Intro to Management Flashcards
1
Q
Organization
A
Goals, Plans and Resources
2
Q
Why do we have organizations?
A
Specialization and Synergy
3
Q
Mary Parker Follett
A
Definition of Management- The art of getting things done through other people.
4
Q
Peter Drucker
A
efficiency may come at the expense of effectiveness.
5
Q
Efficiency
A
Doing things right
6
Q
Effectiveness
A
Doing the right thing
7
Q
Components of Management
A
Planning- Defining objectives, allocating resources, developing a method for achieving objectives with available resources
Organizing
Leading
Controlling/Coordinating- Monitoring and adjusting resources and processes to achieve goals and objectives in a highly effective and efficient fashion
8
Q
Levels of Managers
A
First Line Managers
Middle Managers
Top Managers
9
Q
Frederick Taylor
A
“father of scientific management”
Enhancing the efficiency of the workers by analyzing tasks, time measurement, direct and detailed instruction
10
Q
4 Principles of Scientific Management
A
1) There is an OPTIMAL method for performing every job, no “rules of thumb”
2) Workers should be chosen based on their suitability for the job, and then trained
3) Cooperate with the workers to see that the work is done in accordance with principles
4) Divide work responsibilities between management and workers
11
Q
Henry Gantt
A
- Bonuses for workers who completed daily tasks
- Bonuses for foremen for every worker finishing his task, with additional bonuses when all complete their tasks
- Individual worker performance charts
12
Q
Frank and Lillian Gilbreth
A
Time motion studies, optimal methods for performance. She studied fixed length workdays, set shifts, work breaks and safety on jobs
13
Q
Economies of Scale
A
When the overall cost per unit decreases as production increases
14
Q
Pros and Cons of Scientific Management
A
Good for efficiency studies, but doesn’t address the psychological needs of the worker and doesn’t address the org. as a whole.
15
Q
Henri Fayol
A
5 Functions of Management:
1) organize
2) staff
3) command or direct
4) coordinate
5) control
- management is learned, not inherited.
16
Q
Max Weber
A
Theory of Bureaucracy
1) Division of labor
2) Hierarchy
3) Rules and Methods
4) Fair treatment for all
5) Employee selection and promotion
17
Q
Chester Barnard
A
Defined organizational objects, make employees productive and established communication
18
Q
Behavioral Theory
A
Psychological needs of employees
19
Q
Hawthorne studies
A
workers may be affected by psychological and social factors.
20
Q
Abraham Maslow’s Hierarchy of needs
A
Needs, Security, Belonging, Status, Self-actualization
21
Q
Operations Research and Quantitative Management
A
Using math to solve managerial problems
Pros: Helps give tools for solving complex problems
Cons: Doesn’t address psychological needs
22
Q
Macroenvironment
A
Forces in society that affect the firm but not directly associated with the firm. PEST- political, economic, social, technological
23
Q
competitive environment
Porter’s 5 forces model
A
Forces that surround the firm:
1) Competitors
2) Suppliers
3) Customers
4) Substitutes
5) Threat of new entrants
24
Q
Challenge of competitors
A
when there are many competitors, if there’s little industry growth and little differentiation
25
Challenge of suppliers
If there are few suppliers, if there's high differentiation, if there's high bargaining power
26
Challenge of customers
If there are few customers, they're united, they have bargaining power, or if the item is a luxury item.
27
Challenge of substitutes
If there are many substitutes
28
Challenge of new entrants
If the entry barrier is low, if the firms are in closely related industries, If the industry is very profitable.
29
Managing the Environment
Adaptation: inventory, forecasting, empowering local managers
Influencing: Advertising, PR, lobbying
30
Ethics
Principles of the right conduct
31
Corporate Social Responsibility (CSR)
When a business operates in a way that uses high ethical standards to benefit people and the environment
- Volunteerism
- Environment
- Human Rights
32
Conditions of being on the Global 100 Starting Universe
- Sustainability disclosure- Eliminates companies that aren't sustainable
- Depends on cash flow
- Has to be something that isn't dangerous, i.e. Tobacco is eliminated
- Company can't have sanctions
33
Criticism of Global 100 Staring Universe
1) Are they ranking the right things?
