Principles to Management C483

What is a Learning Organization?

A learning organization is an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights. Google, Toyota, and IDEO are good examples of learning organizations. Such organizations are skilled at solving problems, experimenting with new approaches, learning from their own experiences, learning from other organizations, and spreading knowledge quickly and efficiently.

What is a Matrix Organization?

A matrix organization is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff personnel report to two bosses—a functional manager and a divisional manager. Thus matrix organizations have a dual rather than a single line of command.

What are Adapters? How do they choose to compete in their industry? How is it done?

Adapters take the current industry structure and its future evolution as givens. They choose where to compete. This posture is taken by most companies by conducting standard strategic analysis and choosing how to compete within given environments.Companies that take the current industry structure and its evolution as givens and choose where to compete.

What are the Pros of the Matrix Form?

Advantages • Linkage of employees at all levels and in all functions to the company's goals and strategy. • More information shared across functions. • Communication fostered—especially valuable for complex assignments where different groups depend on each other. • Greater responsiveness to customers from bringing together information about customer needs and organizational capabilities. • Creative ideas from cross-functional work. • Loyalty to the organization as a whole rather than to a function or division.

What is a Business Strategy?

After the top management team and board make the corporate strategic decisions, executives must determine how they will compete in each business area. Business strategy defines the major actions by which an organization builds and strengthens its competitive position in the marketplace. A competitive advantage typically results from one of two generic business strategies, which are low-cost strategies and differentiation strategies

What is a Labor Supply Forecasts?

Along with forecasting demand, managers must forecast the supply of labor—that is, how many and what types of employees the organization actually will have. In performing a supply analysis, the organization estimates the number and quality of its current employees as well as the available external supply of workers. To estimate internal supply, the company typically relies on its experiences with turnover, terminations, retirements, promotions, and transfers.

What is Mass Customization?

Although issues of volume and variety often have been seen as trade-offs in a technological sense, today organizations are trying to produce both high-volume and high-variety products at the same time. This is referred to as mass customization. Automobiles, clothes, computers, and other products are increasingly being manufactured to match each customer's taste, specifications, and budget. Mass customization is quickly becoming more prevalent among leading firms.

What is the fastest growing compensation for executives?

Although salaries and bonuses have risen at a moderate pace, the fastest-growing part of executive compensation comes from stock grants and stock options.

When are Appraisals most effective?

Appraisals are most effective when they are based on an ongoing relationship with employees and not just a top-down formal judgment issued once a year. Managers discuss the goals of the organization regularly and often to create a shared understanding of the job performance those goals require. When managers and employees have open communication and employees feel fairly and effectively managed, the kind of appraisal they receive should rarely come as a surprise to them.

What is the best environment for a Functional Organization?

As a consequence, the functional structure may be most appropriate in rather simple, stable environments. If the organization becomes fragmented (or disintegrated), it may have difficulty developing and bringing new products to market and responding quickly to customer demands and other changes.

How does coordination relation to Organization Structure?

As organizations differentiate their structures, they also need to be concerned about integration and coordination—the way all parts of the organization will work together. Often, the more differentiated the organization, the more difficult integration may be.

The traditional definition of customer is a person or organization that buys goods or services from a store or business, what has the definition now expanded

As organizations focus on responding to customer needs, they soon find that the traditional meaning of a customer expands to include internal customers. The word customer now refers to the next process, or wherever the work goes next.36 This highlights the idea of interdependence among related functions and means that all functions of the organization—not just marketing people—have to be concerned with customer satisfaction. Any recipient of a person's work, whether coworker, boss, subordinate, or external party, should be viewed as the customer.

In order to stay effective, what must organizations do as task become increasingly complex?

As the tasks of organizations become increasingly complex, the organization inevitably must be subdivided—that is, departmentalized—into smaller units or departments. One of the first places this can be seen is in the distinction between line and staff departments

A study of 200 management techniques employed by 160 companies over 10 years identified the specific management practices that lead to sustained, superior performance. The authors boiled their findings down to four key factors:

1. Strategy—focused on customers, continually fine-tuned based on marketplace changes, and clearly communicated to employees. 2. Execution—good people, with decision-making authority on the front lines, doing quality work and cutting costs. 3. Culture—one that motivates, empowers people to innovate, rewards people appropriately (psychologically as well as economically), entails strong values, challenges people, and provides a satisfying work environment. 4. Structure—making the organization easy to work in and easy to work with, characterized by cooperation and the exchange of information and knowledge throughout the organization.

What are the three broad levels of the organizational pyramid, collectively called the Hierarchy?

1.Top Management Level 2.Middle Management Level 3.Opperational Level

What kind of appraisal is the 360-degree appraisal?

Because each source of PA information has some limitations, and because different people may see different aspects of performance companies have used approaches that involve more than one source for appraisal information. In a process known as 360-degree appraisal, feedback is obtained from subordinates, peers, and superiors—every level involved with the employee. Often the person being rated can select the appraisers, subject to a manager's approval, with the understanding that the individual appraisals are kept confidential; returned forms might not include the name of the appraiser, for example, and the results may be consolidated for each level.

What issues do organizations face as it pertains to Specialization and Division, if there is no integration?

Because of specialization and the division of labor, different groups of managers and employees develop different orientations. Depending on whether employees are in a functional department or a divisional group, are line or staff, and so on, they will think and act in ways that are geared toward their particular work units. In short, people working in separate functions, divisions, and business units literally tend to forget about one another. When this happens, it is difficult for managers to combine all their activities into an integrated whole.

What are Cafeteria or Flexible Benefit Programs?

Because of the wide variety of possible benefits and the considerable differences in employee preferences and needs, companies often use cafeteria or flexible benefit programs. In this type of program, employees are given credits that they spend on benefits they desire. Then employees use their credits toward individualized packages of benefits—medical and dental insurance, dependent care, life insurance, and so on.

Why should marketing, product planning and design, and R&D allow manufacturing to get involved in their work?

Because the decisions made during the early, product concept stage determine most of the manufacturing cost and quality. Furthermore, manufacturing can offer ideas about the product because of its experience with the prior generation of the product and with direct customer feedback. Also, the other functions must know early on what manufacturing can and cannot do. Finally, when manufacturing is in from the start, it is a full and true partner and will be more committed to decisions it helped make.

What type of environment is the product structure most suited?

Because the product structure is more flexible than the functional structure, it is best suited for unstable environments in which an ability to adapt rapidly to change is important

Behavioral Appraisals?

Behavioral appraisals, although still subjective, focus more on observable aspects of performance. They were developed in response to the problems of trait appraisals. These scales focus on specific, prescribed behaviors that can help ensure that all parties understand what the ratings are really measuring. Because they are less ambiguous, they also can help provide useful feedback

In a broad sense, what is Technology viewed as?

Broadly speaking, technology can be viewed as the methods, processes, systems, and skills used to transform resources (inputs) into products (outputs).

What is Feedforward control? When does it take place?

Feedforward control takes place before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly. Feedforward control (sometimes called preliminary control) is future oriented; its aim is to prevent problems before they arise. Instead of waiting for results and comparing them with goals, a manager can exert control by limiting activities in advance. Formal rules and procedures also prescribe people's actions before they occur.

How do companies pull of Customization at Low cost?

How do companies organize to pull off this type of customization at low cost? As shown in Table 9.2, they organize around a dynamic network of relatively independent operating units. Each unit performs a specific process or task—called a module—such as making a component, performing a credit check, or performing a particular welding method. Some modules may be performed by outside suppliers or vendors.

How can employers avoid the pitfalls associated with the dismissal of an employee?

How management deals with dismissals will affect the productivity and satisfaction of those who remain. Employers can avoid the pitfalls associated with dismissal by developing progressive and positive disciplinary procedures. By progressive, we mean that a manager takes graduated steps in attempting to correct a workplace behavior.

In what situations would Coordinating by Plan be most useful?

If laying out the exact rules and procedures by which work should be integrated is difficult, organizations may provide more latitude by establishing goals and schedules for interdependent units. Coordination by plan does not require the same high degree of stability and routinization required for coordination by standardization. Interdependent units are free to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.

What should managers be cautious of when moving towards Lean Manufacturing?

If the move to lean manufacturing is simply a harsh, haphazard cost-cutting approach, the result will be chaos, overworked people, and low morale.

How is a Functional Organization Structured?

In a functional organization, jobs (and departments) are specialized and grouped according to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting, and so forth. Functional departmentalization is common in both large and small organizations. Large companies may organize along several functional groupings, including groupings unique to their businesses like a company with vice presidents of finance, concessions, film, and entertainment and digital cinema as well as a general manager of theater operations.

What can management to to make sure that interdependent units and individuals work together?

In some situations, managers might build mutual trust, train employees in a common set of skills, and reward teamwork. In other situations, the organization might rely more on individuals with unique talents and ideas, so they set up flexible work arrangements and reward individual achievements to inspire the best from each individual while encouraging individual employees to share knowledge and develop respect for one another's contributions. In general, however, coordination methods include standardization, plans, and mutual adjustment.

How can HR best serve the organization? What is the most important part of the HR's function?

In the long run, organizations are best served when HR leaders are a strong advocate for at least four sets of values: strategic, ethical, legal, and financial. Managing human capital to sustain a competitive advantage is perhaps the most important part of an organization's HR function.

What are Product Divisions?

In the product organization, all functions that contribute to a given product are organized under one manager. In the product organization, managers in charge of functions for a particular product report to a product manager.

What is ISO 9000?

In the quality arena, a particularly important family of standards is ISO 9000, which defines good quality management practices. The requirements for a quality management system that will ensure such practices are spelled out in ISO 9001. Meeting this standard enables any type or size of organization to improve its total quality for the benefit of producers and consumers by addressing eight principles: 1. Customer focus—learning and addressing customer needs and expectations. 2. Leadership—establishing a vision and goals, establishing trust, and providing employees with the resources and inspiration to meet goals. 3. Involvement of people—establishing an environment in which employees understand their contribution, engage in problem solving, and acquire and share knowledge. 4. Process approach—defining the tasks needed to carry out each process successfully and assigning responsibility for them. 5. System approach to management—putting processes together into efficient systems that work together effectively. 6. Continual improvement—teaching people how to identify areas for improvement and rewarding them for making improvements. 7. Factual approach to decision making—gathering accurate performance data, sharing the data with employees, and using the data to make decisions. 8. Mutually beneficial supplier relationships—working in a cooperative way with suppliers. Rather than defining how to operate perfectly, ISO 9001 standards establish practices that enable the organization to keep improving—assuming that it continues to follow those practices.

In the realm of customer relations, what constitutes continuous improvement?

In the realm of customer relations, continuous improvement includes continually changing to connect with customers, even without waiting for customers to make the first move.

What is involved in the Programming portion of the HR planning process?

In the second step of the HR planning process, the organization conducts programming of specific human resources activities, such as recruitment, training, and layoffs. In this stage, the company's plans are implemented.

What is involved in the Evaluating portion of the HR planning process?

In the third and final step of the HR planning process , human resources activities are evaluated to determine whether they are producing the results needed to contribute to the organization's business plans.

What is the The first step in motivation people to change?

In the unfreezing stage, management realizes that its current practices are no longer appropriate and the company must break out of (unfreeze) its present mold by doing things differently. People must come to recognize that some of the past ways of thinking, feeling, and doing things are obsolete. A direct and sometimes effective way to do this is to communicate the negative consequences of the old ways by comparing the organization's performance with that of its competitors Realizing that current practices are inappropriate and that new behavior is necessary.

What are the disadvantages over external recruiting?

Internal staffing has some drawbacks. If existing employees lack skills or talent, internal recruitment yields a limited applicant pool, leading to poor selection decisions. Also, an internal recruitment policy can inhibit a company that wants to change the nature or goals of the business by bringing in outside candidates

What is Lean Six Sigma

Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste; combining lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste: defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, extra-processing

How are customers important to the organization?

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher quality, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price

What are Line Departments? What Authority do Line Managers have?

Line departments are those that have responsibility for the principal activities of the firm. Line units deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service. Line managers typically have much authority and power in the organization. They have the ultimate responsibility for making major operating decisions. They also are accountable for the bottom-line results of their decisions.

Where does effective listening begin?

Listening begins with personal contact. Staying in the office, keeping the door closed, and eating lunch at your desk are sometimes necessary to get pressing work done, but that is no way to stay on top of what's going on.

What are Dog businesses as they are identified by the BCG Matrix?

Low-growth, weak-competitive-position businesses are called dogs. The remaining revenues from these businesses are realized, and then the businesses are divested.

What does a major organizational change require from its staff?

Major organization change requires leadership from top management, working as a team. But over time, the support must gradually expand outward and downward throughout the organization. Middle managers and supervisors are essential. Groups at all levels are the glue that can hold change efforts together, the medium for communicating about the changes, and the means for enacting new behaviors.

What should be the focus of managers wanting to strengthen competitiveness via core capabilities?

Managers who want to strengthen their firms' competitiveness via core capabilities need to focus on several related issues: • Identify existing core capabilities. • Acquire or build core capabilities that will be important for the future. • Keep investing in capabilities so that the firm remains world class and better than competitors. • Extend capabilities to find new applications and opportunities for the markets of tomorrow.

What is Concurrent Engineering?

Many companies are turning to concurrent (sometimes called simultaneous) engineering as the cornerstone of their TBC strategy. Concurrent engineering—also an important component of total quality management—is a major departure from the old development process in which tasks were assigned to various functions in sequence. When R&D completed its part of the project, the work was passed over the wall to engineering, which completed its task and passed it over the wall to manufacturing, and so on. This process was highly inefficient, and errors took a long time to correct.

What are the advantages of Delegation?

Delegating work offers important advantages, particularly when it is done effectively. Effective delegation leverages the manager's energy and talent and those of his or her subordinates. It allows managers to accomplish much more than they would be able to do on their own. Conversely, lack of delegation, or ineffective delegation, sharply reduces what a manager can achieve. The manager also saves one of his or her most valuable assets—time—by giving some of his or her responsibility to somebody else. He or she is then free to devote energy to important, higher-level activities such as planning, setting objectives, and monitoring performance.

What is Downward Communication?

Downward communication refers to the flow of information from higher to lower levels in the organization's hierarchy. Examples include a manager giving an assignment to an assistant, a supervisor making an announcement to his subordinates, and a company president delivering a talk to her management team. Downward communication that provides relevant information enhances employee identification with the company, supportive attitudes, and decisions consistent with the organization's objectives

Probably the single most widely-used approach to organizational change in the Western world, applied increasingly on a global scale, is organization development (OD). What is Organizational Development?

