MGMT 100 Exam 2
Mechanistic organization
A form of organization that seeks to maximize internal efficiency.
Organic structure
An organizational form that emphasizes flexibility.
process innovations
Changes that affect the way outputs are produced. Flexible manufactureing practices such as just-in-time, mass customization, and simultaneous engineering.
Network organization structure (as used by Lewis Galoob Toys)
Network organization- A collection of independent, mostly single-function firms that collaborate on a good or service.
Organization Chart
The reporting structure and division of labor in an organization.
Basic facts on the U.S. manufacturing sector
-The U.S. is the largest manufacturing economy in the world as measured by value of goods produced ($1.6 trillion in 2007) -U.S. manufacturing has been moving upscale for years - aircraft, computer equipment, and nanotechnology and other high-tech products -12.7 million Americans have jobs in manufacturing (8% of the labor force) -'Services' is much larger than 'manufacturing' in the U.S. economy
Great
...
Steps in the strategic planning process
1. Analyze the situation 2. Generate alternative goals and plans 3.Evaluate goals and plans 4. Select goals and plans 5. Implement the goals and plans 6. Monitor and control performance.
Boston Consulting Group (BCG) Matrix
?marks Stars Dogs $cows Stars- Businesses with high growth and a strong competitive position require heavy investment, but their strong position lets them generate the needed revenues. $cows These low-groth businesses with a strong competitive position generate revenues in excess of their investment needs, so they fund other businesses. Dogs- These low-growth, weak-competitive-position businesses should be divested after their remaining revenues are realized. ?marks- These high-growth, weak-competitive-position businesses require substantial investment to improve their position, or else they should be divested.
Maximizing, optimizing, and satisficing
A decision realizing the best possible outcome. Achieving the best possible balance among several goals. Choosing an option that is acceptable, although not necessarily the best or perfect.
development project
A focused organizational effort to create a new product or process via technological advances.
Group decision biases( Groupthink, Devil's Advocate, and brainstorming)
A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus. A person who has the job of criticizing ideas to ensure that their downsides are fully explored. A process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed.
Strategic Management
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
Strategic objectives
A strategic objective is a clearly defined, high priority, and attainable end-state toward which major organizational effort will be directed.
Mission, Vision, Strategy
An organization's basic purpose and scope of operations. The long-term direction and strategic intenet of a company. A pattern of actions and resource allocations designed to achieve the organization's goals.
Vertical structure:
Authority- The legitimate right to make decisions and to tell other people what to do. Responsibility- The assignment of a task that an employee is supposed to carry out. Hierarchy- Three levels of organizational pyramid: CEO at the top, along with presidents and vice presidents. Then the middle management, that are in charge of entire facilities or departments. The lowest level is made up of lower management, and workers. Span of control- The number of subordinates who report directly to an executive or supervisor. Delegation- The assignment of new or additional responsibilities to a subordinate. Accountability- The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and qualty of their performance. Centralization- the more centralized the more likely it is to have high level executives make most decisions as opposed to lower levels of management.
Main business units in 2005
Dewalt Tools - Stars B&D Tools - $cow Lawn & Garden - ?mark Security Hardware - dog* Plumbing Products - dog Commercial Fasteners - dog*
Departmentalization:
Functional organization- Departmentalization around specialized activities such as production, marketing, and human resources. Divisional organization- Departmentalization that groups units around products, customers, or geographic regions. Matrix organization- An organization composed of goal reporting relationships in which some managers report to two superiors- a functional manager and a divisional manager.
Integration (coordination and control)
Integration- The degree to which differentiated work units work together and coordinate their efforts. Coordination- The procedures that link the various parts of an organization to achieve the organization's overall mission.
Horizontal structure:
Line departments- Units that deal directly with the organization's primary goods and services. Staff departments- Units that support line departments. Standardization- Establishing common routines and procedures that apply uniformly to everyone. Formalization- The presence of rules and regulations governing how people in the organization interact. Core competence- A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.