2) How do they measure?
3) Maybe they charge for participation
34
Milton Friedman
Capitalism and Freedom- "there is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game". CSR doesn't really matter.
35
Pros of CSR
1) Businesses solving problems that they create.
2) Companies have obligations to society.
3) They have the resources to solve problems.
36
Cons of CSR
1) The goal is only to make money (Friedman)
2) Involvement in social projects give companies too much power.
3) Conflicts of interest
4) They don't have the expertise to engage in social initiatives.
37
Proactive CSR
Taking initiative. Ex: Toys R Us not selling toy guns
38
Accommodative CSR
Don't oppose CSR but don't initiate
39
Defensive CSR
Not participating in CSR. Ex: Tobacco companies not wanting to put warning labels on cigarettes.
40
Opposition CSR
Exerting effort to avoid CSR
41
Standards in global business
Absolute: The ethical standards kept in a company are based on the ethics of the company's home country.
Relative: Ethical standards varying by country
42
Examples of Ethical Issues
- Hiding debt from investors
- Outsourcing workers
- Offshoring production
- Pollution
- Marketing harmful products
43
Shareholder model
The firm being obligated to maximize its owners profits
44
Stakeholder Model
When the firm wants to ensure its long term survival to it satisfies its stakeholders.
45
Who are Stakeholders?
- Shareholders
- Employees
- Customers
- Suppliers
- Local Community
46
Improving Ethical Decision Making
- Employee selection (hiring ethical employees)
- Code of ethics
- Ethical training for employees
- Leading by example
- Protection for whistleblowers in the company.
47
Factors that influence ethics of a firm
- Competition in the industry
- Profitability
- Business environment in general
- Key people in the organization
48
Why do Managers avoid decisions?
1) They may not know about how much time effort and resources are involved with a decision
2) They're afraid of poor decisions
3) Convenient to avoid decision making by doing other minor tasks
49
Planned Decisions
When the problem is frequent, recurring, cause and effect certainty. The procedure is defined policy rules and regulations
50
Unplanned Decision
When the problem is new and uncertain. It requires creativity, intuition and analytical abilities.
51
Example of Planned Decision
Stocking inventory or purchasing equipment
52
Example of unplanned decision
Designing clothing or marketing new products
53
Identify and define problem
Step 1 of decision making. Compare past and present performance, comparing it to others.
54
Identify and Define decision criteria and attribute weights to crtiteria
Step 2 of decision making. Survey available data and use comparisons to figure out how to weigh factors
55
Generate and evaluate options
Step 3 in decision making. Consider all options and the values of all options
56
Implement and evaluate decision
Step 4 in decision making. Implementing the decision and monitoring the performance.
57
People Factors
One factor in decision making. Worker knowledge skills, language skills, cultural awareness, management skills.
58
Technical Infrastructure
One factor in decision making. Up to date computers, technical skills, project management, client interface.
59
Client Interface
One factor in decision making. Knowledge of a client, client language skills, problem resolution process, time differences.
60
Determining Business Infrastructure
One factor in decision making. Business plan, organization, process, cash control and cost control, legal representation.
61
Regulatory Interface
One factor in decision making. Intellectually property protection. tax laws, bank transfer laws, regulation of different countries.
62
Human Issues in Decision making
1) Illusion of control
2) Preferring short term and not long term
3) Time and pressure constraints
63
Rational Model of decision making
How one should make decisions. rational, systematic and logical.
64
Assumptions of rational decision making
- Perfect information
- Goals that are agrees upon
- Decision makers acting in the best interest of the company
- No ethical issues
65
Behavioral decision making
How decisions are usually made. Human limitations complcate rational decisions.
