Mgmt 2

• Comminicate legitimacy to external audiences such as investors customers and suppliers
• A source of motivation and guidence for internal audiences
• - helps employees identify with the organization
• - reduce uncertianty and clarify whatemployees should accomplish
• - help minimize wasted resources

• Most general purposes, goals and plans
• long run vision values
• What distinguishes it from other organizations
• focus on items such as market and customers
• product quality
• location on facilities
• attitude towards employees

Top management

• Organization
• plan for several years

Middle management

• major units of the organization
• plan for up to 2 years

Lower Mnangement

• departments, individuals
• plan mostly for under a year

• Specific
• Measureable
• Attainable (and challenging)
• Relevant (key result ares)
• Time-based
• Rewards

• Setting goals
• developing action plans (can be used to decentralize planning)
• reviewing progress
• Appriasing overall performance

• Clarity (people know what to do)
• Commitment (are motivated and self managed)
• Coordination (work towards something)
• Fairness

• difficulty choosing relevant measurable goals
• rigidity
• people skills required
• time required
• paperwork
• frequently sold as a cure all

Aim at acheiving a specific non recuring goal

Program to acheive an important one time organizational goal

Project similar to a program but generally smaller in scope and complexity

Provide guidence for recurring activities

Policy in a general guide to action and provides direction for people

Rules describe hos a specific action is to be preformed

Procedures define a series of steps to be used in cheiving a specific job

Defime a company responses to be taken in case the plan implemented does not work as expected

could also be used for unexpected positive results

• Internal
• - Strengths
• - Weaknesses
• External
• - Opportunities
• - Threats

• Routine Situations
• decision rules can be deveoped and applied
• managers formulate decision rules so subordinates can make decisions

• Poorly Defined Situations
• Decisions are complex
• routine decision rules do not apply
• trend is toward subordinates making more non-programmed decisions

• Full knowledge of available alternatives
• Full knowledge of what outcome will result from each alternative
• few certain decisions in the real world

• Knowledge of what the alternatives are
• know the probabilities of outcomes resulting from each alternative

• Goals are known
• but information about alernatives and future outcomes is incomplete (probabilities unknown)
• some alternatives may be completely unknown

• objectives to be acheived are unclear
• little if any knowledge of alternatives

• 1. Goals are known and agreed upon problems are precisely defined
• 2. All alternatives and outcomes are calculated
• 3. Criteria evaluated and decision made maximizing return (expected Value)
• 4. Uses rationality and logic

• Assumes:
• Knowledge of persons and environment
• stabilityof persons and environment
• memory and reasoning capabilities
• absence of emotion
• resources (time and money)

Describes how managers actually make decisions including those that are:

• Non programmed
• uncertain
• ambiguous
• not qualitative

Use due to "bounded rationally"

People have limits on the information they can process in making a decision, so their use of rationality is limited

Satisfactory + sacrifice

• choosing the first alternative satisfying minimum decision criteria (i.e. the optimum solution is often not needed)
• Often cannot afford time and expense of complete information even if possible

• Based on years of practice and hands on experience (i.e. not naive guessing)
• facilitates satisficing

Sub category of Administrative model

• describes how anagers often make decisions in conjunction with others
• includes coalition building/ bargaining

• 1. Recognition of decision requirement
• 2. Diagnosis and analysis of causes
• 3. Development of Alternatives
• 4. Implementation of choosen alternatives
• 5. Evaluation and Feedback

• Used by people who prefer simple clear cut solutions
• they are efficient and rational

• Used by managers who like to consider complex solutions based on as much data as they can gather
• They are objective and rational and like optimal solutions

• Used by people who like to consider ad braod amount of information, and are more creative and socially oriented
• they consult with others for information and ideas

• Often the style adopted by managers having a deep concern for others
• They consult with others to determine the feelings of others

• Helps gauge the oppropriate amount of partiipation styles (autocratic, democratic)
• participation is permitted either to: enhance decision quality, foster subordinate morale, or both

• Contingency Plans
• Scenario Building
• Crisis Planning

something the organization does especially well in comparison to its competitors

comptetitive advantage

when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone

Delivering value is at the heart of strategy, value can be defined as the combination of the benefits received and costs paid

• 1. potential mew entrants
• 2. Barganing power of buyers
• 3. Barganing power of suppliers
• 4. Threat of Substitue products
• 5. Rivalry among competitors

these forces help determine a company's position vis-a-vis competitors in the industry environment

attempts to distinguish the firm's products or services from others in the industry

• acts in felxible and loosely knit way, with strong coordination among departments
• strong capacity in basic rewards
• creative flair, thinks "out of the box"
• strong marketing abilities
• rewards employee innovtion
• corporate reputation for quality or technological leadership

the organization aggressively seeks efficient facilities , pursues cost reductions, and uses tight controls to produce products more efficiently than competitors

• Strong central authority
• maintains standrd operating procedures
• easy to use manufacturing technologies
• highly efficient procurement and distribution systems
• close supervision, finite eployee empowerment

the organization concentrates on a specific regional market or buyer group

• frequent, detailed control reports
• may use combination of above policies directed at a specific strategic target
• values and rewards flexibility and customer intimacy
• measures cost of providing service and maintaining customer loyalty
• pushes empowerment to employees with customer contact

