MT 2 Flashcards
Click Heard Round the World - WSECD
Lou turned off the projector and asked to talk about the mainframe business. From turning off the projector, there was a huge mass of emails being sent around.
Mainframe Decision - WSECD
Lou immediately implemented a huge price reduction in the mainframe
Operation Bearhug - WSECD
Each executive member had to go to 5 of the top customers and listen to their comments
Social Facilitation
We tend to perform better at tasks that are well learned or simple when others are present. When completing a new or difficult task, our performance level decreases and we do more poorly.
Group Think
Can lead to impulsive decisions and a failure to identify and/or consider all sides of an argument
Group Polarization
Refers to a group tendency to talk itself into extreme positions. The difference between this and Group Think is the movement of an extreme position.
Social Loafing
As a group gets larger, the individual contribution decreases disproportionate to the group size. The economic term for this is free-rider. This is a risk of working in groups and should be addressed at the “norming” stage
Self-Referencing Group
Group members reference themselves not by outside measures but by the standards or norms of the group. A difference between group think and the self-referencing group is that the self-referencing group is a broader validation of who they are and what they do and not limited to a particular situation
Fundamental Attribution Error
Two types:
- Disposition or personality
- Situation in explaining social behavior
Business Process Reengineering
Not a transformational process but an operational process of identifying the “business processes” from a clean slate and determining how the processes can be made more efficient and effective. Usually focused on the supply chain and enabling information technology
Examples: Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM
Restructuring
Reorganizing the legal, ownership, operational, or other structures of an organization for optimizing reasons: profits, bankruptcy, mergers, spinoffs, government regulations, financing, rebranding. Tends to be a zero sum game.
Downsizing
Reducing the size of a company by eliminating workers and/or divisions within the company.
Rightsizing
The process of a corporation reorganizing or restructuring their business by cost-cutting, reduction of workforce, or reorganizing upper-level management. The goal is to get the company molded properly to achieve the maximum profit. The term rightsizing is often used by companies instead of downsizing because it sounds less drastic.
Smartsizing
- Includes layoffs but needs to be coupled with some organizational change usually in reducing the number of products or markets
- Terminations, attrition, and elimination of positions
- Reorganizing lines of authority or business structures
- Generally applies
Suboptimization
Attempting to optimize a unit of a larger system that results in a suboptimal result for the entire organization
Component Business Model
- Core Competencies: Functions or capabilities that are most efficient, optimized, or that provide the most competitive advantage
- Outsourcing: Having external service providers perform some activity formerly carried out by a functional organization. Is facilitated by componentization.
Patterns in the Enterprise
- Buy side patterns: Deal with suppliers
- Sell side patterns: Order management and fulfillment - offering product catalogs, taking orders, filling them as promised
- Patterns in the Middle: Design and Engineering, Manufacturing, Human Resources, Finance, MIS, Information Systems
Sources of Business Processes
- Formal: This is our focus
2. Informal: Sometimes known as a shadow system
Control
- Centralized: Getting things done in all the same fashion
2. Decentralized: Gallo Winery example
Decision Making
- Vertical: Decisions come from the top. Very hierarchical
- Horizontal: No vertical decision making > you make the decision
- Product
Matrix Management
Organizational management structure in which people with similar skills are pooled for work assignments. For example, all economists may be in one analysis department and report to a chief economist, but these same economists may be assigned to different projects and report to a project manager while working on that project.
Lines of Authority: Delegation
Delegate things you can do. Problem: We often abdicate things we can do
Lines of Authority: Abdication
Abdicate things you can’t do
Lines of Authority: Span of Control
The number of subordinates or “reports” - usually between 1 and 10
Lines of Authority: Authority
Directing the work
Lines of Authority: Responsibility
Performing the work > My responsibility is to assign work to you that you can do
Lines of Authority: Stakeholder
Has an interest in the work but varying degrees of authority and responsibility
Lines of Authority: Owner or Ownership
Has the primary authority and responsibility for the work
Types of Work: Projects
- Defined end point
2. Focus on effectiveness
Types of Work: Process
- Defined output or product
2. Focus on efficiency
Importance of Teams
Most important thing of working on a team is to get YOUR job done
Types of Teams
- Formal and Informal
- Temporary and Permanent
- Cross-functional: Everyone has a different function
- Vertical Team: There’s an administrator in the team
- Self-managed work team: Horizontal team
- Hierarchical Team: Broader than vertical team
- Virtual Team: Never meet in person but vertical structure
Team Tasks
- Planning and scheduling work
- Assigning tasks
- Training
- Performance evaluation
- Quality Control
Team Characteristics
- Trust
- Feedback processes
- Channels of Communication
- Approaches to decision making
- Acceptance of goals
- Shared values and beliefs
Value Proposition
Divided between operations and strategy. Alex was in operations. Lou was in strategy
Four P’s
Product, price, placement, promotion. Target markets is in the center of this diagram. Goal is to satisfy the target market
BCG Growth Share Matrix
- Cash cows: High market share (high cash gen), low growth rate (low cash usage)
- Stars: High market share (high cash gen), High growth rate (high cash usage)
- Question Marks: Low market share (low cash gen), High growth rate (high cash usage)
- Dogs: Low market share (low cash gen), low growth rate (low cash usage)
SWOT Analysis
Internal Analysis: Strengths, weaknesses
External Analysis: Opportunities, Threats
Balanced Scorecard
Vision and Strategy in center
Financial, Customer, Learning and Growth, and Internal Business Control make up the four boxes around the Vision and Strategy box
Uses metrics and initiatives to satisfy the vision and strategy
Porter’s Five Forces