66
Assumptions of behavioral decision making
- People have limited time, info, resources and intelligence
- intuition influences decision making
- decision makers are often satisfied with sufficient decisions.
- sometimes decision makers will stick with their decision to an extreme degree.
67
Optimization
Doing calculations and choosing the best option
68
MinMax
Decision which minimizes loss in a worst case scenario
69
MaxMin
Decision which maximizes gain in a best case scenario
70
satisficing
Choosing an OK option where the minimum payoff is higher than the maximizing decision. this is a more conservative approach
71
Risks of Group Decision Making
1) Louder people can dominate the group
2) Satisficing as a group
3) Groupthink
4) Loss of original goals
5) Cost
72
Advantages of Group Decision Making
1) More information
2) More approaches and perspectives
3) Decision is more understood
4) More committment to decision
73
Managing group decision making
1) Brainstorming
2) Devil's advocate
3) Avoid getting personal
4) Stick to mission
5) Encourage participation
6) Avoid crtiticism
7) Synthesize ideas
74
Departmentalization
Dividing the organization into departments
| Function, product, customer, geographic, matrix (mixture of a few)
75
Advnatages of Functional Organization
1) Appropriate for small org.
2) Allows for specialization
3) Reduces cost because there's no duplication
4) Improved communication and coordination.
76
Functional Organization
Splitting org. based on departemnet, marketing, finance, etc.
77
Disadvantages of Functional org.
1) Interdepartmental coordination
2) Fosters narrow interests to one department
3) creates narrow thinking people
4) makes diagnosis of problems difficult.
78
Product departmentalization
Splitting departments based on the prodcuct produced
79
Advantages of product org.
1) Specialization
2) Allows performance evaluation
3) Simplified decision making
80
Disadvantages of product org.
1) Resource duplication
2) Difficult interdepartmental coordination
3) Focus on products and not the whole org.
81
Customer Departmentalization
Making products for specific customers
82
Advantages of Customer Departmentalization
1) Concentration on customer needs
| 2) Allows for product adaptation
83
Disadvantages of Customer Departmentalization
1) Resource Duplication
2) Difficult to coordinate
3) May help customer but harm company
84
Geographic Departments
Making departments based on geographic regions
85
Advantages of geographic departments
Allows for product adaptation
86
Disadvantages of geographic departments
1) Duplication of resources
| 2) Can make coordination difficult
87
Matrix Departments
Departments which involve more than one type of division.
88
Advantages of matrix departments
1) Fosters cooperation and interaction
| 2) Makes complex jobs easier by having a full team of different disciplines work on it at the same time.
89
Disadvantages of matrix departments
1) Reports to 2 managers
| 2) Requires a high degree of coordination
90
Authority in the organization
Relationship in an org. where a functionary controls the actions of subordinates
91
Line Authority
Chain of command
92
Staff Authority
Advisory and not command position
93
Line departments
departments responsible for the main functions of the firm, manufacturing, marketing, etc.
94
Staff Departments
Support departments that makes the work of the other departments possible. i.e. accounting, HR, etc.
95
Board of Directors
Board which is appointed by shareholders.
3 main jobs:
1) Selecting, evaluating and replacing CEO
2) Making a strategic direction for the firm and criteria for its evaluation
3) Overseeing legal and ethical behavior
96
CEO
Cheif Executive Officer- runs firm, reports to board of directors
97
Top Management team
Other top managers involved in decision making process
98
Hierarchy
Levels of authority in org.
Tall authority- Many levels.
Flat authority- Few hierarchical levels
99
Span of Control
Number of subordinates manages by one boss.
Broad SoC- Many subordinates
Short SoC- Few subordinates
100
How many subordinates should each manager have?
