Chapter 7: Management and management models Flashcards
Which are the environmental spheres?
- Societal
- Natural
- Technological
- Economic
What is the relevance of the Stakeholders?
They are key to the organization’s relationship with its environmental spheres.
Their participation is necessary for the company’s survival.
The most important task of management is therefore to ensure cohesion among stakeholder groups (in doing so also moderate conflicting goals between these groups)
Which are the stakeholders?
Suppliers,
Competitors,
Inventors,
Customers,
Employees,
Media,
Government
What is the definition of interaction issues?
Those topics that an organisation negotiates with ist stakeholders and that represent the organisation’s interrelations with ist respective environmental spheres
Examples:
○ natural resources are at stake when a company needs more land to pursue an expansion project
○ Norms or values are at stake when a company negotiates leadership principles and ist future strategic direction with employees
○ State concerns and interest vis-à-vis investors are at stake when stock corporation law is under review and thus the voting rights of individual shareholder categories
Which are the interaction issues?
- Resources
- Norms and Values
- Concerns and interests
What is the definition of a process?
Sequences of activities
Which processes are embedded in the SGMM?
Management Processes
Business processes and business model
Support processes
What does a business model include (not on the SGMM but also relevant)?
- Service creation processes
- Service innovation processes,
- and customer processes
Customer processes are included in business processes. What does customer processes include? (Not in the SGMM but also relevant)
- Customer acquisition
- customer loyalty
- Reputation processes
What are management processes?
Management processes include those processes that serve to steer the company as a system as well as ist relationship with the environment
==> These require communication and decision-making skills and techniques
What are support processes?
Support processes are functions that indirectly support business processes
Example: financial management processes and human resources processes
Which development modes are embedded in the SGMM?
Two types of organizational change are distinguished:
○ Continuous optimizing of current operations
○ Renewing the organization or parts of it by challenging the status quo
What is the difference between the two development modes? How are they tied together?
Difference: Optimization presupposes an existing structure - renewal also involves structural change
Example: A production line can be improved step by step by fine-tuning the individual production steps. It can only be changed fundamentally (e.g. adapted and converted to a new technology such as electric drive) at considerable expense and time
Companies often switch between these two modes
If a value creation system has been reconfigured (renewal), it subsequently requires a phase of optimization and structural stability
==> In management, these two modes often occur in parallel
Optimization decisions must be taken while questioning the status quo!
What are structuring forces? (Part of the SGMM)
Ensure the necessary basic order in the form of
○ Governance
○ A development direction defined by the strategy
○ An organisational form geared toward strategy implementation
○ And a system of norms and values defined by the culture
What does Governance mean?
Ensures the prerequisites for management and strategic capability by defining a
- suitable company purpose,
- management resources,
- division of powers
- and processes
==> Governance defines the roles, rights and duties of managment as well as an organisation’s normative orientation (its vision and mission)
What does strategy mean as part of the structuring forces?
Strategy
Can be designed only if an organisation’s long-term purpose is clear
Example: A sports infrastructure facility needs to determin whether it is a health or a leisure company
What is the purpose of a strategy?
The purpose: ensure competitiveness
How are success factors developed? (Part of strategy)
Sucess factors are developed either
- Within (inside-out –> Core competencies)
- Or outside the company (outside-in –> market positionings)
What does structure that is part of the structuring forces in the SGMM have to be aligned with?
Must be aligned with the strategic success factors according to which the organisation needs to define its processes and to design it s strategy to optimally support these processes
Example: a company wants to optimise meeting their customer’s needs -> it will focus on customer-oriented sercive processes -> the company will need to align itself according to customer groups, possibly by defining it s main departments according to customer groups
What does Culture as part of the structuring forces in the SGMM correlate with?
Correlates with structure
==> example: a strong hierarchical organisation results in a culture of control which in turn impacts the organisation’s functioning
The culture in turn must be consistent or at least compatible with the company’s purpose
The considerations and the logic of the SGMM lead to several basic management tasks that every organisation must fulfill. Which are they?
- Organization of Value creation system (incl. Primary and Secondary Processes)
- Continuous Questioning, Reflection, and Further Development of an Organization
- Responsible and Sustainable Design of Relationships with the Environmental spheres
- Ensuring Stakeholder Cohesion
What does Integrative Management mean?
the design and steering of an organisation as a purpose-oriented socio-technical system that consciously and responsibly handles significant force fields and conflicting goals
