ADMN 1000H Final Flashcards
1
Q
Entrepreneurs are able to perceive the opportunities for entrepreneurial profits by being sensitive to signals in the marketplace. This is known as __________ _____.
A
Entrepreneurially Alert
2
Q
Describe the forces for change.
A
External forces:
- the marketplace
- government laws and regulations
- technology
- the economy
- labour markets
Internal forces:
- changes in strategy
- changes in workforce
- new equipment
- changes in employee attitudes
3
Q
What is MBO? What are the elements?
A
Management by Objectives
- Goal specificity
- Participative decision-making
- Explicit time period
- Performance feedback
4
Q
How do Organizations go international?
A
Minimal Global Investment - Global Sourcing - Exporting and Important - Licensing - Franchising - Strategic Alliance Joint Venture - Foreign Subsidiary Significant Global Investment
5
Q
What are wicked problems?
A
Problems that cannot be solved step by step because they are complex, and each possible solution may create a new problem.
6
Q
What are the types of problems?
A
Structured (straightforward, familiar, easily defined) and Unstructured (new, unusual, incomplete or ambiguous info)
7
Q
What are the type of organizations?
A
- private sector; publicly held
- privately head organizations
- nonprofit sector
- nongovernmental organizations (NGOs)
- public sector; civil servants, crown corporations
8
Q
Give some examples of Regional Trading Alliances.
A
- European Union (EU; 27 countries, use Euro)
- North American Free Trade Agreement (NAFTA)
- Canada-EU Trade
Agreement (CETA) - Association of Southeast Asian Nations (ASEAN)
- African Union (AU; 54 Nations)
- East African Community (EAC)
9
Q
Describe Hofstede’s Framework for Assessing Cultures.
A
Individualism vs. Collectivism
Power Distance
Uncertainty Avoidance
Achievement vs. Nurturing
Long-Term vs. Short-Term Orientation
10
Q
View that managers in the host country know the best approaches and practices for running their businesses is called _________ _________..
A
Polycentric Attitude
12
Q
Why Is Entrepreneurship Important?
A
- Innovation
(new, small organizations account for more than 95% of new and radical product developments) - Number of new start-ups
- Job Creation
(important to overall long-term economic health; 98.2% of businesses in Canada have less than 100 employees) - Global Entrepreneurship
13
Q
Techniques for reducing resistance to change are:
A
- Education and communication
- Participation
- Facilitation and support
- Negotiation
- Manipulation and co-optation
- Coercion
14
Q
Why study management?
A
- Universality of Management: management is needed in all organizations
- Reality of Work: after graduating, you will either manage or be managed
- The Rewards and Challenges of being a Manager: thankless job, relying on others to get stuff done, etc.
16
Q
What are the types of international organizations?
A
- Multinational Corporation
- Multidomestic Corporations
- Global Company
- Transnational or Borderless Organizations
17
Q
What is Parochialism?
A
Viewing the world solely through your own perspective, leading to an inability to recognize differences among people.
18
Q
The characteristics of organization plans are:
A
- Breadth (Strategic vs operational)
- Time Frame (long vs short-term)
- Specificity (Directional vs specific)
- Frequency of use (single use vs standing)
19
Q
Describe the GLOBE Framework for Assessing Cultures
A
Power distance Uncertainty avoidance Assertiveness Humane orientation Future orientation Institutional/collectivism Gender differentiation In-group collectivism Performance orientation
20
Q
Why do managers plan?
A
. Provides direction
. Establishes the goals or standards used in controlling
. Reduces uncertainty
. Minimizes waste and redundancy
21
Q
What are Social Enterprises/Ventures?
A
Organizations that are started in response to needs within the community.
22
Q
What is management?
A
Management refers to coordinating work so that they’re completed effectively and efficiently with/through other people
23
Q
Explain three behavioural management philosophies.
