mgt340test3

Recruitment and Decruitment

-Recruitment: locating, identifying, & attracting capable applicants -If employee vacancies exist, managers should use the info gathered through job analysis to guide them in this -Decruitment: reducing an organization's workforce -if HR planning shows a surplus of employees

Types of Discipline Problems and Examples of Each

-attendance: absenteeism, tardiness, abuse of sick leave -on-the-job behaviors: insubordination, failure to use safety devices, alcohol or drug abuse -dishonesty: theft, lying to supervisors, falsifying info on employment application or on other organizational forms -outside activities: criminal activities, unauthorized strike activities, working for a competing organization (if no-compete clause is part of employment)

eight activities in the HRM process.

-human resource planning (decruitment) -recruitment -selection (identifying & select competent employees) -orientation -training (provide employees with up-to-date skills & knowledge) -performance management -compensation & benefits -career development (retain competent & high-performing employees)

Types of Control

Input (feedforward control-anticipates problems)--> Processes (concurrent control- corrects problems as they happen) --> Output (feedback control- corrects problems after they occur)

Virtual Organization

an organization that consists of a small core of full-time employees & outside specialists temporarily hired as needed to work on projects. -ex: when Second Life, a company creating a virtual world of colorful online avatars, was building its software. Founder Philip Rosedale hired programmers from around the world & divided up the work into about 1,600 individual tasks, "from setting up databases to fixing bugs." The process worked so well, the company used it for all sorts of work.

Contingent workers

temporary, freelance, or contract workers whose employment is contingent upon demand for their services -Some are now referring to these workers as the independent work force, since there's no dependent relationship between worker & organization.

Core competencies

the organization's major value-creating capabilities that determine its competitive weapons.

Formalization

the degree to which jobs within the organization are standardized & the extent to which employee behavior is guided by rules & procedures. -Highly formalized jobs offer little discretion over what is to be done. (explicit job descriptions, numerous organizational rules, & clearly defined procedures covering work processes) -Low formalization means fewer constraints on how employees do their work. (employees have more discretion in how they do their work.)

planning-controlling link

(Controlling provides a critical link back to planning. If managers didn't control, they'd have no way of knowing whether their goals & plans were being achieved & what future actions to take) -planning: goals, objectives, strategies, plans -organizing: structure, human resource management -leading: motivation, leadership, communication, individual & group behavior -controlling: standards, measurements, comparison, actions

Strategic management

what managers do to develop the organization's strategies -an important task involving all the basic management functions—planning, organizing, leading, and controlling

First-Mover Advantages and Disadvantages

ADV: -reputation for being innovative & industry leader -cost & learning benefits -control over scarce resources & keeping competitors from having access to them -opportunity to begin building customer relationships & customer loyalty DIS: -uncertainty over exact direction technology & market will go -risk of competitors imitating innovations -financial & strategic risks -high development costs

How Are Corporate Strategies Managed? (Boston consulting group matrix)

BCG matrix: a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. -introduced the idea that an organization's various businesses could be evaluated & plotted using a 2 × 2 matrix to identify which ones offered high potential & which were a drain on organizational resources. The horizontal axis represents market share (low or high), & the vertical axis indicates anticipated market growth (low or high) -Four Categories: -Stars: High market share/High anticipated growth rate -Cash Cows: High market share/Low anticipated growth rate -Question Marks: Low market share/High anticipated growth rate -Dogs: Low market share/Low anticipated growth rate

Effective Strategic Leadership

Eight key dimensions have been identified for how top managers provide effective strategic leadership(Each dimension encompasses an important part of the strategic management process): -determining the organization's purpose or vision -exploiting and maintaining the organization's core competencies -developing the organization's human capital -creating and sustaining a strong organizational culture -creating and maintaining organizational relationships -reframing prevailing views by asking penetrating questions and questioning assumptions -emphasizing ethical organizational decisions and practices -establishing appropriately balanced organizational controls.

Designing Organizational Structure

Organizing: arranging and structuring work to accomplish an organization's goals. Organizational Structure: the formal arrangement of jobs within an organization. -managers design this Organizational chart: the visual representation of an organization's structure. Organizational Design: (when managers create or change the structure) a process involving decisions about six key elements: -Work specialization -Departmentalization -Chain of command -Span of control -Centralization and decentralization -Formalization

Benefits and Drawbacks of Open Innovation

benefits: -gives customers what they want-a voice -allows organizations to respond to complex problems -nurtures internals & external relationships -brings focus back to marketplace -provides way to cope with rising costs & uncertainties of product development drawbacks: -high demands of managing the process -extensive support needed -cultural callenges -greater need to flexibility -crucial changes required in how knowledge is controlled & shared

Performance management system

establishes performance standards used to evaluate employee performance. -More than 70% of managers admit they have trouble giving a critical performance review to an underachieving employee.

Orientation

introducing a new employee to his or her job & the organization -There are two types of orientation: -Work unit orientation- familiarizes the employee with the goals of the work unit, clarifies how his or her job contributes to the unit's goals, & includes an introduction to his or her new coworkers. -Organization orientation- informs the new employee about the company's goals, history, philosophy, procedures & rules. It should also include relevant HR policies & maybe even a tour of the facilities. -Employee Training is an important HRM activity. -As job demands change, employee skills have to change -In 2011, U.S. business firms spent more than $59 billion on formal employee training -Managers are responsible for deciding what type of training employees need, when they need it, & what form that training should take.

Departmentalization (ch11 slide 7,8,9)

the basis by which jobs are grouped together -Functional: Grouping jobs by functions performed -Product: Grouping jobs by product line -Geographical: Grouping jobs on the basis of territory or geography -Process: Grouping jobs on the basis of product or customer flow -Customer: Grouping jobs by type of customer and needs

Unity of command

the management principle that each person should report to only one manager -one of Fayol's 14 management principles -Without this, conflicting demands from multiple bosses may create problems.

Span of Control

the number of employees who can be effectively & efficiently supervised by a manager. -The traditional view was that managers could not & should not directly supervise more than five or six subordinates. -Determining this is important because to a large degree, it determines the number of levels & managers in an organization—an important consideration in how efficient an organization will be. -All other things being equal, the wider or larger the span, the more efficient the organization. EX: Assume two organizations both have approximately 4,100 employees. If one organization has a span of four and the other a span of eight, the organization with the wider span will have two fewer levels & approximately 800 fewer managers

Responsibility

the obligation or expectation to perform. -When managers use their authority to assign work to employees -employees should be held accountable for their performance -Assigning work authority without responsibility & accountability can create opportunities for abuse. -no one should be held responsible or accountable for work tasks over which he or she has no authority to complete those tasks

Controlling

the process of monitoring, comparing, and correcting work performance. -All managers should control even if their units are performing as planned bc they can't really know that unless they've evaluated what activities have been done & compared actual performance against the desired standard. -The Purpose of Control: To ensure that activities are completed in ways that lead to the accomplishment of organizational goals. -Whether controls are effective, then, is determined by how well they help employees and managers achieve their goals.