Depends on 7 main factors:
1) Level of employee and manager training
2) Geographic distribution of workers
3) Amount of manager work beyond supervision
4) Similarity of jobs
5) Standardization of work
6) Legal requirements
7) Worker preferences
101
Delegation of authority
Transferring of authority from a manager to his subordinate. Frees up the time of the manager to do other important things
102
Steps in delegating
1) Define the Goal
2) Select the individual
3) Get opinions on how to do the job
4) Allocate time, mooney and resources
5) Establish timeline for evaluation
6) Perform evalutations
103
Centralization of authority
When decisions are made at the higher levels of the org.
104
Decentralization of authority
When decisions are made at the lower levels of the org.
105
Finding proper balance of Job definition
1) Job rotation- workers rotate jobs to increase variety and interest level
2) Job enlargement- jobs including more tasks
3) Job enrichment- Jobs including more authority and control
106
Organizational culture
Values and norms shared in an org. that control how people interact with each other and with people outside of the org.
107
Components of Org. culture
1) Norms- unwritten rules of conduct
2) Values
3) Org. climate- how employees experience the org.
4) Management style- How managers conduct themselves
5) Structure and systems- How flexible or inflexible the org. is.
108
Mercantilism
Commercialism- A country maximizes its wealth by increasing exports and decreasing imports.
109
Adam Smith
Absolute advantage- The ability for a country to produce an item with fewer inputs than any other country
110
David Ricardo
Comparative Advantage- "absolute" cost is irrelevant. "opportunity" cost determines the international trade activities of the country
111
Factors in where we put business activities
1) Labor cost
2) Employee productivity
3) Natural resources
4) Inflation and stability of economy
5) Energy costs
6) Taxes
7) Country's business climate
112
Why should we seek foreign markets?
1) New Customers or replacement customers
2) Reducing costs by producing on a larger scale
3) Minimizing risk, market volatility
113
HC (Home Country)
The country of residence of the consumer
114
DC (Designed-in-Country)
Italian-designed furniture or japanese designed electronics
115
PC (Parts Country)
Signifies the origin of components, regardless of where the assembly itself takes place
116
AC (Assembly Country)
Origin of where the parts are assembled
117
OC (Origin Country)
A symbolic or traditional country of origin, like Japan for SONY.
118
Barriers to trade
1) Tarriffs- tax on imported goods
2) Subsidies- Gov. backed loans, benefits and tax breaks
3) Quotas- Limits on quantities of imported goods.
4) Standards- laws regulating products quality or features
119
WTO (World Trade Organization)
The only international org. ealing with the rules of trade between nations. Many of the agreements are negotiated and signed by the bulk of the world's trading nations
120
Geert Hofstede
Surveyed employees ini 40 countries. A nation's culture can be summarized in 4 dimensions:
1) Power-distance
2) uncertainty avoidance
3) Individualism/ collectivism
4) Masculinity/ Femininity
121
Power-Distance
Is there a social distance between different classes or levels of hierarchy in the org?
High: guatemala, Arabs, africa
low: Israel, Austria, Scandinavia
122
Uncertainty avoidance
Society's ability or willingness to adapt in the face of uncertainty or ambiguity
High: Japan, Turkey, France
Low: UK, Denmark, Singapore
123
Individualism/ Collectivism
The degree to which society values the individual or group.
high: US, Australia
low: Guatemala, tribal countries
124
Masculinity/ Femininity
Quality of life v. Importance of work.
High: Japan, Germanic, latin, anglo
Low: Sweden, Norway
125
Long/ Short term orientation
long-time horizon- saving for the future etc. vs. Social commitments and present needs.
Long: East Asia
Short: Anglo, Latin, Arab
126
Indulgence vs. Restraint
Control of desires and impulses vs needs to curb and regulate gratification by using norms
high: latin, anglo, scandinavia
low: east asia, east europe, muslims
127
Edward Hall
Defined cultures as "high context" and "low context"
High- What's not actually stated can be more important than what is
Low- What you see is what you get
128
Global consistency or "standardization" (as opposed to adaptation)
universal needs among people throughout the world.
