Managment

. How does society influence business?

-Changes in society: growing older and retiring, dual career couples with kids, single heads of households, emphasis on sustainability, desire for work/life balance -These lead to changes in the workplace: child care, elder care, flexible work hours, virtual work ` Society influences business through changes in social opinions (cleaner environment, women in the workplace)

Businesses influence society?

-Goal is to achieve legitimacy; be seen as "good corporate citizen" Businesses influence society through charity, environmental consciousness, support of education, arts, sports, philanthropy, etc. to try to legitimize their business to society • Legitimacy (when not legit society will boycott you or try to shut you down) • Talk about society - - key word legitimacy

Buckingham and Coffman's 4 levels of Customer Service (first 2 prevent dissatisfaction)

1. Accuracy-customers expect their order to be correct and the price charged was the one agreed on 2. Availability-customers expect the business to be open when they can use it and/or have problems 3. Partnership-customers want the business to listen to them, be responsive to them, and understand their perspective 4. Advice-customers feel the closest bond to organizations that help them learn. This is the highest level of customer service

Three ways to provide superior customer service:

1. Makie it easy to complain 2. Make a timely, personal response to the complaint 3. Make sure your response to the complaint is effective

What percent of effective managers are successful?

10%

. What is (are) the most important function(s) for a 1st-line manager? Middle manager? Top manager?

1st-line = staffing & leading ` Middle = organizing ` Top = planning ***BUT, every manager performs all 5 functions

How much more does it cost to find a new customer than to keep an old one, according to TQM?

5 times as much

According to the article "when competitive advantage is neither," competitive benchmarking:

: is a strategy where you try to improve upon what your competitors are doing(not customer-focused, not high risk, can't make substantial gains)

Which of the following is not true concerning the power of customers and suppliers?

A supplier is powerful when they have few customers and are one of the many sources of supply

Which organizational subsystem does the research & development department belong to?

Adaptive

What is the difference between an administrator & a manager? Not much distinction

Administrator -- Non-profit or public sector companies (hospitals, schools, etc) Manager -- for profit or private sector companies

What is your most important resource as manager?

Answer: Human Resources [people] (Injellitance - incompetence + jealousy...is a big threat) -- most directly affects staffing, indirectly affects leading AKA-managers don't hire best people b/c of jealousy and fear of them taking their position) -dev. by Northcote Parkinson

Acquiring your supplier is known as vertical integration ________?

Backward

What does the non-planner typically blame for his/her poor performance?

Bad luck, what other people do = external locus of control (don't change their behavior) • Internal locus of control is more likely to change their behavior in response to failure

Is management art or science? When is it considered a science? an art?

Both ` Academically, it is a science b/c we develop theories of managing & then test them using the scientific method w/ empirical evidence ` In practice, it is more of an art b/c it's an extension of people's personalities; it cannot all be taught & there are many different management styles that can be successful Equifinality-many roads to success

Which subsystem deals directly with and organizations 2 major environmental dependencies(customers and suppliers)?

Boundary-spanning

When an organization engages in a turnaround strategy to combat declining performance, what are they doing?

Buffering central system

Effective managers spent most of their time

Comminication

What skill is most difficult to develop? Why?

Conceptual skills b/c you need to be smart, have experience, & it takes time to develop this skill

In developing a plan a manager relies primarily on ___skills whereas with implementing a plan a manager primarily relies on ___skills.

Conceptual, human (technical required in both

How do customers influence organizations & how do organizations influence customers?

Customers - can cut into your profitability; can demand lower prices/better quality ` Organizations - influence customers by advertising & creating "the need"

Which pair of environmental components represent the organizations 2major dependencies

Customers and Competitiors

What is the cyclical nature of the transformation process? Negative entropy? Buffering the technical core? Role differentiation & specialization? Synergy? Equifinality?

Cyclical nature of the transformation process = customers & suppliers are most important ` Negative entropy = trying to prevent the company from dying ` Buffering the technical core = stability in production ` Role differentiation & specialization = as open systems grow & develop, organization needs more specialized departments ` Synergy = teamwork; whole better than sum of its parts: 2+2=5 ` Equifinality = many roads to success

What is the primary difference between derailed executives & executives who made it to top management, according to the Center for Creative Leadership?

Derailed executives are insensitive to other people

What is effectiveness concerned with? efficiency?

Effectiveness is concerned with achieving desired results; doing the right thing at the right time, in the right way; goal attainment ; giving customer what they want, when they want it Efficiency is concerned with reducing waste or minimizing resource costs since many resources are scarce. "Getting more bang for the buck."

Which is true concerning effectiveness and efficiency?

Efficient organizations tend to be effective also

What does a first-line manager do? What are the names associated with 1st-line management?

Ensures that the plans developed by top managers & middle managers are implemented by laborers w/ minimum costs NAMES: Foreman, supervisor Most concerned about efficiency

What is Gresham's law of planning?