Strategic Business Unit (SBU)

the single independent businesses of an organization that formulate their own competitive strategies.

Functional strategy

the strategies used by an organization's various functional departments to support the competitive strategy.

Tips for Managing Downsizing

ways that managers can lessen the trauma both for the employees being laid off & for the survivors. -treat everyone with respect -communicate openly & honestly: --inform those being let go as soon as possible --tell surviving employees the new goals & expectations --explain impact of layoffs -follow any laws regulating seance pay or benefits -provide support/counseling for surviving (remaining) employees -reassign roles according to individuals' talents & backgrounds -focus on boosting morale: --offer individualized reassurance --continue to communicate, especially one-on-one --remain involved & available -have a plan for the empty office spaces/cubicles so it isn't so depressing for surviving employees

Strengths

any activities the organization does well or any unique resources that it has.

What Determines Pay and Benefits

(factors are job-based & business- or industry-based)

Global HRM Laws

*important that managers in other countries be familiar with the specific laws that apply there* -Work councils- groups of nominated or elected employees who must be consulted when management makes decisions involving personnel(link employees with management) -Board representatives- employees who sit on a company's board of directors & represent the interests of the firm's employees (in western Europe, these are the two most common forms of representative participation)

Employee empowerment

- giving employees more authority (power) to make decisions -As organizations have become more flexible & responsive to environmental trends, there's been a distinct shift toward decentralized decision making.

Contemporary Issues in Control

Adjusting Controls for Cross-Cultural Differences & Global Turmoil: -Control techniques can be quite different for different countries -Differences are primarily in the measurement and corrective action steps of the control process -Managers in foreign countries also need to be aware of constraints on corrective actions they can take. -Some countries' laws prohibit closing facilities, laying off employees, taking money out of the country, or bringing in a new management team from outside the country. Workplace privacy: -employers can (and do) --read your e-mail (even those marked "personal or confidential") --tap your telephone --monitor your work by computer --store and review computer files --monitor you in an employee bathroom or dressing room --track your whereabouts in a company vehicle (26% of companies have fired an employee for e-mail misuse; 26% have fired workers for misusing the Internet; 6% have fired employees for inappropriate cell phone use; 4% have fired someone for instant messaging misuse; & 3% have fired someone for inappropriate text messaging) Employee theft: any unauthorized taking of company property by employees for their personal use. -It can range from embezzlement to fraudulent filing of expense reports to removing equipment, parts, software, or office supplies from company premises. Managers need to educate themselves about this control issue & be prepared to deal with it. Workplace Violence: the U.S. National Institute of Occupational Safety & Health still says that each year, some 2 million American workers are victims of some form of workplace violence -the number of workplace shootings has decreased - In an average week, one employee is killed & at least 25 are seriously injured in violent assaults by current or former coworkers. Controlling customer interactions: -Service profit chain- the service sequence from employees to customers to profit. --the company's strategy & service delivery system influence how employees deal with customers; that is, how productive they are in providing service and the quality of that service. Corporate governance: the system used to govern a corporation so that the interests of corporate owners are protected. failed abysmally at Enron, as it has at many companies caught in financial scandals. In the aftermath of these scandals, corporate governance has been reformed. The Role of Boards of Directors: a group, independent from management, looking out for the interests of shareholders who were not involved in the day-to-day management of the organization. -However, it didn't always work that way. Board members often enjoyed a cozy relationship with managers in which each took care of the other. The Sarbanes-Oxley Act puts greater demands on board members of publicly traded companies in the US to do what they were empowered & expected to do.

External Factors That Affect the HRM Process (SLIDE 12)

*The entire HRM process is influenced by the external environment. Those factors most directly influencing it include the economy, employee labor unions, governmental laws & regulations, & demographic trends* The Economy's Effect on HRM: -The global economic downturn has left what many experts believe to be an enduring mark on HRM practices worldwide -U.S. workers have dramatically lowered their career & retirement expectations for the foreseeable future (labor economists in the US say that although jobs may be coming back slowly, they aren't the same ones that employees were used to. Many of these jobs are temporary or contract positions, rather than full-time jobs with benefits) Employee Labor Unions: -Labor union - an organization that represents workers & seeks to protect their interests through collective bargaining -In unionized organizations, many HRM decisions are dictated by collective bargaining agreements, which usually define things such as recruitment sources; criteria for hiring, promotions, & layoffs; training eligibility; & disciplinary practices -Work stops, labor disputes, & negotiations between management & labor are just a few of the challenges organizations & managers face when their workforce is unionized Legal Environment of HRM: -organization's HRM practices are governed by a country's laws. A number of important laws & regulations affect what you can & cannot do legally as a manager. Bc workplace lawsuits are increasingly targeting supervisors, as well as their organizations, managers must know what they can & cannot do by law. -Affirmative action - organizational programs that enhance the status of members of protected groups (minorities & females) and the organization refrains from discrimination. Have these to ensure that decisions & practices enhance the employment, upgrading, & retention of members from protected groups -Two current U.S. laws that each have the potential to affect future HRM practices --Protection and Affordable Care Act (PPACA & commonly called the Health Care Reform Act) was signed into law in March 2010 & upheld by the Supreme Court of the US in 2012. --Social Networking Online Protection Act (SNOPA) has been introduced & would prohibit employers from requiring a username, password, or other access to online content. Demographic Trends: -The oldest, most experienced workers (born before 1946) make up 6% of the workforce. -baby boomers (born between 1946 & 1964) make up 41.5% of the workforce. -Gen Xers (born 1965 to 1977) make up almost 29% of the workforce. -Gen Yers (born 1978 to 1994) make up almost 24% of the workforce

Controlling for Employee Performance

-Disciplinary actions- actions taken by a manager to enforce the organization's work standards & regulations. -Delivering Effective Performance Feedback- managers need to provide their employees with feedback so that the employees know where they stand in terms of their work. -When giving performance feedback, both parties need to feel heard, understood, & respected. If done that way, positive outcomes can result.

