Exam #4 Flashcards
Creativity
Process of imagining and developing something new
Innovation
Process of implementing new ideas
Innovation: Apple’s Corner Store
Prototype built in warehouse; 463 stores in 18 countries; $4800 sales/sq. foot; Genius bar modeled on idea of hotel concierge; 20 applicants/opening
Creative Individual
Conceptual Fluency; Open-minded; Orignal; Less Authority; Independence; Self-confident; Curious; Persistent; Committed
Creative Organization/Department
Open Communication; Group tendencies; Eccentricity allowed; Decentralization; Acceptance of mistakes; Freedom; Playful culture; Innovative
Four Roles in Organizational Innovation
Inventor, Champion, Sponsor, Critic
Inventor
Develops/understands technical aspects of idea; Does not know how to win support for idea/make business out of it
Champion
Believes in idea; Visualizes benefits; Confronts org. or costs; Obtains financial/political support; Overcomes obstacles
Sponsor
High-level manager who removes organizational barriers; Approves and protects the idea within the org.
Critic
Provides reality test; Looks for shortcomings; Defines hard-nosed criteria that ideas must pass
Promoting Corporate Innovation
New Venture Teams; Skunkworks; Idea Incubator; Open Innovation
New-Venture Teams
Formal; Separate unit to develop and initiate innovation
Skunkworks
Variations on new-venture team; Usually small, informal, secret
Idea Incubator
Safe place where people with ideas can get help
Open Innovation
Expanding boundaries to obtain innovation (“buying” it)
Entrepreneurship
Process of identifying an opportunity, developing resources, and assuming the risks associated with the starting a new business
Entrepreneur
Person who starts a new business
Entrepreneurs
Want to work for self; Have a great ideal; Freedom; Wants to make $
Social Entrepreneurs
Many of the same characteristics of entrepreneurs but are more interested in creating social good than making $
Intrapreneurs
Many of the same characteristics of entrepreneurs but want to build a business within a larger company (Worth their wright in GOLD to employers)
Entrepreneur Characteristics
Embrace Risk; Energetic self-starters; Success oriented; Confident; See big picture and details; Always learning/meeting new people
Investor
Someone who provides money as a loan; those results in the investor being paid back with interest
Angel Investor
Someone (or a small group) who seeks startups and offers money in exchange for a stake in the business
Venture Capitalist Firm
Company that seeks to earn profit through investments in start up firms or companies that are undergoing dramatic change
Financial Institutions
Banks and credit unions; Orgs that receive, hold, invest, and lend money
Small Business Investment Companies (SBICs)
Financial institution that makes loans to entrepreneurs under the auspices of the Small Business Administration, a U.S. federal government agency
Team
A unit of two or more people who interact and coordinate their work to accomplish a specific goal
Groups
Designated strong leader; Individual accountability; Individual work products; Discuss, decide, delegate work to individuals
Teams
Share/rotate leadership roles; Individual and mutual accountability; Collective work products; Discuss, decide, share work
Vertical Teams
Composed of manager and subordinates in a formal chain of command
Horizontal Teams
Draws from several departments; Mostly peers
Special Purpose/Project Teams
Brought together for a project, then disband
Self-Directed Team Elements
Empowered with decision-making authority; Work with minimal supervision; Permanent structure; Ex: Nurses on certain hospital floor on certain shift
Virtual Teams
Geographically or organizationally dispersed members who are linked primarily through advanced technology; Select members, manage socialization/trust/comm., bridge time/distance/culture gaps
Team Size
5-7 people
Team Diversity
Diverse in functional area, skills, thinking style,s personal characteristics, gender/age/race/nationality
Five Stages of Team Development
Forming, Storming, Norming, Performing, Adjourning
Forming
Orientation/breaking the ice; Leader facilitates social interchange
Storming
Conflict/disagreement; Leader encourages participation and surfaces differences
Norming
Establishment of order and cohesion; Leader helps clarify team roles/norms/values
Performing
Cooperation/Problem Solving; Leader facilitates task accomplishment
Adjourning
