How does the supply of labour affect wages for a particular job?
Increases in supply, hold everything else constant. Therefore, decreases wages
Decrease in supply, therefore increase in wages.
Supply of labour for a particular job can increase due to:
Increase in foreign workers.
Incentives from government of the firms.
- Decrease qualifications plus software tools (let people
- with diplomas practice)
Large graduating classes
Why has the supply of labour from older workers not fallen as quickly as forecasted?
- Can’t afford to retire -> Stock market and housing prices aren’t what they
Firms and government have gotten rid of mandatory retirement.
What causes labour demand to rise?
Increase in profitable sales and these sales look like they are part of a trend (sustainable).
Why does labour demand fall?
Decrease sales and forecasts of this continuing.
Why does Google have to pay high wages with generous benefits?
Increase in sales -> labour is growing in step with their sales.
Competition with other firms.
What factor can cause Vancouver-based companies to have trouble attracting top talent?
High cost of living
- Many tech companies in Richmond with senior staff or specialists from U.S. commute in from Blaine area and live in a mansion (40
- min. commute).
Who attends the group interview?
Hiring manager and few key team members
Why are group interviews a growing trend?
More work is done in teams and team members want to get a feel how the candidate will fit in. Will this person fit in? Can I work with this person?
Why are brainteaser questions a growing trend for knowledge workers?
- Many strong candidates due to the economy. Need something else to sift through the
See how you can think on your feet
See your thought processes.
What is the difference between a company’s strategies and strategic management?
- strategies: pathway to achieve organizations goals
- strategic management : set of activities that managersdo to put together org. strategies
How does a company’s business model relate to its strategy?
how will your strategy make money
What does a business model focus on?
1. Will the customer value what we have
2. Is there enough demand to make money on this idea
How does strategic management help managers face continually changing situations?
The “analysis of your situation”which is part of strategic management gives the manager options on what to do
Based on the nature of organizations, why is strategic management particularly
Organizations are diverse with many different parts, coordination is important
The six steps in the strategic management process are:
- Step1: Identify the Organization’s Current Mission, Goals and Strategies
- Step2: Internal Analysis
- Step3: External Analysis
- Step4: Formulate Strategies
- Step5: Implement Strategies
- Step6: Evaluate Results
What are some of the typical components of a mission statement?
Who are our customers
What are we selling -> products and services
What are we good at -> core competencies
What information on the organization is provided from an internal analysis?
What resources do we have?
What are our capabilities?
Skills,capabilities and resources create our core competencies.
What is the importance of an organization’s core competencies?
Determines your competitive advantage-what sets you apart
How does a manager determine the strengths and weaknesses of their organization?
Strength-any activity that an org does well and/or any unique resources
- Weakness- any activity that an org does not do well and any resource that they are
- lacking (ie poor packaging compared to others)
What are intangible assets? Why are they often overlooked during an internal
- An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace
- Hard to put a dollar value on
What are the two types of external environments?
After examining the external environment what do mangers need to assess?
The opportunities and threats that the organization faces.
How do we know if a trend in the external environment is an opportunity or a
- Opportunity->positive trend in external environment
- Threat -> any negative trend in external environment (population is aging and you are a youth oriented market)
What is SWOT analysis?
Strengths, Weaknesses, & Opportunities & Threats
What needs to be kept in mind when formulating strategies?
- Select strategies that take advantage of the orgns. Strengths and exploit oppurtunities
- or that correct the orgns. Weaknesses and protect us against threats.
What are a few of the different ways to implement strategy?
- HR -> recruiting and selecting employees
- -training (sometimes job ad will not tell company to ensure competitors do not know what you are up to)
Organizational Structure -> create teams
What are the three types of organizational strategies?:
corporate, business and functional
What is decided under corporate strategy?
What business should we be in?
What do we want to do with businesses that we are in?
Why did Pepsi change its corporate strategy?
- Pepsi was in Fast food business (coke used this against them by saying to other fast food
- chains “Why would you buy soda from your competitor?”)
Pepsi had to change this and exit the fast food business
What is the organization trying to do under the growth strategy?
Increase number of products offered, and or markets served. This can be done either through existing businesses or new businesses
Growth strategies include:
- 2.Vertical integration
- 3.Horizontal integration
How does the growth strategy of concentration work?
