Mgmt Exam2

  1. The relationship between goals and plans, and the definition and purpose of each
    • Goal: desired future state
    • Plan: what we need to do to achieve that state
    • -Tasks (what)
    • -Resource allocations (who)
    • -Schedules (when and where)
  2. The different levels of goals and plans (hint: this is REALLY important)
    • Mission Statement
    • =Wal-mart’s mission: Help
    • people save money so they can live better.
    • Strategic Goals/Plans -Senior Management (org as a whole)
    • =Make our prices lower than Target’s for each of our 100 most popular products.
    • = Develop new ways for shoppers to benefit from our low prices.
    • Tactical Goals/Plans- Large divisions / departments
    • =Reduce cost by >5% on each product.
    • =Open low-cost pharmacies in 300 stores this year.
    • Operation Goals/Plans-Departments, work groups,individuals
    • =Re-negotiate shampoo prices this quarter.
    • =Select the best pharmacy layout by end of month
  3. Criteria for effective goals – “Goals should be…” slide (hint: this is REALLY important)
    • -Specific and measurable
    •  -Covering key result areas
    •  -Challenging but realistic (stretch goals)
    •  -Of a defined time period
    •  -Linked to rewards
  4. Approaches to planning: MBO
    • Management by Objective
    • 1.  Set goals at all levels
    • 2.  Develop action plans
    • 3a. Review progress
    • 3b. Take corrective action as needed (go back to step 2)
    • 4.  Appraise performance
    • REPEAT
  5. the advantages/disadvantages: MBO
    • Pros:
    • -Managers and employees focus on activities that lead to goal attainment
    • -Performance can be improved at all levels of company
    • -Employees are motivated
    • Cons:
    • -Constant change can prevent MBO from taking hold
    • -Poor employee-employer relations can kill MBO
    • -Employees focus on operational instead of strategic goals
  6. Approaches to planning: single-use plans
    • Single-Use:  Programs and Projects
    • -Examples: going paperless, building a new headquarters
  7. Approaches to planning: Standing plans
    • Standing:  Policies, Rules, and Procedures
    • -Examples: email policies, procedures for handling customer refunds
  8. Contingency planning: the approach of each
    • “In case of” plans
    • Identify negative potential factors, then build responses to the worst case
  9. scenario building: the approach of each
    Imagine what could be
  10. crisis management: the approach of each
    • Prevent:  build relationships, detect signals from environment
    • Prepare:  designate CM team and spokesperson, create detailed CM plan, set up communications system
  11. The evolution of planning (discussed in class slide)
    • Then:
    • -Central Planning Depts
    • -Planning Specialists
    • -Report directly to CEO
    • -Goals / plans then assigned downward
    • Now:
    • -Decentralized Planning
    • -More people involved
    • -Evolutionary
    • -Top management still signs off and is accountable for results
  12. Why build a strategy? 3 main reasons.
    • Develop and exploit core competence
    • Build product synergy across organization
    • Deliver value
  13. 3 levels of strategy, and the main question that each strives to answer (discussed in class slide)
    • Corporate -What business are we in?
    • Business-level -How do we compete at the product level?
    • Functional -How do we support the business-level strategy, department by department?