Contemporary Issues in ManagingHuman Resources

-Downsizing: (layoffs) the planned elimination of jobs in an organization -When an organization has too many employees (can happen when it's faced with an economic recession, declining market share, too aggressive growth, or poorly managed operations) -1 option for improving profits is to eliminate some of those excess workers. -During the most current economic recession, many well known companies downsized (Boeing, Nokia, Procter & Gamble, Hewlett-Packard, Volkswagen, Dell, General Motors, Unisys, Siemens, Merck, Honeywell, & eBay) -Sexual harassment: any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual's employment, performance, or work environment -is a serious issue in both public & private sector organizations -During 2011 more than 8,300 complaints were filed with the Equal Employment Opportunity Commission (EEOC), a substantial drop from 13,867 in 2008, 12,696 in 2009, & 11,717 in 2010. -Family-friendly benefits: benefits that accommodate employees' needs for work-life balance -introduced programs such as on-site child care, summer day camps, flextime, job sharing, time off for school functions, telecommuting, & part-time employment. -Employee Health Care Costs: Companies are trying to control skyrocketing employee health care costs. since 2002, health care costs have risen an average of 15% a year & are expected to double by the year 2016 from the $2.2 trillion spent in 2007 -smokers cost companies even more about 25% more for health care than nonsmokers. -the biggest health care cost for companies (about $153 billion a year) is obesity & its related costs arising from medical expenditures & absenteeism -Employee Pension Plan Costs: pension commitments have become such an enormous burden that companies can no longer afford them. -this system has been described as "fundamentally broken" -But the days when companies could afford to give employees a broad-based pension that provided them a guaranteed retirement income have changed

Benchmarking of Best Practices

-Benchmarking - the search for the best practices among competitors or non-competitors that lead to their superior performance. -benchmarking should identify various benchmarks -Benchmark - the standard of excellence to measure and compare against.

Centralization & Decentralization

-Centralization: the degree to which decision making is concentrated at upper levels of the organization More centralization: -environment is stable -lower-level managers are not as capable or experienced at making decisions as upper-level managers -decisions are relatively minor -organization is facing a crisis or the risk of company failure -company is large -effective implementation of company strategies depends on managers retaining say over what happens -Decentralization: the degree to which lower-level employees provide input or actually make decisions More decentralization: -environment is complex, uncertain -lower-level managers are capable & experienced at making decisions -lower-level managers want a voice in decisions -decisions are significant -corporate culture is open to allowing managers a say in what happens -company is geographically dispersed -effective implementation of company strategies depends on managers having involvement & flexibility to make decisions (an organization is never completely centralized or decentralized.)

Why Is Strategic Management Important?

1. It results in higher organizational performance. 2. It requires that managers examine and adapt to business environment changes. 3. It coordinates diverse organizational units, helping them focus on organizational goals.

Capabilities

an organization's skills and abilities in doing the work activities needed in its business. -"how" it does its work. The major value-creating capabilities of the organization are known as its core competencies.

Woodward's Findings on Technology & Structure

UNIT PRODUCTION: structural characteristics: -low vertical differentiation -low horizontal differentiation -low formalization most effective structure: -organic MASS PRODUCTION: structural characteristics: -moderate vertical differentiation -high horizontal differentiation -high formalization most effective structure: -mechanistic PROCESS PRODUCTION: structural characteristics: -high vertical differentiation -low horizontal differentiation -low formalization most effective structure: -organic

Internal Collaboration

When managers believe collaboration among employees is needed for more coordinated & integrated work efforts, they can use several different structural options. Popular 0nes include cross-functional teams, task forces, & communities of practice -Cross-functional team: a work team composed of individuals from various functional specialties. -When these teams are formed, team members are brought together to collaborate on resolving mutual problems that affect the respective functional areas. Ideally, the artificial boundaries that separate functions disappear, & the team focuses on working together to achieve organizational goals. -Task force (or ad hoc committee): a temporary committee or team formed to tackle a specific short-term problem affecting several departments. -The temporary nature of a this is what differentiates it from a cross-functional team. -these members usually perform many of their normal work tasks while serving on the task force; however, the members of a task force must collaborate to resolve the issue that's been assigned to them. -When the issue or problem is solved, the task force is no longer needed & members return to their regular assignments. -Communities of practice: groups of people who share a concern, a set of problems, or a passion about a topic, & who deepen their knowledge & expertise in that area by interacting on an ongoing basis.

Variable pay systems

a pay system in which an individual's compensation is contingent on performance -90% of U.S. organizations use some type of variable pay plans, & 81% of Canadian & Taiwanese organizations do.

Skill-based pay systems

a pay system that rewards employees for the job skills and competencies they can demonstrate -Under this type of pay system, an employee's job title doesn't define his or her pay category, skills do. -Research shows these types of pay systems tend to be more successful in manufacturing organizations than in service organizations & organizations pursuing technical innovations

Management information system (MIS)

a system used to provide management with needed info on a regular basis. -In measuring actual performance, managers need info about what is happening within their area of responsibility & about the standards in order to be able to compare actual performance with the standard. -this system can be manual or computer-based, although most organizations have moved to computer-supported applications. -The term system in MIS implies order, arrangement, & purpose. - an MIS focuses specifically on providing managers with info (processed & analyzed data), not merely data (raw, unanalyzed facts). -Data - an unorganized collection of raw, unanalyzed facts (ex: an unsorted list of customer names). -Information - data that has been analyzed & organized such that it has value & relevance to managers.

Weaknesses

activities the organization does not execute well or needed resources it does not possess

Resources

an organization's assets that are used to develop, manufacture, and deliver a product to its customers. -They're "what" the organization has

Project Structure

an organizational structure in which employees continuously work on projects -many organizations use this -Unlike the matrix structure, a project structure has no formal departments where employees return at the completion of a project. -Instead, employees take their specific skills, abilities, & experiences to other projects. -Also, all work in project structures is performed by teams of employees

ContemporTeam Structure

an organizational structure in which the entire organization is made up of work teams -employee empowerment is crucial bc no line of managerial authority flows from top to bottom. -Rather, employee teams design & do work in the way they think is best, but the teams are also held responsible for all work performance results in their respective areas. -adv: -employees are more involved & empowered. -reduced barriers among functional areas -dis: -no clear chain of command -pressure on teams to perform

Benefits and Drawbacks of Collaborative Work

benefits: -increased communication & coordination -greater innovative output -enhanced ability to address complex problems -sharing of info & best practices drawbacks: -potenital interpersonal conflict -different views & competing goals -logistics of coordinating

Work specialization

dividing work activities into separate job tasks -Individual employees "specialize" in doing part of an activity rather than the entire activity in order to increase work output. AKA division of labor. -Work specialization makes efficient use of the diversity of skills that workers have. -Early proponents of work specialization believed it could lead to great increases in productivity -At the beginning of the 20th century, that generalization was reasonable. Bc specialization was not widely practiced, its introduction almost always generated higher productivity. -Overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, & higher turnover.

Business model

how a company is going to make money -focuses on two things: (1) whether customers will value what the company is providing and (2) whether the company can make any money doing that.

Chain of Command

the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom -Managers need to consider it when organizing work because it helps employees with questions such as "Who do I report to?" or "Who do I go to if I have a problem?" -three other important concepts: authority, responsibility, and unity of command.

Strategies

the plans for how the organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.

Authority

the rights inherent in a managerial position to tell people what to do and to expect them to do it. -Managers in the chain of command have authority to do their job of coordinating & overseeing the work of others. Authority can be delegated downward to lower-level managers, giving them certain rights while also prescribing certain limits within which to operate. -Acceptance theory of authority: the view that authority comes from the willingness of subordinates to accept it -Chester Barnard, proposed this perspective -If an employee didn't accept a manager's order, there was no authority. -Line authority: authority that entitles a manager to direct the work of an employee -It is the employer-employee authority relationship that extends from the top of the organization to the lowest echelon, according to the chain of command -As a link in the chain of command, a manager with line authority has the right to direct the work of employees & to make certain decisions without consulting anyone. -As organizations get larger & more complex, line managers find that they do not have the time, expertise, or resources to get their jobs done effectively so they create staff authority -Staff authority: positions with some authority that have been created to support, assist, advise those holding line authority, & generally reduce some of their informational burdens. -For instance, a hospital administrator who cannot effectively handle the purchasing of all the supplies the hospital needs creates a purchasing department, which is a staff function.

Traditional Organizational Designs

(all 3 structures tend to be more mechanistic in nature) Simple structure: an organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization (most companies start as entrepreneurial ventures using this structure) -strengths: fast, flexible, inexpensive to maintain, clear accountability -weaknesses: not appropriate as organization grows, reliance on one person is risky -As employees are added, most don't remain as simple structures. The structure becomes more specialized & formalized. Functional structure: an organizational design that groups together similar or related occupational specialties (think of this structure as functional departmentalization applied to the entire organization.) -strengths: cost-saving advantages from specialization (economies of scale, minimal duplication of people & equipment), employees are grouped with others who have similar tasks -weaknesses: pursuit of functional goals can cause managers to lose sight of what's best for the overall organization, functional specialists become insulated & have little understanding of what other units are doing Divisional structure: an organizational structure made up of separate, semiautonomous units or divisions -each division has limited autonomy, with a division manager who has authority over his or her unit & is responsible for as an external overseer to coordinate & control the various divisions, & often provides support services such as financial & legal. -strengths: focuses on results- division managers are responsible for what happens to their products & services -weaknesses: duplication of activities & resources increases costs & reduces efficiency

Purposes of Organizing

-divides work to be done into specific jobs & departments -assigns tasks & responsibilities associated with individual jobs -coordinates diverse organizational tasks -clusters jobs into units -establishes relationships among individuals, groups, & departments -establishes formal lines of authority -allocates & deploys organizational resources

Developing Strategic Flexibility

-encourage leadership unity by making sure everyone is on the same page -keep resources fluid & move them as circumstances warrant -have the right mindset to explore & understand issues & challenges -know what's happening with strategies currently being used by monitoring & measuring results -encourage employees to be open about disclosing & sharing negative info -get new ideas & perspectives from outside the organization -have multiple alternatives when making strategic decisions -learn from mistakes

Financial Controls

-every business needs this to achieve their goal of earning a profit -They might analyze quarterly income statements for excessive expenses. They might also calculate financial ratios to ensure that sufficient cash is available to pay ongoing expenses, that debt levels haven't become too high, or that assets are used productively. -Budgets are planning & control tools. When a budget is formulated, it's a planning tool bc it indicates which work activities are important & what & how much resources should be allocated to those activities. Budgets are also used for controlling bc they provide managers with quantitative standards against which to measure & compare resource consumption. If deviations are significant enough to require action, the manager examines what has happened & tries to uncover why. Traditional Controls: -Ratio analysis: --Liquidity --Leverage --Activity --Profitability -Budget Analysis: --Quantitative standards --Deviations

Five Forces Model

Five forces determine industry attractiveness and profitability: 1. Threat of new entrants - how likely is it that new competitors will come into the industry? 2. Threat of substitutes - how likely is it that other industries' products can be substituted for our industry's products? 3. Bargaining power of buyers. - How much bargaining power do buyers (customers) have? 4. Bargaining power of suppliers - How much bargaining power do suppliers have? 5. Current rivalry- How intense is the rivalry among current industry competitors?

Balanced scorecard

a performance measurement tool that examines more than just the financial perspective. -Measures a company's performance in four areas: --Financial --Customer --Internal processes --People/innovation/growth assets (managers should develop goals in each of the four areas & then measure whether the goals are being met)

Choosing a Competitive Strategy

-Cost leadership strategy: when an organization competes on the basis of having the lowest costs (costs or expenses, not prices) in its industry --A low-cost leader is highly efficient. Overhead is kept to a minimum, and the firm does everything it can to cut costs. -Differentiation strategy: a company that competes by offering unique products that are widely valued by customers --Product differences might come from exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image. Practically any successful consumer product or service can be identified as an example of the this strategy. -Focus strategy: involves a cost advantage (cost focus) or a differentiation advantage (differentiation focus) in a narrow segment or niche. (aimed at broad market) --Segments can be based on product variety, customer type, distribution channel, or geographical location. -Stuck in the middle: Porter named it this.(not a good place to be)when costs are too high to compete with the low-cost leader or when its products & services aren't differentiated enough to compete with the differentiator (aimed at broad market) --Getting unstuck means choosing which competitive advantage to pursue and then doing so by aligning resource, capabilities, and core competencies