Increase products offered and more markets but done through existing businesses (ie Mcdonalds offering wraps at existing stores)
What is the typical distribution channel for goods? How does vertical integration work?
- Works by:
- control portion of your distribution channel
- -become your own supplier or retailer
- (ie apple opening retail stores)
How does a company grow under horizontal integration?
- Combining operations with competitors
- (ie Telus and BC Tel merged)
Why might the competition bureau investigate mergers within an industry?
Making sure new company doesn’t exert too much market power.
What is the difference between the related diversification strategy and the unrelated diversification strategy?
- -merging or buying a company in either a related field or unrelated field
- -(Yamaha makes keyboards, motorcycles ect..) unrelated
Why is important to note on all of these growth
Usually more than one growth strategy at a time
How would we know if a company was using the stability strategy?
-sales about the same from year to year etc..
Why would a company choose to use the stability strategy?
-lifestyle etc, personal choice or owners choice
-availabilty of resources (personelle etc..)
What is a renewal strategy?
-cant keep going same pathway that you are
-strategies is intended to turn the company around-shrinking market share
What is the difference between a retrenchment strategy and a turnaround strategy?
–retrenchment: not as much drastic action needed
- -turnaround:drastic action needed or the firm is out of business (stick to few profitable
- aspects of business-GM had to stop building big cars)
When is corporate portfolio analysis used?
When an organizations corporate strategy involves a number of businesses
What is the purpose of the Boston Consulting group (BCG) matrix?
ID businesses that have high potential and ones that are a drain on resources
How is the matrix put together?
- -expected growth rate on Y-axis and market share on the X-axis (what percent of markets
- sales do you have)
What are the strategic implications of each category in the BCG matrix?
- Cash cows-( Ipod)
- Dogs-( Apple TV)
- Question Marks- Can you turn into a star? Use research (Ipad at one point)
- Stars- future of your company (Iphones)
What is the difference between a corporate strategy and a business strategy?
Business- “how are you going to compete”
Why does the concept of competitive advantage play such an important role in developing an effective business strategy?
-business strategies look at how an org. should compete in each of its businesses
-need an understanding of the orgs core competencies and competitive advantage first
-Westjet’s low costs,Wal-Mart’s databases
Why is quality a useful competitive advantage to develop?
loyalty -> repeat buyers (Toyota buyers etc..)
What are some factors that get in the way of achieving a sustainable competitive advantage?
-New technology (encyclopedias-Britcannica lost to Microsofts Encarta)
What is Michael Porter’s main contribution to
Porter found that in any industry five forces determine industry attractiveness and profitability.
1.Threat of new entrants
2.Threat of substitutes
3. Bargaining power of buyers
- 4.Bargaining power of suppliers
5. Current rivalry
How easy is it for a company to move into your industry?
–high start-up costs reduce competition (car manufacturing)
How easy is it for my customer to switch over to buy a competitive product?
- –loyalty programs lock in Customers
- -technologies are not easy to switch over (MAC made it easy to switch from Windows)
Bargaining power of buyers – Are there many buyers or few buyers?
- -few buyers hold negotiation power
- -you want many buyers
Are there many suppliers or few suppliers?
- -you want to have freedom to choose from many suppliers
- -makers of PC’s are in tough position because there are only few suppliers (Microsoft and intel)
What factors affect current rivalry?
- -How intense is the competition (pizza shops in Granville etc)
- -Visa and Mastercard have settled in
- -Industry growth rate
What is Porter’s advice on selecting a strategy?
- -choose a strategy that arises out of competitive strategy
- -which will come either having lower costs than your rivals or by being significantly different from competitors
What is the business trying to do with the cost
–setting out to be the low cost producer
How does Southwest Airlines maintain low costs?
–fly all the same planes, no assigned seating, no connecting flights (higher chance you are leaving on time so they can run an extra flight each day)
How does a company follow a differentiation strategy?
–trying to be different
How is the focus strategy different from the differentiation strategy or the cost leadership strategy?
–can be either a cost leadership strategy or a differentiation strategy but focusing on a narrow industry segment. Great from small business.(small cannot compete on costs of all products but instead specialize)
What is the ‘stuck in the middle’ situation?
