MCE Exam 2
Positional Sources of Power
legitimate, reward, coercive
Yerkes-Dodson Law
the principle that performance increases with arousal only up to a point, beyond which performance decreases
Management
the process of getting things done effectively and efficiently, with and through people.
Enacted values
the values you see a company actually enacting/practicing
skill- Conceptual
think analytically work with abstract ideas solve complex problems
skill-technical
use expertise perform tasks with proficiency apply strong skill set to operations
upside-down pyramid
view of organizations shows customers at the top being served by workers who are supported by managers (first,middle,then top)
Espoused values
what an organization says it values
skill- human
work well with others relate to people develop social capital build and manage relationships
Leadership is about seeking
adaptive and constructive change.
Leader
align people, establish vision, motivate
Crowdfunding
donation based or debt-investment (peer-to-peer lending)
value congruence
espoused values = enacted values
personal sources of power
expert and referent
organize
Creating structure Assigning tasks to individuals or groups (who will do what) Allocating resources
sustained Competitive Advantage
A company's strategies enable it to maintain above-average profitability for a number of years
Visions
A solid vision creates an idealized future state for your organization that everyone is motivated to pursue wholeheartedly.
Reward Power
Ability to control the allocation of rewards valued by others, or remove negative sanctions (e.g., professor can reward with grades)
Coercive Power
Ability to harm, penalize, or punish someone (e.g., a mugger with a gun demanding your wallet)
Objectives
An organization's specific performance targets
Top Managers
CEO President Vice President Executive director President, VP Administrator
Expert Power
Capacity to influence others by possessing knowledge or skills that they value. Based on a perception of competence (e.g., Einstein)
Accounting
Daily sales, expenses, and profits Inventory control, customer records, and payroll Helps with: Tax planning and financial forecasting Choosing sources of financing and wiring requests for funds
Human Resource
Deciding labor needs Recruiting and selecting the right people Training and development for growth Rewards and culture for retention Motivating for performance
first line managers
Department head Supervisor Team leader
Mission statement
Describes purpose of organization
Middle managers
Division manager Regional manager Plant manager
cost drivers
Economies of scale Learning and experience Capacity utilization Supply chain efficiencies Lower-cost inputs Production technology and design Communication systems and information technology Bargaining power Outsourcing or vertical integration Incentive systems and culture
plan
Establishing goals, objectives, and direction of individuals, groups, or the organization Deciding how you will achieve the objectives
role- Informational
Exchanging and processing information Ex: monitoring and disseminating
Lead
Getting people enthused, excited, and inspired Building commitment to goals and organization Aligning individual and organizational values
role- Interpersonal
Interacting with people Ex: building relationships, influencing
Value statement
List of key values or ideological themes considered important for organization
Operations
Manufacturing plan Plant size Machinery required Production capacity Supply chain considerations Inventory and inventory control-methods Location of plants and distributors, etc. Transportation costs
control
Measuring and collecting metrics of work performance Comparing performance to standards or goals Taking corrective action where needed Note: directly related to planning
Planning
Mission, Vision, and Values Strategic and financial objectives
Referent Power
Occurs when others idolize, identify with, and/or are inspired by the person (e.g., celebrities, social media influencers).
potential sources of capital for a business
Personal, family, or business associates Banks and finance institutions (lenders)
value drivers
Product features and performance Customer services Production R&D Technology and innovation Input quality Employee skills, training, & experience Sales and marketing Quality control processes
objectives must be
SMART: specific, measurable, attainable, relevant, time-bound
Strategy
The coordinated set of actions that managers take to outperform organization's competitors and achieve superior success
Strategy
The coordinated set of actions that managers take to outperform organization's competitors and achieve superior success
Goal Setting Theory
The types of goals we set impact our achievements. Increase motivation: specific goals, difficult goals.
Small Business Administration (SBA)
US government agency that advises and assists small businesses by providing management, financial advice, and loans
role- Decisional
Using information to make decisions Ex: resource allocation, address opportunities
Manager
a person who uses influence to set and achieve goals
board of governance
a strong, effective board of directors
Managerial employee
anyone who oversees others work, regardless of the amount.
Legitimate Power
associated with having status or formal job authority. There is a mutual agreement that people in certain roles can request certain behaviors of others (e.g., police officers)
economies of scale
factors that cause a producer's average cost per unit to fall as output rises, make more-sell for less
Venture Capitalists
individuals or companies that invest in new business in exchange for partial ownership of those businesses
Low-cost leadership
industry's lowest cost producer
Management is about seeking
order and stability.
Consumer market
people with unsatisfied wants and needs who have both the resources and willingness to buy Know your customers and adapt quickly to ever-changing demands
Angels
private individuals who invest their own money in potentially hot new companies before they go public
Value chain
set of activities that an organization carries out to create value for its customers