistan)

Understanding Gender Focus

High Masculine Trait Value = Emphasize activities that lead to success, money, material possessions. Working long hours. Fewer vacations (i.e. United States) Low Masculine, High Feminine Trait Value: Emphasize activities that show caring of others. Enhance quality of life. (i.e. India)

Undestanding Power Distance

High Power Distance = People accept power differences (i.e. Philippines, Venezuela, Mexico) Lowe Power Distance = People like to regard themselves as equal (Austria, Israel, Denmark)

Understanding Uncertain Avoidance

High Uncertainty Avoidance = Prefer clear norms that govern behavior (i.e. Indonesia, Japan) Low Uncertainty Avoidance = Have fewer rules and are comfortable in ambiguous situations (i.e. Sweder, the Netherlands, the United States)

Ethnocentric

Home country methods are the best

Polycentric

Host country methods are the best

Activity Ratios

How efficiently a firm is using its resources Inventory Turnover: (=COGS/Av. Inventory) A/R Turnover (=net sales/average total assets)

Leverage (Debt) Ratios

How much a firm relies on debt Debt to Asset Ratio: (= total debt/total assets) Debt to Equity Ratio (=total liabilities/total shareholder's equity)

Profitability Ratio

How much money the firm's investors made Return on Investment (=net income/investment) Return on assets (=net income/total assets) Return on Sales (=net income/sales)

Tata Motors

Huge auto producer in India since the 1960s. Few people global gave it thought. Developed nano car ($2500); worlds cheapest car. Also purchases Jaguar/Land Rover from Ford. Can produce high quality but do so at lower costs which will challenge a lot of high end automotive companies

Force Field Analysis

Identifying the specific forces that prevent people from changing and those that will drive people toward change -- must eliminate restraining forces that help people unfreeze

Three Factors of RTC

Individual resistance Group resistance Organizational resistance

Proactive Change

Initiated before a performance gap has occurred. Being a leader.

First and Second Essential Issue for Understanding Situational Leadership

Issue 1: What is the specific task you are trying to lead your employee to perform? Issue 2: Leadership is based on the employee's current perfomance, no their potential ------- Issue 3: Any change in an organization can result in temporary changes in the developmental level of the employees.

What do researches mean when they have found that Emotional Intelligence is 90% of the difference between outstanding and average leaders?

It is the key to success

Asian Trade Agreements

Japan was dominant economy last century. Now China is on the way to becoming the largest producer and consumer of many products worldwide.

Employment at Will

Legal concept that an employee may be terminated for any reason

Liscensing

Licensee in another country buys the right to manufacture company's product in its own country for a negotiated fee. Problem arises when a company licenses its technological expertise to overseas competition. Licensee bears most of the cost and risk

Monolithic Organization

Little degree of structural integration -- employing few women, minorities, or other groups that differ from the majority -- and thus has a highly homogeneous employee orientation

Enthusiastic Beginner (D1)

Low Competence High Commitment

MNC: International

Managers use their organization's existing core capabilities to expand into foreign markets. This facilitates the transfer of skills to know-how from the parent company to subsidiaries around the globe. It is most appropriate when there are few pressures for economies of scale or local responsiveness.

Globalization

Many key aspects to globalization. Movement across borders (people, capital, objects, images); connection of spaces (both national and local); interdependence of social processes; imagination of the world as one, albeit unequal place.

MNC: Global

Market a standardized project in the global marketplace, produce in locations with favorable costs, tight control over parent company. Disadvantage: standardize its goods and services. May be less responsive to consumer tastes and demands in different countries. If no one likes the product then = failure

Examples of business that went abroad by MNC international

Microsoft, Pfizer

Outsourcing v. Offshoreing

Most people express concerns about offshoring, but throw it into the umbrella of outsourcing because people conclude that high-paying jobs from the US are being lost to low cost countries elsewhere.

Shosholoza

Movement in synchronicity like the coupling rods on the driving wheels of a steam locomotive Working together in harmony. The 2+2=5 syndrome

Disadvantages of Debt Financing

Must make regular (monthly/quarterly) payments

Examples of business that went abroad by MNC multidomestically

Nestle, Heineken

Examples of business that went abroad by MNC Global

Nike, Sony

Management by Objectives (MBO)

Objectives set by a subordinate and a supervisor must be reached within a given time period

Hostile Work Enviornment Harrasment

Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment.