-Not known for anything-example:department stores that have gone out of business
Can an organization pursue both a cost leadership and a differentiation strategy?
What are some examples of the typical functional departments?
–finance, marketing, sales,manufacturing,HR
What are functional strategies?
–strategies used by functional department to support organizations business strategy
Why is strategic flexibility so important in today’s environment?
–todays markets are very competitive so orgns need to be able to change on a dime
Why is it important to develop an e-business strategy?
- –Cost Leadership: online applications,online bidding, order processing
- Differentiation:feedback on what is selling
- Focus: weballows you to serve wider market than local
What kind of strategies are required for companies that emphasize customer service?
What is the first decision that managers make when developing an innovation strategy? What will be the focus of the innovation?
- a)basic research
- B) product innovation
- c) process development
How can innovating in the area of process development help an organization?
-cost and increase productivity look over processes and look for improvements
What is a first mover? What is the advantage and disadvantage of being a first mover?
- Advantage:potential for high market share
- Disadvantage: Risk
What are the New Directions in Organizational Strategies?
- i. E-Business Strategies
- ii.Customer Service Strategies
- iii.Innovation Strategies
What do team, matrix and project structures all have in common?
you will be working in teams and expected to collaborate
Why are these structures so popular with firms that produce complex products and services?
- 1) Services & products are too complex for one person
- 2) Working in teams leads to collaboration and innovation to keep ahead of rivals
What do the matrix and project structure both have in common?
cross functional teams
What makes the matrix structure different from the project structure?
- matrix: 2 managers
- 1)Department manager
- 2) Project manager
- After project is over to have a dept. to go back
- project: 1 manager
- 1)project manager
- After the project is done you must find another project
What do virtual and network organizations have in common?
both types of organizations will outsource non-core business functions
What is the difference between virtual and network organizations?
- virtual: media definition -> the organization works from project to project & hires specialists just for that project
- -film production companies
- Network: have an ongoing business and will outsource non-core activities to focus on their strengths
What is Pfizer's Magic (OOF) Button? (office of the future)
->10,000 Pfizer employees have an additional button on their MS Outlook, when pressed will send a project to an Indian outsourcing company
How did the magic button come together?
- Jordan Cohen (senior director of organizational effectiveness) was reading “The World is Flat”, in the book it outlined quality of Indian outsourcing companies
- Pfizer had to cut their budget by $4 billion due to lucrative patents expiring
- Found that their most valuable workers were saddled with their own support work
What were the four activities that were taking up twenty to forty percent of their employees’ time?
- 1. Creating documents
- 2. Manipulating and analyzing spreadsheets
- 3. Scheduling meetings
- 4. Researching
What is the new Yahoo! Policy on working from home come June 2013?
What was CEO, Marisa Mayer's
reasoning for the ban?
Which part of the new policy memo is supported by evidence and what part isn't?
What is the major setback found from working at home on a regular basis?
How is Marissa Mayer able to log
long hours at the office?
no more working from home even 1 day a week is banned
boost collaboration & innovation to get Yahoo! Back ontrack
- face to face is superior for collaboration: True, supported by evidence
- speed and quality suffer when you work from home:false
hard to be promoted
daycare/childcare, doesn’t have to leave the office
What is the difference between immediate corrective action and basic corrective action?
- Immediate corrective action -> Fix the problem don’t look for the source
- Basic corrective action -> Also look for the source of the problem so it doesn’t re-occcur
How can B.C. Ferries use feedforward, concurrent and feedback controls to improve performance?
- Feedforward -> controlling before the activity takes place
- Relay ticket information to the crew
Concurrent control -> controlling while the activity is taking place
- Feedback -> controlling after the activity takes place
- Where’s the chalk? have a place stock with chalk.
What is the difference between a strategy and strategic management?
Strategies are methods used to achieve an original goal
What is SWOT analysis?
Strength - Internal
Weaknesses - Internal
Opportunities - External
Threats - External
Give an example of how work specialization can increase productivity. Give an example where it could reduce productivity.
- A job that has multiple task is not specialized.
- An example is small companies where everybody have to do everything. If we find specialty people like a salesperson, then it might increase productivity.
The down side is that doing the same job constantly might become boring.