Even when managers have the best intentions of planning, they end up neglecting it b/c they end up dealing w/ more recent problems (have wrong priorities) manager take the day to day problems first but the desk never gets clear so the planning problems get neglected. You need to take the planning problems first and the day-to-day problems will eventually go away for the most part. Outcome of resisting planning: manager becomes reactive in dealing w/ day to day problems, but develop external locus of control

What does "planning has primacy" mean?

First thing you must do Gives directions to all of the other functions Begin with the end in mind

What is the shadow bureaucracy?

For every department in an organization, there's a federal agency governing it making sure you are following regulations (HR - Department of Labor)

What is the difference between a functional manager & a general manager?

Functional -- specializes/manages 1 area; 1st-LINE MANAGERS usually General -- manages many areas; "a jack of all trades & a master of none"; increase as you go up the pyramid

Which of the following is known as corporate welfare

Government subsidies

TARP program is an example of a ____?

Government subsidy

. What happens when a new entrant comes into the market/industry?

Increase competition, increase product supply, prices lower, & they seek market share

How did management become important & why is it still significant today?

Industrial Revolution changed how work was performed; dividing up labor causes a need for managers The economic effects of the industrial revolution lead to the need for professional management ` Owners used to do all of the managing Craftsman didn't need managers b/c could manage themselves, but machine need coordination

How does the international component of the environment influence organizations?

It is both a threat & an opportunity (i.e. more products competing is threat, but outsourcing & more people to buy is opportunity(Chinese people buying more of US goods)) foreign competition in your market place is a threat

Which is true concerning environmental scanning

It's an info gathering process, primarily top job management, provides foundation for strategic planning, outcome is a clear identification of threats and opportunities

Which is not true considering corporate downsizing?

It's primarily effectiveness-oriented

. What are the three ways organizations influence governments?

Lobbying, -Direct political action (voting, campaigning, PACs) - Illegal activity (blackmail, bribery)

Which of the following is not a way to provide superior customer service

Make it difficult to complain

According to Luthans (1988), are effective managers successful managers in general?

NO... effective managers were not usually promoted rapidly through the organization; the ones that networked were the ones who moved up

Successful managers spent the majority of their time

Networking

What is the law of the marketplace?

Organizations that can't compete will be forced to change their product line or will die out.

What are the Siamese twins of management?

Planning & Controlling

What is meant by the term "primacy of planning"

Planning is logically the first of the management functions

Which is not true of the industrial rev?

Prices of goods increased

What are process & product innovations? What is the focus of each?

Process - advancement made in technological aspect; more efficient {assembly line} internal change Product - an innovation dealing w/ a product, good, or service; more effective {light beer} adaptive subsystem, external change

Shadow bureaucracy" is associated with which gov influences on business? Gov regulation Winglets on plane wings to allow planes to burn less fuel is an example of which kind of technological innovation?

Process AND product innovation

What are the five subsystems of an organization? (figure-blue:effectiveness, red:efficiency)What functions do each subsystem perform?

Production = transform raw materials to goods & services (input/output) b) Boundary-spanning = buying from suppliers / selling to consumers c) Adaptive = research & development d) Maintenance = smooth operation & upkeep of organization {Facility Services @ LSU} e) Managerial = top & middle management; plans & legitimizes is top; middle organizes Can subsystems temporarily take the functions of other subsystems? yes

. What are the four ways that government influences organizations

Regulations - improve quality of life for its citizens - - both a cost and an opportunity (Higher Education Opportunity Act) Taxation/subsidies - encourage/discourage businesses (subsidies: to help organizations survive and prosper (encourage); Tax incremental financing - bonds taken by the cities out to attract businesses to relocate in that area (bass pro shop) Direct Government competition (post office vs. UPS; national parks vs. Six Flags) Economic policy - affect ability to thrive & prosper (Say's law-supplies creates its own demand; North American Free Trade Agreement signed in 90s based on this)

. What are the five forces of competition (Porter's) & how does each influence the level of competition within an industry?

Rivalry among organizations - greatest @ mature, low growth market(old product and stabilized or decreased demand); as competition increases, so does rivalry; lowers prices; More rivalry with more organizations in marketplace b) Threat of new entrants - new entrants steal market share & drive prices down; higher the market threat, higher the competition c) Threat of substitutes - can affect what prices you can charge & due to technological innovation, can make older products obsolete d) Power of customers - powerful customers can cut into profitability; customers who make large purchases can drive down prices e) Power of suppliers -can raise prices or reduce quality of good Top managers use these to analyze businesses to make acquisition and divestiture decisions -Competition drives down market share and profitability -In general, top managers want to acquire businesses in markets with low competition and divest businesses in markets with high competition

Which is true concerning the cyclic nature of the transformation process?