A
Human Relations Movement (Elton Mayo)
- social factors have greater impact on productivity than working conditions
- emphasizes that managers realize managing involves social interaction; “employees are people, too”
Coordination, Self-Management and Collaboration (Mary Follett)
- managers must be closely involved with subordinates
- subordinates should be involved with the decision-making process since they’re doing the work (aka manage themselves)
- managers and workers should see themselves as collaborators/partners
Organizations as social systems (Chester Barnard)
- Two most important functions of managers are to:
1. establish and maintain a communication system
2. clearly establish the organizational objectives
Barnard felt authority over subordinates must be earned; which they do when:
- they understand what is required
- they see how it relates to organizational goals
- they believe they will benefit from accomplishing goals
Bernard and Follett believed in a collaborative approach
24
Q
What is Entrepreneurship?
A
The process of starting new organizations, generally in response to opportunities.
26
Q
What are the two views of the change process?
A
The Calm Waters Metaphor:
- unfreezing the status quo
- changing to a new state
- refreezing to make the change permanent
White-Water Rapids Metaphor
- lack of environmental stability requires that managers and organizations continually adapt
27
Q
What are four organizing issues an entrepreneur must address?
A
- Organizational design and structure
- Human resource management
- How to stimulate and make changes
- The continuing importance of innovation
28
The belief that the best work approaches and practices are those of the home country is called ________ ________.
Ethnocentric Attitude
29
Differentiate maximin and minimax
Maximin - maximizing the minimum possible payoff
Minimax - minimize the maximum regret
30
The Model for Company Building lists 4 steps - what are they?
1. Customer discovery
2. Customer validation
3. Customer creation
4. Company-building
31
What are characteristics of well-designed goals?
Written in terms of outcomes
Measurable and quanitifable
Clear as to a time frame
Challenging but attainable
Written down
Communicated to all organizational members
32
Discuss the importance of the contingency approach to management.
Contingency approach accepts there's no single best way to manage, depends on several factors:
- Organization size
- Routineness of task technology
- Environmental uncertainty; continuous change
- Individual difference
32
What are "Born Globals"?
International companies that choose to go global from inception.
33
What are the three types of change?
Structural (chain of command)
Technological (Automation/Computerization)
People (organizational development)
34
What are the four global perspectives? List some pros and cons of the three attitudes.
Parochialism
Ethnocentric Attitude
- simpler structure, more tightly controlled
- more ineffective management, inflexibility, social and political backlash
Polycentric Attitude
- Extensive knowledge of foreign market, more support from host gov't, committed local managers with high morale
- Duplication of work, reduced efficiency, difficult to maintain global objectives because of local traditions
Geocentric Attitude
- Extensive knowledge of global issues, balance between local and global objectives, best people and work approaches used regardless of origin
- Difficult to achieve, managers must have both local and global knowledge
35
What is the Geocentric Attitude?
A world-oriented view that focuses on using the best approaches and people from around the globe.
36
What are the three types of managers?
First line managers: lowest level, manage the work of non-managerial employees; supervisors
Middle managers: between fist-line and top level; manager work of first-line
Top managers: managers at or near the top; responsible for decision making; establish plans and goals that affect entire organization
37
Outline the decision-making process.
1. Identify the problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop alternatives
5. Analyze the alternatives
6. Select an alternative
7. Implement the alternative
8. Evaluate the decision's effectiveness
38
Managers rely on three types of programmed decisions. What are they?
Procedure
Rule
Policy
40
Individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that the innovations are implemented are known as ______ __________.
idea champions
42
Describe Cultural Intelligence
1. Knowledge of culture as a concept - how cultures vary and how they affect behaviour;
2. Mindfulness - the ability to pay attention to signals and reactions in different cross-cultural situations
3. Behavioural skills - using one’s knowledge and mindfulness to choose appropriate behaviours in those situations.
43
Mintzberg's Managerial Roles are grouped into 3 categories. Describe them.