What is the difference between unity of command and chain of command?
- Unity of command - only one boss
- Chain of command - multiple bosses
What is departmentalization? What is the difference between product departmentalization and process departmentalization?
Process depart. Set the environment as work flow. If the purchasing is a main item, then we have a purchasing department…on and on.
Compare the pay and compensation in the public sector to the private sector.
- Not much variance in the public sector
- Lots of variance in the private sector
Explain how an employee would behave in the area of work-life balance if she had a segmentation philosophy?
Don’t mix work life with personal life
What is the difference between a trait theory, a behavior theory and a contingency theory in the area of leadership?
Trait - if you have them = great leader, if you don’t have them = bad leader
Behavior - leadership by behavior (employee center / job oriented behavior)
Contingency - situational base
How do we know if a leader is a charismatic leader or a transformational leader.
Transformational - gets you to question the status quo. Challenge·
Charismatic - don’t like to get questioned.
What are the three steps of the control process?
- 1. Measuring actual performance
- 2. Comparing actual performance against a standard
- 3. Taking managerial action to correct deviations or inadequate standards.
Why do companies use benchmarking?
They use different companies as role models for improvement.
How would you know if a company was using a matrix structure or a project structure?
MS: Cross functional teams - a team build with people with different disciplines. And violates the unity of command·
PS: One boss, only the project manager. Once the project is over, you have to find another one.
Describe several growth strategies
Concentration - adding new products
- Vertical integration - takes a roll of your suppliers (examples: wallmart, apple - don’t deal with wholesale).
- Horizontal integration - Buy or merge your competitive or rival
Diversification - deal with multiple industries.
What is an organizational structure?
-formal arrangement of jobs within an organization
-who reports to who,who are you working with etc..
What does organizational design depend on?
- -work specialization
What is ‘work specialization’?
How can work specialization lead to an increase in productivity? How can it lead to
a decrease in productivity?
-the degree to which tasks in an organization are divided into separate jobs
- -Increase:repetition means you practice a lot, know what you are doing
- Decrease:boredom, repetitious injuries
Why is departmentalization the next step after work specialization?
How is functional departmentalization done?
Why would a company choose departments by products?
Departmentalization-the basis on which jobs are grouped in order to accomplish org goals
Functional departmentalization – Grouped together based on function (ex.finance functionà finance department)
-If their products are very different
How do we group jobs under Process Departmentalization?
-Grouped based on workflow, Purchasing dept, manufacturing dept,finishing dept
In what situation would a company choose geographical departmentalization?
Geographical departmentalization – When different geographical areas have very different cultures, tastes etc… Eatons- (parkas in February in Vancouver?)
-needs ofcustomers vary (household, small business, large business)
What explains the two popular trends (customer departmentalization and
cross-functional teams) in departmentalization?
-hard to compete against another firm that can meet customers needs quickly and accurately
-team is made up from members from different functions
What is the ‘chain of command’?
-shows lines of authority -> shows who reports to whom
What is meant by the term ‘authority’ in relation to a managerial position?
-the right to tell a subordinate what to do
How are responsibility and accountability related?
–must first have responsibility to have accountability
Responsibility:the obligation to preform any assigned duty
Accountability: the requirement to show performance results to a supervisor
What is meant by delegation?
-assigning authority to another person to carry out a specific task
Why is the ‘unity of command’ principle important for an organization to be effective?
-you should only receive orders from one manager
How do we know if a manager has line or staff authority?
-line authority: comes from managers who serve the core business (external customer)
-staff authority: staff managers serve the staff and do not have authority outside their department (HR manager)
Why are such concepts as chain of command and authority considerably less relevant today?
- -due to info. Tech, ie emails coming from all levels
- -most employees can access info that was only available to top managers before
What is meant by ‘span of control’?
-How many employees can a manager effectively manage
What is the danger of having too wide of a ‘span of control’?
-managers will not have enough time to know strengths and weaknesses of employees
Why is the trend in recent years towards a larger span of control?
- -because of information technology
- -> easier to communicate with each other and for employees to find info they need
What factors lead to more centralization?
- –centralized: decisions made at central office
- -Company is large
- -Environ is stable
- -decisions are significant
What factors lead to more decentralization?