  14. The strategic management process
    evaluate current mission,goals, and strategies =>scan external envir, scan internal envir => swot => develop new mission, goals, and strategies => formulate/implement strategy
  15. Corporate-level strategy: understand the portfolio strategy (hint: this is REALLY important)
    mix of SBU’s and product lines that fit together to create a competitive advantage
  16. the BCG matrix (hint: this is REALLY important)
    • business growth rate by market share
    • question marks, stars, dogs, cash cows
    • Question Marks: New Ventures, risky- a few become stars, others are divested
    • Stars: Rapid growth and expansion
    • Dogs: No investment, keep if some profit. Consider divestment
    • Cash cows: Milk to finance question marks and stars
  17. diversification strategies (hint: this is REALLY important)
    • Moving into new lines of business
    • Related diversification – Apple and the iPhone
    • Unrelated diversification – rare these days
  18. Business-level strategy: Porter’s five competitive forces(hint: this is REALLY important)
    potential new entrants, threat of substitute products, bargaining power of buyers, bargaining power of suppliers = rivalry among competitors
  19. Business-level strategy: Porter’s three competitive strategies (hint: this is REALLY important)
    • Differentiation- strategy involves an attempt to distinguish the firm's products/services from others in the industry
    • Cost Leadership- strategy, the org agressively seeks efficient facilities, pursue cost reductions, and uses tight cost controls by produce products more efficiently than competitors
    • Focus- strategy, the org concentrates on a specific regional market or buyer group
  20. Programmed vs. nonprogrammed decisions
    • Programmed decisions: involve situations that have occurred often enough to enable decision rulees to be developed and applied in the future
    • Nonprogrammed decisions: made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization
  21. What makes decision-making difficult? Four types of difficult decisions (see class slide) and the differences between them (hint: this is REALLY important)
    • Certainty: all information the decision maker needs is fully available
    • Risk: a decision has clear-cut goals and that good information is available but the future outcomes associated with each alternative are subject to change
    • Uncertainty: managers know which goals they wish to achieve, but information about alternatives and future events is incomplete
    • Ambiguity: goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable
  22. Decision-making models: classical. Understand the assumptions behind and differences between each.
    • The ideal, rational model
    • Assumption: managers should and will make rational decisions based on the org’s best economic interests.
    • Relies on certainty, agreed-upon goals, and clear criteria for evaluating alternatives.
    • Good in theory, but…
  23. Decision-making models: administrative. Understand the assumptions behind and differences between each. Also understand the 3 techniques suggested by the administrative model.
    • How managers make decisions in situations with uncertainty / ambiguity
    • Bounded rationality
    • Satisficing
    • Intuition
  24. Decision-making models: political. Understand the assumptions behind and differences between each.
    • Assumptions:
    • -Managers are a diverse group and disagree about problem priorities
    • -Ambiguous or incomplete
    • information
    • -Managers don’t have the time or cognitive capacity to identify and process all relevant info
    • -Managers engage in push and pull of debate to decide goals and discuss alternatives
    • Often results in a coalition
  25. 4 different personal decision styles (hint: this is REALLY important)
    • Analytical -Gather as much data as possible, use it to make a rational decision.
    • Behavioral -Talk to people 1-on-1, get their feelings on the problem / solutions.
    • Conceptual -Gather broad info, analyze it, then also talk to others about problem and possible alternatives.
    • Directive -Consider just 1-2 alternatives, make decisions quickly
  26. Why do managers make bad decisions?
    • Being overly influenced by initial impressions
    • Justifying past decisions
    • Seeing what you want to see
    • Perpetuating the status quo
    • Being influenced by “problem framing”
    • Overconfidence
  27. Methods for innovative decision-making
    • Brainstorming
    • -Group spontaneously suggests a long list of alternatives
    • -Pro: quickly generate many ideas
    • -Con: groupthink
    • Rigorous debate
    • -Devil’s advocate
    • -Point-counterpoint groups
    • Demand evidence
    • Practice the 5 “why’s”
    • Know when to bail
  28. Org structure and org charts: the definition of each and the differences between them
    • Framework in which the org defines:
    • -How tasks are divided
    • -How resources are deployed
    • -How departments are coordinated
    • Org chart = a visual representation of org structure
  29. The key things an org chart tells us about an organization
    • Work specialization: aka division of labor, the degree to which organizational tasks are subdivided into separate jobs
    • Chain of command: unbroken line of authority that links all persons in an org and shows who reports to whom
    • -Authority, -Responsibility, -Accountability, -Delegation
    • Span of management: number of employees reporting to a supervisor
    • Centralization vs. Decentralization
    • Centralization: decision authority is located at the top of the org