Task completion; Leader brings closure and signifies completion
Organizational Controls
Establishing standards, measurements, and metrics to monitor and control the organization, including the systems necessary to collect that information
Feedforward Control
Anticipates problems; Focuses on inputs; Ex: pre-employment drug testing, inspect raw materials, hire only college grads
Concurrent Control
Solves problems as they happen; Focuses on ongoing processes; Ex: Adaptive culture, total quality management, employee self-control
Feedback Control
Solves problems after they occur; Focuses on output; Ex: Analyzes sales/employee, final quality inspection, survey customers
Total Quality Management Timeline
Japan Post WWII; US Navy 1985; TQM 1980-1990; ISO 1990-Today
W. Edwards Deming
Trained as engineer; Helped develop production standards during WWII; Headed Japan’s economic miracle; Father of TQM; Helped FORD become more profitable car maker in 1980
Total Quality Management (TQM)
The drive for quality in all aspects of an organization’s operations; Quality to shareholders, customers/consumers, life to employees, CSR
TQM Focus
Customers; Teamwork; High Quality; Lower Costs
TQM Techniques
Quality Circle; Benchmarking; Six Sigma Principles; Continuous Improvement
Quality Circles
Volunteer teams to improve quality or safety, etc. - started in Japan after WWII
Benchmarking
The continuous process of measuring products, services, and practices against your toughest competitors or those companies recognized as industry leaders
Six Sigma Principles
Process to reduce defects in products and practices - requires commitment from the entire organization (started at Motorola in mid 1980s - used extensively at GE, Raytheon, Merrill Lynch, 3M, etc.)
Continuous Improvement
Focus on entire process, think critically, do not blame (“Kaizen” - Japanese management practice - used extensively by Toyota)
Open Book Management
Sharing of financial info w/ employees; Goal: getting every employee thinking and acting like a business owner rather than a hired hand
Balanced Scorecard
Balances traditional financial measures with measures of customer service, internal business processes and capacity for learning and growth; Goal: help managers focus on key performance measures and communicate them throughout
Change
Happens when you try to alter/modify/sub/enhance/improve/introduce something new, a situation, product, process
Change Characteristics
Constant; Many occur at same time; Limited control; Need to be creative life-long learners
Types of Organizational Change can
Be planned/unexpected; Inside/Outside; Top-Bottom; Incremental/Transformations; Revolutionary/Evolution
Gestalt Cycle of Experience
Sensation; Awareness; Energy; Action; Contact; Closure
Change Continuum
Unaware, Aware, Understand, Believe, Act
Typical Change Drivers
New Technology; Globalization; Social/Political Revolution; Sustainability
Shifts in the World’s Economies
Developing world growing more quickly; Developed world is slowing down; Developed economies are growing b/c middle class is expanding
Lewin’s Force-Field Analysis Model of Change
Restraining Force (chair preventing falling to ground); Driving Force (gravity pushing down); When driving forces are stronger than restraining forces, change happens
Using Force Field Analysis
Define change; Brainstorm/Evaluate/Review forces; Strategize; Prioritize
Kotter’s 8 Step Change Model
(1) Shift from fear to inspire; (2) Change Council; (3) Involve people at all levels; (4) Communicate in way that excited; (5) Find/train/create plan for group; (6) Set sights on small victories; (7) Continue to take on more change efforts; (8) Change some symbols of culture
Organizational Development
HR Department; Help orgs manage large changes (mergers, downsizings); Monitor health of org. (survey); Conduct major org. research (hire more MBAs?)
What can you do to manage change?
Use EQ; Be role model; Don’t force change/control everything; Tell truth; Be empathetic; Inspire
Why is diversity good for business?
New opportunities; Better decision making; Employee satisfaction; Legal compliance; Innovation
Social Change: Gender Equality
Pay gap; Women in some countries do not have = opportunity
Age Demographics
Developed World: avg. pop are shrinking/getting older; Developing World: avg pop are much younger
Workplace Diversity
Old model made great effort to blend in; New model say differences are natural/good thing/required
How does inclusion benefit everyone?