Tools for Measuring OrganizationalPerformance

-Feed forward control- control that takes place before a work activity is done. (most desirable type of control- bc prevents problems rather than having to correct them after any damage (poor-quality products, lost customers lost revenue, etc) has been done) -Concurrent control - control that takes place while a work activity is in progress. -Management by walking around - a term used to describe when a manager is out in the work area interacting directly with employees. (The best-known form of concurrent control is direct supervision aka management by walking around) -Feedback control - control that takes place after a work activity is done. (most popular type of control) -have two advantages: 1. feedback gives managers meaningful info on how effective their planning efforts were. Feedback that shows little variance between standard & actual performance indicates that the planning was generally on target. 2. feedback can enhance motivation. People want to know how well they're doing & feedback provides that info

Sources of Information for Measuring Performance

-Four approaches used by managers to measure and report actual performance are personal observations, statistical reports, oral reports, and written reports. Most managers use a combination of these approaches. -PRSONAL OBSERVATIONS: Benefits: -getting first hand knowledge -info isn't filtered -intensive coverage of work activities Drawbacks: -subject to personal biases -time-consuming -obtrusive -STATISTICAL REPORTS: Benefits: -easy to visualize -effective for showing relationships Drawbacks: -provide limited info -ignore subjective factors -ORAL REPORTS: Benefits: -fast way to get info -allow for verbal & nonverbal feedback Drawbacks: -info is filtered -info can't be documented -WRITTEN REPORTS: Benefits: -comprehensive -formal -easy to file & retrieve Drawbacks: -take more time to prepare

Types of Corporate Strategies

-Growth: expansion into new products and markets -Stability: maintenance of the status quo. Continues to do what it is currently doing. EX: continuing to serve the same clients by offering the same product or service, maintaining market share, & sustaining the organization's current business operations. The organization doesn't grow, but doesn't fall behind, either. -Renewal: examination of organizational weaknesses that are leading to performance declines. --Retrenchment strategy - a short-run renewal strategy used for minor performance problems.It helps an organization stabilize operations, revitalize organizational resources & capabilities, & prepare to compete once again. --Turnaround strategy - when an organization's problems are more serious, more drastic action is needed. --Managers do two things for both renewal strategies: cut costs & restructure organizational operations. However, in a turnaround strategy, these measures are more extensive than in a retrenchment strategy.

Departmentalization Trends

-Increasing use of customer departmentalization -Bc getting & keeping customers is essential for success, this approach works well bc it emphasizes monitoring & responding to changes in customers' needs. -Cross-functional team - a work team composed of individuals from various functional specialties. Because work teams have become more complex & diverse skills needed to accomplish tasks

Recruiting sources

-Internet: -adv: reaches large numbers of people; can get immediate feedback -dis: generates many unqualified candidates -employee referrals: -adv: knowledge about the organization provided by current employee; can generate strong candidates bc a good referral reflects on the recommender -dis: may not increase the diversity & mix of employees -company web site: -adv: wide distribution; can be targeted to specific groups -dis: generates many unqualified candidates -college recruiting: -adv: large centralized body of candidates -dis:limited to entry-level positions -professional recruiting organizations: -adv: good knowledge of industry challenges & requirements -dis: little commitment to specific organization

Today's Organizational Design Challenges

-Keeping Employees Connected: mobile computing & communication technology have given organizations & employees ways to stay connected & to be more productive (e-mail, calendars, wireless networks, corporate databases, video conferences and web cams.) -ex: handheld devices have e-mail, calendars, & contacts that can be used anywhere there's a wireless network. & these devices can be used to log into corporate databases & company intranets. Employees can videoconference using broadband networks & Webcams. -Many companies are giving employees key fobs with constantly changing encryption codes that allow them to log onto the corporate network to access e-mail & company data from any computer hooked up to the Internet. -Managing Global Structural Issues: -Researchers have concluded that the structures & strategies of organizations worldwide are similar, "while the behavior within them is maintaining its cultural uniqueness. -When designing or changing structure, managers may need to think about the cultural implications of certain design elements -Formalization may be more important in less economically developed countries & less important in more economically developed countries where employees may have higher levels of professional education & skills -No matter what structural design managers choose for their organizations, the design should help employees do their work in the best (most efficient & effective) way they can. The structure should support & facilitate organizational members as they carry out the organization's work (an organization's structure is simply a means to an end.)

Components of a Mission Statement

-customers: who are the firm's customers? -markets: where does the firm compete geographically? -concern for survival, growth, & profitability: is the firm committed to growth & financial stability? -philosophy: what are the firm's basic beliefs, values, & ethical priorities? -concern for public image: how responsive is the firm to societal & environmental concerns? -products or services: what are the firm's major products or services? -technology: is the firm technologically current? -self-concept: what are the firm's major competitive advantage & core competencies? -concern for employees: are employees a valuable asset of the firm?

Traditional Training Methods

-Of all these training methods, experts believe that organizations will increasingly rely on e-learning & mobile applications to deliver important info & to develop employees' skills -on the job: employees learn how to do task simply by performing them, usually after an initial introduction to the task -job rotation: employees work at different jobs in a particular area, getting exposure to a variety of task -mentoring & coaching: employees work with an experienced worker who provides info, support, & encouragement; also called apprenticeships in certain industries -experiential exercises: employees participate in role playing, simulations, or other face to face types of training -workbooks/manuals: employees refer to training workbooks & manuals for info -classroom lectures: employees attend lectures designed to convey specific info TECHNOLOGY BASED TRAINING: -CD-ROM/DVD/videotapes/audiotapes/ podcasts: employees listen to or watch selected media that convey info or demonstrate certain techniques -videoconferencing/teleconferencing/ satellite TV: employees listen to or participate as info is conveyed or techniques demonstrated -E-learning: internet based learning where employees participate in multimedia simulations or other interactive modules -mobile learning: leanring delivered via mobile devices

External Collaboration

-Open innovation: opening up the search for new ideas beyond the organization's boundaries & allowing innovations to easily transfer inward & outward. -For instance, Procter & Gamble, Starbucks, Dell, Best Buy, & Nike have all created digital platforms that allow customers to help them create new products & messages -Strategic partnerships: collaborative relationships between two or more organizations in which they combine their resources & capabilities for some business purpose -how organizations in todays environment look for advantages wherever they can

What Is Organizational Performance?

-Performance - the end result of an activity. Whether that activity is hours of intense practice before a concert or race or it's carrying out job responsibilities as efficiently & effectively as possible, performance is what results from that activity. -Organizational performance - the accumulated results of all the organization's work activities. It's a multifaceted concept, but managers need to understand the factors that contribute to organizational performance.