OD is a systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness

What are the disadvantages of Functional Departmentalization?

The functional form does have disadvantages, however. People may care more about their own function than about the company as a whole, and their attention to functional tasks may make them lose focus on overall product quality and customer satisfaction. Managers develop functional expertise but do not acquire knowledge of the other areas of the business; they become specialists but not generalists. Between functions, conflicts arise, and communication and coordination fall off. In short, although functional differentiation may exist, functional integration may not.

What behaviors will result to Rigid Bureaucratic Behavior?

Often people act in ways that will help them look good on the control system's measures. This tendency can be useful because it focuses people on the behaviors management requires. But it can result in rigid, inflexible behavior geared toward doing only what the system requires. For example, in the earlier discussion of six sigma, we noted that this control process emphasizes efficiency over innovation. Rigid bureaucratic behavior occurs when control systems prompt employees to stay out of trouble by following the rules. Unfortunately, such systems often lead to poor customer service and make the entire organization slow to act.

Why do people often have such Resistance to Control?

Often people strongly resist control systems. They do so for several reasons. First, comprehensive control systems increase the accuracy of performance data and make employees more accountable for their actions. Control systems uncover mistakes, threaten people's job security and status, and decrease people's autonomy. Second, control systems can change expertise and power structures. For example, management information systems can make the costing, purchasing, and production decisions previously made by managers much quicker. Those individuals may fear a loss of expertise, power, and decision-making authority as a result. Third, control systems can change the social structure of an organization. They can create competition and disrupt social groups and friendships. People may end up competing against those with whom they formerly had comfortable, cooperative relationships. Because people's social needs are so important, they will resist control systems that reduce social need satisfaction. Fourth, control systems may be seen as an invasion of privacy, lead to lawsuits, and cause low morale.

What are the day-to-day responsibilities of the HR manager?

On a day-to-day basis, HR managers have many concerns regarding their workers and the entire personnel puzzle. These concerns include attracting talent; maintaining a well-trained, highly motivated, and loyal workforce; managing diversity; devising effective compensation systems; managing layoffs; and containing health care and pension costs.

What is the downside of the 360-degree appraisal?

On the downside, employees are often unwilling to rate their colleagues harshly, so a certain uniformity of ratings may result. In addition, the 360-degree appraisal is less useful than more objective criteria, such as financial targets, in measuring performance. Its objective is usually the employee's development, not to provide a basis for administrative decisions such as raises. For those, appraisal methods like MBO are more appropriate.

How should managers reconcile supply and demand?

Once managers have a good idea of the supply of and the demand for various types of employees, they can start developing approaches for reconciling the two. In some cases, organizations find they need more people than they currently have (i.e., a labor deficit). In such cases, organizations can hire new employees, promote current employees to new positions, or outsource work to contractors. In other cases, organizations may find that they have more people than they need (i.e., a labor surplus). If this is detected far enough in advance, organizations can use attrition—the normal turnover of employees—to reduce the surplus. In other instances, the organization may lay off employees or transfer them to other areas.

What makes someone an effective Receiver in communications?

Once you become effective at sending oral, written, and nonverbal messages, you are halfway toward becoming a complete communicator. However, you must also develop adequate receiving capabilities. Receivers need good listening, reading, and observational skills

What is adverse impact?

One common reason employers are sued is adverse impact—when a seemingly neutral employment practice has a disproportionately negative effect on a group protected by the Civil Rights Act.35 For example, if equal numbers of qualified men and women apply for jobs but a particular employment test results in far fewer women being hired, the test may be considered to cause an adverse impact and, therefore, be subject to challenge on that basis.

What is Comparable Worth?

One controversy concerns male and female pay differences within the same company. Comparable worth doctrine implies that women who perform different jobs of equal worth as those performed by men should be paid the same wage.63 In contrast to the equal-pay-for-equal-work notion, comparable worth suggests that the jobs need not be the same to require the same pay

What is one of the most effective ways to leverage an organization's value chain?

One of the most effective ways to leverage an organization's value chain is to bring together elements of the chain to collaborate to add customer value and build competitive advantage. For example, long-term relationships can be established with -suppliers to encourage investment in new technologies and practices that speed product development and turnaround. Nike chooses its suppliers—what it calls its strategic partners—to that end and shares its business plans and strategies with them to -reinforce close collaboration. Sales staff can communicate with operations staff, before the manufacturing process even starts, to develop products jointly that customers will value highly. Service managers can constantly report back to operations about defects and work with operations and suppliers to reduce and eliminate them. When managers create that type of collaboration, their organization's agility and responsiveness increase significantly.

What is a Performance Appraisal (PA). How does it help employees?

One of the most important responsibilities you will have as a manager is performance appraisal (PA), the assessment of an employee's job performance. Done well, it can help employees improve their performance, pay, and chances for promotion; foster communication between managers and employees; and increase the employees' and the organization's effectiveness. Done poorly, it actually can have a negative effect—it can cause resentment, reduce motivation, diminish performance, and even expose the organization to legal action.

Pluralistic Organizations

Pluralistic organizations have a more diverse employee population and take steps to involve persons from different gender, racial, or cultural backgrounds. These organizations use an affirmative action approach to managing diversity: They actively try to hire and train a diverse workforce and to ensure against any discrimination against minority group members. They typically have much more integration than do monolithic organizations, but like monolithic organizations, they often have minority group members clustered at certain levels or in particular functions within the organization. pluralistic organization An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds.

Because announcing a termination is likely to upset the employee and occasionally leads to a lawsuit, the manager should prepare carefully. What preparation should be taken?

Preparation should include knowing all the facts of the situation and reviewing any documents to make sure they are consistent with the reason for the termination. During the termination interview, ethics and common sense dictate that the manager should be truthful but respectful, stating the facts and avoiding arguments

What is a Proactive Change?

Proactive change means anticipating and preparing for an uncertain future. It implies being a leader and creating the future you want. A change effort that is initiated before a performance gap has occurred.

How are Profit-Sharing Plans usually implemented?

Profit-sharing plans are usually implemented in the division or organization as a whole, although some incentives may still be tailored to unit performance. In most companies, the profit-sharing plan is based on a formula for allocating an annual amount to each employee if the company exceeds a specified profit target. One disadvantage of profit-sharing plans is that they do not reward individual performance. However, they do give all employees a stake in the company's success and motivate efforts to improve the company's profitability.

Title VII of Civil Rights Act

Prohibits discrimination based on race, sex, color, religion, or national origin in employment decisions: hiring, pay, working conditions, promotion, discipline, or discharge.

Age Discrimination in Employment Act (1967)

Prohibits employment discrimination based on age for persons over 40 years; restricts mandatory retirement.

Equal Pay Act

Prohibits gender-based pay discrimination between two jobs substantially similar in skill, effort, responsibility, and working conditions.

An effective approach for checking on the overall performance of an enterprise is to use key financial ratios. How so?

Ratios help indicate possible strengths and weaknesses in a company's operations. Key ratios are calculated from selected items on the profit and loss statement and the balance sheet. We will briefly discuss three categories of financial ratios—liquidity, leverage, and profitability:

What is a Reactive Change

Reactive change means responding to pressure after a problem has arisen. It also implies being a follower. A change effort that occurs under pressure; problem-driven change.

What are the two types of Recruiting?

Recruitment activities help increase the pool of candidates that might be selected for a job. Recruitment may be internal to the organization (considering current employees for promotions and transfers) or external. Each approach has advantages and disadvantages

A basic technique called reflection will help a manager listen effectively. What is Reflection?

Reflection is a process by which a person states what he or she believes the other person is saying. This technique places a greater emphasis on listening than on talking, and the result is more accurate two-way communication. Process by which a person states what he or she believes the other person is saying

Family and Medical Leave Act (1991)

Requires 12 weeks' unpaid leave for medical or family needs: paternity, family member illness

Vocational Rehabilitation Act (1973)

Requires affirmative action by all federal contractors for persons with disabilities; defines disabilities as physical or mental impairments that substantially limit life activities.

Executive Orders 11246 and 11375 (1965)

Requires equal opportunity clauses in federal contracts; prohibits employment discrimination by federal contractors based on race, color, religion, sex, or national origin.

What is the benefit to Group Incentive plans?

Several types of group incentive plans, in which pay is based on group performance, are increasingly used today. The idea behind these plans is to give employees a sense of shared participation and even ownership in the performance of the firm. Gainsharing plans concentrate on rewarding employees for increasing productivity or saving money in areas under their direct control. For example, if the usual waste allowance in a production line has been 5 percent and the company wants production employees to try to reduce that number, the company may offer to split any savings gained with the employees

How do some teams stay linked to their external environment?

Several vital roles link teams to their external environments—that is, to other individuals and groups both inside and outside the organization. A specific type of role that spans team boundaries is the gatekeeper, a team member who stays abreast of current information in scientific and other fields and informs the group of important developments

What is the Informing Strategy?

Several vital roles link teams to their external environments—that is, to other individuals and groups both inside and outside the organization. A specific type of role that spans team boundaries is the gatekeeper, a team member who stays abreast of current information in scientific and other fields and informs the group of important developments

What strategy dictates the team's mix of internal versus external focus?

Several vital roles link teams to their external environments—that is, to other individuals and groups both inside and outside the organization. A specific type of role that spans team boundaries is the gatekeeper, a team member who stays abreast of current information in scientific and other fields and informs the group of important developments

What is Six Sigma Quality?

Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. The product defects analyzed may include anything that results in customer dissatisfaction—for example, late delivery, wrong shipment, or poor customer service as well as problems with the product itself. When the defect has been identified, managers then engage the organization in a determined, comprehensive effort to eliminate its causes and reduce it to the lowest practicable level. At six sigma, a product or process is defect-free 99.99966 percent of the time—fewer than 3.4 defects or mistakes per million. Reaching that goal almost always requires managers to restructure their internal processes and relationships with suppliers and customers in fundamental ways.

What are slack resources?

Slack resources are simply extra resources on which organizations can rely in a pinch so that if they get caught off guard, they can still adjust. Inventory, for example, is a type of slack resource that provides extra stock on hand in case it is needed. With extra inventory, an organization does not need as much information about sales demand, lead time, and the like. Employees also can be a type of slack resource.

What is the focus of Customer and Geographic Divisions?

Some companies build divisions around groups of customers or around different geographic areas. Customer and geographic divisions often serve customers faster. Customer Divisions focus on specific customers such as a technology company selling computers to high schools, universities, and businesses. In contrast to customers, divisions can be structured around geographic regions. Geographic distinctions include district, territory, region, and country.

Monolithic organizations

Some organizations are monolithic. This type of organization has very little cultural integration; in other words, it employs few women, minorities, or any other groups that differ from the majority. Such an organization is highly homogeneous in terms of its employee population. monolithic organization An organization that has a low degree of structural integration—employing few women, minorities, or other groups that differ from the majority—and thus has a highly homogeneous employee population.

Who is included in Top Level Management? What is the key responsibilities of Top Management?

The CEO occupies the top position and is the senior member of top management. The top managerial level also includes presidents and vice presidents. They are the strategic managers in charge of the entire organization. The key responsibilities at this top level include corporate governance—a term describing the oversight of the firm by its executive staff and board of directors

What are the four steps to the control process?

The Control Process 1. Setting performance standards. 2. Measuring performance. 3. Comparing performance against the standards and determining deviations. 4. Taking action to correct problems and reinforce successes.

What are the three different stages of HR planning?

The HR planning process occurs in three stages: planning, programming, and evaluating

What is Internal Recruiting? What are the advantages over external recruiting?

The advantages of internal recruiting are that employers know their employees, and employees know their organization. External candidates who are unfamiliar with the organization may find they don't like working there. Also, the opportunity to move up within the organization may encourage employees to remain with the company, work hard, and succeed. Recruiting from outside the company can be demoralizing to employees.

What is the appropriate balance between an internal and external strategic focus and between internal and external roles?

The appropriate balance between an internal and external strategic focus and between internal and external roles depends on how much the team needs information, support, and resources from outside. When teams have a high degree of dependence on outsiders, probing is the best strategy. Parading teams perform at an intermediate level, and informing teams are likely to fail. They are too isolated from the outside groups on which they depend. Informing or parading strategies may be more effective for teams that are less dependent on outside groups—for example, established teams working on routine tasks in stable external environments. But for most important work teams—task forces, new product teams, and strategic decision-making teams tackling unstructured problems in rapidly changing external environments—effective performance in roles that involve interfacing with the outside will be

Specific Approaches to Enlist Cooperation. Manipulation and Cooptation

Sometimes managers use more subtle, covert tactics to implement change. One form of manipulation is cooptation, which involves giving a resisting individual a desirable role in the change process. The leader of a resisting group often is coopted. For example, management might invite a union leader to be a member of an executive committee or ask a key member of an outside organization to join the company's board of directors. As a person becomes involved in the change, he or she may become less resistant to the actions of the coopting group or organization.

What are Staff Departments?

Staff departments are those that provide specialized or professional skills that support line departments. They include research, legal, accounting, public relations, and human resources departments. Each of these specialized units often has its own vice president, and some are vested with a great deal of authority, as when accounting or finance groups approve and monitor budgetary activities.

Step 1 of the Control Process, Setting Performance Standards.

Step 1: Setting Performance Standards Every organization has goals: profitability, innovation, satisfaction of customers and employees, and so on. A standard is the level of expected performance for a given goal. Standards are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance. Standards can be set for any activity—financial activities, operating activities, legal compliance, charitable contributions, and so on

Step 2 of the Control Process. Measuring Performance.

Step 2: Measuring Performance The second step in the control process is to measure performance levels.

Step 3 of the Control Process. Comparing Performance with the standard

Step 3: Comparing Performance with the Standard The third step in the control process is comparing performance with the standard. In this process, the manager evaluates the performance. For some activities, relatively small deviations from the standard are acceptable, whereas in others a slight deviation may be serious

Step 4 of the Control Process. Taking Action to Correct Problems and Reinforce Success

Step 4: Taking Action to Correct Problems and Reinforce Successes The last step in the control process is to take appropriate action when there are significant deviations. This step ensures that operations are adjusted to achieve the planned results—or to continue exceeding the plan if the manager determines that is possible. In cases in which significant variances are discovered, the manager usually takes immediate and vigorous action.

Who is included in the Operational Level of Management? What are the responsibilities of Operational Management?