Interpersonal roles: figurehead, leadership, liaison activities
Informational roles: monitoring, disseminating and spokesperson activities
Decisional roles: entrepreneur, disturbance handler, resource allocator, negotiator
Robert Katz found managers need 3 skills/competencies:
Technical skills, human skills and conceptual skills (ability to think and conceptualize abstract and complex situations)
43
Explain three classical management philosophies.
1. Scientific Management (Taylor)
- compartmentalizing and standardizing the work
- supervising the workers
- motivating the workers
2. Administrative Management (Fayol)
- division of work
- unity of command
- Espirit de corps (team spirit)
3. Bureaucratic Management (Weber)
- rules and procedures
- hierarchy of authority
- divison of labour
- impersonality
- selection and promotion
44
What are three types of innovation variables?
Structural, Cultural and Human Resource
45
Henri Fayol proposed managers perform which tasks?
POCCC (plan, organize, command, coordinate, control)
Condensed to four, these are:
- Planning: define goals and strategies to achieve them
Organizing: Determining who does what
Leading: motivating subordinates; deal with behavior issues
Controlling: monitor activities to ensure they're being completed
45
What is a major part of the military model of management?
Trust
45
Describe the four types of international organizations.
Multinational Corporation
- A firm that maintains operations in multiple countries but manages from the home country.
Multidomestic Corporation
- An international company that decentralizes management and other decisions to the local country
Global Company
- An international company that centralizes management and other decisions in the home country.
Transnational or Borderless Organizations
- A type of international company in which artificial geographical barriers are eliminated
45
How does one unfreeze the equilibrium? (3 steps)
1. Increase driving forces
2. Decrease restraining forces
3. Combine the two
46
How is a manager's job changing?
- Managers realize they must deliver consistent, high-quality customer service; employees friendly and courteous, etc
- Importance of Social Media has changed
- Innovation is critical throughout all levels and parts of an organization
- Adaptability of higher importance to manager's job now
- Managers must manage responsibly; responding to environmental and social challenges
47
What “favourable conditions” might facilitate cultural change?
- Dramatic crisis
- Leadership changes
- Organization is young & small
- The culture is weak
48
What are some challenges in managing diversity?
- Personal Bias
- Discrimination
- Glass Ceiling
- Stereotyping
49
Name and briefly detail four important Global Trade Mechanisms.
- World Trade Organization
(evolved from GATT in 1995; only global organization dealing with rules of trade; 147 members; monitors and promotes world trade)
- International Monetary Fund
(188 countries; promotes monetary cooperation and provides policy advice; temporary loans to maintain financial stability)
- World Bank Group
(group of five institutions that provides financial and technical assistance to developing countries)
- Organization for Economic Cooperation and Development
(Paris based economic organization; 34 members work to achieve sustainable economic growth and employment; raise standard of living)
50
What is Organizational Structure?
How job tasks are formally divided, grouped, and coordinated within an organization.
51
Organizational Design is a process involving decisions about which six key elements?
Work specialization
Departmentalization
Chain of command
Span of control
Centralization
Formalization
52
What is work specialization?
The degree to which activities in an organization are subdivided into separate job tasks; also known as "division of labour".
53
_______________ can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
Overspecialization
54
What is departmentalization and what are the five common forms?
The basis on which jobs are grouped together.
Forms:
Functional - grouping jobs by function
Product - group jobs by product line
Geographical - group jobs by territory or geography
Process - group jobs by product or customer flow
Customer - group jobs by common customers
55
What is centralization?
The degree to which decision making is concentrated at upper levels of the organization.
Organizations where top managers make all the decisions; lower-level employees simply carry out the orders.
56
What is decentralization?
The degree to which lower-level employees provide input or actually make decisions.
Top managers and lower-level employees are both involved in decision making processes.
57
List some factors that may encourage centralization.
- stable environment
- inexperienced lower level managers
- lower-level managers don't want to be involved in decision-making
- decisions are minor
- company is large
- organization is facing a crisis or at risk of company failure
58
List some factors that may encourage decentralization.