    • Decantralization: decision authority is pushed downward to lower org lvls
  30. The 5 approaches to org structures. Be able to tell the approach being used by looking at an org chart, and at least 1 benefit / downside for each (hint: this is REALLY important)
    • Vertical Functional stucture
    • Divisional stucture
    • Matrix stucture
    • Team-Based stucture
    • Virtual Network stucture
  31. Virtual Network stucture (hint: this is REALLY important)
    • Org structure that firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters org
    • Contain central hub surrounded by a network of outside specialists
    • Outsourced
    • Company can concentrate on what it does best and contract out other activities to other companies which enable a company to do more with less
  32. Virtual Network stucture at least 1 benefit / downside for each (hint: this is REALLY important)
    • Advantages: can draw on expertise worldwide, highly flexible and responsive, reduced overhead costs
    • Disadvantages: lack of control; weak boundaries, greater demands of managers, employee loyalty weakened
  33. Vertical Functional stucture (hint: this is REALLY important)
    • Org structure that is the grouping of positions into depts based on similar skills, expertise, work, activities,and resource use
    • Each depts is concerned with the org as a whole
    • A strong vertical design
    • Info flows up and down the vertical hierarchy
    • chain of command converges at the top of org
  34. Vertical Functional stucture at least 1 benefit / downside for each (hint: this is REALLY important)
    • Benefit: efficient use of resources; economies of scale, in-depth skill specialization and dev, top manager direction and control
    • Downside: poor communication across functional depts, slow response to external changes; lagging innovation, decisions concentrated at top of hierarchy, creating delay
  35. Divisional stucture at least 1 benefit / downside for each (hint: this is REALLY important)
    • Benefit: Fast response, flexibility in unstable envir, fosters concern for customer needs, excellent coordination across functional depts
    • Downside: Duplication of resources across divisions, less technical depth and specialization, poor coordination across divisions
  36. Divisional stucture (hint: this is REALLY important)
    • Org structure that occurs when depts are group together based on simular organizational outputs
    • Divisions are created as self-contained units with separate functional depts for each division
    • Chain of command converges lower in the hierarchy
    • Decentralization
  37. Matrix stucture at least 1 benefit / downside for each (hint: this is REALLY important)
    • Benefit: More efficient use of resources than single hierarchy, flexibilit, adaptability to changing envir, interdisciplinary cooperation, expertise available to all divisions
    • Cons: Frustration and confusion from dual chain of command, high conflict between two sides of the matrix, many meetings, more discussion than action
  38. Matrix stucture (hint: this is REALLY important)
    • Org stucture that combines aspects of both functional and divisional structures simultaneously in the same part of the org
    • Dual lines of authority
    • Two supervisiors simultaneously
    • Top leader
    • Two-boss employees
  39. Team stucture at least 1 benefit / downside for each (hint: this is REALLY important)
    • Pros: Reduced barriers among depts, increased compromise, shorter response time, quicker decisions, better morale, enthusiasm from employee involvement
    • Cons: Dual loyalties and conflict, time and resources spent on meetings, unplanned decentralization
  40. Team stucture (hint: this is REALLY important)
    • Org structure that give managers a way to delegate authority, push responsibility to lower lvls, and be more flexible and responsive in the competitive global envir
    • three types: cross-functional teams, permanent teams, team-based structure
  41. The key to making any structure work, and why it’s so important
    • Coordination
    • Otherwise…
    • -“It’s not my problem”
    • -“I didn’t know about that”
    • -“Has anyone else thought about this problem?”
  42. The role of task forces and project managers
    • Task forces -Across multiple departments, -Solve a short-term problem
    • Project Managers
  43. The sequence of events that trigger change (see class slide)
    envir factors, internal forces => need for change => initate change => implement change
  44. Characteristics of creative people and orgs
    • conceptual fluency and open-mindedness -open channels of communication, internally and externally
    • originality -embracing non-specialists and ecentrics
    • independence -decentralization
    • curiosity- freedom to choose+ pursue problems
    • persistence -dedicating resources to long-term projects
  45. Methods for initiating entrepreneurial change (see class slide) – know the 4 key roles, as well as the function of new venture teams, venture funds, and skunkworks
    • 4 key roles: -Idea champions, -Inventors, -Sponsors, -Critics
    • Other ways to foster entrepreneurship
    • -New venture teams
    • -Skunkworks (XEROX PARC)
    • -New venture funds (X Prizes)
  46. Difference between people changes, culture changes and structure changes
    • People change: concerns just a few employees
    • Culture change: pertains to the org as a whole
  47. Force-field analysis: what are the two types of forces, and what role does each play? (hint: this is REALLY important)
    • Driving forces vs. restraining forces
    • driving forces: probs or opportunities that provide motivation for change within org