- –environ is complex and uncertain
- -decisions are minor
- -company is geographically dispersed
Why is there a distinct trend today towards decentralization decision-making?
-low level managers are closer to the action and receive more up to date information which they can act on with more details
Why would a job have a high degree of formalization?
- -if safety is an issue
- -if you need to cost minimize and are measuring everything
What is the difference btwn Mechanistic and Organic Organization
The appropriate structure depends on what four contingency variables:
- the organization’s strategy
- degree of environmental uncertainty.
Most current strategy frameworks tend to focus on three dimensions:
- 2. Cost minimization
- 3. Imitation
What structure works best with each?
Innovators:organic structure, need flexibility and free flow of information
Cost Minimizers: mechanistic structure, efficiency and tight controls
Imitators:need a combinations, maintain tight controls, need to mimic industries dynamic directions
How does size influence organizational structure?
2000+ employees -> tendancy to be mechanistic
How does technology influence organizational structure?
-numerous studies have found that org. adapt structures to their technology
What do we find in general when the relationship between technology and structure is investigated?
the more routine the tech. the more mech the structure
The greater the environmental uncertainty..?
the more an organization needs the flexibility offered by an organic structure.
What is a simple structure? Who would use a simple structure?
- -low departmentalization (not enough people to group)
- -authority is centralized in a single person-little formalization (manuals, checklists etc)
How do we describe a functional structure?
-structure is made up from functional departments
How do we describe the divisional structure?
- -org,structure grouped around similar product lines (business units)
- -eg small appliance division,industrial products division
How is the team structure different from other organizational designs?
-entire org, is made up of work groups-(googleuses)
How is the matrix structure different from the project structure?
- Matrix:project manager, department manager (dual chain of command)
How does a boundaryless organization operate in practice?
- -employees can find out and apply for opportunities all throughout the organization
- -GE customers can send inventory info right to the factory
How do we describe a virtual organization?
- Media defn -employees work from home and rarely meet face to face
- -Small core group of employees that hire temp specialists to work on a project (movie business)
What is the difference between a virtual organization and a network organization?
-net. Organization works on an ongoing business and outsource major business functions
What are some of the top problems involved with outsourcing?
- -poor contract
- -losing control of the activity (due to miscommunication)
What are some of today’s Organizational Design Challenges?
i.Keeping Employees Connected
ii.Building a Learning Organization
- iii.Managing Global Structural Issues Why do managers need to think about the cultural implications of certain design elements?
- –Formalization may be more important in less developed countries-less important in more developed countries
What are some examples of high performance work practices?
- -performance based compensations
- -flexible job assignments
- -decentralized decision making
How does high performance work practices lead to higher individual and organizational performance?
–common thread is developing human capital,increasing motivation,enhancing the retention of quality employees while encouraging low performers to leave
Why would managers need to know about human resources (HR) issues?
- Be aware of: labour regulations
- -company policies that look after many aspects of employment relationship
- ->hiring,promoting,pay and compensation issues
How do economic conditions influence the HR management process?
- –“benefits arms race” when economy is good
- -econ.expansion or during recession -benefits will differ
How do labour unions affect the HR management process?
-many HR management decisions are regulated by the terms of the collective agreement-collective agreements criteria for hiring,promotions, and layoffs-unionization levels in Canada 31%
What is the intent of legislation affecting workplace conditions?
-safe working environment, asked to work reasonable hours, and that the pay is not discrimatory
How can anti-discrimination legislation impact a manager?
-Decisions on who will be hired or who will be chosen for the management training program have to be made without regard to age,race or religion
What is HR planning?
-making sure the right people are in the right places at the right times to efficiently and effectively carry out the org’s strategy
What are the two steps of HR planning?
- -asses current HR needs
- -asses future HR needs
What is the first step in assessing current human resources?
-reviewing their current HR statuses
-Going through their HR inventory - what skills do we have,what languages etc…
Another part of the of current resources is the job analysis. How is a job analysis done?
-look over their skills, knowledge and abilities that are necessary to do a certain job,such as senior accountant
What is the difference between a job description and a job specification?
- -Job Spec:minimum qualifications to perform at a job
- -Description - written statement of what a jobholder does, how it is done and why it is done
What estimates must managers produce first before establishing the mix and number of
-Sales estimates - for example increase sales by20%--> may need 15 people
What recruiting sources have been found to produce superior candidates?