- environment is complex/uncertain
- experienced lower-level managers
- decisions are significant
- corporate culture open to allow managers a say
- company is geographically dispersed
59
Name and define 3 common organizational designs. Include strengths and weaknesses for each.
Simple Structure: low departmentalization, wide spans of control, authority centralized in a single person, and little formalization
S: fast, flexible, inexpensive to maintain, clear accountability
W: Not appropriate as organization grows, reliance on one person is risky
Functional Structure: groups similar or related occupational specialties together.
S: cost-saving advantages from specialization, employees are grouped with others who have similar tasks
W: functional goals may cause managers to overlook what's best for overall organization, functional specialists not exposed to what other units are doing
Divisional Structure: consists of separate business units or divisions.
S: focuses on results - managers are responsible for their products and services
W: duplication of activities and resources increases costs and reduces efficiency
60
Name and define 4 contemporary organizational designs. Include advantages and disadvantages for each.
Team Structure: the entire organization is made up of work groups or teams
A: Employees are involved and empowered; reduced barriers among functional areas
D: no clear chain of command; pressure on teams to perform
Matrix-Project Structure: specialists come together to work on projects. Split apart after completion
A: able to respond to environmental changes; faster decision making
D: complexity of assigning people to projects; task and personality conflicts
Boundaryless Structure: not defined or limited to artificial horizontal, vertical or external boundaries. includes virtual and network type organizations
A: highly flexible and responsive; utilize talent wherever found
D: lack of control; communication difficulties
Learning Structure: employees continually acquire and share new knowledge and apply that knowledge
A: sharing of knowledge in organization; sustainable source of competitive advantage
D: reluctance from employees to share knowledge for fear of losing that power; large numbers of experienced employees on the verge of retiring
61
________ is the transfer and understanding of meaning. What are its functions?
Communication
Functions:
- Control
- Motivation
- Emotional Expression
- Information
62
List some channels for interpersonal communication.
```
Face-to-face
Telephone
Group meetings
Formal presentations
Memos
Postal mail
Fax
Email
```
63
What are some factors to gauge methods of interpersonal communication?
```
Feedback Potential
Complexity Capacity
Breadth Potential
Confidentiality
Encoding Ease
Time-Decoding Ease
Space Constraint
Cost
Personal Warmth
Formality
Scanability
```
64
How do distortions occur in interpersonal communication?
```
Sender
Message
Channel
Receiver
Feedback Loop
```
65
What are some barriers to effective interpersonal communication?
```
Filtering
Emotions
Information Overload
Selective Perception
Defensiveness
Language
Jargon
```
66
List some effective tools for overcoming barriers to communication.
```
Watch Nonverbal Cues
Use Feedback
Simplify Language
Constrain Emotions
Listen Actively
```
67
Differentiate formal and informal communication.
Formal communication follows the official chain of command or is part of the communication required to do the job.
Informal communication is not defined by organization hierarchy - permits employees to satisfy social interaction needs; creates faster and more effective channels of communication
68
What are the directions of communication flows?
Downward (managers down)
Town hall meeting (informal public meetings)
Upward (employees up)
Lateral/Horizontal (employees on same organizational level)
Diagonal (cuts across work areas and organizational levels)
69
Chain Network, Wheel Network and All-Channel Networks are examples of ________ _________ _______. Describe them.
Organizational Communication Networks
Chain - communication flows according to formal chain of command, both up and downwards
Wheel - all communication flows in and out through the group leader (hub) to others
All-Channel - communication flows freely among all members of the work team
70
What are some steps to let employees know their input matters?
```
Hold town-hall meetings
Provide information
Invest in training
Analyze problems together
Make it easy (to communicate)
```
71
What are some external factors that affect the HRM process?
The Economy - The global economic downturn has left what many experts believe to be an enduring mark on HRM practices worldwide
Labour Union - An organization that represents employees and seeks to protect their interests through collective bargaining.
Collective Bargaining Agreement - A contractual agreement between an organization and a union, covering: Wage, hours, and working conditions
Government Legislation - The federal government has greatly expanded its influence over HRM by enacting a number of laws and regulations.
72
Describe the HRM process?
```
Human Resource Planning
Recruitment and Decruitment
Selection
Orientation
Training
Performance Management
Compensation and Benefits
Career Development
```
73
What are the sources of leaders power?
Legitimate power - The power a leader has as a result of his or her position.
Coercive power - The power a leader has to punish or control.
Reward power - The power to give positive benefits or rewards.
Expert power - Power that’s based on expertise, special skills, or knowledge.
Referent power - Power that arises because of a person’s desirable resources or admired personal traits.
74
What are the contemporary theories of motivation?
These contemporary motivation approaches are goal-setting theory, reinforcement theory, job design theory, equity theory, expectancy theory, and high-involvement work practices.
75
Goal Setting theory
specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals.
Working toward a goal is a major source of job motivation.
The specificity of the goal itself acts as an internal stimulus.
76
What are factors that influence the goal–performance relationship?
Feedback
Goal commitment
Self-efficacy
National culture
77
What are the types of work teams?
Problem-solving teams
Self-managed work teams
Cross-functional teams
Virtual teams
78
What are the traits of effective teams?
```
Clear Goals
Relevant Skills
Mutual Trust
Unified Commitment
Good Communication
Negotiating Skills
Appropriate Leadership
Internal and External Support
```
79
Problem-solving teams
teams from the same department or functional area involved in efforts to improve work activities or to solve specific problems.
80
Self-managed work teams
operates without a manager and is responsible for a complete work process or segment.
81
Cross-functional teams
A work team composed of individuals from various specialties.
82
Virtual teams
A type of work team that uses technology to link physically dispersed members in order to achieve a common goal.
83
Work Groups
Interact primarily to share information and to make decisions to help each member do his or her job more efficiently and effectively.
One leader clearly in charge
Accountable only to self
Purpose is same as broader organizational purpose
Work is done individually
Meetings characterized by efficiency; no collaboration or open-ended discussion
Performance is measured indirectly according to its influence on others
Work is decided upon by group leader and delega
84
Work Teams
Work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills.
Leadership role is shared
Accountable to self and team
Team creates specific purpose
Work is done collectively
Meetings characterized by open-ended discussion and collaborative problem solving
Performance is measured directly by evaluating collective work output
Work is decided upon and done together
Can be quickly assembled, deployed, refocused, and disbanded
85
What are the Issues associated with global teams?
Managers need to determine when it is best to use a team, especially global teams.
Group Member Resources in Global Teams
Group Structure (conformity, status, social loafing, cohesiveness)
Group Processes
The Manager’s Role
86
What are the drawbacks of global teams?
```
Dislike team members
Mistrust team members
Stereotyping
Communication problems
Stress and tension
```
87
What are the benefits of global teams?
Greater diversity of ideas
Limited groupthink
Increased attention on understanding others’ ideas, perspectives, etc.
88
Building Team Skills
Such exercises are commonly used to illustrate and develop specific aspects or skills of being on a team.
Such exercises help teams bond or connect and learn to rely on one another
89
Social Networks
The patterns of informal connections among individuals within a group.
90
Motivation
The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal.
91
Need
An internal state that makes certain outcomes appear attractive
92
What is Maslow’s Hierarchy of Needs Theory?
Hierarchy of needs theory
There is a hierarchy of five human needs: physiological, safety, social, esteem, and self-actualization; as each need becomes satisfied, the next need becomes dominant.
Lower-order (external): physiological, safety
Higher-order (internal): social, esteem, self-actualization
93
Describe Maslow’s Hierarchy of Needs Theory?
Needs were categorized as five levels:
Individuals must satisfy lower-order needs before they can satisfy higher order needs.
Satisfied needs will no longer motivate.
Motivating a person depends on knowing at what level that person is on the hierarchy.
