Week 2 Flashcards
What is the role of strategic leadership?
Ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary.
Involves managing through others in an entire organization.
What are the main components of organizational leadership?
- CEO
- Top Management Team (TMT)
- Board of Directors
- General Managers
These roles are essential for effective organizational management.
What do shareholders typically want?
VS
What do managers typically seek?
Does this create conflict?
- Profits/Stock price/Social Goals
- Remuneration (Compensation and Benefits)/Other Perks/ Power/ Esteem
/Job security/ Job satisfaction
Yes
Managers have varying interests that can sometimes conflict with shareholders.
What does a Vision Statement articulate?
- A picture of what a firm hopes to become in the future
- Organization’s values and aspirations
- Inspiration for employees and stakeholders
- Driver of strategy development
A strong vision statement is crucial for guiding an organization.
What does a Mission Statement capture?
- Key elements of the organization’s past and present
- Organization’s identity
- Reasons for existence
- Stakeholder engagement
- Specifies competitive businesses
The mission statement is foundational for organizational purpose.
What is the purpose of goal setting in organizations?
To achieve their stated vision/mission through narrower aims that provide clear guidance to employees.
Goals help direct organizational efforts.
What does SMART stand for in goal setting?
- Specific
- Measurable
- Attainable
- Realistic
- Time-Bound
SMART criteria enhance the effectiveness of goal setting.
What are the key strategic leadership actions?
SROE
-Strategic Direction of the firm
- Resource management
-Organizational Culture (Entrepreneurial thinking)
-Emphasize ethical practices
These actions are vital for strategic success.
What is involved in specifying the strategic direction of the firm?
- Specifying the vision and the mission
- Core Ideology
- Envisioned Future
This direction guides implementation strategies.
What are core competencies?
Capabilities that are a source of competitive advantage, enabling delivery of unique value to customers.
Developed over time through experience.
What constitutes an organization’s culture?
And what factors contribute to its development?
Shared beliefs, values, and expectations about how to operate within the organization.
* Unique history of the firm
* Role of leaders
Culture is unique to each organization and can be a source of competitive advantage.
Who are entrepreneurs?
What are their mentalities/practices ?
Innovators of new ideas who find and promote new combinations of factors of production
-Autonomy
-Competitive Aggressiveness
-Innovativeness
-Proactiveness
-Risk Taking
What is the role of ethics in organizational culture?
And some strategies to support it?
Encouraging employees to act ethically and using ethics as a basis for all decision-making processes
-Communicate ethical standards
-Revise based on stakeholder feedback
-Develop appropriate reward systems
-Create a dignified work enviroment
How is organizational performance assessed?
By evaluating how well a firm is doing to reach its vision, mission, and goals
What are Performance Measures?
Metrics along which organizations can be gauged, such as profits, stock price, and sales
What are Performance Benchmarks?
Standards for making sense of a firm’s standing along a performance measure
What is the balanced scorecard?
What does the Balanced Scorecard provide?
And what 4 perspectives does it take?
Measurement system that helps leaders monitor a diverse set of performance measures
A balance between financial and other strategic measures important for long-term performance
Financial (Profit/effectiveness), Customer(Needs/Satisfaction), Internal Business Processes (Organizational efficiency), Learning and Growth (Innovation )
What are the three Ps of the Triple Bottom Line?
- People (Social Responsibility)
- Planet (Environmental Sustainability)
- Profits
What is Organizational Performance?
A multi-dimensional concept that relies on multiple measures of performance
Programmed vs Non-Programed decisions:
Decisions that are repeated over time – often based on
established policies, procedures, or rules.Criteria for decision-making are all known or can at
least be estimated with a reasonable degree of accuracy.
VS
Unique, unstructured decisions that are generally based on criteria that are not well defined. Information is more likely to be ambiguous or
incomplete. Need judgement and creative thinking to reach a good
solution.
Barriers to Effective Decision Making
- Bounded Rationality (Limits of information, satisficing instead of optimizing)
- Escalation of commitment (sunk cost fallacy, optimism bias)
- Personal biases (Similar to me, confirmation biases)
- Time Constraints
- Uncertaintiy