Pressure to lower costs
Global strategic location
129
Local Responsiveness, or "adaptation" (as opposed to standardization)
1) Helps with different preferences throughout the world. different customs, traditions and cultures.
2) Multiple distribution channels
3) Different economic, political and legislative issues.
130
International Model of global management
- A local presence in a number of countries, gives the company some independence.
Advantages- Eases knowledge and info sharing throughout the world.
Disadvantages- Doesn't allow full adaptation to local needs and doesn't fully allow for economies of scale.
131
Multinational Model of global management
- When each independent company has its own departments.
Advantages- Allows for full adaptation and eases transfer of goods across borders.
Disadvantages- Duplication within the company, no economies of scale and it's difficult to present a unified image.
132
Global Model of global management
- Comapny is standardized to the highest degree possible. The products are manufactured in a concentrated manner in a few places, chosen based on costs.
Advantages- Ecnonomies of scale.
Disadvantages- Difficulties associated with cross-border shipments, product may not be appropriate for local markets.
133
Transnational model of global management
- Takes advantage of both Economies of scale and adaptation. This happens when some functions of manufacturing are performed in few places, and other functions are done in the local markets.
134
Exporting
One method of entry into a foreign market. It allows for concentration of resources, Economies of scale, reduces risk and allows for immediate entry. However, there are also transportation costs and taxes.
135
Licensing
When the licensee buys rights to produce a product. This keeps the cost low, but it may involve loss of propriety.
136
Franchising
This is similar to licensing, but is usually used for services. When franchising, it's important to have know-how.
137
Joint ventures
Cooperation between local and foreign businesses. However, this may involve conflicting interests and loss of control.
138
Wholly owned subsidiary
When a company is set up in a foreign market. This allows for retention of control over processes, secrecy and info. It also requires a high degree of coordination and knowledge. However, it is risky.
139
3 types of managers in global management
1) Expatriates- People who used to live in the original country of the company.
2) Host-country nationals
3) Third-country nationals
140
Strategy
The pattern or plan that integrates an organization's major goals, policies and action into a cohesive whole. Think of chess.
141
Stages in strategy implementation
1) Vision
2) Setting objectives
3) Planning
4) Implementation
5) Tracking and Change
142
Vision (step 1 in strategy implementation)
Mentioning the purpose, business, and values of a company.
143
Hierarchy of Strategies
Corporate strategy
Business Strategy
Functional Strategy
144
Objective setting (Step 2 in strategy implementation)
- Translates vision into defined goals
- SMART
Specific goal
Measurable results
Achievable
Result-oriented
Time for evaluation
145
Examples of corporate strategy
- Which industries should we enter?
- Should the firm diversify to spread risk? Samsung v. Nokia
- How can the firm increase revenue while minimizing risk?
146
Competitive Advantage
A firm has a competitive advantage if it offers
- Products with the same features at a lower cost (low cost advantage)
- Products with different features than competitors (differentiation advantage)
147
Functional Strategy
The approach in functional areas (marketing, finance, etc.) taken to best achieve corporate and business unit objectives.
- strategies must best serve each other AND the overall business strategy
148
Strategy making process
1) What is the current strategy?
2) Is there a need for strategic change?
3) What are the environmental conditions?
4) What's the most appropriate strategy based on those conditions?
149
Assessing current strategy (Step 1 in SMP)
1) What is the approach to our competition?
- Cost cutting
- Differentiation
- Specific market segment
2) What's the scope?
- Sales, manufacturing
- Geographic coverage
- Customer base
150
Is there a need for change? (Step 2 in SMP) Indicators for evaluation
- Profitability
- Sales
- Stock prices
- Reputation
- Quality
151
Situational Analysis
SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
152
Strengths of a company
- Strong strategy
- Good reputation
- Recognized brand
- Good financial
- Lower costs
- Good customer service
- Good quality
153
Weaknesses of a compnay
- Lack of direction
- Aging plant or products or work force
- Poor financials
- Higher costs
154
Opportunities of a company
- Developing markets
- Lower taxes
- Acquisition of competing firms
- Changing demographics
155
Threats to a company
- New entrants to the market
- Seasonal downturn
- Growth of supplier strength
156
Strategic Group Mapping
- Who are the real competitors?