Physiological needs - A person’s need for food, drink, shelter, sexual satisfaction, and other physical requirements.
Safety needs - A person’s need for security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met.
Social needs - A person’s need for affection, belongingness, acceptance, and friendship.
Esteem needs - A person’s need for internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention.
Self-actualization needs - A person’s need to grow and become what he or she is capable of becoming.
94
McGregor’s Theory X and Theory Y
Motivation is maximized by participative decision making, interesting jobs, and good group relations.
Theory X
The assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform.
Theory Y
The assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction.
95
Herzberg’s Motivation-Hygiene Theory (aka: two-factor theory)
Herzberg’s theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are related to job dissatisfaction:
Hygiene factors: factors that eliminate job dissatisfaction, but don’t motivate
Motivators: factors that increase job satisfaction and motivation
Attempted to explain why job satisfaction does not result in increased performance. The opposite of satisfaction is not dissatisfaction, but rather no satisfaction
96
McClelland’s Three-Needs Theory
Three acquired (not innate) needs—achievement, power, and affiliation—are major motives in work.
Need for Achievement (nAch) The drive to succeed and excel in relation to a set of standards.
Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise.
Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships.
97
Self-efficacy
An individual’s belief that he or she is capable of performing a task.
98
Reinforcement Theory
The theory that behaviour is a function of its consequences.
99
Reinforcers
Consequences immediately following a behaviour that increase the probability that the behaviour will be repeated
100
Job Design Theory
How tasks can be combined to form complete jobs
Factors influencing job design:
Changing organizational environment/structure
The organization’s technology
Employees’ skills, abilities, and preferences
101
Job Characteristics Model (JCM):
Combine tasks: Put fragmented tasks back together to form a new, larger work module (job enlargement) to increase skill variety and task identity.
Create natural work units: Design tasks that form an identifiable and meaningful whole to increase employee “ownership” of the work. Encourage employees to view their work as meaningful and important rather than as irrelevant and boring.
Establish client (external or internal) relationships: whenever possible, establish direct relationships between workers and their clients to increase skill variety, autonomy, and feedback.
Expand jobs vertically: Vertical expansion gives employees responsibilities and controls that were formerly reserved for managers, which can increase employee autonomy.
Open feedback channels. Direct feedback lets employees know how well they’re performing their jobs and whether their performance is improving or not.
102
Five primary job characteristics
Skill variety: The degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents.
Task identity: The degree to which a job requires completion of a whole and identifiable piece of work.
Task significance: The degree to which a job affects the lives or work of other people.
Autonomy: The degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying it out.
Feedback: The degree to which carrying out work activities required by a job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance.
103
Expectancy Theory
Individuals act based on the expectation that a given outcome will follow and whether that outcome is attractive.
Key to the Expectancy theory is understanding and managing employee goals and the linkages among and between effort, performance, and rewards.
Effort: employee abilities and training/ development
Performance: valid appraisal systems
Rewards (goals): understanding employee needs
104
Equity Theory
Distributive Justice: The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what?).
Procedural Justice: The perceived fairness of the process used to determine the distribution of rewards (i.e., how who received what).
105
Cross-Cultural Consistencies in motivation
```
Respect
Work-life balance
The type of work
Quality of coworkers
Quality of leadership
Base pay
Environment contributing to good service
Long term career potential
Flexible working arrangements
Learning and development opportunities
Promotion opportunities
Incentive pay
Interesting work is widely desired, as is growth, achievement, and responsibility.
```
106
Motivating in Tough Economic Circumstances
Holding meetings with employees to keep the lines of communication open
Getting employee their input on issues;
Establishing a common goal
Creating a community feel
Giving employees opportunities to continue to learn and grow
Continued encouragement
107
Motivating Professionals
Characteristics of professionals:
Strong and long-term commitment to their field of expertise
Loyalty is to their profession, not to the employer
Have the need to regularly update their knowledge
Don’t define their workweek as 8:00 am to 5:00 pm
Motivators for professionals:
Job challenge
Organizational support of their work
108
Motivating Unique Groups of Workers
Motivating a diverse workforce through flexibility:
Men desire more autonomy than do women
flexible work hours, and good interpersonal relations are more important to women.