Company gains diverse ideas; Diverse employees understand/sell to diverse customers; 18% more productivity than economy as a whole
Company Efforts
Pepsi/AT&T have mentoring and affinity groups; GE has mentor programs for women; Wal-Mart/McDonalds hire elderly; JPMorgan Chase recruits LGBT; Ernst & Young includes mothers/fathers
What works with diversity?
Market to diverse markets; Include cultures/values; Encourage relationships; Training; Leadership example; Accountability
Importance of HR
Design of culture of org; Develop leadership; Recruits and rewards talent (most important/expensive)
David Ulrich’s HR Model
Relationships (credible activist); System & Processes (operational executor; business ally); Organizational Capabilities (talent manager/org designer; Culture/change steward; Strategy architect)
HR Generalist
Works in mall companies or sub. or large; Does a little bit of everything; Relies on specialists in corporate HQ for advice/direction
HR Specialist
Work in corporate HR or consulting firms; Expertise in particular area; Do “corporate” projects or provide advice to generalists in field
People Managers
Don’t work in HR department but manage people/departments; Proficient in HR skills
HRM Process
Hire (recruit/derecruit); Develop (training); Keep (career development) talent
HR Inventory
Job Analysis; Job Description; Job Specifications
Where do companies recruit candidates?
Internet; Employee referrals; Company website; College recruiting/career fairs; Professional recruiting firms (head hunters)
Recruitment
Process of locating, identifying, and attracting qualified talent to an organization
Derecruitment
Process of reducing a surplus of talent in an organization (change in strategy, business downturn, merger/acquistion)
Derecruitment Options
Early Retirement; Firing; Layoff; Attrition (voluntarily leaving); Transfer; Reduced workweek/job-sharing
Fired for Cause
Employee has done something that merits instant firing – stealing, cheating on expense report, violence in workplace, sexual harassment, etc
Fired for Performance
Not performing to standards; Verbal warning, written warning, then termination
Layoffs– Managing Downsizing
Planned elimination of jobs; Provide honest comm; Provide assistance; Reassure and counseling to surviving employees
Selection Process Tools
Application forms; Written tests; Performance simulation tests; Interviews; Background investigations (criminal/credit); Physical examinations
Realistic Job Preview (RJP)
The process of describing both the positive and the negative aspects of the job to an applicant; Encourages mismatched applicants to withdraw; Reduces turnover by aligning applicant expectations with actual job conditions
Orientation
Onboarding; Helps new employees adjust to workplace; Kickstart engagement process; 1 day-over a year
Training
Create “universities” to help institutionalize training (comcast, wawa); Management training/Leadership development/Computer skills; Life-long learning for knowledge workers
Other Activities
Travel; Team assignments; Reporting relationships; Mentoring; Coaching
How to keep great talent
Build culture that has growth, autonomy, inspiration, resonant work environment; Pay well; Offer benefits/flexibility; Give tools (mentoring, leadership, valuable experiences)
US Federal Legislation
Point of laws is to stop discriminatory practices; Define enforcement agencies for these laws
EEO Legislation Attempts
Balance pay; Provide opportunities w/o discrimination; Ensure fair treatment
Equal Opportunity/Discrimination Laws
Civil Rights Act VII; Age Discrimination in Employment; Vocational Rehabilitation Act; Americans with Disabilities Act; Civil Rights Act 1991
Compensation/Benefits Laws
Equal Pay Act; Family & Medical Leave Act; Health Insurance Portability and Accountability Act (HIPPA)
Health and Safety Laws
Occupational Safety & Health Act (OSHA); Consolidated Omnibus Budget Reconciliation Act (COBRA)
Emotional Intimacy
Gallup and other research studies indicate that friendships in the workplace are important to employee satisfaction and engagement
Sexual Harassment
Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature
