Exam 1 Flashcards
Managing a competitive world:
- globalization
- technological change
- knowledge management
- collaboration across boundaries
globalization:
- offices and production facilities all over the world
- talent and competition come from anywhere
- affects large and small companies
- changed the face of the workforce
technological change:
- online customer engagement, AI, date protection, cloud computing
- challenges created by rapid changes
- internet creates opportunities but also introduces threat
- will start to adapt to people’s references
knowledge management:
- funding, unlocking, sharing, and capitalizing on the most precious resources of an organization: expertise, skills, wisdom, and relationships
collaboration across boundaries:
- coopetition
- requires productive communications among different departments, divisions, or subunits of the organization
- companies also collaborate with their customers
coopetition
is simultaneous competition and cooperation among companies with the intent of creating value
managing for competitive advantage:
- innovation (the introduction of new goods and services)
- quality (the excellence of your product)
innovation
- service
- speed
quality
- cost
- competitiveness
- sustainability
Functions of management: (Henri Fayol)
- planning
- organizing
- leading
- controlling
planning:
systematically making decisions
organizing:
making sure that all resources that you have in place is organized
leading:
trying to stimulate high performance people
controlling:
this is how you monitor performance
Management levels:
- top managers
- middle managers
- first line managers
top managers
- set objectives
- scan environment
- plan and make decisions
middle managers
- report to top of management
- oversee first line managers
- develop and implement activities
- allocate resources
first line managers
- report to middle managers
- supervise employees
- coordinate activities
- are involved in day to day operations
Manager roles (Henry Mintzberg)
- interpersonal roles
- informational roles
- decisional roles
Managerial roles
- decisional roles
- informational roles
- interpersonal roles
decisional roles
- entrepreneur
- disturbance handler
- resource allocator
entrepreneur
search for new business, initiate new projects
disturbance handler
take corrective action during crises
resource allocator
provide funding and other resources make significant
informational roles
- monitor
- disseminator
- spokesperson
monitor
seek information, serve as the center of communication
disseminator
transmit information from source to source
spokesperson
speak on behalf of organization
interpersonal roles
- leader
- liaison
- figurehead
leader
staffing, developing, motivating people
liaison
maintain network of outside contacts
figurehead
perform symbolic duties
Management skills
- technical skills
- conceptual and decision skills
- interpersonal and communication skills
technical skills
ability to perform a specified task involving a particular method or process
conceptual and decision skills
skills related to abilities that help identify and resolve problems
interpersonal and communication skills
people skills that represent the ability to lead, motivate and communicate effectively with others
Scientific management
focuses on improving efficiency
Father of scientific management (Frederick Taylor) believed:
- develop a science for each element of work
- scientifically select, train teach and develop
- cooperate with workers to ensure work is being done
- equal division of work and responsibility between workers and management
Soldiering
when workers deliberately slow their pace of restrict their work output
Rate buster
a worker whose work pace is faster than the groups
T&D
- scientific investigation on work details, best method, shortest time
- capable teacher
- reward for both teacher and pupil once successful
Gantt chart
a graphical chart that shows which tasks must be completed at which times in order to complete a project or task
Frank & Lillian Gilbreth (made significant contributions to the employment of disabled workers and to the field of industrial psychology)
- motion studies
- time studies
motion studies
breaking tasks or job into its separate motions and elimination unnecessary or repetitive motions
time studies
timing how long it takes good workers to complete each part of their job
Administrative management
focuses on how they do their job
Bureaucratic management
focuses on using knowledge, fairness, and logical rules and procedures
Max Weber
the exercise of control on the basis of knowledge
Qualification
based hiring: employees are. hired on the basis of their technical training or educational background
Merit
based promotion: promotion is based on experience or achievement. Managers, not organizational owners, decide who is promoted
Division of labor
takes responsibilities and authority are clearly divided and defined
Chain of command
each job occurs within a hierarchy in which each position reports and is accountable to a higher position
Quantitative approach
the use of quantitative techniques to improve decision making
Quality management
a philosophy of management that is driven by continuous improvement and responsiveness to customer need and expectations
Human relations management
focuses on people, particularly the psychological and social aspects of work
Mary Parker Follet
added significantly to our understanding of the human, social and psychological sides of management
domination
win-lose
compromise
lose-lose
integrative conflict resolution
win-win
Chester Barnard
workers ultimately grant managers their authority (plans, inputs, process, outputs)
Hawthorne studies
the effect if group social interactions, employees satisfaction, and attitudes had on individual and group performance
Hawthorne studies ex:
- working of informal social factors
- pay attention to workers
- open communication
- increase productivity
Douglas McGregor
- theory x
- theory y
theory x
assumes the average worker is lazy, dislikes work and will do as little as possible; manager must closely supervise and control through reward and punishment
theory y
assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes to work; managers should allow the worker great latitude and create organization to stimulate the worker
Maslow’s hierarchy of needs
- self actualization
- esteem
- love/belonging
- safety
- psychological
systems approach
view organization as a part of a whole, environment, conscious, focus on communication and cooperation 1+1=3 (synergy)
the organization as an open system
- inputs
- transformation
- outputs
inputs
receive raw materials, services and financial, human and information resources from the environment
transformation
transform resources into finished goods and services
outputs
send outputs back into the environment
macroenvironment
- economy
- technology
- legal and regulations
- demographics
- social issues
- natural environment
competitive environment
- rivals
- suppliers
- buyers
- new entrants
- substitutes and complements
internal environment
- culture
- values
- climate
regulators include agencies such as:
- securities and exchange commission (SEC)
- occupational safety and health administration (OSHA)
- equal employment opportunity commission (EEOC)
- national labor relations board (NLRB)
- office of federal contract compliance programs (OFCCP)
Technology