Similar to feedback loop, most closely associated with the controlling function, suggests that suppliers and customers are equally important

What was the basic change in the industrial revolution?

Skilled craftsman CHANGED TO THE use of machinery & division of labor (skilled labor decreased)

Toyota's image advertising "Ideas for Good" is focused primarily on which environmental component?

Society

Intellitance most adversely affects which function of management?

Staffing, which eventually affects leading

What determines if a supplier is powerful? Customer?

Suppliers are powerful if there are few places to buy or if he/she has many Customers (ex: car dealer being only one around can choose not to lower prices) ` Customers are powerful if they make large purchases or if they can easily find alternative places to buy

What does a middle level manager do? What are the names associated with middle level manager?

Taking the plans from top level management & put them into action for 1st line management...integrate & interpret these plans! NAMES Plant manager, department head, division head

At what level of management are conceptual skills most important? Technical skills? Human skills?

Technical = 1st line most important ` Human = equally important at all levels ` Conceptual = top managers b/c they have to plan

Which of the following is not true concerning managerial skills

Technical skills are not important at top management

Indirect action components:

Technology Economy Government Society International

Which is not true concerning PACs?

The limit on indirect contributions to a candidate is $15,000 per campaign (there is no limit on indirect contributions (aka soft money))

What are the 2 key concerns of management?

The process of achieving desired results through the efficient use of human & material resources & through the utilization of effectiveness & efficiency Effectiveness & Efficiency

What is management?

The process of achieving desired results through the efficient use of human & material resources & through the utilization of effectiveness & efficiency

How do suppliers influence organizations & how do organizations influence suppliers (i.e., 3 ways to establish & maintain a positive relationship with suppliers)?

Vertical integration - buy your supplier Long term contracts - lock in the supplier @ a lower price Reducing the number of suppliers - the larger volume makes a cost reduction

A brothel finds its existence threatened by the cops. This is an example of ___?

___? The lack of legitimacy of this type of enterprise in a community & the impact of the governmental component of the environment

How much more does it cost to find a new customer than to keep an old one, according to Total Quality Management estimates?

` 5 times

What gives rise to the three managerial roles, according to Mintzberg?

` A manager's AUTHORITY gives rise to STATUS (authority-status-interpersonal-informational-decisional)

. What are the two major dependencies in the external environment? What is the threat to these 2 major dependencies?

` Customers & Suppliers ` Their biggest threat is competition

What is corporate downsizing? What happens in corporate downsizing? What level of management is most adversely affected?

` Cutting costs ("Cut the fat, by reducing costs by ppl.") ` Efficiency oriented 4 things that happen: 1-Management levels are eliminated 2-managers who remain are asked to do more work 3-company implements new computer/info technology to allow top mngmt to communicate directly to 1st line 4-staff management functions are farmed out to consulting firms "outsourced" (get an outside law firm to do law work instead of an in-office law dept) Often done by eliminating MIDDLE MANAGMENT levels; staff management isfarmed off to consulting firms & everyone else that remains does more work; technology & computers help for faster communications, but often those people left have "survivors syndrome" where they become stressed, overworked, & think they are the next to leave since their friends were just fired & as a result, their productivity decreases.

On what activity do effective managers spend the majority of their time? Successful managers?

` Effective = manage down; communication Successful = networking - not what you know, but who you know; they manage up

What are the 5 barriers to entry into an industry

` Government regulations (patents which keep competition out)(ex: homemade asthma med) ` Capital requirements(aka=start-up costs) ` Brand loyalty to established companies(getting people to switch from their reg habit products) ` Cost advantages of existing companies who buy in large quantities to new, small companies ` Distribution channels tied up & hard to break in (ex:getting grocer to put your new drink at eye level instead of Coke products)

How do substitutes affect an industry

` Increase competition, increase power of the customer & can make products obsolete ` Substitues mostly due to technological innovations (often substitutes are at a higher price when they come out because it's supposedly "innovated" and "refined") Most of the time, can combat substitutes with lower prices and aggressive advertising (ex: significant other finds another significant other)

What are the general effects of technology on an industry?

` Increases competition, promotes product obsolescence...you have to change your product line to meet new changes in technology or risk dying out

How does the economy influence an organization? (What are the effects of the economy on orgs)

` Indirectly by effecting demand & vice versa Facilitates the establishment of new enterprises Almost always unpredictable Managers prefer stable economic conditions with moderate, steady growth b/c violent changes in economic conditions can restrict business investment & growth

What are the three basic characteristics of an open system?

` Input - raw materials from suppliers ` Transformation - production of goods ` Output - finished goods & services *dependent on the environment for inputs and outputs

. What is the difference between a line manager & a staff manager?