The lowest level is made up of lower management and workers. It includes office managers, sales managers, supervisors, and other first-line managers as well as the employees who report directly to them. This level is also called the operational level of the organization.

The first step of strategic management is establishing a mission, a vision, and goals for the organization, what is the Mission?

The mission is a clear and concise expression of the basic purpose of the organization. It describes what the organization does, for whom it does it, its basic good or service, and its values. The mission describes the organization as it currently operates

What is Logistics?

The movement of resources into the organization (inbound) and products from the organization to its customers (outbound) is called logistics. Like the supply chain, which we discussed in Chapter 2, an organization's logistics are often a critical element in its responsiveness and competitive advantage. The world of logistics includes the great mass of parts, materials, and products moving via trucks, trains, planes, and ships from and to every region of the globe. Depending on the product, duplication and inefficiency in distribution can cost far more than making the product itself, and slowdowns can cause products to go out of stock so that consumers choose alternatives

What is the Network Organization?

The network organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service. The network organization describes not one organization but the web of relationships among many firms. Network organizations are flexible arrangements among designers, suppliers, producers, distributors, and customers where each firm is able to pursue its own distinctive competence yet work effectively with other members of the network.

What is the difference between and Centralized Organization and a Decentralized Organization? How does Decentralization affect Delegation?

The delegation of responsibility and authority decentralizes decision making. In a centralized organization, important decisions usually are made at the top. In decentralized organizations, more decisions are made at lower levels. Ideally, decision making occurs at the level of the people who are most directly affected and have the most intimate knowledge about the problem. This is particularly important when the business environment is fast-changing and decisions must be made quickly and well. Balanced against these criteria, centralization may be valuable when departments have different priorities or conflicting goals, which need to be mediated by top management.

After unfreezing and moving, what is the final step int he process of motivating people to change?

The final step is refreezing. Refreezing means strengthening the new behaviors that support the change. Refreezing involves implementing control systems that support the change, applying corrective action when necessary, and reinforcing behaviors and performance that support the agenda. Management should consistently support and reward evidence of movement in the right direction Strengthening the new behaviors that support the change.

After unfreezing, what it the second step in motivation people to change?

The next step, moving to institute the change, begins with establishing a vision of where the company is heading. The vision can be realized through strategic, structural, cultural, and individual change.The vision can be realized through strategic, structural, cultural, and individual change.

What is Span of control?

The number of people under a manager is an important feature of an organization's structure. The number of subordinates who report directly to an executive or supervisor is called the span of control.

What is the optimal number of subordinates as it pertains to Span of Control

The optimal span of control depends on a number of factors. The span should be wider when (1) the work is clearly defined and unambiguous, (2) subordinates are highly trained and have access to information, (3) the manager is highly capable and supportive, (4) jobs are similar and performance measures are comparable, and (5) subordinates prefer autonomy to close supervisory control. *If the opposite conditions exist, a narrow span of control may be more appropriate

What is Pay Structure?

The pay structure decision is the choice of how to price different jobs within the organization. Jobs that are similar in worth usually are grouped into job families. A pay grade, with a floor and a ceiling, is established for each job family.

Specific Approaches to Enlist Cooperation. Participation and Involvement

The people who are affected by the change should be involved in the change's design and implementation. For major, organization wide change, participation in the process can extend from the top to the very bottom of the organization. When feasible, management should use the advice of people throughout the organization. people who are involved in decisions understand them more fully and are more committed to them. People's understanding and commitment are important ingredients in the successful implementation of a change. Participation also provides an excellent opportunity for education and communication.

What are the shortcomings of a Pluralistic organization?

The pluralistic organization fails to address the cultural aspects of integration.

What is the point of structuring a responsive, agile organization?

The point of structuring a responsive, agile organization lies in enabling it to meet and exceed the expectations of its customers —the people it must attract to purchase a good or service and whose continued patronage and involvement with the organization constitute the fundamental driver of sustained, long-term competitiveness and success.

What are the advantages and disadvantages of Customer/Geographical Divisions?

The primary advantage of both the product and customer/regional approaches to departmentalization is the ability to focus on customer needs and provide faster, better service. But again, duplication of activities across many customer groups and geographic areas is expensive

Where should one begin when improving Sender skills (communication)?

To start, be aware that honest, direct, straight talk is important but all too rare. CEOs are often coached on how to slant their messages for different audiences—the investment community, employees, or the board. That's not likely to be straight talk. The focus of the messages can differ, but they can't be inconsistent. People should be able to identify your perspective, your reasoning, and your intentions.

What is the broad definition of Diversity, as we look at it today?

Today diversity refers to far more than skin color and gender. It is a broad term used to refer to all kinds of differences. These differences include religious affiliation, age, disability status, military experience, sexual orientation, economic class, educational level, and lifestyle in addition to gender, race, ethnicity, and nationality.

What is the purpose of the Formal Structure?

The formal structure is put in place to control people, decisions, and actions. But in today's fast-changing business environment, responsiveness —quickness, agility, the ability to adapt to changing demands—is more vital than ever to a firm's survival.

Why did many companies make the change from monolithic organizations to pluralistic

Most large U.S. organizations made the transition from monolithic to pluralistic organizations in the 1960s and 1970s because of changing demographics as well as societal forces such as the civil rights and women's movements.

What is Horizontal Communication?

Much information needs to be shared among people on the same hierarchical level. Such horizontal communication can take place among people in the same work team or in different departments

Why has managerial training programs become so important?

Today's decentralized and leaner organizations put more demands and responsibility on managers, as has an increasingly competitive environment. And as managers rise in the organization, their technical skills generally become less important than their ability to motivate others. For these reasons, management training programs have become another widely used development tool. Such programs often seek to improve managers' people skills—their ability to delegate effectively, increase the motivation of their subordinates, and communicate and inspire the achievement of organization goals

How is Strategic Planning typically emphasized?

Traditionally, strategic planning emphasized a top-down approach—senior executives and specialized planning units developed goals and plans for the entire organization. Tactical and operational managers received those goals and plans, and their own planning activities were limited to specific procedures and budgets for the units.

What is the difference between Training and Development?

Training usually refers to teaching lower-level employees how to perform their present jobs, whereas development involves teaching managers and professional employees broader skills needed for their present and future jobs.

What do Trait Appraisals involve?

Trait appraisals involve subjective judgments about employee characteristics related to performance. They contain dimensions such as initiative, leadership, and attitude, and they ask raters to indicate how much of each trait an employee possesses. Usually the manager will use a numerical ratings scale to specify the extent to which an employee possesses the particular traits being measured.

How do companies become World-Class

World-class companies create high-value products and earn superior profits over the long run. They demolish the obsolete methods, systems, and cultures of the past that impeded their progress and apply more effective organizational strategies, structures, processes, and management of human resources

What is Boundary Spanning?

boundary-spanning teams are responsible for interfacing with other teams to eliminate production bottlenecks and implement new processes and for working with suppliers on quality issues. Boundary-spanning activities crucial to the team are those that entail dealing with people outside the group.

Why is the dynamic network?

dynamic network—also called the modular or virtual corporation. It is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment. The members of the network are held together by contracts that stipulate results expected (market mechanisms) rather than by hierarchy and authority. Poorly performing firms can be removed and replaced.

If all companies seek to satisfy customers, how can a company realize a competitive advantage?

ld-class companies have learned that almost any advantage is temporary because competitors will strive to catch up. Simply stated—although obviously not simply done—a company attains and retains competitive advantage by continuing to improve. This concept—kaizen, or continuous improvement—is an integral part of Japanese operations strategy.

Multicultural Orgnaizations

multicultural organizations diversity not only exists but is valued. These organizations fully integrate gender, racial, and minority group members both formally and informally. The multicultural organization is marked by an absence of prejudice and discrimination and by low levels of intergroup conflict. Such an organization creates a synergistic environment in which all members contribute to their maximum potential, and the advantages of diversity can be fully realized.

What is the Probing Strategy?

robing involves a focus on external relations. This strategy requires team members to interact frequently with outsiders; diagnose the needs of customers, clients, and higher-ups; and experiment with solutions before taking action.

Effective control systems maximize potential benefits and minimize dysfunctional behaviors. To achieve this, management needs to design control systems that...

1. Establish valid performance standards. 2. Provide adequate information to employees. 3. Ensure acceptability to employees. 4. Maintain open communication. 5. Use multiple approaches.

How do RFID tags help with Logistics?

. One technological advance that is helping some companies improve logistics efficiency and speed is the use of radio frequency identification (RFID) tags. When manufacturers label their products with RFID tags, automated readers can easily track where each product is in the distribution system, including which particular items are selling in each store

Many companies, and individuals, are plagued by the tyranny of the or. What is Tyranny of the or?

. This refers to the belief that things must be either A or B and cannot be both. The authors of Built to Last provide many common examples: beliefs that you must choose either change or stability; be conservative or bold; have control and consistency or creative freedom; do well in the short term or invest for the future; plan methodically or be opportunistic; create shareholder wealth or do good for the world; be pragmatic or idealistic

What does Phase three of training involve?

...Phase three involves decisions about the training methods to be used and whether the training will be provided on or off the job. Common training methods include lectures, role-playing, business simulation, behavior modeling (watching a video and imitating what is observed), conferences, vestibule training (practicing in a simulated job environment), and apprenticeships. Computer-based training is easy and inexpensive to deliver, can be provided anywhere an employee has access to a computer, and can be tailored to a trainee's responses. Well-designed computer training also can get trainees highly involved in learning.

What is the strategic impact of human resources?

1. Creates value. People can increase value through their efforts to decrease costs or provide something unique to customers or some combination of the two. Empowerment programs, total quality initiatives, and continuous improvement efforts at companies such as Corning and Xerox are intentionally designed to increase the value that employees bring to the bottom line. 2. Is rare. People are a source of competitive advantage when their skills, knowledge, and abilities are not equally available to all competitors. Top companies invest a great deal to hire and train the best and the brightest employees to gain advantage over their competitors. Dow Chemical went to court to stop General Electric from hiring away its engineers. This case shows that some companies recognize both the value and the rarity of certain employees. 3. Is difficult to imitate. People are a source of competitive advantage when their capabilities and contributions cannot be copied by others. Disney, Southwest Airlines, and Whole Foods are known for creating unique cultures that get the most from employees (through teamwork) and are difficult to imitate. 4. Is organized. People are a source of competitive advantage when organizations know how to deploy them as needed based on their experience, skills, and potential. Johnson & Johnson, Colgate, and other companies have formal systems for identifying future management needs and developing high-potential employees so the company can promote from within. This way, they fill openings with people who are well acquainted with the company's culture, customers, and industry.

Ten Keys to Effective Listening

1. Find an area of interest. Even if you decide the topic is dull, ask yourself, "What is the speaker saying that I can use?" 2. Judge content, not delivery. Don't get caught up in the speaker's personality, mannerisms, speaking voice, or clothing. Instead, try to learn what the speaker knows. 3. Hold your fire. Rather than getting immediately excited by what the speaker seems to be saying, withhold evaluation until you understand the speaker's message. 4. Listen for ideas. Don't get bogged down in all the facts and details; focus on central ideas. 5. Be flexible. Have several systems for note taking and use the system best suited to the speaker's style. Don't take too many notes or try to force everything said by a disorganized speaker into a formal outline. 6. Resist distraction. Close the door, shut off the radio, move closer to the person talking, or ask him or her to speak louder. Don't look out the window or at papers on your desk. 7. Exercise your mind. Some people tune out when the material gets difficult. Develop an appetite for a good mental challenge. 8. Keep your mind open. Many people get overly emotional when they hear words referring to their most deeply held convictions—for example, union, subsidy, import, Republican or Democrat, and big business. Try not to let your emotions interfere with comprehension. 9. Capitalize on thought speed. Take advantage of the fact that most people talk at a rate of about 125 words per minute, but most of us think at about four times that rate. Use those extra 400 words per minute to think about what the speaker is saying rather than turning your thoughts to something else. 10. Work at listening. Spend some energy. Don't just pretend you're paying attention. Show interest. Good listening is hard work, but the benefits outweigh the costs.

What should take place in a follow-up meeting, after a performance has been given for an employee performing below standard?

1. Summarize the employee's performance and be specific. 2. Explain why the employee's work is important to the organization. 3. Thank the employee for doing the job. 4. Raise any relevant issues, such as areas for improvement. 5. Express confidence in the employee's future good performance

What are the six steps to Effective Delegation?

1.Define the goal succinctly (briefly and clearly expressed.) 2.Select the person for the task 3.Solicit the subordinate's views about suggest approaches. 4.Give the subordinate the authority, time, and resources to perform the assignment. 5. Schedule checkpoints for reviewing process 6.Follow through by discussing progress at appropriate intervals.

What are the advantages of Functional Departmentalization?

1.Economies of scale can be realized. When people with similar skills are grouped, more efficient equipment can be purchased, and discounts for large purchases can be used. 2.Monitoring of the environment is more effective. Each functional group is more closely attuned to developments in its own field and therefore can adapt more readily. 3.Performance standards are better maintained. People with similar training and interests may develop a shared concern for performance in their jobs. 4.People have greater opportunity for specialized training and in-depth skill development. 5.Technical specialists are relatively free of administrative work. 6.Decision making and lines of communication are simple and clearly understood.

Accounting Audits

Accounting audits, which are designed to verify accounting reports and statements, are essential to the control process. This audit is performed by members of an outside firm of public accountants. Knowing that accounting records are accurate, true, and in keeping with generally accepted accounting practices (GAAP) creates confidence that a reliable base exists for sound overall controlling purposes.

What is a Boundaryless Organization?

A boundaryless organization is one in which no barriers to information flow exist. Instead of separating people, jobs, processes, and places with boundaries, ideas, information, decisions, and actions move to where they are most needed. This free flow does not imply a random free-for-all of unlimited communication and information overload. It implies information available as needed moving quickly and easily enough that the organization functions far better as a whole than as separate parts.

What do Core Capabilities of an organization do for the customer?

A core capability gives value to customers, makes the company's products different from—and better than—those of competitors, and can be used in creating new products. Think of core capabilities as the roots of competitiveness and products as the fruits.

How can an organization get a deeper understanding of how to add value to the customer?

A deeper way to understand how organizations can add customer value to their products has been provided by Michael Porter, who popularized the concept of the value chain. A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

What is an After-action review?

A frank and open-minded discussion of four basic questions aimed at continuous improvement.

What is a Gap in work someones work performance?

A gap typically implies poor performance; for example, sales, profits, stock price, or other financial indicators are down. This situation attracts management's attention, and management introduces changes to try to correct things

What is a strategic alliance?