- Strategic group- A group of firms with similar attributes, like similar products, price points, distribution channels etc.
157
Different business models
- Business model- How we convert an idea into a profitable business
1) Subscription
2) Direct marketing (pyramids)
3) Free, but paying for premium content, trial periods, in exchange for info
4) Razor blade model (or printers)
5) Advertising, Info, agent
158
Sales and profit during the life cycle of a product
See lecture 8 slide 3
159
What is technology?
- The provision of practical solutions for human needs, usually through the application of scientific knowledge
160
Innovation
- Replacement of existing tech with something new, giving special value to a defined group of users.
- Innovation provides economic value.
161
2 types of innovation
1) Product- Advance in the product itself (New iphone)
| 2) Process- Methods of producing the product change (Iphone factory)
162
What drives changes in Tech?
1) Need!
2) When satisfying the need is possible and the know how exists
3) When the knowledge can be applies well
4) When there is funding and workers and resources to develop it
5) When there's an innovator who can take charge
163
Phases in adoption process (Rogers)
1) Awareness
2) Interest
3) Decision
4) Rejection
4a) Acceptance
5) Trial
6) Adoption
164
Innovators (Groups of adopters)
- They buy the product for love of tech
- They need few preliminary requirements
- They desire to see the inner workings of the product
- They want to be the first with the new tech.
165
Early adopters: visionaries (groups of adopters)
- They have the vision to see how to integrate the new tech.
- They have the passion and conviction to convince the org. to acquire the tech
- They rely on intuition of the product and not review of others.
166
Early majority: pragmatists (groups of adopters)
- Motivated by pragmatism
- Don't want to be guinea pigs for an item
- Desire tech to enhance performance and not to change everything
- They have a certain comfort level with new tech.
167
Late majority (groups of adopters)
- Similar to early majority, but they have a lower comfort level with new tech.
- They prefer to wait until the tech becomes standard.
- Prefer to buy from large established suppliers
- Will only buy if there is sufficient customer support
168
Laggards (groups of adopters)
- Prefer to avoid new tech and generally only adopt when necessary
169
What speeds the pace of new tech adoption?
1) Size of advantage over previous tech.
2) Compatibility with existing tech.
3) Less complex
4) can be tried without major cost or commitment.
5) Can be easily copied
170
Pricing and Tech Diffusion
- Pricing is a function of the market and/or competitors
- For perishable tech-based products there are a number of pricing possibilities:
1) Premium pricing, high prices always.
2) Price skimming- Where price starts high and falls over time
3) Penetration pricing- When the product get more established the price rises.
171
Competitive strategies for tech innovation
1) Lead- Always be the innovator
| 2) Lag- To copy or be behind the main innovators
172
Advantages of being a leading innovator
- No competition
- Revenue generation
- Improved reputation
- They set the barriers to entry
- They grab the market riches
- Learning opportunities
173
Disadvantages for being a leading innovator
- Risks
- Development costs in tech and the market
- Learning costs
174
Evaluations of tech trends
1) Benchmarking- What is everyone else doing?
| 2) Environmental scanning- What's on the horizon?
175
Ways to buy new tech
1) Internal development
2) Purchasing tech.
3) Contracting development
4) Licensure
5) Tech transfer
6) Cooperation of 2 companies
7) Purchasing the owner of the tech.