` Line - responsible for activities that directly affect the transformation process; power over production; have all the power & EXISTS AT ALL LEVELS OF MANAGEMENT Staff - support the line managers' efforts through their special expertise; gives support & guidance/advice; MOST OFTEN MIDDLE MANAGERS More likely to be eliminated during downsizing

What is environmental scanning? How is it related to planning & organizational performance?

` Monitor changes & trends in the environment ` Allows you to decide what goods or services to emphasize & which markets to explore & technologies to exploit • avoid threats and exploit opportunities • if you don't do environmental scanning - - flying blind

How are effectiveness & efficiency related?

` More concerned with efficiency, the harder it is to be effective (i.e. when you try too hard to cut costs, you can lose sight of your goals) Efficient companies tend to be effective (changed during review) [Ford ex. w/ Jaguar looking like Taurus was ineffective but efficient]

Why is planning important? (don't memorize)

` Organizational success (helps you succeed, but doesn't guarantee it) ` Sense of unity & direction sense of oneness in your organization ` Coping with change (take wrong problems 1st & so forth) helps prepare for the future/change ` Performance standards see what you have done right to repeat it and see what you have done wrong and change it ` Managerial development (develops managerial talent) provides practice for managers

What does a top manager do? What are the names associated with top management?

` Plan & legitimize for the organization, overall cost leadership, overall goals (Nieman Marcus) NAMES: CEO, CFO, CIO, chairman of the board, executive vice president More focused on EFFECTIVENESS

. What is a PAC? What are the limits regarding PAC contributions to campaigns?

` Political Action Committee formed by employees & stockholders to lobby government -Solicit contributions from these members and then makes contributions to a political candidate's campaign ` Limited to direct contributions of $5,000 per campaign, but they can give "soft money"; not limits on (indirect contributions)

Why do most businesses fail?

` Poor management

What happened to productivity (supply), prices, & demand as a result of the industrial revolution?

` Production(supply) increased, prices decreased, demand increased

What are the three managerial skills identified by Katz? Be able to identify each skill.

` Technical - ability related to a method, process, or procedure; knowledge (expertise method) ` Human - ability to work well in cooperation w/ others (communication, leadership, MOST BASIC: empathy, self-awareness) platinum rule: treat other people how they want to be treated ` Conceptual - ability to problem solve; see the big picture; forecast the future; trend analysis

. What was the pivotal event of our time, according to Drucker?

` The switch from owner manager to professional manager

How do powerful suppliers & customers influence organizations?

` They can either drive prices up or down & can cut into the organizations profitability You don't want to depend on powerful customers & suppliers

. What are the three managerial roles Mintzberg identified? Be able to identify each role.

`Interpersonal - to develop & maintain positive relationships w/ others Informational - receive information & then analyze it Decisional - using information to solve problems or to take advantage of opportunities

What are the three purposes of planning?

a) Establish & help achieve organizational objectives (fundamental) b) Offset future uncertainties by reducing the risk surrounding organizational operations (defensive) help organization avoid threats in the environment c) Affirmative (offensive) seeking out & taking advantage of opportunities to increase organizational success helps exploit opportunities in the environment

What are the three aspects of controlling? (aka feedback)

a) Monitor organizational performance b) Compare actual results w/ "hoped for" results for feedback on performance c) If actual performance is less than "hoped for," diagnose the problem and take corrective action If actual is greater than "hoped for," then offer positive reinforcement (party!)

What are the 5 functions of management? Be able to identify & describe the five functions of management? {POSLC} Collectively known as the management process

a) Planning - 1.Setting goals & 2.steps necessary to get there (action planning) b) Organizing - 1.dividing up work & 2.making sure they work together (coordinating efforts for the purpose of goal retaining) c) Staffing - recruiting, selecting employees, training, retention, reward programs d) Leading - motivate, communicate, resolve conflicts e) Controlling - give feedback ************STAFFING AND LEADING ARE PEOPLE ORIENTED

Why do managers resist planning?

afraid of failure -it's hard work -can be used to measure results and thus possibility of lack of achievement -takes time and is expensive ` Resists b/c not rewarded by the organization (WIFM-what's in it for me) ` Lack of immediate feedback ` Involves change ` Goes against the "doer" mentality

Which is not true of the article "avoid pricing yourself short"?

companies who offer best quality, prices,and service dominate the market

A manager is conducting an annual performace appraisal with one of her emplyoees. This is:

controlling

Ford saw a 15% increase in market share and dramatic cost cuts. They were:

effective and efficient

Product innovations primarily increase ___while process innovations increase___:

effectivness, efficiency

Human resource managers are

functional and staff managers

Role differentiation and specialization

help an organization deal with troublesome aspects of the external environment

Ass. Manager of Cane's communicates, motivates, and resolves conflicts. He

leads

According to Luthan's real managers study:

promotions were not based on performance

The CEO of blah blah is a what?

top, general, and line managers