A strategic alliance is a formal relationship created with the purpose of joint pursuit of mutual goals. In a strategic alliance, individual organizations share administrative authority, form social links, and accept joint ownership. Such alliances are blurring firms' boundaries. They occur between companies and their competitors, governments, and universities. Such partnering often crosses national and cultural boundaries. Companies form strategic alliances to develop new technologies, enter new markets, and reduce manufacturing costs. Not only can alliances enable companies to move ahead faster and more efficiently, but they also are sometimes the only practical way to bring together the variety of specialists needed for operating in today's complex and fast-changing environment. Rather than hiring experts who understand the technology and market segments for each new product, companies can form alliances with partners that already have those experts on board

What are the Goals in the second step of Formal Planning, Alternative Goals and Plans?

Goals are the targets or ends the manager wants to reach. To be effective, goals should have certain qualities, which are easy to remember with the acronym SMART: Goals should be Specific, Measurable, Attainable (but challenging), Relevant, Time-bound (bound to a time or deadline)

What is Just-in-Time Operations?

An additional element of TBC involves just-in-time (JIT) operations. JIT calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage in the process precisely at the time needed, or just in time. A customer order triggers a factory order and the production process. The supplying work centers do not produce the next lot of product until the consuming work center requires it. Even external suppliers deliver to the company just in time. Just-in-time is a companywide philosophy oriented toward eliminating waste throughout all operations and improving materials throughout. In this way, excess inventory is eliminated and costs are reduced. The ultimate goal of JIT is to serve the customer better by providing higher levels of quality and service

Management audit

An evaluation of the effectiveness and efficiency of various systems within an organization.Management audits may be external or internal. Managers conduct external audits of other companies and internal audits of their own companies. Some of the same tools and approaches are used for both types of audit

What situations are Standardization and Formalization most suited for?

An important assumption underlying both standardization and formalization is that the rules and procedures should apply to most (if not all) situations. These approaches, therefore, are most appropriate in situations that are relatively stable and unchanging.

What does an Individual Incentive System consist of?

An individual incentive system consists of an objective standard against which a worker's performance is compared. Pay is determined by the employee's performance. Individual incentive plans are used frequently in sales jobs—for example, a salesperson will receive extra compensation for exceeding a sales target. Another widely used individual incentive tool is management bonuses. If effectively designed, individual incentive plans can be highly motivating.

What is the Critical Incident Technique?

Another common behaviorally focused approach is the critical incident technique. In this technique, the manager keeps a regular log and records each significant behavior by the subordinate that reflects the quality of his or her performance. This approach can be subjective as well as time-consuming, and it may give some employees the feeling that everything they do is being recorded. But it does have the advantage of reminding managers in advance of a performance review what the employee actually did.

What is Lean-Manufacturing?

Another organizing approach is lean-manufacturing, based on a commitment to making an operation both efficient and effective; it strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement. Rejects are unacceptable, and staff, overhead, and inventory are considered wasteful. In a lean operation, the emphasis is on quality, speed, and flexibility more than on cost, efficiency, and hierarchy. If an employee spots a problem, the employee is authorized to halt the operation and signal for help to correct the problem at its source so that processes can be improved and future problems avoided. With a well-managed lean production process, a company can develop, produce, and distribute products with half or less of the human effort, space, tools, time, and overall cost.

What is including in the Selection portion of staffing an organization?

Applications and Resumes Interviews Reference Checks Background Checks Tests

What are the characteristics of an organization with Large Batch Technologies?

As volume increases, product variety usually decreases. Companies with higher volumes and lower varieties than a job shop tend to be characterized as large batch, or mass production technologies. Examples of large batch technologies include the auto assembly operations of General Motors, Ford, and Chrysler. In the service sector, McDonald's and Burger King are good examples. Their production runs tend to be more standardized, and all customers receive similar (if not identical) products. Machines tend to replace people in the physical execution of work. People run the machines. With a large batch technology, structure tends to be more mechanistic. There tend to be more rules and formal procedures, and decision making tends to be centralized with higher spans of control. Communication tends to be more formal in companies where hierarchical authority is more prominent.

What is the function of Delegation?

As we look at organizations and recognize that authority is spread out over various levels and spans of control, the issue of delegation becomes paramount. Delegation is the assignment of authority and responsibility to a subordinate at a lower level. It often requires the subordinate to report back to his or her boss about how effectively the assignment was carried out. Delegation is perhaps the most fundamental feature of management because it entails getting work done through others. Thus delegation is important at all hierarchical levels. The process can occur between

What are the characteristics of an organization with Continuous Process Technologies?

At the very-high-volume end of the scale are companies that use continuous process technologies—technologies that do not stop and start. Domino Sugar and Shell Chemical, for example, use continuous process technologies by which a very limited number of products are produced. People are completely removed from the work itself. It is done entirely by machines and/or computers. In some cases, people run the computers that run the machines. Ironically, with continuous process technology, structure can return to a more organic form because less monitoring and supervision are needed. Communication tends to be more informal in companies where fewer rules and regulations are established.

Why are behavioral questions beneficial to the interviewer?

Because behavioral questions are based on real events, they often provide useful information about how the candidate will actually perform on the job.

What are the disadvantages of Management by Objective?

But the approach has disadvantages as well. It can result in unrealistic objectives being set, frustrating the employee and the manager. The objectives can also be too rigid, leaving the employee with insufficient flexibility should circumstances change. Finally, MBO often focuses too much on short-term achievement at the expense of long-term goals.

What are the disadvantages of the Product Structure?

But the product structure also has disadvantages. It is difficult to coordinate across product lines and divisions. And although managers learn to become generalists, they may not acquire the depth of functional expertise that develops in the functional structure. Furthermore, functions are not centralized at headquarters, where they are done for all product lines or divisions. Such duplication of effort is expensive. Also, decision making is decentralized in this structure, so top management can lose some control over decisions made in the divisions. Proper management of all the issues surrounding decentralization and delegation, as discussed earlier, is essential for this structure to be effective

How does choosing the right supplier affect the organization?

Choosing the right supplier is an important strategic decision. Suppliers can affect manufacturing time, product quality, and inventory levels. The close supplier relationship has become a new model for many organizations that are using a just-in-time manufacturing approach.

Civil Rights Act (1991)

Clarifies Title VII requirements: disparate treatment impact suits, business necessity, job relatedness; shifts burden of proof to employer; permits punitive damages and jury trials.

What is the most effective and direct management and development tool?

Coaching—being trained by a superior—is usually the most effective and direct management development tool. Managers may also participate in training programs that are used for all employees, such as job rotation, or attend seminars and courses specifically designed to help them improve their supervisory skills or prepare them for future promotion.

Specific Approaches to Enlist Cooperation. Explicit and Implicit

Coercion Some managers apply punishment or the threat of punishment to those who resist change. With this approach, managers use force to make people comply with their wishes. For example, a manager might insist that subordinates cooperate with the change and threaten them with job loss, denial of a promotion, or an unattractive work assignment. Sometimes you just have to lay down the law.

What is Customer Relationship Management (CRM)

Customer relationship management (CRM) is a multifaceted process, typically mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns

Why do companies invest in training?

Companies invest in training to enhance individual performance and organizational productivity. Programs to improve an employee's computer, technical, or communication skills are quite common, and some types of training have become fairly standard across many organizations.

How might companies compete with one another?

Companies often compete through innovation, quality, service, and cost

How is a Demand Forecast assessed?

Companies selling an existing product consider current sales and projected future sales growth as they estimate the plant capacity needed to meet future demand, the sales force required, the support staff needed, and so forth. They calculate the number of labor-hours required to operate a plant, sell the product, distribute it, serve customers, and so forth. These estimates are used to determine the demand for different types of workers.

Sustainability Audits and the Triple Bottom Line

Companies that are serious about goals for sustainability conduct audits to evaluate how effectively they are serving all stakeholders and protecting the environment. These sustainability audits typically evaluate performance in terms of a triple bottom line—that is, the company's financial performance, environmental. an easy way to remember the three bottom lines is with the terms profit, planet, and people

What is Time Based Competition?

Companies today must learn what the customer needs and meet those needs as quickly as possible. Time-based competition (TBC) refers to strategies aimed at reducing the total time needed to deliver the good or service. TBC has several key organizational elements: logistics, just-in-time (JIT), and concurrent engineering. JIT production systems reduce the time to manufacture products. Logistics speed the delivery of products to customers. Both are essential steps toward bringing products to customers in the shortest time possible. In today's world, speed is essential.

When is competition at its most intense point?

Competition is most intense when there are many direct competitors (including foreign contenders), when industry growth is slow, and when the product or service cannot be differentiated in some way.

What is Concurrent control? When does it take place?

Concurrent control takes place while plans are being carried out. It includes directing, monitoring, and fine-tuning activities as they occur. Concurrent control, which takes place while plans are carried out, is the heart of any control system

What is required for continuous improvement?

Continuous improvement requires integrative mechanisms that facilitate group problem solving, information sharing, and cooperation across business functions. As a consequence, the walls that separate stages and functions of work tend to come down, and the organization operates more in a team-oriented manner.

Fair Labor Standards Act (1938)

Creates exempt (salaried) and nonexempt (hourly) employee categories, governing overtime and other rules; sets minimum wage, child labor laws.

What are Self-Contained Tasks

Creating self-contained tasks allows organizations to reduce the need for some information. Creating self-contained tasks refers to changing from a functional organization to a product or project organization and giving each unit the resources it needs to perform its task. Information-processing problems are reduced because each unit has its own full complement of specialties instead of functional specialties that have to share their expertise among a number of different product teams.

What effect can the Demand for Total Quality, Customer Service, Innovation, and Speed have on the Functional Form? What is needed to counteract those effects?

Demands for total quality, customer service, innovation, and speed have made clear the shortcomings of the functional form for some firms. Functional organizations are highly differentiated and create barriers to coordination across functions. Cross-functional coordination is essential for total quality, customer service, innovations, and speed. The functional organization will not disappear, in part because functional specialists will always be needed, but functional managers will make fewer decisions. The more important units will be cross-functional teams that have integrative responsibilities for products, processes, or customers

What are Deming's "14 points" of quality?

Deming's "14 points" of quality emphasized a holistic approach to management that demands intimate understanding of the process—the delicate interaction of materials, machines, and people that determines productivity, quality, and competitive advantage: 1. Create constancy of purpose—strive for long-term improvement rather than short-term profit. 2. Adopt the new philosophy—don't tolerate delays and mistakes. 3. Cease dependence on mass inspection—build quality into the process on the front end. 4. End the practice of awarding business on price tag alone—build long-term relationships. 5. Improve constantly and forever the system of production and service—at each stage. 6. Institute training and retraining—continually update methods and thinking. 7. Institute leadership—provide the resources needed for effectiveness. 8. Drive out fear—people must believe it is safe to report problems or ask for help. 9. Break down barriers among departments—promote teamwork. 10. Eliminate slogans, exhortations, and arbitrary targets—supply methods, not buzzwords. 11. Eliminate numerical quotas—they are contrary to the idea of continuous improvement. 12. Remove barriers to pride in workmanship—allow autonomy and spontaneity. 13. Institute a vigorous program of education and retraining—people are assets, not commodities. 14. Take action to accomplish the transformation—provide a structure that enables quality.

How do Modules (unit coming together to performs a specific process or task) work together to provide good customer service? What is the duty of the Manager?

Different modules join forces to make the good or provide a service. How and when the various modules interact with one another are dictated by the unique requests of each customer. The manager's responsibility is to make it easier and less costly for modules to come together, complete their tasks, and then recombine to meet the next customer demand. The ultimate goal of mass customization is a never-ending campaign to expand the number of ways a company can satisfy customers

Although the organization chart presents some important structural features, other design issues related to structure—while not so obvious—are no less significant. What are two fundament concepts around which organizations are structured?

Differentiation is An aspect of the organization's internal environment created by job specialization and the division of labor. Integration is the degree to which differentiated work units work together and coordinate their efforts

When is Differentiation most prevalent in an organization? When is it moderate and least?

Differentiation is high when an organization has many subunits and many kinds of specialists who think differently. Organizations in complex, dynamic environments developed a high degree of differentiation to cope with the complex challenges. Companies in simple, stable environments had low levels of differentiation. Companies in intermediate environments had intermediate differentiation.

As uncertainty increases in an organization, which horizontal processes are available?:

Direct contact among managers that share problems Liaison roles, or specialized jobs to handle communications between two departments. Task forces, or groups of representatives from different departments, brought together temporarily to solve a common problem. Teams, or permanent interdepartmental decision-making groups. Product, program, or project managers who direct interdisciplinary groups with a common task to perform. Matrix organizations, composed of dual relationships in which some managers report to two superiors.

What does Diversity Training focus on?

Diversity training focuses on building awareness of diversity issues and providing the skills employees need to work with others who are different from them.

Where does Phase one of training usually start?

Phase one of training usually starts with a needs assessment. Managers conduct an analysis to identify the jobs, people, and departments for which training is necessary. Job analysis and performance measurements are useful for this purpose.

How is the BCG Matrix configured?

Each business in the corporation is plotted on the matrix on the basis of the growth rate of its market and the relative strength of its competitive position in that market (market share). The business is represented by a circle whose size depends on the business's contribution to corporate revenues.

What are the organizations three basic required benefits to employees?

Employee benefits include those required by law, such as workers' compensation, Social Security, and unemployment insurance, and those decided by the employer.

What does a Feedback Control System focus on?

Feedback control focuses on the use of information about results to correct deviations from the acceptable standard after they arise. Feedback control is involved when performance data have been gathered and analyzed and the results have been returned to someone (or something) in the process to make corrections.

What is Reengineering?

Extending from TQM and a focus on organizing around customer needs, organizations also have embraced the notion of reengineering . The principal idea of reengineering is to revolutionize key organizational systems and processes to answer this question: "If you were the customer, how would you like us to operate?" The answer to this question forms a vision for how the organization should run, and then decisions are made and actions are taken to make the organization operate like the vision. Processes such as product development, order fulfillment, customer service, inventory management, billing, and production are redesigned from scratch as if the organization were brand new and just starting out.

Americans with Disabilities Act (1990)

Extends affirmative action provisions of Vocational Rehabilitation Act to private employers; requires workplace modifications to facilitate disabled employees; prohibits discrimination against disabled.

What are the advantages of External Recruiting over internal recruiting?