176
Equal Pay act of 1963
Prohibits unequal pay for males and females doing similar work
177
Civil Rights act of 1964
Prohibits discrimination on basis of race, color, religion, gender and origin
178
Age Discrimination in Employment act of 1967
Prohibits discrimination against people above the age of 40
179
Pregnancy Discrimination Act of 1978
prohibits discrimination in employment against pregnant women
180
Americans with Disabilities Act of 1990
Prohibits dicrimination on basis of physical or mental disabilities
181
Family & Medical Leave Act of 1993
permits workers to take up to 12 weeks of unpaid leave for pregnancy, etc.
182
National Labor Relations Board
guarantee employees the right to form and join unions
183
Occupational Safety and Health Act
requires employers provide a safe workplace for employees
184
Bona Fide Occupational Qualification (BFOQ)
A trait that employers may consider in evaluating candidates for a job that would ordinarily be considered discriminatory. This must be stated in job posting.
- What is thePRIMARY function or service offered?
185
Examples of BFOQ
1) Firing a seikh employee for refusing to wear a helmet.
| 2) Catholic universities only hiring catholic teachers
186
Adverse Impact
When a substantially different rate of selection in hiring or other employment decision which works to the disadvantage of members of a race, sex or ethnic group.
Example: The written test for the Chicago FIre Department
187
Sexual Harassment
Sexual or non-sexual conduct that singles out a person for harassment based on gender. Can occur between same or different gender.
188
Quid pro quo
Favors in exchange for employent, raise in pay, benfits etc.
189
Hostile work environment
Unwanted conduct which is so severe or persistent that it creates a hostile or offensive working environment. Can be phyisical, verbal or nonverbal
190
Recruiting
Attracting the right people to apply for a job. Can be done internally or externally.
191
Job description
What is involved in the job?
192
Job qualification
What sills and background must the applicant have?
193
Advantages of internal recruiting
1) Lower advertising costs
2) Initial weeding out of unfit applicants
3) Opportunities for advancement in the firm
4) Smaller candidate pool size
194
Advantages of external recruiting
1) larger candidate pool size
| 2) New direction or energy
195
How to select from a pool of applicants
1) Test, either in house or outsourced by HR
- All measures of a candidates suitability for a job must be reliable and valid.
Reliable- Consistency of test scores over time and across alternative measures
Valid- How much the tests and the results have to do with your job
Ex: Graphology is neither reliable nor valid.
196
Trainig Employees
- Developing skills of employees.
| Ex: Orientation training, Team training, Diversity training.
197
Development of Employees
Teaching managers and professionals broader skills needed in the present and future
- Maybe paying for a masters degree
198
Appraising employees
- How well are the employees doing their jobs?
2 types: Objective and Subjective
Objective: Defective parts produced, productivity
Subjective: Is he a hard worker? Is he friendly?
199
Who does appraising of employees?
- Managers
| - 360 degree appraisal- Boss, subordinates, peers
200
Possible pitfalls of appraisal
- Recency error
- Halo error
- Personal bias
201
Compensation of employees
- Pay
| - Benefits
202
Types of pay for employees
1) Wage
2) Variable pay- commision
3) Profit sharing
4) Stock options
203
Types of benefits for employees
1) Social Security
2) Vacation
3) health insurance
204
Separation of employee
Firing- When the org. forces the employee out.
Downsizing- When the org. reduces the workforce, regardless of the performance of the individual
Quitting- When the individual leaves of his own free will.
Retirement- mandatory retirement is legal in most places, in Israel it's age 67
205
Labor Relations
- Relations between management and workers
| - Unionization- When workers organize and have their collective interests represented by a union.
206
Collective bargianing
When conditions are negotiated on behalf of employees as a whole, rather than individual employees
207
3 Types of Conflict resolution
- Mediation
- Arbitration (Most power)
- Pendulum (baseball) arbitration
208
Labor dispute
Disagreement between employer and and employee regarding employment
209
Strikes
- Sick out- Employees all call in sick
- Slow-down- When employees come on time, but do it very slowly
- Sit-down strike- Employees show up but refuse to work
- Sympathy strike- When different unions band together to support a striking union.
- General strike- All or most unions strike all together