- employee referrals
What are several of the decruitment options?
- attrition (job freeze) - job force shrinks on its own
How do validity and reliability reduce selection errors?
-Validity:will have a proper link between selection device and some relevant job criteria
-Reliability: selection devices measures the same thing consistentely
What are some criticisms of a written test?
-may not be a correlation between a high score and job performance
Why do we see an increase in performance simulation tests?
-can see actual performance in a “real-life” application - lab test with equipment
Why are situational interviews used?
-candidates are given a scenario and suggested to role play,
Why do some companies use group interviews?
- -lots of work these days is based on teams
- -manager wants to take into account someone who will be a good fit for the team
What are two types of background investigations?
Where is the largest area of fraud in a candidate’s background?
- -verify application data
- -reference check
What problem can occur when managers sell the applicants on the job and only expose
them to the positive aspects of the organization?
-job that they thought they were getting is not right
How does a realistic job preview (RJP) increase job satisfaction and decrease
-includes pros and cons
What is the difference between work unit orientation and organization orientation?
- Work unit: by manager, intro to team,
- Organization orientation: learn about history, benefits,usually done by HR
What are some examples of the types of training employees receive?
- -ethics training
- -management training
- -sexual harassment awareness
- -customer service
What are a few examples of training methods?
- -on the job
- -job rotation
What is a performance management system? Why use it?
-process of establishing performance standards and appraising employee performance
-to arrive at objective human resource decisions and documentation to support those decision
What is the weakness of the written essay method?
-may not be consistent for each employee
What does the critical incidents method focus on?
-focuses on anecdotes of employee performing effectively or ineffectively - focuses on concrete examples
Why is graphic rating scales so popular?
-easy to do consistent, ie1=good…3=need training
Behaviourally Anchored Rating Scales (BARS) How does BARS relate to graphic rating scales
and critical incidents?
-combine rating scale to actual job behavior
Multiperson Comparisons – How did Jack Welch use multiperson comparisons? Disadv.?
- -Disadvantage:negatively impact teams
- -increased competition
- -Increased risk taking
-Eventually start losing your middle layer
360 Degree Feedback – Why is 360 degree feedback so time consuming?
- -evaluated by supervisors,peers and subordinates
- -Time consuming Get abetter picture
What is the first step for a manager to investigate when an employee’s performance
-investigate why the performance has fallen - job mismatch? Lack of desire?
How do we know if we have a discipline problem on our hands?
-if it is based on lack of desire
Why is developing an appropriate compensation system an important part of the HRM process?
-helps attract and retain workers so that the org. can accomplish its goals
What are some of the factors that influence compensation and benefits?
- -state of economy
- -geographic location
- -management philosophy
- -size of the company
How does skills based pay work?
What types of organization have seen success with skills based pay?
-payed based on skills that you have
-manufacturers (you can adapt to multiple areas depending on workload)
What is variable rate pay?
-payed based on comission
How does the pay and compensation in the public sector compare to the private sector?
-public usually lower but variance is tighter
How does the author define a career?
-a sequence of positions help by a person during his lifetime
How was career development done in the past?
What can we conclude about career development today?
- -done with guidance from the firm
- -individual maps own career
How can an organization increase diversity of their workforce?
- go to organization that represents groups you are looking for
How does the Supreme Court of Canada define sexual harassment?
-unwelcome behavior of a sexual nature in the workplace that negative affects the work environment
What can an organization do to protect itself against sexual harassment claims?
-put together policies and training
Why do workplace romances occur so frequently?
-long hours means you deal with the same people so frequently, you know who that person is
What can be the danger of being paid on a salary as opposed to hourly?
-the work may be loaded on and you may not be paid as much as you would hourly
What has been the trend at high tech companies for work-life balance?
-companies want to promote social activities etc.. to encourage variety
Explain the concepts of segmentation and integration in the area of work-life balance.
Seg.-don’t mix business with pleasure
WLB-integrate work and life
What is the difference between leadership and management?
