Management exam 2 Flashcards
3 perspectives on problem-solving
Avoidance, challenge and opportunity, challenge and an opportunity for improvement of the service or product
Problem
unwanted deviation from an expected outcome or desire, caused by change
programmed problem vs non-programmed
programmed is day-to-day problems that are covered by standard operating procedures and non-programmed are unusual occurrences that can be a threat
3 basic structures of the problem-solving framework
causal, decision, and action
basic values in problem-solving
Relativism, pluralism, deontological, consequentialist (utilitarian, and egoism)
context
Stakeholders, biophysical, social, economic, political, legal, available resources
positive vs normative statements
positive statements state an observation or fact. normative statement express a judgment of whether it is desirable or undesirable.
ethical relativism
what one society considers right another society considers wrong. therefore, right and wrong are relative.
moral pluralism
many different views can exist within one society. more views lead to more nuance and viewer communal anchors to latch on to.
Deontological Theory
right and wrong are based on nature and duty. Act based on moral laws
Consequentialism
the outcome of an action determines if the action is right or wrong.
egoism
human interests are based on self-interest. the morality of an action is based on the best possible outcome for the individual.
utilitarianism
takes into account the outcomes for both the individual and the collective.
Jeremy Bentham
Wrote “principles of Utilitary” and discussed the philosophical implications of pain and pleasure in society.
3 guiding management principles (definitely on exam 2)
productivity (efficient use of your resources), equity (ensure that people are given equal opportunity to meet their needs), and sustainability (maintain productivity throughout time, while minimizing the effect on the larger environment).
Aldo Leopold
Considered by many to be the father of wildlife ecology and the United States’ wilderness system, Aldo Leopold was a conservationist, forester, philosopher, educator, writer, and outdoor enthusiast. Create the “Land Ethic (1949).
Problem definition
1) is this a problem that calls for action?
2) is it my problem?
* 3) In what context will I address the problem?
4) What is the first step?
Addressing the problem
1) factual situation
2) question that calls for action
3) short-term objective
4) long-term goal
5) practical response
limitations of decision making
ambiguity, uncertainty, time constraints, cost, and cognitive limitations.
bounded rationality
decision-making capabilities bounded by the manager’s cognitive capability.
“satisficing”
adequacy, not optimization, is the target when faced with bounded rationality, ambiguity, time, economic costs, etc.
cognitive biases
1) prior hypothesis
2) representative bias
3) illusion of control
4) escalating commitment
5) rules of thumb
6) group think
7) isolation
Span of control
number of subordinates that report directly to the manager
principle of minimum chain of command
top managers construct a hierarchy with the fewest number of managers as possible and effective use of resources in the organization is met.
Classical decision-making model
- List all alternatives and consequences of the
different alternatives - Rank each alternative
- Select alternative(s) that lead to desired future
state
Administrative decision-making model
- The alternative to the Classical Model
- Acknowledges Bounded Rationality:
– risk and uncertainty
– incomplete information
– time and resource cons
tall organizations
a organization have many levels of authority and narrow spans of control
Flat structures
structure with fewer levels and wider span of control
Managers promoting synergy
Ensure people have skills and knowledge, empower subordinates, ensure accountability, refrain from micromanaging, ensure strategic resources, ensure inter-group communication
Task interdependence
the degree to which work is performed by one member if a group influences work by others.
Social Loafers
Individuals that hide in the crowd and do not do their fair share of work.
Stages of group development
1) forming
2) storming
3) norming
4) performing
5) adjourning
Delphi decision-making technique
- identify and define
- solicit individual opinion anonymously
- consolidate all the individual opinions
- collect new opinions and consolidate
nominal decision-making technique
- Brainstorm alternatives
- all ideas are presented to the group
- all ideas are discussed
- put alternatives to a secret vote
- no face-to-face discussion
- alternatives with the most votes are selected
- need stronger facilitators
stepladder technique
individuals A & B a given a problem to solve, and each comes up with a solution. A & B meet and come to a group decision. A & B meet C who came up with their own decision. rinse and repeat
correlation vs causation
correlation: strong mathematic between two or more variables, strong predictive power, does not describe cause and effect relationship
Causation: the act or process of producing an effect action or condition.
Action planning framework
1) decide who to include
2) translate the decision into a series of targets
3) identify steps
4) gain commitment to plan
5) consider closely related targets
6) implement the plan
7) monitor progress
8) take corrective action
SMART targets
SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, TIME-BASED
Peter Drucker
one of the most widely-known and influential thinkers on management. “action without planning is the cause of every failure”.
SWOT analysis
strength, weakness, opportunity, threats
Criteria
similar to goals. same points that are put into a matrix when making a decision
Micheal Porter
Porter’s Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organization.
Porter’s 5 forces of competition
1) rivalry among existing competitors
2) potential for entry
3) substitute products
4) leverage of customer
5) leverage of the supplier
Horizontal diversification
diverse product line and services. moving into more than one sector
vertical integration
organizing business along your value chain, both upstream and downstream
synergistic horizontal diversification
the new business or sector somehow relates to the existing one
venture horizontal diversification
unrelated diversification primarily to improve portfolio.