External recruiting brings in new blood to a company and can inspire innovation. Among the most frequently used sources of outside applicants are Internet job boards, company websites, employee referrals, newspaper advertisements, and college campus recruiting. Recent surveys suggest that employers place the greatest emphasis on referrals by current employees and online job boards.11 Some companies actively encourage employees to refer their friends by offering cash rewards. In fact, surveys show word-of-mouth recommendations are the way most job positions get filled. Not only is this recruitment method relatively inexpensive, but employees also tend to know who will be a good fit with the company

Externally, what factors must and organization look at to project trends?

Externally, organizations have to look at workforce trends to make projections. Worldwide, the highly skilled, higher-paid jobs have been generated mostly in the cities of the industrialized world, where companies have scrambled to find enough qualified workers. At the same time, companies in industrialized nations have used offshoring to move much of their routine and less skilled work to nations with a large population willing to work for lower pay.

How do non-verbal messages affect communications?

Facial expression and tone of voice can account for much of the communication between two people. Several nonverbal body signals convey a positive attitude toward the other person: assuming a position close to the person; gesturing frequently; maintaining eye contact; smiling; having an open body orientation, such as facing the other person directly; uncrossing the arms; and leaning forward to convey interest in what the other person is saying.

What is involved in the Planning portion of the HR planning process?

First, HR managers need to know the organization's business plans to ensure that the right number and types of people are available—where the company is headed, in what businesses it plans to be, what future growth is expected, and so forth. Few actions are more damaging to morale than having to lay off recently hired college graduates because of inadequate planning for future needs

What are the two basic purposes of Performance Appraisals?

First, appraisal serves an administrative purpose. It provides managers with the information they need to make salary, promotion, and dismissal decisions; helps employees understand and accept the basis of those decisions; and, if necessary, provides documentation that can justify those decisions in court. Second, and at least as important, appraisal serves a developmental purpose. The information gathered in the appraisal can be used to identify and plan the additional training, learning, experience, or other improvement employees require. In addition, the manager's feedback and coaching based on the appraisal help employees improve their day-to-day performance and can help prepare them for greater responsibilities in the future.

What are the advantages of Management by Objective?

First, it avoids the biases and measurement difficulties of trait and behavioral appraisals. At the end of the review period, the employee either has or has not achieved the specified objective. The employee is judged on actual job performance. Second, because the employee and manager have agreed on the objective at the outset, the employee is likely to be more committed to the outcome, and there is less chance for misunderstanding. Third, because the employee is directly responsible for achieving the objective, MBO can be useful when managers want to empower employees to adapt their behavior to achieve the desired results.

After layoffs, what issues might remain with those still employed at the organization?

For many of the employees who remain with the company, disenchantment, distrust, and lethargy overshadow the comfort of still having a job. In many respects, how management deals with dismissals will affect the productivity and satisfaction of those who remain. A well-thought-out dismissal process eases tensions and helps remaining employees adjust to the new work situation.

What are some General Reasons for Resistance to Change?

General Reasons for Resistance • Inertia. Usually people don't want to disturb the status quo. The old ways of doing things are comfortable and easy, so people don't want to shake things up and try something new. For example, it is easier to keep living in the same apartment or house than to move to another. • Timing. People often resist change because of poor timing. Maybe you would like to move to a different place to live, but do you want to move this week? Even if a place were available, you probably couldn't take the time. If managers or employees are unusually busy or under stress, or if relations between management and workers are strained, the timing is wrong for introducing new proposals. Where possible, managers should introduce change when people are receptive. • Surprise. One key aspect of timing and receptivity is surprise. If the change is sudden, unexpected, or extreme, resistance may be the initial—almost reflexive—reaction. Suppose your school announced an increase in tuition, effective at the beginning of next term. Wouldn't you at least want more warning so you might be prepared? Managers or others initiating a change often forget that others haven't given the matter much thought; the change leaders need to allow time for others to prepare for the change. • Peer pressure. Sometimes work teams resist new ideas. Even if individual members do not strongly oppose a change suggested by management, the team may band together in opposition. Peer pressure will cause individuals to resist even reasonable changes, especially if a group is highly cohesive and has antimanagement norms. Of course peer pressure can be a positive force, too. Change leaders who invite—and listen to—ideas from team members may find that peer pressure becomes a driving force behind the change's success

What is Divisional Organization?

Grouping units around customers, products, and geographical regions. As organizations grow and become increasingly diversified, they find that functional departments have difficulty managing a wide variety of products, customers, and geographic regions. In this case, organizations may restructure to group all functions into a single division and duplicate each of the functions across all the divisions.

How should an interview be formatted when an employee is performing below acceptable standards?

Here is a useful PA interview format to use when an employee is performing below acceptable standards: 1. Summarize the employee's specific performance. Describe the performance in behavioral or outcome terms, such as sales or absenteeism. Don't say the employee has a poor attitude; rather, explain which employee behaviors indicate a poor attitude. 2. Describe the expectations and standards and be specific. 3. Determine the causes for the low performance; get the employee's input. 4. Discuss solutions to the problem and have the employee play a major role in the process. 5. Agree to a solution. As a supervisor, you have input into the solution. Raise issues and questions but also provide support. 6. Agree to a timetable for improvement. 7. Document the meeting.

What are Star businesses as they are identified by the BCG Matrix?

High-growth, strong-competitive-position businesses are called stars. These businesses require heavy investment, but their strong position allows them to generate the needed revenues.

What are Question Mark businesses as they are identified by the BCG Matrix?

High-growth, weak-competitive-position businesses are called question marks. They require substantial investment to improve their position; otherwise divestiture is recommended.

How should the should the Span of Control be assessed in order for optimal effectiveness?

Holding size constant, narrow spans build a tall organization that has many reporting levels. Wide spans create a flat organization with fewer reporting levels. The span of control can be too narrow or too wide. The optimal span of control maximizes effectiveness because it is (1) narrow enough to permit managers to maintain control over subordinates but (2) not so narrow that it leads to overcontrol and an excessive number of managers who oversee a small number of subordinates.

What is a High-involvement Organization?

In a high-involvement organization, top management ensures that there is a consensus about the direction in which the business is heading. The leader seeks input from his or her top management team and from lower levels of the company. Task forces, study groups, and other techniques are used to foster participation in decisions that affect the entire organization. Also fundamental to the high-involvement organization is continual feedback to participants regarding how they are doing compared with the competition and how effectively they are meeting the strategic agenda. Structurally, this usually means that even lower-level employees have a direct relationship with a customer or supplier and thus receive feedback and are held accountable for a good or service delivery. The organizational form is a flat, decentralized structure built around a customer, good, or service. Employee involvement is particularly powerful when the environment changes rapidly, work is creative, complex activities require coordination, and firms need major breakthroughs in innovation and speed—in other words, when companies need to be more responsive.

How are Structured Interviews conducted?

In a structured interview, the interviewer conducts the same interview with each applicant. There are two basic types of structured interview. The first approach—called the situational interview—focuses on hypothetical situations. The second approach—called the behavioral description interview—explores what candidates have actually done in the past.

How are Unstructured Interviews conducted?

In an unstructured (or nondirective) interview, the interviewer asks different interviewees different questions. The interviewer may also use probes—that is, ask follow-up questions to learn more about the candidate.

What guidelines should one follow when choosing an appraisal method?

In choosing an appraisal method, the following guidelines may prove helpful: 1. Base performance standards on job analysis. 2. Communicate performance standards to employees. 3. Evaluate employees on specific performance-related behaviors rather than on a single global or overall measure. 4. Document the PA process carefully. 5. If possible, use more than one rater (discussed in the next section). 6. Develop a formal appeal process. 7. Always take legal considerations into account.

How does Concurrent Engineering differ from Just-in-Time (JIT)?

In contrast to JIT, concurrent engineering incorporates the issues and perspectives of all the functions—and customers and suppliers—from the beginning of the process. This team-based approach results in a higher-quality product that is designed for efficient manufacturing and customer needs. When concurrent engineering brings the perspective of manufacturing employees into the design process, the company can find significant cost savings and reduce error rates. Every time manufacturing employees can identify how to reduce the use of different parts, they reduce the need to order those parts, maintain an inventory of them, and keep track of which parts to use in which application.

How do minority groups functions if when hired by monolithic organizations?

In monolithic organizations, if groups other than the norm are employed, they are found primarily in low-status jobs. Minority group members must adopt the norms of the majority to survive. This fact, coupled with small numbers, keeps conflicts among groups low. Discrimination and prejudice typically prevail, informal integration is almost nonexistent, and minority group members do not identify strongly with the company.

What is a Balanced Scorecard?

In recent years, a growing number of companies have combined targets for managers into a balanced scorecard, a combination of four sets of performance measures: (1) financial, (2) customer satisfaction, (3) business processes (quality and efficiency), and (4) learning and growth

What conflicts might arise between Staff and Line Departments in traditionally structured organizations?

In traditionally structured organizations, conflicts could arise between line and staff departments. One reason was that career paths and success in many staff functions have depended on being an expert in that particular functional area, whereas success in line functions is based more on knowing the organization's industry. In traditionally structured organizations, conflicts could arise between line and staff departments. One reason was that career paths and success in many staff functions have depended on being an expert in that particular functional area, whereas success in line functions is based more on knowing the organization's industry.

Who do the Top Management Teams typically consist of? How do they assist the CEO in decision making?

Increasingly, CEOs share their authority with other key members of the top management team. Top management teams typically are composed of the CEO, president, chief operating officer, chief financial officer, and other key executives. Rather than make critical decisions on their own, CEOs at companies such as Shell, Honeywell, and Merck regularly meet with their top management teams to make decisions as a unit.

What does Individual Pay Decisions concern?

Individual pay decisions concern different pay rates for jobs of similar worth within the same family. Differences in pay within job families are decided in two ways. First, some jobs are occupied by individuals with more seniority than others. Second, some people may be better performers who are therefore deserving of a higher level of pay.

What are advantages of Product Division?

Information needs are managed more easily. Less information is required because people work closely on one product and need not worry about other products. People have a full-time commitment to a particular product line. They develop a greater awareness of how their jobs fit into the broader scheme. Task responsibilities are clear People receive broader training. General managers develop a wide variety of skills, and they learn to be judged by results. Many top executives received crucial early experience in product structures.

How does management Increase Information-Processing Capability?

Instead of reducing the need for information, an organization may take the approach of increasing its information-processing capability. It can invest in information systems, which usually means employing or expanding computer systems. But increasing an organization's information-processing capability also means what we referred to as knowledge management—capitalizing on the intellect and experience of the organization's human assets to increase collaboration and effectiveness.

In contrast to the tyranny of the or, the genius of the and—more academically, organizational ambidexterity—refers to being able to achieve multiple objectives at the same time. What does Genius of the and develop?

It develops via the actions of many individuals throughout the organization. It focuses on delivering multiple competitive values to customers, performing all the management functions, reconciling hard-nosed business logic with ethics, leading and empowering, and others.

What are the limits to JIT?

It's not the most efficient choice when the costs of delivery exceed the costs of storage. And if suppliers have any problems fulfilling orders, the whole system breaks down. JIT requires close ties with suppliers, so finding replacements can be difficult. With the potential to lose millions of sales, the companies quickly began learning more about the entire supply chains feeding into their companies and diversifying their networks of suppliers.

Why is JIT not a fully-functional component of TBC?

JIT is a vital component of TBC, but JIT traditionally concentrates on reducing time in only one function: manufacturing. TBC attempts to deliver speed in all functions—product development, manufacturing, logistics, and customer service. Customers will not be impressed if you manufacture quickly but it takes weeks for them to receive their products or get a problem solved.

What key organizational concepts does JIT represent?

JIT represents a number of key production and organizational concepts, including the following: • Elimination of waste. Eliminate all waste from the production process, including waste of time, people, machinery, space, and materials. • Perfect quality. Produce perfect parts even when lot sizes are reduced, and produce the product exactly when it is needed in the exact quantities that are needed. • Reduced cycle times. Accomplish the entire manufacturing process more rapidly. Reduce setup times for equipment, move parts only short distances (machinery is placed in closer proximity), and eliminate all delays. The goal is to reduce action to the time spent working on the parts. For most manufacturers today, the percentage of time parts are worked on is about 5 percent of the total production time. JIT seeks to eliminate the other 95 percent—that is, to reduce to zero the time spent not working on the parts. • Employee involvement. In JIT, employee involvement is central to success. • Value-added manufacturing. Do only those things (actions, work, etc.) that add value to the finished product. • Discovery of problems and prevention of recurrence.

What is a Job Analysis used for?

Job analysis does two things.8 First, it tells the HR manager about the job itself: the essential tasks, duties, and responsibilities involved in performing the job. This information is called a job description. The job description for an accounting manager might specify that the position will be responsible for monthly, quarterly, and annual financial reports, getting bills issued and paid, preparing budgets, ensuring the company's compliance with laws and regulations, working closely with line managers on financial issues, and supervising an accounting department of 12 people. Second, job analysis describes the skills, knowledge, abilities, and other characteristics needed to perform the job. This is called the job specification. For our accounting manager example, the job requirements might include a degree in accounting or business, knowledge of computerized accounting systems, prior managerial experience, and excellent communication skills.

How three things should managers with valuable resource do to give his or her organization an advantage over competitors?

Keep in mind that it's not enough for an organization to have valuable resources that provide capabilities; those resources have to be managed in a way that gives the organization an advantage over competitors. 8 That means managers have to do three things. First, they must accumulate the right resources (such as talented people) by determining what resources they need, acquiring and developing those resources, and eliminating resources that don't provide value. Next, they combine the resources in ways that give the organization capabilities, such as researching new products or resolving problems for customers. These combinations may involve knowledge sharing and alliances between departments or with other organizations. Finally, managers need to leverage or exploit their resources. They do this by identifying the opportunities where their competencies deliver value to customers—say, by creating new products or by delivering existing products better than competitors—and then by coordinating and deploying the employees and other resources needed to respond to those opportunities.

What are the negative effects of lack of Delegation and or Poor Delegation?

Lack of delegation, or ineffective delegation, sharply reduces what a manager can achieve. The manager also saves one of his or her most valuable assets—time—by giving some of his or her responsibility to somebody else. He or she is then free to devote energy to important, higher-level activities such as planning, setting objectives, and monitoring performance.

As it pertains to change, managers must examine current realities and pressures in the marketplace and the competitive arena, identify both crises and opportunities, and be frank and honest about them. In this sense, urgency is a reality-based sense of determination, not just fear-based busyness. What else must management do for to foster change in their organizations?