- Leadership is the process of influencing a group toward an achievement of goals
- Management is the planning,leading,organizing and controlling of resources to achieve goals effectively and efficiently
Should all managers be leaders? Should all leaders be managers
- Yes (all managers should be leaders)
- No (not all leaders have skill sets to be an effective manager)
What was the focus of research on leadership in the 1920s and 1930s?
- -Identifying personal characteristics that are responsible for effective leadership Traits
- 2-Desire to Lead
- 3-Honesty and Integrity
- 6-Job relevant knowledge
Why was the research on leadership traits alone inadequate for explaining effective
- Ignored interactions of leaders with their team members and situational factors
What was the leadership research focus from the late 1940s to the mid-1960s?
- -Identify behaviours that differentiate effective from ineffective leaders
- Two basic kinds of behaviours
- -Employee Centered behaviours
- -Job oriented behaviour
What are contingency theories of leadership and why were they developed?
- -Focusing in on a leader’s traits and behaviors is not enough to understand what made effective leaders
- -Considered whether different situations required different leadership styles
How does visionary leadership work?
What are the two kinds of visionary leadership?
-It’s the ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation
- 1. Charismatic Leadership
- 2.Transformational Leadership
What sets charismatic leaders apart from uncharismatic leaders?
-Excited and enthusiastic about their vision and clearly communicate it to their subordinates
What have some of the studies found about the effects of charismatic leadership?
-Charismatic leaders led more profitable companies
Can people learn to be charismatic leaders?
-Researchers have succeeded in teaching undergraduate students to “be” charismatic
What can be a pitfall of charismatic leadership?
-doesn’t mean you are ethical
What is the role of transformational leaders?
- -leadership that makes employees aware of:
- -the importance of their jobs to the organization
- -their own needs for personal growth
Transactional leaders ensure
employees demonstrate the right behaviors because the leader provides resources in exchange.-ie: if you are productive, I will give you a bonus
Whys transformational leadership more than charisma?
-the transformational leader attempts to instill in followers the ability to question not only established views, but those view held by the leader
How does Transformational Leadership relate to Transactional Leadership?
-If you're transformational you are transactional, but not all transactional are transformational
Why do so many managers find it challenging to learn how to be an effective team
- -may not be the style that they are used to
- -teams needs input,democratic style,coach
What are the specific team leadership roles?
- -Liason with External Constituencies
- -Conflict Manager
- -Team Leader Roles
What types of power are there?
- -Legitimate Power (authority)
- -Coercive Power (Power to punish)
- -reward Power (Power to reward)
- -Expert Power(power to influence based on your expertise)
- -Referent Power (influence based on your respect)
How is “legitimate power” related to “coercive power” and “reward power”?
-Coercive and reward power come from a person being in legitimate power
How is “expert power” different from “referent power”?
- -expert:you are the go to guy
- -referent power from people who like you
What is the main component of credibility?
-honesty's essential for a leader to have credibility
What are some suggestions for managers to build trust?
-Be consistent,tell the truth, and fulfill your promises
How does a manager provide moral leadership?
-by the means used to achieve the goals and the content of the goals
How is online communication different from other forms of communication?
- -poorer form of communication
- -so you must be more precise
What is necessary for online managers to facilitate performance?
-reducing or eliminating obstacles to successful performance and providing adequate resources to get the job done
How do online managers encourage performance?
-by providing sufficient rewards that virtual employees really value (need to talk to them)
Why is trust such a large issue in online leadership?
-you can’t physically check to ensure they are working
What have a number or studies found that focus on gender and leadership style?
What was found about leadership style of women in male-dominated jobs?
-women tended to have a more democratic leadership style
-Same as men
What is involved in the control function?
- -Monitoring activities to make sure that they are accomplished as planned and
- -Correcting any deviations
What role do performance standards play in the control function?
- -performance standards must exist to achieve goals (come from your plan)
- -produce 40 toasters per week
Organizational Productivity – How do we compute productivity?
-total ouput/total inputs 6million in sales Costs were 2million
What is organizational effectiveness?
-measures the appropriateness of org. goals and how well and org. is achieving these goals
Why is control an important management function?
- -Assurance that activities are going as planned
- -Goals are being attained
What are some examples how we measure performance?
Why use a combination of approaches?