- technological advances create new products, advanced production techniques, and better ways of managing and communicating
- as technology evolves, new industries, markets and competitive niches develop
demographics
measure of various characteristics of the people who make up groups or other social units
demographic trends
- aging of the workforce
- increasing education and skill levels
- immigration factors
- increasingly diverse workforce
social trends regarding how people think and behave have major implications for management of the labor force
- family leave policies
- flexible benefit packages
- domestic partner benefits
- company response to social issues
Organizations depend on the natural environment to provide them with resources
- operations impact quality and quantity of resources
- impacts on local citizens
- impacts on social issues as well as political and legal environments
porters 5 forces:
- threat of new entrants
- bargaining power of customers
- threat of substitute product
- bargaining power of suppliers
- competitive rivalry within an industry
competition is most intense when
- there are many direct competitors
- industry growth is slow
- product/service is not easily differentiated
new entrants
- barriers to entry
- conditions that prevent new companies from entering an industry
- government policy, capital requirements, brand identification, costs disadvantages, and distribution channels
substitute
- alternative products or services
- potential threat
complements
- products or services that increase purchases of other products
- potential opportunity
supply chain management
managing the acquisition of materials, their transformation into products, and the distribution of products to customers
switching costs
- provide resources or inputs needed for production
- fixed costs buyer face if they change suppliers
Environmental analysis
- environmental uncertainty
- environment complexity
- environmental dynamism
environmental uncertainty
lack of information needed to understand or predict the future
environment complexity
the number of issues that must be attended to as well as the interconnectedness of these items
environmental dynamism
the degree of discontinuous change that occurs within an industry
environmental scanning
- scenario
- forecasting
scenario
a narrative that best describes a set of future conditions. best-case, worst-case
forecasting
method for predicting how variables will change the future
benchmarking
the process of comparing an organization’s practices and technologies with those of other companies
strategic maneuvering
an organizations conscious efforts to change the boundaries of its task environment
domain selection
entrance to a new market o industry with an existing expertise
diversification
occurs when a firm invest in a different product, business or demographic area
mergers
where one or more companies combined with another
acquisitions
one firm buys another
defender
dominating a narrow product or service market segment
divestitures
a firm sells one or more businesses
analyzer
exploiting new opportunities at a relatively early stage while maintain a base traditional products or services
prospector
identifying and exploiting new opportunities quickly
reactor
firms that do not practice any distinct overall strategy
independent strategies
strategies that an organization acting on its own uses to change some aspect of its current environment
competitive aggression
exploiting a distinctive competence or improving internal efficiency for competitive advantage
competitive pacification
independent actions to improve relations with competitors
public relations
Establishing and maintaining favorable images in the minds of those making up the environment
voluntary actions
Voluntary commitment to various interest groups, causes, and social problems
legal action
Engaging a company in a private legal battle
political action
Efforts to influence elected representatives to create a more favorable business environment or limit competition
cooperative strategy
strategies used by two or more organizations working together to manage external environment
contraction
Negotiating an agreement between the organization and another group to exchange goods, services, informations, patents and so on
cooptation
Absorbing new elements into the organization’s leadership structure to avert threats to its stability or existence
coalition
Two or more groups coalescing and acting jointly with respect to some set of issues for some period of time
adapting at the boundaries
- buffering
- smoothing
buffering
creating supplies of excess resources in case of unpredictable needs
smoothing
leveling normal; fluctuations at the boundaries of the environment
flexible process
allows for adaptation in the technical core to meet the varied and changing demands of customers
organizational culture
the set of important assumptions about the organization and its goals and practices that members of the company share
strong cultures
majority of people within the organization agree on organizational goals
weak cultures
different people hold different values and there is confusion about corporate goals
organization climate
organizational climate consists of the patterns of attitudes and behavior that shape people’s experience of an organization
characteristics of managerial decisions:
- risk
- certainty
- uncertainty
- lack of structure
- conflict
risk
the state that exists when the probability of success is less than 100 percent and losses may occur
certainty
the state that exists when decision makers have accurate and comprehensive information
uncertainty
the state of that exists when decision makers have insufficient information
lack of structure
- programmed decisions
- nonprogrammed decisions
programmed decisions
decisions encountered and made before, having objectively correct answers and solvable by using simple rules, policies, or numerical computations
nonprogrammed decisions
new, novel, complex decisions having no proven answers
conflict
opposing pressures from different sources, occurring on the level of psychological conflict or of conflict between individuals or groups
levels of conflict:
- individual decision makers
- conflict between people
phase 1: identify and diagnose the problem
- recognize there is a gap between the current and desired state
- is there an opportunity that can be exploited?
- Diagnose the reason for the performance gap
phase 2: generate alternative solutions
- ready made solutions (ideas that have been seen or tried before)
- custom made solutions (new, creative solutions designed specifically for the problem)
phase 3: evaluate alternatives
- which solution will be the best?
- what consequences will occur?
- how will you measure success?
- contingency plans
phase 4: make the choice
- maximizing (a decision realizing the best possible outcome)
- satisficing (choosing an option that is acceptable, although not necessarily the best of perfect)
- optimizing (achieving the best possible balance among several goals)
phase 5: implement the decision
- adequate planning requires several steps
phase 6: evaluate the decision
- positive feedback
- negative feedback
the best decision making processes
- reflexive (done quickly and without thought)
- reflective (slow and deliberate)
vigilance
a process in which a decision maker carefully executes all stages of decision making