Baby boomers may need more
Gen-Xers want employers to add to their experience
Millennials want more opportunities and the ability to work in teams
109
Controlling
The process of monitoring activities to ensure that they are being accomplished as planned, correcting any significant deviations, and where necessary modifying the plan
110
Why Is Control Important?
It’s the final link in the four management functions. It is the only way managers know whether organizational goals are being met and, if not, the reasons why.
The final link in management functions:
Planning - Controls let managers know whether their goals and plans are on target and what future actions to take.
Empowering employees - Control systems provide managers with information and feedback on employee performance.
Protecting the workplace - Controls enhance physical security and help minimize workplace disruptions.
111
The Process of Control
A three-step process that includes measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards.
```
1. Measuring actual performance
Personal observations
Statistical reports
Oral reports
Written reports
```
2. Comparing actual performance against a standard
Comparing requires determining the degree of variation between actual performance and the standard. (forecast or budget / size)
3. Taking action to correct deviations or inadequate standards
“Doing nothing”
Only if deviation is insignificant
Correcting actual (current) performance
Immediate or basic corrective action
Revising the standard
Determine whether the standard is realistic, fair, and achievable
112
Organizational Performance
The accumulated end results of all of the organization’s work processes and activities.
Designing strategies, work processes, and work activities.
Coordinating the work of employees.
113
Organizational Productivity
The overall output of goods and/or services divided by the inputs needed to generate that output. Ultimately, a measure of how efficiently employees do their work.
114
Organizational Effectiveness
A measure of how appropriate organizational goals are and how well those goals are being met
115
Feed-forward Control
A type of control that focuses on preventing anticipated problems, since it takes place before the actual activity.
Building in quality through design
Requiring suppliers conform to ISO 9002
116
Concurrent Control
A type of control that takes place while an activity is in progress. Ex. Direct supervision: management by walking around
117
Feedback Control
Control that takes place after a work activity is done.
Corrective action is after-the-fact, when the problem has already occurred.
Advantages
Feedback provides managers with information on the effectiveness of their planning efforts.
Feedback enhances employee motivation by providing them with information on how well they are doing.
118
Financial Controls
Managers might use traditional financial measures such as ratio analysis and budget analysis. Includes:
Leverage ratios
Activity ratios
Profitability ratios
119
Information Controls
Managers deal with information controls in two ways:
as a tool to help them control other organizational activities and
as an organizational asset they need to protect.
120
Management Information Systems (MIS):
A system used to provide management with needed information on a regular basis.
121
Data
Raw, unanalyzed facts.
122
Dashboard
An interface that presents managers and other decision makers with an easy-to-read, real-time user interface often employing a graphical presentation of the data to enable decision makers to make informed decisions quickly.
123
Balanced Scorecard
A measurement tool that uses goals set by managers in four areas to measure a company’s performance.
Financial
Customer
Internal processes
People/innovation/growth assets
124
Benchmarking
The search for the best practices among competitors or noncompetitors that lead to their superior performance.
125
Benchmark
The standard of excellence against which to measure and compare.
126
Tools for Measuring Organizational Performance
In measuring actual performance, managers need information about what is happening within their area of responsibility and about the standards in order to be able to compare actual performance with the standard.
```
Financial Controls
Information Controls
Management Information Systems (MIS):
Data
Dashboard
Balanced Scorecard
Benchmarking
Benchmark
```
127
The decision making process
```
Step 1: Identify a Problem
Step 2: Identify Decision Criteria
Step 3: Allocate Weights to Criteria
Step 4: Develop Alternatives
Step 5: Analyze Alternatives
Step 6: Select an Alternative
Step 7: Implement the Alternative
Step 8: Evaluate Decision Effectiveness
```