Management also needs to connect the dots—that is, integrate the various efforts into a coherent picture that people can see, understand, and get behind. You connect the dots by understanding each change program and its goals, by identifying similarities among the programs and their differences, and by dropping programs that don't meet priority goals or demonstrate clear results. Most important, you do it by communicating to everyone concerned the common themes among the various programs: their common rationales, objectives, and methods. You show them how the various parts fit the strategic big picture and how the changes will make things better for the company and its people. You must communicate these benefits thoroughly, honestly, and frequently

Specific Approaches to Enlist Cooperation. Education and Communication

Management should educate people about upcoming changes before they occur. It should communicate not only the nature of the change but its logic. This process can include one-on-one discussions, presentations to groups, and reports and memos. Effective communication includes feedback and listening. That provides an environment in which management can explain the rationale for the change—and perhaps improve it.

Specific Approaches to Enlist Cooperation. Facilitation and Support

Management should make the change as easy as possible for employees and support their efforts. Facilitation involves providing the training and other resources people need to carry out the change and perform their jobs under the new circumstances. This step often includes decentralizing authority and empowering people—that is, giving them the power to make the decisions and changes needed to improve their performance. Offering support involves listening patiently to problems, being understanding if performance drops temporarily or the change is not perfected immediately, and generally being on the employees' side and showing consideration during a difficult period.

How can a manager add customer value and build a competitive advantage?

Managers can add customer value and build competitive advantage by paying close attention to their organization's value chain—not only each step in it, but the way each step interacts with the others

How can managers Reduce the Need for Information when dealing with the high uncertainty and heavy information demands?

Managers can reduce the need for information in two ways: (a) creating slack resources and (b) creating self-contained tasks.

What are World-Class Companies?

Managers today want, or should want, their organizations to become world Being world class requires applying the best and latest knowledge and ideas and having the ability to operate at the highest standards of any place anywhere.8 Thus becoming world class does not mean merely improving. It means becoming one of the very best in the world at what you do

What does Phase two of training involve?

Phase two involves the design of training programs. Based on needs assessment, training objectives and content can be established

People must receive the information they need to perform their jobs and become—and remain—loyal members of the organization. But they often lack adequate information. What are three reasons/problems for this?

One problem is information overload; they are bombarded with so much information that they fail to absorb everything. Much of the information is not very important, but its volume causes a lot of relevant information to be lost. A second problem is a lack of openness between managers and employees. Managers may believe "No news is good news," "I don't have time to keep them informed of everything they want to know," or "It's none of their business, anyway." Some managers withhold information even if sharing it would be useful. A third problem is filtering, introduced earlier in the chapter. When messages are passed from one person to another, some information is left out. When a message passes through many people, each transmission may cause further information losses. The message can also be distorted as people add their own words or interpretations.

How can a Force-Field Analysis help manage the change process?

One technique that helps to manage the change process, force-field analysis, involves identifying the specific forces that prevent people from changing and the specific forces that will drive people toward change.An approach to implementing the unfreezing/moving/refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change.

What is Computer-Integrated Manufacturing? What benefits does it offer?

One technological advance that has helped make mass customization possible is computer-integrated manufacturing (CIM), which links computerized production efforts. Two major elements are computer-aided design and computer-aided manufacturing, which share data needed for product design, testing, manufacturing, and quality control. These systems can produce high-variety and high-volume products at the same time.46 They may also offer greater control and predictability of production processes, reduced waste, faster throughput times, and higher quality. But managers cannot buy their way out of competitive trouble simply by investing in superior technology alone. They must also ensure that their organization has the necessary strategic and people strengths.

How can an organization capitalize on the intellect and experience of the organization's human assets to increase collaboration and effectiveness?

One way to do that is by creating horizontal relationships between units to foster coordination. Such horizontal relationships are effective because they increase integration, which Lawrence and Lorsch suggest is necessary for managing complex environments

What is Open-book Management?

Open-book management is the practice of sharing with employees at all levels of the organization vital information previously meant for management's eyes only. This information includes financial goals, income statements, budgets, sales, forecasts, and other relevant data about company performance and prospects

What is Orientation Training?

Orientation training is typically used to familiarize new employees with their new jobs, work units, and the organization in general. Done well, orientation training has a number of benefits, including lower employee turnover, increased morale, better productivity, and lower recruiting and training costs.

What is the Parading Strategy?

Parading means the team's strategy is to emphasize internal team building and achieve external visibility simultaneously.

What does Pay Level Refer to?

Pay level refers to the choice of whether to be a high-, average-, or low-paying company. Compensation is a major cost for any organization, so low wages can be justified on a short-term financial basis. But being the high-wage employer—the highest-paying company in the region—ensures that the company will attract many applicants. Being a wage leader may be important during times of low unemployment or intense competition.

When are people a source of competitive advantage?

People are a source of competitive advantage when their skills, knowledge, and abilities are not equally available to all competitors.

What do Performance Appraisals assess?

Performance appraisals can assess three basic categories of employee performance: traits, behaviors, and results.

What has the most profound impact on organizations?

Perhaps no other aspect of the environment has had a more profound impact on organizing in recent years than a focus on customers

What is one of the most difficult tasks of for an HR planning?

Perhaps the most difficult part of human resources planning is conducting demand forecasts—that is, determining how many and what type of people are needed.

What does Phase four of training involve?

Phase four of training should evaluate the program's effectiveness. Measures of effectiveness include employee reactions (surveys), learning (tests), improved behavior on the job, and bottom-line results (e.g., an increase in sales or reduction in defect rates following the training program).

How do Responsibility, Authority, and Accountability relate to Delegation?

Responsibility means that a person is assigned a task that he or she is supposed to carry out. When delegating work responsibilities, the manager also should delegate to the subordinate enough authority to get the job done. Authority, recall, means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility. Authority, recall, means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility. Accountability means that the subordinate's manager has the right to expect the subordinate to perform the job and the right to take corrective action if the subordinate fails to do so. The subordinate must report upward on the status and quality of his or her performance of the task.

What management style is Managing by Objectives?

Results appraisals tend to be more objective and can focus on production data such as sales volume (for a salesperson), units produced (for a line worker), or profits (for a manager). One approach to results appraisals—called management by objectives (MBO)—involves a subordinate and a supervisor agreeing in advance on specific performance goals (objectives). They then develop a plan that describes the time frame and criteria for determining whether the objectives have been reached. The aim is to agree on a set of objectives that are clear, specific, and reachable.

What are the benefits of Structured Interviews?

Structured interviews tend to be more reliable predictors of job performance because they are based on the job analysis that has been done for the position. They are also more likely to be free of bias and stereotypes. And because the same questions are being asked of all candidates for the job, an interview that is at least partially structured allows the manager to compare responses across different candidates.

What is a subunit?

Subdivisions of an organization?

What are the benefits of developing world-class Core Capabilities?

Successfully developing a world-class core capability opens the door to a variety of future opportunities; failure means being foreclosed from many markets. Thus a well-understood, well-developed core capability can enhance a company's responsiveness and competitiveness. Strategically, this means that companies should commit to excellence and leadership in capabilities, and strengthen them, before they commit to winning market share for specific products. Organizationally, this means that the corporation should be viewed as a portfolio of capabilities, not just a portfolio of specific businesses. Companies should strive for core competence leadership, not just product leadership.

Often the effort to be more responsive has brought managers face to face with the need to ensure consistently high quality. What are ways of meeting this need?

Systematic ways of meeting that need include total quality management, six sigma, and ISO 9001 standards.

What reasons would the Tactical Behavior Control system be ineffective?

Tactical Behavior Control systems will be ineffective if employees engage in tactics aimed at beating the system. The most common type of tactical behavior is to manipulate information or report false performance data. More commonly, people falsify their predictions or requests for the future. When asked to give budgetary estimates, employees usually ask for larger amounts than they need. On the other hand, they sometimes submit unrealistically low estimates when they believe a low estimate will help them get a budget or a project approved.

What is Operational Planning?

Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources.

What is Team Training?

Team training has taken on more importance as organizations reorganize to facilitate individuals working together. Team training teaches employees the skills they need to work together and facilitates their interaction.

What are the advantages of the 360-degree appraisal?

The 360-degree appraisal offers many advantages. It provides a much fuller picture of the employee's strengths and weaknesses, and it often captures qualities other appraisal methods miss. The approach can lead to significant improvement, with employees often very motivated to improve their ratings. Improvements in management performance following 360-degree appraisals have been observed in various countries, but cultural differences can affect the impact of this method.Researchers found that 360-degree appraisals were most effective with managers in cultures that were individualistic and had relatively low power distance.

What is the job of the CEO?

The authority officially vested in the board of directors is assigned to a chief executive officer (CEO), who occupies the top of the organizational pyramid. The CEO is personally accountable to the board and to the owners for the organization's performance. In some corporations, one person holds all three positions of CEO, chair of the board of directors, and president. More commonly, however, one person holds two of those positions, with the CEO serving also as either the chair of the board or the president of the organization The job of CEO typically consists of leading the board of directors, encouraging employees, and promoting positive change while being accountable for the overall success of the company.

What is the difference between Inside Directors and Outside Directors? What do most Board of Directors consist of, inside or outside?

The board's membership usually includes some top executives—called inside directors. Outside members of the board tend to be executives at other companies. The trend in recent years has been toward reducing the number of insiders and increasing the number of outsiders. Today, most companies have a majority of outside directors. Boards made up of strong, independent outsiders are more likely to provide different information and perspectives and to prevent big mistakes. Successful boards tend to be those who are active, critical participants in determining company strategies

What role does a sense of urgency play in effectively establishing change in an organization?

The companies that lead change most effectively establish a sense of urgency. To do so, managers must examine current realities and pressures in the marketplace and the competitive arena, identify both crises and opportunities, and be frank and honest about them. In this sense, urgency is a reality-based sense of determination, not just fear-based business. The immediacy of the need for change is an important component, in part because so many large companies grow complacent

Who is included in the Middle Management Level? What are the responsibilities of Middle Management?

The second broad level of the organization is middle management. At this level, managers are in charge of plants or departments.

What are the 3 functions of Staffing?

The staffing function consists of three related activities: recruitment, selection, and outplacement.

What is Human Capital?

The term human capital (or, more broadly, intellectual capital) often is used today to describe the strategic value of employee knowledge and abilities.

What is a Termination Interview? Who should conduct it?

The termination interview, in which the manager discusses the company's position with the employee, is a stressful situation for both parties. Most experts believe that the immediate superior should be the one to deliver the bad news to employees. However, it is a wise precaution to have a third party, such as an HR manager, present to provide guidance and take notes on the meeting.

What is the 3rd step of Strategic Management?

The third step is an Analysis of Strengths and Weaknesses.

What are the three basic approaches to Departmentalization?

The three basic approaches to departmentalization are functional, divisional, and matrix.

What is Closed-book Management?

The tradition closed-book approach in which people may or may not have a clue about how the company is doing, may or may not believe the things that management tells them, and may or may not believe that their personal performance makes a difference.

What is the "belt" learning system of Six Sigma and Lean Six Sigma

The training for Lean Six Sigma is provided through the belt based training system similar to that of Six Sigma. The belt personnel are designated as white belts, yellow belts, green belts, black belts and master black belts, similar to karate. For each of these belt levels skill sets are available that describe which of the overall Lean Six Sigma tools are expected to be part at a certain Belt level. These skill sets provide a detailed description of the learning elements that a participant will have acquired after completing a training program. The level upon which these learning elements may be applied is also described. The skill sets reflects elements from Six Sigma, Lean and other process improvement methods like the theory of constraints (TOC) total productive maintenance (TPM).

What is Outplacement? When is it appropriate?

The victims of restructuring face all the difficulties of being let go—loss of self-esteem, demoralizing job searches, and the stigma of being out of work. To some extent, employers can help employees with these problems by offering outplacement, the process of helping people who have been dismissed from the company regain employment elsewhere. Even then, the impact of layoffs goes further than the employees who leave.

When is Appraisal Feedback most effective?

There is no one best way to do a PA interview. In general, appraisal feedback works best when it is specific and constructive—related to clear goals or behaviors and clearly intended to help the employee rather than simply criticize. Managers have an interest not just in rating performance but in raising it, and effective appraisals take that into account. In addition, the appraisal is likely to be more meaningful and satisfying when the manager gives the employee an opportunity to discuss his or her performance and respond to the appraisal.

According to Joan Woodward, what are the three characteristics of how Technology wok is done? How do they differ?

There is small batch, large batch, and continuous process technologies. These three classifications are equally useful for describing either service or manufacturing technologies. Each differs in terms of volume produced and variety of goods/services offered. Each also has a different influence on how managers organize and structure the work of their organizations.

How do firms become Learning Organizations?

They make sure a few important activities are happening at all levels and in all functions: 16 1. Engaging in disciplined thinking and paying attention to details, so decisions are based on data and evidence, not guesswork and assumptions 2. Searching constantly for new knowledge and ways to apply it, looking for broader horizons and opportunities, not just quick fixes for current problems 3. Valuing and rewarding individuals who expand their knowledge and skill in areas that benefit the organization 4. Reviewing successes and failures carefully to find lessons and deeper understanding 5. Benchmarking—that is, identifying and implementing the best business practices of other organizations, stealing ideas shamelessly 6. Sharing ideas throughout the organization via reports, information systems, informal discussions, site visits, education, training, and mentoring of less experienced employees by more experienced ones

What three decisions are crucial for an effective pay plan?

Three types of decisions are crucial for designing an effective pay plan: pay level, pay structure, and individual pay.

To capitalize on the benefits and minimize the costs of a diverse workforce, what perhaps is one of the first things managers need to do?

To capitalize on the benefits and minimize the costs of a diverse workforce, perhaps one of the first things managers need to do is examine their organization's prevailing assumptions about people and cultures.

What two strategies can managers use to cope with high uncertainty and heavy information demands?

To cope with high uncertainty and heavy information demands, managers can use the two general strategies shown. First, management can act to reduce the need for information. Second, it can increase its capacity to handle more information

Other than Coordination by Standardization, what is another method that can be used for Coordiantion?

To improve coordination, organizations may also rely on formalization—the presence of rules and regulations governing how people in the organization interact. Simple, often written, policies regarding attendance, dress, and decorum, for example, may help eliminate a good deal of uncertainty at work.

What is Total Organizational Change?

Total organization change involves introducing and sustaining multiple policies, practices, and procedures across multiple units and levels. Such change affects the thinking and behavior of everyone in the organization, can enhance the organization's culture and success, and can be sustained over time.