- -Personal observation
- -Statistical Reports
- -Oral Reports
- -Written Reports
-Increase the probability of getting reliable information
Why is what we measure probably more critical to the control process than how we measure?
-What we measure tends to be the area where employees focus their efforts
What is the range of variation?
- -Acceptable variation in a product
- -Deviations outside of this range require a manager’s attention (above or below)
What is a benchmark? What is benchmarking?
- -Benchmark:standard of excellence that you want to compare yourself too
- -Benchmarking:the search for best practices (could be within the industry or outside) and learning from others Eg: zara clothing- lots of firms look at how they do this
Why are internal benchmarks so important for a company to explore?
- -See what departments can share information about how they are doing things so well
- -Company will get way more access to this info compared to an external benchmark
What is the difference between immediate corrective action and basic corrective action?
Bob’s machine breaks
-Immediate:corrective action focuses on immediately fixing the problem
Basic:looks at fixing source of problem -Bob is too rough with machine and needs to be retrained
What is the danger of revising a standard that employees complain was set too high?
- -When a standard is not met, the first thing that employees may do is attack the standard
- - need to check if employees have met standard before (don’t lower standard too early)
Why is feedforward control the most desirable type of control?
- -you can map out problems before they occur
- -this activity can save the most money
What is ‘management by walking around’?
-see how everyone is doing, see if they have any questions/challenges
What is the major drawback of feedback control?
-Problem has occurred (costly)
What are the two advantages of feedback control?
- -Provides info on how well they/you planned
- -Can enhance employee motivation (they want feedback)
What is market control?
-Divisions of company are evaluated according to the profits each develops.
How is bureaucratic control achieved?
-Relies on administrative rules, regulations, procedures and policies
How does clan control work?
-the groups within the org. identify the appropriate and expected behavior and performace measures (Nucor Steel)
How does WestJet get its employees to care about keeping costs low?
-Introduction of profit sharing plan
What do liquidity ratios measure?
-ability of a firm to meet current debt obligations
What is examined when looking over leverage ratios?
-The degree to which managers use debt to finance ongoing operations
What is the difference between EVA and MVA?
- -EVA- the profit earned by the firm less the cost of financing the firms capital (measure of real profit) ie bought a lot of inventory
- MVA - measures the amount of wealth created for shareholders by the firm -RIM economic value added but low MVA
What is the main idea behind economic value added (EVA) and market value added
-firms are supposed to take in financial capital from investors and make it worth more
What is the importance of a management information system (MIS)?
-Should give the manager timely, accurate info to make decisions
What is the difference between data and information?
- -Data: raw facts
- Info:processed and analyzed data
- Ex. Time to assemble a phone Data -19mins, 26,23,24,27à info would be range etc….
What is the idea behind the balanced scorecard approach?
- -more than just profitability measure
- -looks at financial,customer,internal business processes & learning and growth assets
How can some managers treat the balanced scorecard approach?
-may realize that the incentives are not balanced if Financials - lead to rewards and promotions then the behavior and actions are not balanced.
What is the purpose of corporate governance?
-protect the interests of the corporate owners
What is the original purpose of a corporation having a board of directors?
- -Boards: to have an independent group (not involved in day-to-day running of the firm)
- looking out for the interests of the shareholders
Why have some CEOs enjoyed cozy relationships with their board of directors?
-many directors may owe position to CEO (appointed by the CEO)---are they truly independent??
What should mangers know about adjusting controls for cross-cultural differences?
- -constraints on corrective action (laws of other countries)-ie layoffs,cannot shutdown company
- -may not be able to compare different plants in other companies due to different production methods
- -ie low cost labour in Vietnam vs Equipment in Burnaby
Why do managers feel they must monitor what employees are doing?
- -make sure that their employees are working
- -not creating a negative work environment
- -not leaking any company secrets
Why do employees steal?
- -Industrial Security Expert: opportunity presents itself (lax controls)
- -Criminologist:financial or vice based pressure
- -Psychologist: rationalized as the right thing to do
What can mangers do to deter or reduce employee theft or fraud?
-by using the concepts of feed forward, concurrent and feedback controls to identify actions that can be taken
What is a service profit chain?
- the service sequence
What does the concept of a service profit chain mean for managers?
-work on creating long term and mutually beneficial relationships w/ customers and employees