• Innovation from within
• - dynamic capabilities - managers focus on leveragin and developing more fromt he firms assets, capabilities, and core competencies in a way that will provide a sustained competitive advantage

Strategic partnership

uses a face-to-face interactive group to spontaneously suggest a whide range of alternatives for decision making

who has the role of challenging the assumptions and assertions made by the group

which breaks a decision making group into two subgroups and assigns them different often competing responsibilities

tendency of people in a group to suppress contrary opinions

research has found that managers and organiztions often continue to invest time and money in a solution despie strong evidence despite strong evidence that is not appropriate

the efforts to systematically gather knowledge organize it and make it widely available throughout the organization and poster a culture of continous learninga knowledge sharing

simple absolute facts and figures that may be of little use in and of themselves

is data that has been linked with other data and converted into a useful context for a specific use

is the visual representation of an orgainzations structure

VErtical structure - coordination from top to bottom

Horizontal stucture - departmentalization - who works together

• degree to which tasks are subdivided into individual jobs
• a highly specialized job is narrow in scope
• increases efficiency up to a point
• with extreme specialization workers tend to become bored and alienated

the like of authority, shown in the organizational chart, that links all persons and shows who reports to whom

• Managers have authority because of the positions the hold - not who they are
• to be effective, it must be accepted bu subordinates

• duty to perform the task and employee has been ssigned
• Authority should be commernsurate with responsibility

• Process tp transfer authority and reponsibility to positions below
• delegation does not reduce responsibility
• benefits both the organization and the individual employee

means that people in management positions have formal authority t direct and control immediate subordinates

is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise

a communication relationship

• number ofemployees reporting to a supervisor
• tradition has recommended a span of management of four to seven subordinaes
• what is best depends on the situation

• Factors
• Work preformed bu subordinates is stable and routine
• subordinates perform similr work tasks
• concentrated in a single location
• highly trained and need little direction in performing tasks
• rules and proceedures defining task activities are available
• support systems and personnel re available for the manager
• little time is required in nonsupervisory activities such as coordination with other departments or planning
• managers personal preferences and styles favor a large span

Authority at the top - little delegation

Authority is pushed down to the lower levels, much delegation

departments based on similar activities, skills and resource use

Advantages: efficient use of resources, Economies of scale, in depth skill specialization

Disadvantages: poor communication, among departments, slow response to external changes, loyalty more to function than customer of the whole organization

• departments are grouped together based on organizational outputs( product, geography, customer)
• functions (eg. marketing) are split between the divisions
• its advantages and disadvantages tend to be the oposite of those of the functional approach

advantages: quicker changes in unstable environment, more in touch with customers

disadvantages: duplication (competition for resources among divisions), less professional specialization

• functional and divisional chains of command simultaneously
• violates the unity of command concept

advantages: sophisticated technology, fast-changing environment, to get the advantages of both functional and divisional structures, diverse products and geographical areas

disadvantages: many meetings to coordinate activities, hihg conflict between two sides of matrix, need for extensive human relations training

• cross functional teams (clusters) consist of employees from various functional departments
• teams typically have more decision making power than previously held by workers at their levels

advantages: quicker response time, better morale, reduced administrative overhead

disadvantages: conflict, time and resources spent on meetings

• virtual
• organization divides major functions among seperate companies brokered by a small headquarters organization
• somewhat like a funtional organization

advantages: increases competitiveness, especially of small firms, flexibility, reduced costs

disadvantages: no hands- on control, loyalty weakened

Attract, Develop, and mainain an effective work force

requires that an employer take positive steps to guarentee equal employment opportunities for people withine protected groups

greates efforts required of firms doing business with the government and/or having been convicted of past discrimination

Set goals on sich factors as

• demand for products or services
• available labor market
• available financial resources

"Promotion from Within"

• canadites familiar with the organization
• less costly
• generates comitment/ morale

• brings in new skills, ideas, etc
• lack of established personal relationships may be desirable
• approaches: ads, state or private employment agencies, college placement offices, job fairs, employess referrals

clear and concise summary of the specific tasks, duties, and responsibility

outlines the knowledge, skills, education, physical abilities and other charcteristics needed to adequately perform the job

• both positive and negaitve information about the ob and organization
• reduces turnover

• stereotyping
• lack of information
• halo error
• homogenity (leniency, central tendendy, or strictness)
• recency rates

• keep better records
• use rankings
• mutliple raters
• MBO
• Behaviorally anchored rating scales

• Wage and salary structure
• - point system - skill, effort, responsibility, job conditions

determines typical or average pay for a job not a specific individual

• recent trend
• all employees do not want/need the same exact benefits
• employees selct benefits based on the greatest value to them

an interview conducted with departing employees to determine why they are leaving

• develop potential of individuals and the organization and producing enhanced creativity and adaptability
• able to recruit the best employees by havin a larger pool
• successful interaction in market place (ie. relate to customers

belief that one's own group or subculture is superior

produce a mono culture which assumes that there's onlu one way to thinkg and to do things

belief that groups and subcultures are inherrently equal

leads to pluralism which accommodates several subcultures

• minorities and women in organizations often find n invisible barrier preventing rise to top management
• becasue of monoculture
• people t the top tend to promote others like themselves