What does total organizational change involve?

Total organization change involves introducing and sustaining multiple policies, practices, and procedures across multiple units and levels. Such change affects the thinking and behavior of everyone in the organization, can enhance the organization's culture and success, and can be sustained over time.Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.

What is Total Quality Management?

Total quality management (TQM) is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends on having high-quality products. TQM is a comprehensive approach to improving product quality and thereby customer satisfaction. It is characterized by a strong orientation toward customers (external and internal) and has become an umbrella theme for -organizing work. TQM reorients managers toward involving people across departments in improving all aspects of the business.

What are the benefits of Unstructured Interviews?

Unstructured interviews can help establish rapport and provide a sense of the applicant's personality, but they may not provide the manager with specific information about the candidate's ability.

What is Upward Communication? Why is it important?

Upward communication travels from lower to higher ranks in the hierarchy. Adequate upward communication is important for several reasons. First, managers learn what's going on. Management gains a more accurate picture of subordinates' work, accomplishments, problems, plans, attitudes, and ideas. Second, employees gain from the opportunity to communicate upward. People can relieve some of their frustrations and achieve a stronger sense of participation in the enterprise. Third, effective upward communication facilitates downward communication as good listening becomes a two-way street.

What are the characteristics of an organization with Small Batch Technologies?

When goods or services are provided in very low volume or small batches, a company that does such work is called a job shop. In a small batch organization, structure tends to be very organic. There tend not to be a lot of rules and formal procedures, and decision making tends to be decentralized. The emphasis is on mutual adjustment among people.

Specific Approaches to Enlist Cooperation. Negotiation and Rewards

When necessary and appropriate, management can offer concrete incentives for cooperation with the change. Perhaps job enrichment is acceptable only with a higher wage rate, or a work rule change is resisted until management agrees to a concession on some other rule (say, regarding taking breaks). Even among higher-level managers, one executive might agree to another's idea for a policy change only in return for support on some other issue of more personal importance. Rewards such as bonuses, wages and salaries, recognition, job assignments, and perks can be examined and perhaps restructured to reinforce the direction of the change.

What is the method of Coordination by Standardization?

When organizations coordinate activities by establishing routines and standard operating procedures that remain in place over time, we say that work has been standardized. Standardization constrains actions and integrates various units by regulating what people do. People often know how to act—and how to interact—because standard operating procedures spell out what they should do.

What is the Strategic Triangle?

When relevant functions interact with each other on a regular basis, the greater the opportunity to improve processes, maximize efficiency, and reduce cost.

How is the profit margin for the organization calculated in the Value Chain?

When the total value created—that is, what customers are willing to pay—exceeds the cost of providing the good or service, the result is the organization's profit margin

In what circumstance would Standardization not be beneficial?

When the work environment requires flexibility, coordination by standardization may not be very effective. Who hasn't experienced a time when rules and procedures—frequently associated with a slow bureaucracy—prevented timely action to address a problem? In these instances, we often refer to rules and regulations as red tape

What is persuasion?

Your attitude in presenting ideas and persuading others is important. Persuasion is not what many people think: merely selling an idea or convincing others to see things your way. Don't assume that it takes a "my way or the highway" approach, with a one-shot effort to make a hard sell and resisting compromise. It usually is more constructive to consider persuasion a process of learning from each other and negotiating a shared solution.

A two-sigma-level process

a two-sigma-level process has more than 300,000 defects per million opportunities (DPMO)—not a very well-controlled process.

What may be simplest and most flexible approach to Coordination?

the simplest and most flexible approach to coordination may just be to have interdependent parties talk to one another. Coordination by mutual adjustment involves feedback and discussions to figure out jointly how to approach problems and devise solutions that are agreeable to everyone. The popularity of teams today is in part because they allow flexible coordination; teams can operate under the principle of mutual adjustment.

Best Practices for Termination?

• Make termination the last step in a clear and fair process, being certain you have the facts. • Be sure the person terminating the employee is the employee's direct supervisor. • Be prepared with answers to basic questions such as the official end date and any severance benefits. • Consult with the human resource department to identify any benefits available; give the employee a written list of information about benefits and policies. • Invite a trained HR representative to attend the meeting. • Listen respectfully.

What must happen for the lean approach to result in more effective operations?

• People are broadly trained rather than specialized. • Communication is informal and horizontal among line workers. • Equipment is general-purpose. • Work is organized in teams, or cells, that produce a group of similar products. • Supplier relationships are long-term and cooperative. • Product development is concurrent, not sequential, and is done by cross-functional teams.

What are the Cons of the Matrix Form?

• Unclear responsibilities and competing priorities. • Violation of the unity-of-command principle. • Accountability difficult to define. • Accountability for results under other matrix members' control. • Possible conflict and stress for employees who must manage a dual reporting role. • Additional time required for meetings and other communications to coordinate work. • Extensive collaboration needed but not always easy to reward.

What are three major duties that the Board preforms?

(1) selecting, assessing, rewarding, and replacing the CEO, if necessary; (2) determining the firm's strategic direction and reviewing financial performance; and (3) ensuring ethical, socially responsible, and legal conduct.

Where does the analysis of the organization's environment begin?

The analysis begins with an examination of the industry. Next, organizational stakeholders are examined. Stakeholders are groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies. They include buyers, suppliers, competitors, government and regulatory agencies, unions and employee groups, the financial community, owners and shareholders, and trade associations. The environmental analysis also should examine other forces in the environment, such as economic conditions and technological factors. One critical task in environmental analysis is forecasting future trends

What does a Concentration strategy focus on?

. A concentration strategy focuses on a single business competing in a single industry. In the food retailing industry, Kroger, Safeway, and A&P all pursue concentration strategies. Frequently, companies pursue concentration strategies to gain entry into an industry when industry growth is good or when the company has a narrow range of competencies.

What is a Vertical Integration Strategy?

. A concentration strategy focuses on a single business competing in a single industry. In the food retailing industry, Kroger, Safeway, and A&P all pursue concentration strategies. Frequently, companies pursue concentration strategies to gain entry into an industry when industry growth is good or when the company has a narrow range of competencies.

What are the 6 steps to Formal Planning?

1. Situational Analysis 2.Alternative Goals and Plans 3.Goal and plan evaluation 4.Goal and plan selection 5.Implementation 6.Monitor and control

In general, strategy implementation involves four related steps. What are these four steps?

1.Define Strategic tasks- Articulate task in simple language. Define strategic tasks for better understanding 2.Assess organizational - Evaluate the organization's ability to implement the strategic tasks. 3.Develop an implementation agenda- Management decides how it will change its own activities and procedures; how critical interdependencies will be managed; what skills and individuals are needed in key roles; and what structures, measures, information, and rewards might ultimately support the needed behavior 4.Creat Implementation Plan- The top management team, the employee task force, and others develop the implementation plan. The top management team then monitors progress. The employee task force continues its work by providing feedback about how others in the organization are responding to the changes.

What are the 6 Major Components of Strategic Management?

1.Establishment of mission, vision, and goals. 2.Analysis of external opportunities and threats. 3. Analysis of internal strengths and weaknesses. 4.SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation. 5.Strategy implementation. 6.Strategic control.

What are the Six Barriers of Strategy Implementation?

1.Top-down or laissez-faire senior management style. 2.Unclear Strategy and conflicting priorities. 3.An ineffective senior management team 4. Poor Vertical communication 5.Poor coordination across functions, businesses, or borders 6.Inadequated down-the-line leadership skills and development.

What does a Corporate Strategy do?

A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses

What is the time horizon of Strategic, Tactical and Operational Planning, respectively?

A strategic plan will typically have a time horizon of from three to seven years-- sometimes even decades.Tactical plans may have a time horizon of a year or two, and operational plans may cover a period of months.

What is a Low-Cost Strategy?

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

What is a Differentiation Strategy?

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

What is a strategy? What are the five questions to be answered in an effective strategy?

A strategy is a pattern of actions and resource allocations designed to achieve the goals of the organization. An effective strategy provides a basis for answering five broad questions about how the organization will meet its objectives: (1) Where will we be active? (2) How will we get there (e.g., by increasing sales or acquiring another company)? (3) How will we win in the marketplace (e.g., by keeping prices low or offering the best service)? (4) How fast will we move and in what sequence will we make changes? (5) How will we obtain financial returns (low costs or premium prices) The answers to the "where" and "how" questions should be aimed at winning (question 3), which requires offering a better "value proposition" than the competition

What is a strategy map? What is its purpose?

A strategy map provides a tool managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play in helping to achieve them. The map illustrates the four key drivers (or "balanced scorecard") of a firm's long-term success: the skills of its people and their ability to grow and learn; the effectiveness of its internal processes; its ability to deliver value to customers; and ultimately its ability to grow its financial assets. The map shows how specific plans and goals in each area link to the others and can generate real improvements in an organization's performance. The strategy map shows the relationship between a firm's practices and its long-term success

What is a strategy of Concentric Diversification?

A strategy of concentric diversification involves moving into new businesses that are related to the company's original core business. Success in a concentric diversification strategy requires adequate management and other resources for operating more than one business.

What is the threat of a Substitute and the potential opportunity of a Complement?

A substitute is a potential threat; customers use it as an alternative, buying less of one kind of product but more of another. A complement is a potential opportunity because customers buy more of a given product if they also demand more of the complementary product. Examples of a compliment are furniture is a compliment to buying a new home or new wheels for an automobile.

The final step in Formal Planning is to Monitor and Control. This step is often forgotten, why is it important?

Although it is sometimes ignored, the sixth step in the formal planning process—monitoring and controlling—is essential. Without it, you will never know whether your plan is succeeding. Planning works in a cycle; it is an ongoing, repetitive process. Managers must continually monitor the actual performance of their work units against the units' goals and plans. They also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes

What are the identifying characteristics of Competition in the Competitive environment.

Among the various components of the competitive environment, competitors within the industry must first deal with one another. When organizations compete for the same customers and try to win market share at the others' expense, all must react to and anticipate their competitors' actions

What are the major components of Analysis of Internal Strengths and Weaknesses

An Analysis of Internal Strengths and Weaknesses includes a financial Analysis, Marketing Audit, Operation Analysis, Other Internal Resource Analyses, and Human Resource Assessment.

How do powerful place the organization at a disadvantage

An organization is at a disadvantage if it depends too heavily on powerful customers. Customers are powerful if they make large purchases or if they can easily find alternative places to buy. If you are the largest customer of a firm and you can buy from others, you have power over that firm, and you most likely can negotiate with it successfully. Your firm's biggest customers—especially if they can buy from other sources—will have the greatest negotiating power over you.

Why is Integration necessary in Differentiated organizations?

As organizations differentiate their structures, managers must simultaneously consider issues of integration. All the specialized tasks in an organization cannot be performed completely independently. Because the different units are part of the larger organization, some degree of communication and cooperation must exist among them.

What is Authority?

At the most fundamental level, the functioning of every organization depends on the use of authority, the legitimate right to make decisions and to tell other people what to do

In what ways is Authority Not position-dependent?

Authority in an organization is not always position-dependent. People with particular expertise, experience, or personal qualities may have considerable informal authority—for example, people who carry themselves with confidence, can deliver valuable information, or work face to face with those who have high positions

In all businesses—services as well as manufacturing— strategies that emphasize good customer service provide a critical competitive advantage. What is customer service?

Customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and dependability with which an organization can deliver its products. Actions and attitudes that provide excellent customer service include the following: Speed of filling and delivering normal orders. Willingness to meet emergency needs. Merchandise delivered in good condition. Readiness to take back defective goods and resupply quickly. Availability of installation and repair services and parts. Service charges (that is, whether services are free or priced separately).

Who are the customers of an organization?

Customers purchase the goods or services an organization offers. Without customers, a company won't survive. Customers can be intermediate (wholesalers and retailers) or final (end users), depending on where they are in the value chain.

Differentiation is created through division of labor and job specialization. What is Division of labor? What is Job Specialization?

Division of labor means the work of the organization is subdivided into smaller tasks. Various individuals and units throughout the organization perform different tasks. Specialization refers to the fact that different people or groups often perform specific parts of the larger task. The two concepts are, of course, closely related. The many tasks that must be carried out in an organization make specialization and division of labor necessities. Otherwise, the complexity of the overall work of the organization would be too much for any individual

What are Cash Cows businesses as they are identified by the BCG Matrix?

Low-growth, strong-competitive-position businesses are called cash cows. These businesses generate revenues in excess of their investment needs and therefore fund other businesses.

What is Coordination?

Integration and its related concept, coordination, refer to the procedures that link the various parts of the organization to achieve the organization's overall mission. Integration is achieved through structural mechanisms that enhance collaboration and coordination. Any job activity that links different work units performs an integrative function.

What is an organization's Microenvironment?

Economic factors that affect supply, demand, competition, and profitability within an industry.

Recently, corporations and strategy consultants have been paying more attention to implementation. They realize that clever techniques and a good plan do not guarantee success. Which two major trends reflect this appreciation?

First, organizations are adopting a more comprehensive view of implementation. The organization structure, technology, human resources, employee reward systems, information systems, organization culture, and leadership style must all support the strategy. Just as an organization's strategy must be matched to the external environment, so must it also fit the multiple factors through which it is implemented. Second, many organizations are extending the more participative strategic management process to implementation. Managers at all levels are involved with formulating strategy and identifying and executing ways to implement it

How does a Conglomerate Diversification differ from a concentric diversification?

In contrast to concentric diversification, conglomerate diversification is a corporate strategy that involves expansion into unrelated businesses. Typically, companies pursue a conglomerate diversification strategy to minimize risks due to market fluctuations in one industry.

How should management go about setting up the organization's strategy?

In setting a strategy, managers try to match the organization's skills and resources to the opportunities found in the external environment. Every organization has certain strengths and weaknesses, so the actions, or strategies, the organization implements should help build on strengths in areas that satisfy the wants and needs of consumers and other key factors in the organization's external environment.

What are the important activities in the organization's environmental analysis?

Industry and Market Analysis, Competitor Analysis, Political and Regulatory Analysis, Social Analysis, Human Resources Analysis, and Technological Analysis.

What type of inventory of resource should a organization be concerned with as it pertains to Analysis of Internal Strengths and Weakness

Is your firm strong enough financially to handle the lengthy and costly investment new projects often require? Can your existing staff carry out its part of the plan, or will additional training or hiring be needed? Is your firm's image compatible with the strategy, or will it have to persuade key stakeholders that a change in direction makes sense? This kind of internal analysis gives strategic decision makers an inventory of the organization's existing functions, skills, and resources as well as its overall performance level. Many of your other business courses will prepare you to conduct an internal analysis. Effective internal analysis provides a clearer understanding of how a company can compete through its resources.