Measures of Organizational Performance

-Productivity - the amount of goods or services produced divided by the inputs needed to generate that output. -Organizations & individual work units want to be productive by producing the most goods & services using the least amount of inputs. -Output is measured by the sales revenue an organization receives when goods are sold (selling price × number sold). -Input is measured by the costs of acquiring & transforming resources into outputs. -Organizational effectiveness - a measure of how appropriate organizational goals are & how well those goals are being met. -That's the bottom line for managers, & it's what guides managerial decisions in designing strategies & work activities & in coordinating the work of employees.

Popular Industry and Company Rankings

-Rankings are a popular way for managers to measure their organization's performance. There's not a shortage of these rankings -Rankings are determined by specific performance measures, which are different for each list.

Types of Training

-Some of the most popular types include profession/industry- specific training, management/supervisory skills, mandatory/compliance info (such as sexual harassment, safety, etc.), & customer service training -General: communication skills, computer systems application & programming, customer service, executive development, management skills & development, personal growth, sales, supervisory skills, & technological skills & knowledge -Specific: basic life-work skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership, production knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, & others

Current Strategic Management Issues

-Strategic leadership: the ability to anticipate, envision, maintain flexibility, think strategically, & work with others in the organization to initiate changes that will create a viable & valuable future for the organization. --An organization's strategies are usually developed & overseen by top managers. An organization's top manager is typically the CEO (chief executive officer). They usually work with a top management team that includes other executive or senior managers like a COO (chief operating officer), CFO (chief financial officer), CIO (chief information officer), & other individuals who have titles. --traditional descriptions of the CEO's role in strategic management include the "chief " strategist, structural architect, & developer of the organization's information/control systems. -Strategic flexibility: the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake. --Given the highly uncertain environment that managers face today, strategic flexibility is absolutely necessary

Flexible Work Arrangements

-Telecommuting: a work arrangement in which employees work at home & are linked to the workplace by computer. -not every job does this but many do -Compressed workweek: a workweek where employees work longer hours per day but fewer days per week -most common arrangement is four 10-day days (4-40 program) -Flextime (or flexible work hours): a scheduling system in which employees are required to work a specific number of hours a week but are free to vary those hours within certain limits. -A flextime schedule typically designates certain common core hours when all employees are required to be on the job, but allows starting, ending, & lunch-hour times to be flexible. -Job sharing: the practice of having two or more people split a full-time job. -Many companies have used this during the economic downturn to avoid employee layoffs.

Control process

-a three-step process of measuring actual performance, comparing actual performance against a standard, & taking managerial action to correct deviations or inadequate standards. -This process assumes that performance standards already exist, & they do. They're the specific goals created during the planning process. -step 1: measuring actual performance: -How We Measure - personal observations, statistical reports, oral reports, & written reports. -What We Measure - what is measured is probably more critical to the control process than how it's measured. Because selecting the wrong criteria can create serious problems. Besides, what is measured often determines what employees will do. -Most work activities can be expressed in quantifiable terms. Managers should use subjective measures when they can't. Although such measures may have limitations, they're better than having no standards at all & doing no controlling. -step 2: comparing actual performance against standard: -Determining the degree of variation between actual performance & the standard -Range of variation - the acceptable parameters of variance between actual performance & the standard. (LOOK AT CH 10 SLIDE 9) -step 3: taking managerial action: -Managers can choose among three possible courses of action: do nothing, correct the actual performance, or revise the standards. -Immediate corrective action - corrective action that corrects problems at once in order to get performance back on track. -Basic corrective action - corrective action that looks at how & why performance deviated before correcting the source of deviation -Revise the Standard - (It's possible that the variance was a result of an unrealistic standard—too low or too high a goal) if performance consistently exceeds the goal, then a manager should look at whether the goal is too easy and needs to be raised -Managers must be cautious about revising a standard downward -goals & objectives: organizational, divisional, departmental, individual

Performance Appraisal Methods

-appraising someone's performance is never easy, especially with employees who aren't doing their jobs well -managers can be better at it by using any of the 7 different performance appraisal methods -written essay: evaluator writes a description of employee's strengths & weaknesses, past performance, & potential; provides suggestions for improvement adv: simple to use dis: may be better measure of evaluator's writing ability than of employee's actual performance -critical incident: evaluator focuses on critical behaviors that separates effective & ineffective performance adv: rich examples, behaviorally based dis: time consuming, lacks quantification -graphic rating scale: popular method that lists a set of performance factors & an incremental scale; evaluator goes down the list & rates employee on each factor adv: provides quantitative data, not time consuming dis: doesn't provide in depth info on job behavior -BARS (behaviorally anchored rating scale): popular approach that combines elements from critical incident & graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors adv: focuses on specific & measurable job behaviors dis: time consuming; difficult to develop -multiperson comparison: employees are rated in comparison to others in work group adv: compares employees with one another dis: difficult with large number of employees; legal concerns -MBO: employees are evaluated on how well they accomplish specific goals adv: focuses on goals; results oriented dis: time consuming -360 degree appraisal: utilizes feedback from supervisors, employees, & coworkers adv: thorough dis: time consuming

decruitment options

-firing: permanent involuntary termination -layoffs: temporary termination; may last only a few days or extend to years -attrition: not filling openings created by voluntary resignations or normal retirements -transfers: moving employees either laterally or downward; usually does not reduce costs but can reduce intraorganizational supply-demand imbalances -reduced workweeks: having employees work fewer hours per week, share jobs, or perform their jobs on a part-time basis -early retirements: providing incentives to older & more senior employees for retiring before their normal retirement date -job sharing: having employees share one full-time position

Making Communities of Practice Work

-have top management support & set clear expectations -create an environment that will attract people & make them want return for advice, conversation, & knowledge sharing -encourage regular meetings of the community, whether in person or online -establish regular communication among community members -focus on real problems & issues important to the organization -have clear accountability & managerial oversight

High-Performance Work Practices

-self-managed teams -decentralized decision making -training programs to develop knowledge, skills, & abilities -flexible job assignments -open communication -performance-based compensation -staffing based on person-job & person-organization fit -extensive employee involvement -giving employees more control over decision making -increasing employee access to info

Why Is HRM Important?

As a significant source of competitive advantage (true for organizations around the world, not just U.S. firms.) -People-oriented HR creates superior shareholder value As an important strategic tool -Achieve competitive success through people by treating employees as partners To improve organizational performance -High performance work practices lead to both high individual and high organizational performance -one study reported that improving work practices could increase market value by as much as 30 percent High-performance work practices- work practices that lead to both high individual and high organizational performance -Even if an organization doesn't use these practices, other specific HRM activities must be completed in order to ensure that the organization has qualified people to perform the work that needs to be done—activities that comprise the HRM process.