Industry competitors in the center. Surrounded by Potential Entrants, Buyers, Substitutes, and Sellers
Do not use for a specific firm, use for an industry
Horizontal, cross-sectioned model
Why Change Occurs
- Dissatisfaction with the present situation
- External pressures toward change
- Momentum toward change
- These are not the same as the driving forces for change but the context of change management
Threats to the Change Process
- Degree of change
- Time Frame
- Impact of culture
- Loss of existing benefits
- Threat to position power
- Threat to security
- Redistribution of power
- Disturb existing social networks
- Uncertainty regarding change
- Disruption of routine
Method of Change Management - Phases
- Unfreezing - prepare for change
- Changes
- Refreezing - change is stabilized
Method of Change Management - Crossover Approach
When yahoo went from work at home to working at the office
Change Strategies - Force-Coercion
Strategy: Use of formal authority to create change
Power Base: Legitimate, Reward, Coercive
Managerial Behavior: Direct forcing, Political maneuvering
Likely Results: Faster but may only be temporary
Change Strategies - Rational Persuasion
Strategy: Creating changes through rational and empirical arguments (Jonah)
Power Base: Expertise
Managerial Behavior: Informational efforts
Likely Results: Highly variable depending on acceptance of change
Change Strategies - Shared Power
Strategy: Developing support through personal values, beliefs, and commitments
Power Base: Referent
Managerial Behavior: Participative efforts
Likely Results: Slower, but able to internalize changes
Decision Making
The process by which managers respond to opportunities and threats (from the SWOT world) by analyzing options and making determinations about specific organizational goals and courses of action
Decisions relate to one of the following:
- Resource acquisition (or disposal)
- Resource allocation or withholding resources
- Resouces utilization
Structured or Programmed Decisions
Simple, habit-forming, rout
Unstructured or Unprogrammed Decisions
Not simple, not habit forming, not rout
Characteristics of Decision Environment
- Bounded Rationality
- Risk
- Uncertainty
- Information symmetry
- Ambiguous information
- Time constraints
- Information costs
Note: Can be causes of conflicts that we have already discussed
Decision Support System
One of the management information systems that makes up approximately 95% of decisions
Delphi Technique
Begins with the initial development of a questionnaire focusing on the identified problem. An appropriate respondent group is selected, and then the questionnaire is mailed to them. (SEE NOTES)
ANOVA - Analysis of Variance
Purpose: To see an example of fact-based, analysis-based information to then be used in decision making
Likert Scale
Convert qualitative responses to quantitative or measurable values.
A. Use a scale of five to seven responses ranging from “strongly disagree to strongly agree” and usually the middle value is neither agree nor disagree
B. Generally limited to five to nine questions in the survey
C. Need to characterize the respondents by attributes to be tested such as age category, economic status, education, and the like
Test of Homogeneity
Gives us the resultant populations. ANOVA testing will not tell you which mean does not equal the other means, or the combination of means that are equal.
Probit
Probability Unit Model
Coercive Power
Power to punish
Legitimate Power
Power granted by some authority
Expert power
Power of having some specific skill or knowledge not found in others
Referent Power
Power from admiration or respect
Reward Power
Power from being able to provide a reward to others
Headcount
A critical success factor
Dashboard
Shows number of employees, employee satisfaction, etc.
Tells you what you need to know to run a business
SKA’s
Skills, Knowledge, Ability
Skill: You can teach a skill
Knowledge: Do I know the material/system
Ability: Cannot teach abilities
Protected Classes
- All persons of color
- National origin
- Gender including pregnancy but not sexual orientation - there is currently a bill in Congress on sexual orientation
- Religion
Types of Harassment
Sexual harassment: Physical or uncomfortable work space
Racial or Ethnic Harassment: Can be physical
Disparate or Adverse Treatment
Saying “white’s only” may apply
Disparate or Adverse Impact
Requiring a high school degree for a job in NC in the 60’s. Basically makes it “white only” because of educational inequality in the 60’s
Independent Contractor
Works for more than one firm, has an investment in the equipment, no right for client to give instructions, service to the general public
Transaction Processing Systems (TPS) - Types of Information Systems
Traditional accounting and finance applications like payroll and sales recording. The transactions (the data) “roll-up” to information (reports)
Operational Information Systems - Types of Information Systems
Applications that move along the supply chain: inventory control, order-processing, procurement, human-relations management
Enterprise Resource Planning Systems (ERP) - Types of Information Systems
Links transaction-processing systems with operational information systems into one integrated system that include (generally) at least two characteristics
Relational Databases
- One-to-many relationships by use of pointers and addressing
- Minimize data redundancy
- Increase data access and data security
Types of Ethics
- Societal: How members of a society should interact
- Occupational: Standards of behavior for a profession or trade
- Organizational: Guiding practices for a company’s managers to view their responsibility to stakeholders
- Individual: Personal standards and values on how one should interact with others
Principle and Agency Theory
- Agent walks in the shoes of the principle
- Agent can typically do whatever principle can do
Rules to Solve an Ethical Dilemna
- Utilitarian: Greatest good for the greatest number of people
- Moral Rights Rule: Protects the fundamental rights and privileges of an individual
- Justice Rule: A fair and equable distribution of benefits and harms
- Practical Rule: A business model that says you should only make decisions that you are wiling to disclose to the public. Often go through first three rules first
Trust
Willingness of a person or a group to have confidence in the goodwill and competency of another person or organization even though this willingness puts them at risk
Reputation
How others see managers and organizations as a result of their ethical behavior. REPUTATION LEADS TO TRUST
Demand Chain
Target costing and the product development cycle
Value Chain
An organizational structure consisting of supporting activities and primary activities