Step 5 in Formal Planning is the Implementation of selected Goals and Plans, how are they implemented?

Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so. Including employees in the previous steps of the planning process paves the way for the implementation phase. As we mentioned earlier, employees usually are better informed, more committed, and more highly motivated when a goal or plan is one they helped develop. Successful implementation requires a plan to be linked to other systems in the organization, particularly the budget and reward systems. If the manager does not have a budget with financial resources to execute the plan, the plan is probably doomed.

How are threats from now companies assessed in an industry? What are some of the barriers that they may face?

New, high-growth industries offer enormous opportunities for profits. When an industry matures and growth slows, profits drop. Then intense competition causes an industry shakeout: weaker companies are eliminated, and the strong companies survive.

How does industry growth affect an organizations profits?

New, high-growth industries offer enormous opportunities for profits. When an industry matures and growth slows, profits drop. Then intense competition causes an industry shakeout: weaker companies are eliminated, and the strong companies survive.

What is the following step for an organization after identifying competitors?

Once competitors have been identified, the next step is to analyze how they compete. Competitors use tactics such as price reductions, new product introductions, and advertising campaigns to gain advantage over their rivals. Once competitors have been identified, the next step is to analyze how they compete. Competitors use tactics such as price reductions, new product introductions, and advertising campaigns to gain advantage over their rivals.

What should happen after the organization has identified its Strategic Goals and Plans

Once the organization's strategic goals and plans are identified, they serve as the foundation for planning done by middle-level and frontline managers. Goals and plans become more specific and involve shorter periods of time as they move from the strategic level to the tactical level and then to the operational level.

How can powerful Suppliers place organizations at a disadvantage?

Organizations are at a disadvantage if they become overly dependent on any powerful supplier. A supplier is powerful if the buyer has few other sources of supply or if the supplier has many other buyers. Dependence also results from high switching costs—the fixed costs buyers face if they change suppliers. For example, once a buyer learns how to operate a supplier's equipment, such as computer software, the buyer faces both economic and psychological costs in changing to a new supplie

What is planning?

Planning is the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future. Planning is not an informal or haphazard response to a crisis; it is a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization. Planning provides individuals and work units with a clear map to follow in their future activities; at the same time, this map may be flexible enough to allow for individual circumstances and changing conditions.

What are the only conditions that Resources can be viewed as a competitive advantage?

Resources are a source of competitive advantage only under certain circumstances. First, if the resource is instrumental for creating customer value—that is, if it increases the benefits customers derive from a good or service relative to the costs they incur—the resource can lead to a competitive advantage. Second, resources are a source of advantage if they are rare and not equally available to all competitors. Even for extremely valuable resources, if all competitors have equal access, the resource cannot provide a source of competitive advantage. Were success relies on a combination of hiring, training, motivation, and job design, not just a policy of free returns, resources tend to be harder to imitate if they are complex, with many interdependent variables and no obvious links between easily explained behaviors and desired outcomes. Finally, resources can enhance a firm's competitive advantage when they are well organized.

What are Recourses? What 2 categories do the fall into?

Resources are inputs to production that can be accumulated over time to enhance the performance of a firm. Resources can take many forms, but they tend to fall into two broad categories: (1) tangible assets such as real estate, production facilities, raw materials, and so on, and (2) intangible assets such as company reputation, culture, technical knowledge, and patents as well as accumulated learning and experience.

What does each letter in the Acronym SWOT stand for? How do they pertain to step 4 SWOT Analysis and Strategy Formulation

S - an organization's Strengths might include skilled management, positive cash flow, and well-known and highly regarded brands. W- Weaknesses might be lack of spare production capacity and the absence of reliable suppliers O - Opportunities can be new technology that could make the supply chain more efficient and a market niche that is currently underserved. T - Threats might include the possibility that competitors will enter the underserved niche once it has been shown to be profitable. *Opportunities and threats arise in the macroenvironment and competitive environment.

How does a SWOT analysis help managers?

SWOT analysis helps managers summarize the relevant, important facts from their external and internal analyses. Based on this summary, they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats.

After step 1, Establishing the Mission, Vision, and Goals, what is the next step of strategic management?

Step 2 is the Analysis of External Opportunities and Threats. Successful strategic management depends on an accurate and thorough evaluation of the competitive environment and macroenvironment.

What is step 4 of Strategic Management?

Step 4 is SWOT Analysis and Strategy Formulation. Once managers have analyzed the external environment and the internal resources of the organization, they will have the information they need to assess the organization's strengths, weaknesses, opportunities, and threats. Such an assessment normally is referred to as a SWOT analysis

What is Step 5 of Strategic Management Process?

Step 5 is the implementation of the Strategy (Strategy Implantation). As with any plan, simply formulating a good strategy is not enough. Strategic managers also must ensure that the new strategies are implemented effectively and efficiently.

Who elects the Board of Directors or an Organization? Who is the head of the board?

Stockholders elect a board of directors to oversee the organization. The board, led by the chair, makes major decisions affecting the organization, subject to corporate charter and bylaw provisions.

What are Strategic Goals?

Strategic goals are major targets or results that relate to the long-term survival, value, and growth of the organization. Strategic managers—top-level managers—usually establish goals that reflect both effectiveness (providing appropriate outputs) and efficiency (a high ratio of outputs to inputs).

What are typical Strategic Goals?

Strategic goals are major targets or results that relate to the long-term survival, value, and growth of the organization. Strategic managers—top-level managers—usually establish goals that reflect both effectiveness (providing appropriate outputs) and efficiency (a high ratio of outputs to inputs).

What are the Strategic Goals

Strategic goals evolve from the mission and vision of the organization. The chief executive officer of the organization, with the input and approval of the board of directors, establishes the mission, vision, and major strategic goals.

What is Strategic Management?

Strategic management involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies. It integrates strategic planning and management into a single process. Strategic planning becomes an ongoing activity in which all managers are encouraged to think strategically and focus on long-term, externally oriented issues as well as short-term tactical and operational issues.

What is Strategic Planning? Who is responsible for Strategic Planning in an organization?

Strategic planning involves making decisions about the organization's long-term goals and strategies. Strategic plans have a strong external orientation and cover major portions of the organization. Senior executives are responsible for the development and execution of the strategic plan, although they usually do not formulate or implement the entire plan personally.

According to Michael Porter, a Harvard professor, how do successful managers react to their environment?

Successful managers do more than simply react to the environment; they act in ways that actually shape or change the organization's environment.

Other than the resources that they obtain from Suppliers, how else can Suppliers affect an organization?

Suppliers can raise their prices or provide poor-quality goods and services. Workers may produce either outstanding or defective work. Powerful suppliers, then, can reduce an organization's profits, particularly if the organization cannot pass on price increases to its customers.

Organizations must acquire resources (inputs) from their environment and convert those resources into products or services (outputs) to sell. Who are the suppliers and how do Suppliers provide a valuable resource to the organization?

Suppliers provide the resources needed for production, and those resources may come in the form of people (supplied by trade schools and universities), raw materials (from producers, wholesalers, and distributors), information (supplied by researchers and consulting firms), and financial capital (from banks and other sources).

Why has recent focus been geared toward Supply Chain Management?

Supply chain management, also known as the extended enterprise is the managing of the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers. In the past, products tended to be standardized, overseas competition was still years in the future, and the pace of change was slower. But increased competition has required managers to pay very close attention to their costs. For example, they can no longer afford to hold large and costly inventories, waiting for orders to come in. Also, once orders do come in, some products still sitting in inventory might well be out of date.

What is Tactical Planning? What do they focus on?

Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources. Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources,

What does the Competitive Environment included.

The competitive environment includes the organizations with which the organization directly interacts, including rivalry among current competitors and the impact of new entrants, substitute and complementary products, suppliers, and customers

What are the diversified buusindsses of an organization called. What is the most popular way to analyzes them?

The diversified businesses of an organization are sometimes called its business portfolio. One of the most popular techniques for analyzing a corporation's strategy for managing its portfolio is the BCG matrix, developed by the Boston Consulting Group

What is the final Step of Strategic Management Process?

The final component of the strategic management process is strategic control. A strategic control system is designed to support managers in evaluating the organization's progress with its strategy and, when discrepancies exist, taking corrective action. The system must encourage efficient operations that are consistent with the plan while allowing flexibility to adapt to changing conditions. As with all control systems, the organization must develop performance indicators, an information system, and specific mechanisms to monitor progress

What are Functional Strategies?

The final step in strategy formulation is to establish the major functional strategies. Functional strategies are implemented by each functional area of the organization to support the business strategy. The typical functional areas include production, human resources, marketing, research and development, finance, and distribution

What is the first step to understanding a organization's competitive environment? Who are the competitors?

The first step in understanding a organizations competitive environment, organizations must identify their competitors. Competitors may include (1) small domestic firms, especially their entry into tiny, premium markets; (2) strong regional competitors; (3) big new domestic companies exploring new markets; (4) overseas firms, especially those that either try to solidify their position in small niches (a traditional Japanese tactic) or are able to draw on an inexpensive labor force on a large scale (as in China); and (5) newer entries, such as firms offering their products on the web.

What is the next step in Formal Planning, after the Situational Analysis? What does it include?

The next step is to develop Alternative Goals and Plans? Based on the situational analysis, the planning process should generate alternative goals that may be pursued in the future and the alternative plans that may be used to achieve those goals. This step in the process should stress creativity and encourage managers and employees to think in broad terms about their jobs. Once a range of alternatives has been developed, the merits of these different plans and goals will be evaluated.

What is the third step in Formal Planning, after developing Alternative Goals and Plans? What does it include?

The next step will be the evaluation of Goals and Plans (Goal and Plan Evaluation). Managers w ill evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They must prioritize those goals and even eliminate some of them. Also, managers will consider carefully the implications of alternative plans for meeting high-priority goals. In particular, they will pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.

What is the Strategic Vision?

The strategic vision points to the future—it provides a perspective on where the organization is headed and what it can become. Ideally, the vision statement clarifies the long-term direction of the company and its strategic intent. Here are some actual vision statements, The strategic vision points to the future—it provides a perspective on where the organization is headed and what it can become. Ideally, the vision statement clarifies the long-term direction of the company and its strategic intent. Here are some actual vision statements

What are the limitations of Benchmarking? How can they be countered?

To assess and improve performance, some companies use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies. The goal of benchmarking is to understand the "best practices" of other firms thoroughly and to undertake actions to achieve both better performance and lower costs

What is Benchmarking? What is the goal of Benchmarking?

To assess and improve performance, some companies use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies. The goal of benchmarking is to understand the "best practices" of other firms thoroughly and to undertake actions to achieve both better performance and lower costs

How can companies counter the threat of Substitutes?

To avoid losing out when others create a new supplement, some companies try to create their own supplementary products. Such as Pepsi providing healthier options for the shift towards better health and less sugar. Besides identifying and planning for substitutes, companies must consider complements for their products.

How must organization plan for them to be effective?

To be fully effective, the organization's strategic, tactical, and operational goals and plans must be aligned—that is, they must be consistent, mutually supportive, and focused on achieving the common purpose and direction.

What does the Vertical Dimension of a Firm's (organization) structure involve?

To understand issues such as reporting relationships, authority, responsibility, and the like, these are covered in the vertical dimension of a firm's structure.

What is the goal of today's Supply Chain?

Today, the goal of effective supply chain management is to have the right product in the right quantity available at the right place at the right cost.

What are the 3 Major Types of Managers?

Top Level (strategic managers) Middle-Level (tactical managers) Frontline (operation managers)

Who has Authority in an Organization?

Traditionally, authority resides in positions rather than in people. Thus the job of vice president of a particular division has authority over that division, regardless of how many people come and go in that position and who currently holds it. In private business enterprises, the owners have ultimate authority. In most small, simply structured companies, the owner also acts as manager. Sometimes the owner hires another person to manage the business and its employees. The owner gives this manager some authority to oversee the operations, but the manager is accountable to—that is, reports and defers to—the owner. Thus the owner still has the ultimate authority

What is an Organizational Chart?

We often begin to describe a firm's structure by looking at its organization chart. The organization chart depicts the positions in the firm and the way they are arranged. The chart provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out by different individuals. Most companies have official organization charts drawn up to give people this information.

What are the Plans in the second step of Formal Planning, Alternative Goals and Plans? what should they contain?

What are the Goals in the second step of Formal Planning, Alternative Goals and Plans?

What is the most effective strategy that a organization can adopt?

Whatever strategy managers adopt, the most effective strategy is one that competitors are unwilling or unable to imitate. If the organization's strategic plan is one that could easily be adopted by industry competitors, it may not be sufficiently distinctive or, in the long run, contribute significantly to the organization's competitiveness.

What is an organization's Core Capability?

When resources are valuable, rare, inimitable, and organized, they can be viewed as a company's core capabilities. Simply stated, a core capability (also referred to as "competence") is something a company does especially well relative to its competitors.

How has the internet and the specificity of customers changed supply chains?

With the emergence of the Internet, customers look for products built to their specific needs and preferences—and they want them delivered quickly at the lowest available price. This requires the supply chain to be not only efficient but also flexible, so that the organization's output can quickly respond to changes in demand.

How should the planner begin their Situational Analysis? What does a thorough Situation Analysis cover? What is the outcome?

Within their time and resource constraints, planners should gather, interpret, and summarize all information relevant to the planning issue in question. A thorough situational analysis studies past events, examines current conditions, and attempts to forecast future trends. It focuses on the internal forces at work in the organization or work unit and, consistent with the open-systems approach, examines influences from the external environment. The outcome of this step is the identification and diagnosis of planning assumptions, issues, and problems.

What is the fourth step in Formal Planning, after the Evaluation of Goals and Plans? How is it done?

nce managers have assessed the various goals and plans, they will select the one that is most appropriate and feasible. The evaluation process will identify the priorities and trade-offs among the goals and plans. Typically, a formal planning process leads to a written set of goals and plans that are appropriate and feasible for a particular set of circumstances. In some organizations, the alternative generation, evaluation, and selection steps generate planning scenarios, as

What is the one huge trend affecting almost every company's strategy?

ne huge trend affecting almost every company's strategy is the degree to which business today takes place across national boundaries. Today, there is hardly any organization that does not buy at least some of its supplies and equipment from, or sell at least some of its products to, individuals and organizations in other countries