Why Is Controlling Important?

As the final link in management functions: -Planning - controls let managers know whether their goals and plans are on target and what future actions to take. -Empowering employees - control systems provide managers with information & feedback on employee performance and minimize the chance of potential problems -Protecting the workplace (assets) - controls enhance physical security & help minimize workplace disruptions. Today's environment brings heightened threats from natural disasters, financial scandals, workplace violence, global supply chain disruptions, security breaches, and even possible terrorist attacks.

Mechanistic & Organic Structures

Mechanistic organization: (or bureaucracy) an organizational design that's rigid & tightly controlled -was the natural result of combining the six elements of structure. Adhering to the chain-of-command principle ensured the existence of a formal hierarchy of authority, with each person controlled & supervised by one superior. Keeping the span of control small at increasingly higher levels in the organization created tall, impersonal structures. As the distance between the top & bottom of the organization expanded, top management would increasingly impose rules & regulations -because top managers couldn't control lower-level activities through direct observation & ensure the use of standard practices, they substituted rules & regulations. -high specialization -rigid departmentalization -clear chain of command -narrow spans of control -centralization -high formalization Organic organization: an organizational design that's highly adaptive & flexible -Rather than having standardized jobs & regulations, the organic organization's loose structure allows it to change rapidly as required. It has division of labor, but the jobs people do are not standardized. -Employees tend to be professionals who are technically proficient & trained to handle diverse problems. They need few formal rules & little direct supervision because their training has instilled in them standards of professional conduct. -cross-functinal teams -cross-hierarchical teams -fee flow of info -wide spans of control -decentralization -low formalization

Contingency Factors Affecting Structural Choice

Strategy & Structure: -Changes in corporate strategy should lead to changes in an organization's structure that support the strategy. -An organization's structure should facilitate goal achievement. bc goals are an important part of the organization's strategies, strategy & structure are closely linked. -Certain structural designs work best with different organizational strategies --The organic structure works well for organizations pursuing meaningful and unique innovations --The mechanistic organization works best for companies wanting to tightly control costs Size & Structure: -an organization's size affects its structure. -as an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, & rules/regulations -large organizations (more than 2,000 employees) -However, once an organization grows past a certain size, size has less influence on structure. once there are around 2,000 employees, it's already fairly mechanistic. Adding another 500 employees won't impact the structure much. -On the other hand, adding 500 employees to an organization with only 300 employees is likely to make it more mechanistic. Technology & Structure: -Organizations adapt their structures to their technology. -The initial research on technology's effect on structure can be traced to Joan Woodward who studied small manufacturing firms in southern England to determine the extent to which structural design elements were related to organizational success. -She couldn't find any consistent pattern until she divided the firms into 3 distinct technologies that had increasing levels of complexity & sophistication -Woodward's classification of firms based on the complexity of the technology employed: --Unit production- of single units or small batches --Mass production- of large batches of output --Process production- in continuous process of outputs (most technically complex) Environmental Uncertainty & Structure: -dynamic and complex environments -Mechanistic organizational structures tend to be most effective in stable & simple environments. -The flexibility of organic organizational structures is better suited for dynamic & complex environments. -Managers try to minimize environmental uncertainty by adjusting the organization's structure. The evidence on the environment-structure relationship helps explain why so many managers today are restructuring their organizations to be lean, fast, & flexible. -Worldwide economic downturns, global competition, accelerated product innovation by competitors, & increased demands from customers for high quality & faster deliveries are examples of dynamic environmental forces. -Mechanistic organizations are not equipped to respond to rapid environmental change and environmental uncertainty. As a result, we're seeing organizations become more organic

Corporate strategy

an organizational strategy that determines what businesses a company is in or wants to be in, and what it wants to do with those businesses -It's based on the mission & goals of the organization & the roles that each business unit of the organization will play.

Growth Strategies

a corporate strategy that's used when an organization wants to expand the number of markets served or products offered, through either its current business(es) or new business(es) -Because of its growth strategy, an organization may increase revenues, number of employees, or market share. -Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. -Types of Growth Strategies: -Concentration: focuses on its primary line of business & increases the number of products offered or markets served in this primary business -Vertical integration: --Backward vertical integration - the organization becomes its own supplier (control its inputs) --Forward vertical integration - the organization becomes its own distributor (control its outputs) -Horizontal integration: a company grows by combining with competitors. -Diversification: --Related diversification - when a company combines with other companies in different, but related, industries --Unrelated diversification - when a company combines with firms in different & unrelated industries

Strategic management process

a six-step process that encompasses strategic planning, implementation, and evaluation. -Although the first four steps describe the planning that must take place, implementation and evaluation are just as important! Even the best strategies can fail if management doesn't implement or evaluate them properly. Step 1: Identifying the organization's current mission, goals, & strategies -Mission: a statement of the purpose of an organization (The scope of its products and services) -sometimes that mission statement can be too limiting. For example, the co-founder of Google says that while the company's purpose of "organizing the world's info and making it universally accessible and useful" has served them well, they failed to see the whole social side of the Internet and have been playing catch-up. -Goals: the foundation for further planning (Measurable performance targets) Step 2: Doing an external analysis -The environmental scanning of specific and general environments -Managers do an external analysis so they know what the competition is doing, what pending legislation might affect the organization, or what the labor supply is like in locations where it operates. Managers should examine the economic, demographic, political/legal, sociocultural, technological, & global components to see the trends and changes. (Focuses on identifying opportunities(positive trends) & threats(negative trends)) Step 3: Doing an internal analysis -Assessing organizational resources, capabilities, and activities: --Strengths create value for the customer & strengthen the competitive position of the firm. --Weaknesses can place the firm at a competitive disadvantage. -Steps 2 & 3 combined are called a SWOT analysis. (Strengths, Weaknesses, Opportunities, and Threats) Step 4: Formulating strategies -Develop & evaluate strategic alternatives. -Select appropriate strategies for all levels in the organization that provide relative advantage over competitors. -Match organizational strengths to environmental opportunities. -Correct weaknesses & guard against threats. -The three main types of strategies managers will formulate include corporate, competitive, and functional. Step 5: Implementing strategies -Implementation - effectively fitting organizational structure & activities to the environment. -The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements. -No matter how effectively an organization has planned its strategies, performance will suffer if the strategies aren't implemented properly Step 6: Evaluating results -How effective have strategies been? -What adjustments, if any, are necessary

SWOT analysis

an analysis of the organization's strengths, weaknesses, opportunities, and threats. -After completing the SWOT analysis, managers are ready to formulate appropriate strategies—that is, strategies that (1) exploit an organization's strengths and external opportunities, (2) buffer or protect the organization from external threats, or (3) correct critical weaknesses.