Outsourcing

Outside provider to produce one or more of company's goods or services

Realistic Job Preview (RJP)

Part of the selection process that provides an applicant with honest and complete information about a job and the work environment. Used to give a realistic picture of the job

High Context Cultures

Pay close attention to the situation in assessing appropriate behavior (i.e. Arab, African, Chinese, Greek, Japanese, Korean, Latin Americans, Vietnamese)

Dabbawala

Person in Mumbai, India whose job is carrying and delivering fresh-made food from home in lunch boxes to office workers. Existed for over 120 years. They use an elegant logistics system operating through public transport, foot work and multiple transfer points. Example of Six-Sigma efficiency with a rating of 99.999999%

BARS (behaviorally anchored rating scale)

Popular approach that combines elements from critical incident and graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors

Exporting

Provides economies of scale, other countries may have lower cost of production though, transportation costs may be high. Exporting from the company's home base may be inappropriate if other countries offer lower-cost locations for manufacturing a product. An alternative is to manufacture in a location where the mix of factor costs and skills is most favorable and then export from that location to other markets to achieve scale economies

Leadership Styles

S-1 Direcing: High Direction, but low support S-2 Coaching: High Direction and high support S-3 Supporting: Low Direction, but high support s-4 Delegating: Low Direction, Low support

Disillusioned Learner (D2)

Some Competence Low Commitment

Quid Pro Quo Harrasment

Submission to or rejection of sexual conduct is used as a basis for employment decisions

OD Interventions

Strategic: Mergers, Acquisitions Technostructural: Structure, systems, work design Human processes: Conflict resolution, leadership HRM: Recruitment appraisals rewards

Feedforward Control

The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly

Concurrent Control

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed

Critical Path Schedule (CPS)

The critical path is the path with the longest completion time. Slack is the difference between nods. That mean a project can be delayed that amount of time without changing anything.

Individualism/Collectivism

The degree to which a society emphasizes individuals and their self-interests. The extent to which people act on their own or as a part of a group

Power Distance

The extent to which a society accepts the fact that power in organizations is distributed unequally

Masculinity/Femininity

The extent to which a society values quantity of life over quality of life. Male v. Feminine traits

Uncertain Avoidance

The extent to which people in a society feel threatened by uncertain and ambiguous circumstances

BRICS

The fastest emerging economies: 1. Brazil 2. Russia 3. India 4. China 5. South Africa

Bureaucratic Control

The use of rules, regulations, and authority to guide performance

Association of South East Asian Nations (ASEAN)

This was established in 1967 to reduce regional tensions and to develop cooperative approaches in dealing with outside countries. Its members are: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand & Vietnam.

Job Sharing

To share the responsibilities and duties of a single full time job with one or more other employees.

Greenfield investment

Type of foreign direct investment (FDI) in which a parent company creates subsidiary in a different country, building its operations from the ground up.

Kurt Lewin's 3-Steps for Change

Unfreezing: Identifying old practices that must change and grow Moving: Instituting change Refreezing: Strengthening new behaviors to support change

Examples of business that went abroad by MNC transnational

Unilever, Panasonic

MBWA (Management by Walking Around)

Unstructured approach to hands-on, direct participation by the managers in the work-related affairs of their subordinates, in contrast to rigid and distant management The purpose of this exercise is to collect qualitative information, listen to suggestions and complaints, and keep a finger on the pulse of the organization

Market Control

Use of pricing mechanism and economic information

Geocentric

Use the best methods, no matter what the source

Cognitive Ability Tests

Used most often in hiring process.

ABC (Pareto) Analysis

Used to arrive at this prioritisation. Ranking items in category A, B, and C based on the value of that item. A being the most valuable, C being the most insignificant. A (80%) B (15%) C (5%)

Clan Control

Uses norms, values, shared goals, and trust among members

MNC: Multidomestic aka Multinational

Uses subsidiaries in each country in which the company does business and provides a great deal of discretion to those subsidiaries to respond to local conditions. Less need for coordination or direction from corporate headquarters. Disadvantage: higher manufacturing costs and duplication of effort, no economies of scale can be reached

360-degree appraisal

Using multiple sources of appraisals to gain a compehensive perspective on one's performance

For sustainable competitive advantage, Human Resource management must be...

VRIO: Valuable, Rare, Imitable, Organized

Managing by Fooling Around (MBFA)

Where a boss spends zero time among his peeps, and fires out e-mail fusillades that have no context and no soul.

Glass Ceiling

an invisible barrier that makes it difficult for minorities and women to be move beyond a certain level in the corporate hierarchy

Coaching (S2)

high directive, high supportive

Directing (S1)

high directive, low supportive

Supporting (S3)

low direction, high support

Delegation (S4)

low direction, low support

Reactive Change

problem-driven change, occurs under pressure. Being a follower

Adverse Impact

when a seemingly neutral employment practice has a disproportionately negative effect on a protected group