    • restraining forces: the various barriers to change
    • Example: McDonalds adding upscale coffee drinks
  48. Overcoming resistance to implementing changes. Understand what technique to use in which change scenario.
    • education: use when users need accurate info to understand a technical change
    • participation: use when users have power to resist
    • negotiation: use when group has power over implementation, and will lose something in the process
    • coercion: use when in crisis mode
    • top mgmt support: use when change involves multiple depts
  49. The 3 functions of HR management
    • Find the right people
    • Maintain an effective workforce
    • Manage talent
  50. What’s changing in HR – external factors (see class slides)
    • Federal legislation
    • -EEOC and affirmative action
    • -Compensation / benefits laws
    • -Health / safety laws (COBRA /OSHA)
  51. What’s changing in HR – internal factors (see class slides)
    • The changing social contract
    • -Then: job security, knowing is key, routine jobs
    • -Now: employability / personal responsibility, learning is key, challenging and unique assignments
    • Becoming an employer of choice
    • -Trust-based work culture
    • Contingent workers, incl temporary employees
    • Work-life balance
    • -Virtual teams / telecommuting
  52. The 4 overall steps to attracting the right workforce, and how to match companies and employees effectively
    • steps to attracting the right workforce
    • HR planning: forecast based on: new technologies, business growth, turnover rate
    • Choose recruiting sources: internet, headhunters, word of mouth
    • Select candidates: application, interviews, tests
    • Welcome new employee
    • Company needs: Company inducements = Employee contributions: employee needs
  53. Methods for developing the right workforce (see class slide). Understand halo effect and stereotyping.
    • Training and Development
    • -On-the-Job Training
    • -Corp Universities
    • -Promotion from Within
    • -Mentoring and coaching
    • Performance Appraisal
    • -Accurate assessment – reduce:
    • -Stereotyping
    • -Halo effect (same rating on all dimensions)
  54. Maintaining the right workforce – the role(s) of HR in compensation and termination
    • Compensation
    • -Money
    • -Ensure compensation equity, often through job-based pay
    • -Newer trends: skills-based pay, pay for performance
    • -Benefits
    • -Make up 40% of labor costs
    • -HR must manage health care costs while meeting employee needs
    • Termination
    • -Sometimes to remove poor performers or to “rightsize”
    • -For voluntary exiters, exit interview is key
  55. Primary and secondary dimensions of diversity: be able to explain the difference between the two dimensions, and give 2-3 examples of each.
    • Primary dimensions of diversity: -Age,  -Gender,  -Physical ability,  -Race,  -Sexual orientation,  -Ethnicity
    • Secondary dimensiosn of diversity:  -Education,  -Marital status,  -Parental status,  -Work background,  -Income, -Geographic location,  -Military experience,  -Religious beliefs
  56. Why should managers value diversity? (see class slide) (hint: this is REALLY important)
    • Broader range of viewpoints
    • Reflect their changing customers -Minority purchasing power
    • Obtain the best talent -Growth in skilled minority and female workers, -Aging workforce
    • Do the right thing
    • * Work is the most diverse setting in most people’s lives.*
  57. Factors shaping personal bias
    • Prejudice -Different = deficient
    • Discrimination -Acting on prejudices
    • Stereotypes -Rigid, irrational beliefs about a group of people, -Different than legitimately valuing cultural differences
    • Ethnocentrism -“My group / subculture is superior to yours”
  58. Factors affecting women: glass ceiling: define and explain each.
    • More about informal barriers than formal barriers
    • Result: fewer top management positions, lower average pay
  59. Factors affecting women: opt-out trends: define and explain each.
    • Two schools of thought
    • -women decidng corporate success isn't worth the price in terms of reduced family and personal time, greater stress, and negative health effects
    • -women don't want corporate power and status in the same way that men do, and clawing one's way up the corporate ladder has become less appealing
  60. Factors affecting women: “the female advantage”: define and explain each.
    • Do women possess better managerial qualities?
    • Relationship-oriented, collaborative, less hierarchical
    • Also rated higher by peers on goal accomplishment
    • Appears 50/50 works best
  61. Communication differences among cultures – understand the difference between high- and low-context cultures
    • High-context cultures: context matters -Asian and Arab countries
    • Low-context cultures: meaning comes from the words themselves -North American and European
    • countries
    • Also varies by gender and ethnicity within the US
Card Set
Mgmt Exam2
Exam 2 for Mgmt