Learning Organization

an organization that has developed the capacity to continuously learn, adapt, and change -employees continually acquire & share new knowledge & apply that knowledge in making decisions or doing their work. -Some organizational theorists even go so far as to say that an organization's ability to learn & to apply that learning may be the only sustainable source of competitive advantage. -adv: -sharing of knowledge throughout organization. sustainable source of competitive advantage -dis: -reluctance on part of employees to share knowledge for fear of losing their power -large numbers of experienced employees on the verge of retiring

Network Organization

an organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes. -sometimes called a modular organization by manufacturing firms. -allows organizations to concentrate on what they do best by contracting out other activities to companies that do those activities best.

Boundaryless Organization

an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. Includes virtual & network types of organizations -Although the idea of eliminating boundaries may seem odd, many of today's most successful organizations find that they can operate most effectively by remaining flexible & unstructured: that the ideal structure for them is not having a rigid, bounded, & predefined structure. -adv: -highly flexible & responsive -utilizes talent wherever its found -dis: -lack of control -communication difficulties

Competitive strategy

an organizational strategy for how an organization will compete in its business(es). -Competitive advantage: what sets an organization apart; its distinctive edge. --Quality as a Competitive Advantage --Design Thinking as a Competitive Advantage --Sustaining Competitive Advantage

Matrix-(project) Structure

an organizational structure that assigns specialists from different functional departments to work on one or more projects being led by a project manager -it creates a dual chain of command bc employees in a matrix organization have two managers: their functional area manager & their product or project manager, who share authority. -The project manager has authority over the functional members who are part of his or her project team in areas related to the project's goals. -Any decisions about promotions, salary recommendations, & annual reviews typically remain the functional manager's responsibility. -The matrix design "violates" the unity of command principle, which says that each person should report to only one boss; however, it can—and does—work effectively if both managers communicate regularly, coordinate work demands on employees, & resolve conflicts together. -adv: -fluid & flexible design that can respond to environmental changes -faster decision making -dis: -complexity of assigning people to projects -task & personality conflicts

Selection Decision Outcomes

any selection decision can result in four possible outcomes: two correct & two errors -correct decision: accept (selection decision) successful (later job performance) -reject error: reject (selection decision) successful (later job performance) -accept error: accept (selection decision) unsuccessful (later job performance) -correct decision: reject (selection decision) unsuccessful (later job performance)

Selection Tools

application forms: -almost universally used -most useful for gathering info -can predict job performance but not easy to create one that does written tests: -must be job related -include intelligence, aptitude, ability, personality, & interest tests -are popular (personality tests, aptitude tests) -relatively good predictor for supervisory positions performance-simulation tests: -use actual job behaviors -work sampling-test applicants on tasks associated with that job; appropriate for routine standardized work -assessment center-simulate jobs; appropriate for evaluating managerial potential interviews: -almost universally used -must know what can & cannot be asked -can be useful for managerial positions background investigations: -used for verifying application data- valuable source of info -used for verifying reference checks- not a valuable source of info physical examinations: -are for jobs that have certain physical requirements -mostly used for insurance purposes

Important Organizational Strategies for Today's Environment

e-Business strategies: -Cost Leadership: (lower costs) on-line activities: bidding, order processing, inventory control, recruitment and hiring -it might use online bidding and order processing to eliminate the need for sales calls and to decrease sales force expenses; it could use Web based inventory control systems that reduce storage costs; or it might use online testing and evaluation of job applicants -Differentiation: (offer products or services that customers perceive and value as unique) Internet-based knowledge systems, online ordering and customer support -a business might use Internet-based knowledge systems to shorten customer response times, provide rapid online responses to service requests, or automate purchasing and payment systems so that customers have detailed status reports and purchasing histories. -Focus: (focuser targets a narrow market segment with customized products) chat rooms and discussion boards for customers to interact with others who have common interests, targeted Web sites that target specific groups with specific interests or use Web sites to perform standardized office functions such as payroll or budgeting. Customer Service Strategies: companies emphasizing excellent customer service need strategies that cultivate that atmosphere from top to bottom. managers should know what is going on with customers. They need to find out what customers liked & didn't like about their purchase encounter—from their interactions with employees to their experience with the actual product or service. It's also important to let customers know if something is going on with the company that might affect future purchase decisions. Finally, an organization's culture is important to providing excellent customer service. This typically requires that employees be trained to provide exceptional customer service. Innovation Strategies: -Innovation strategies aren't necessarily focused on just the radical, breakthrough products. They can include applying existing technology to new uses. organizations today need strategies that should reflect their innovation philosophy, which is shaped by two strategic decisions: innovation emphasis and innovation timing. -First Mover: an organization that brings a product innovation to the market or uses new process innovations. -has strategic advantages & disadvantages

Human Resource Planning

ensuring that the organization has the right number & kinds of capable people in the right places & at the right times -Through planning, organizations avoid sudden people shortages & surpluses. -HR planning entails two steps: (1) assessing current human resources & (2) meeting future HR needs. -Job analysis: an assessment that defines jobs & the behaviors necessary to perform them -info for a job analysis is gathered by directly observing individuals on the job, interviewing employees individually or in a group, having employees complete a questionnaire or record daily activities in a diary, or having job "experts" (usually managers) identify a job's specific characteristics -Job description(position description): a written statement that describes a job—typically job content, environment, & conditions of employment. -Job specification: a written statement of the minimum qualifications a person must possess to perform a given job successfully -identifies the knowledge, skills, & attitudes needed to do the job effectively. -Both the job description & job specification are important documents when managers begin recruiting & selecting.

Selection

screening job applicants to ensure that the most appropriate candidates are hired -Once have a pool of candidates this is the next step in HRM process -A valid selection device is characterized by a proven relationship between the selection device & some relevant criterion -A reliable selection device indicates that it measures the same thing consistently -Managers need to "select" carefully since hiring errors can have significant implications. -Realistic Job Preview (RJP)-a preview of a job that provides both positive & negative info about the job & the company -managers need to carefully watch is how they portray the organization & the work an applicant will be doing. If they tell applicants only the good aspects, they're likely to have a workforce that's dissatisfied & prone to high turnover. -To increase employee job satisfaction & reduce turnover, managers should consider this