Ritz Carlton management system
Mission and Vision: Gold Standards, including the motto, "Ladies and Gentlemen Serving Ladies and Gentlemen" Human Resource Management System New Employees: "Select" not "Hire" Orientation and Training (21 days) The Daily Lineup and "Monday Wow" Empowerment (e.g., up to $2,000 to take corrective action on a customer's problem) Support Systems Information Technology: CLASS, Mystique Total Quality Management
Characteristics of communities of individuals
Organized around a shared interest A mechanism for tapping into a diverse knowledge/experience set ("open innovation") An open forum for sharing new ideas "Commons" (resources) to be used by all community members A process for developing and testing novel solutions
Ritz Carlton business strategy
Own and operate hotels and resorts in key locations Target affluent business travelers and vacationers Provide consistent world-class service throughout the chain of hotels that builds repeat business
Individual decision biases(illusion of control, discounting the future)
People's belief that they can influence events, even when they have no control over what will happen. A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.
Key Characteristics of service busineses
Perishability- They usually cannot be inventoried Poor service usually can't be redone (it can only be compensated) Professional services often cannot be accurately valued by customers ("asymmetric information") Service can be an important factor in obtaining a competitive advantage (in both service-based and product-based businesses)
Technology Audit
Process of clarifying the key technologies on which an organization depends.
Characteristics of Blade.org(purpose, strategy, organization, collaborative process, ect.)
Purpose is to find applications for IBM's bladecenter technology (a computer server technology) Strategy is to invent new solutions via collaborative innovation projects and networks Website, IdeaBank, and nine committees of volunteers constitute the "commons"
World Class
Rquires applying the best and latest knowledge and ideas and having the ability to operate at the highest standards of any place anywhere. It means becoming one of the very best in the world at what you do
Market innovation
Stimulates innovation by external demand for new goods and services.
Approaches to increasing organizational agility:
TQM- An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services. Flexible manufacturing- provide more production options and a greater variety of products. They have much shorter production runs with many different products, they're organized around products in work cells or teams so that people work close together and move parts with shorter or no delays, and decisions are made on the shop floor by the people doing the work. Just-in-time operations- A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.
Differentiation (division of labor, specialization)
The assignment of different tasks to different people or groups. A process in which different individuals and units perform different tasks.
Corporate-level, business-level, and functional-level strategies
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities. The major actions by which an organization competes in a particular industry or market. Strategies implemented by each functional area of the organization to suport the organization's business strategy.
Certainty, risk, and uncertainty
The state that exists when decision makers have accurate and comprehensive information. The state that exists when the probability of success is less than 100 percent and losses may occur. The state that exists when decision makers have insufficient information.
Innovation
a changer in method or technology-- a positive, useful departure from previous ways of doing things. Vital for a firm's competitive advantage. They are critical for success. Most firms have far more capacity to innovate than they are currently using. Even innovative firms do not innovate well outside of their familiar markets. Many innovative ideas and opportunities come from outside the firm. The ability to innovate is the primary determinant of a firm's competitive success and a nation's economic development.
SWOT analysis
an assessment of the organization's strengths, weaknesses, opportunities, and threats.
product innovation
changes in the actual outputs (goods and services) produced.
Exploitive learning
exploiting existing capabilities, such as improving production speed or product quality
Key technologies
have proved effective but offer a strategic advantage becasue not everyone uses them. Eventually, alternatives to key technologies can emerge. but until then, key technologies can give organizations a significant competitive edge and make it harder for new entrants to threaten the organization.
Pacing technologies
have yet to prove their full valure buy have the potential to provide a significant advantage that alters the rules of competition. Managers should develop or invest in pacing tech because of the compeitive advantages they can provide.
Exploratory learning
new knowledge that is, seeking to develop new goods or services
Organizational innovation
prospector firms-innovative bright ideas. Exploratory innovation Defender firms- Only try to improve the current tech. not neccessarily replace it. Strategic decisions are based on careful analyses Analyzer firms- let other companies try before responding. Usually looking to take over.
Emerging technologies
still under development buy may significantly alter the rules of competitiion in the future. Managers should monitor the development , but may need to invest in them until they have been more fully developed.
Base technologies
they are commonplace in the industry; everyone must have them. they provide little competitve advantage, but managers have to invest to ensure their organization's continued competence in the technology.
