Mgmt 2

  1. How are goals and plans interrelated
    • 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
  2. Mission Statements
    • 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
  3. Strategic Goals
    Top management

    • Organization
    • plan for several years
  4. Tacticle goals
    Middle management

    • major units of the organization
    • plan for up to 2 years
  5. Operational Goals
    Lower Mnangement

    • departments, individuals
    • plan mostly for under a year
  6. Characteristics of Effective Goals
    • Specific
    • Measureable
    • Attainable (and challenging)
    • Relevant (key result ares)
    • Time-based
    • Rewards
  7. 4 goals of MBO
    • Setting goals
    • developing action plans (can be used to decentralize planning)
    • reviewing progress
    • Appriasing overall performance
  8. Benefits of MBO
    • Clarity (people know what to do)
    • Commitment (are motivated and self managed)
    • Coordination (work towards something)
    • Fairness
  9. Problems with MBO
    • difficulty choosing relevant measurable goals
    • rigidity
    • people skills required
    • time required
    • paperwork
    • frequently sold as a cure all
  10. Single use plans
    Aim at acheiving a specific non recuring goal

    to acheive an important one time organizational goal

    Project similar to a program but generally smaller in scope and complexity
  11. Standing Plans
    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
  12. Contingency Plans
    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
  13. SWOT Analysis
    • Internal
    • - Strengths
    • - Weaknesses
    • External
    • - Opportunities
    • - Threats
  14. Programmed Decisions
    • Routine Situations
    • decision rules can be deveoped and applied
    • managers formulate decision rules so subordinates can make decisions
  15. Non-Programmed Decisions
    • Poorly Defined Situations
    • Decisions are complex
    • routine decision rules do not apply
    • trend is toward subordinates making more non-programmed decisions
  16. Certainty
    • Full knowledge of available alternatives
    • Full knowledge of what outcome will result from each alternative
    • few certain decisions in the real world
  17. Risk
    • Knowledge of what the alternatives are
    • know the probabilities of outcomes resulting from each alternative
  18. Uncertainty
    • Goals are known
    • but information about alernatives and future outcomes is incomplete (probabilities unknown)
    • some alternatives may be completely unknown
  19. Ambiguity
    • objectives to be acheived are unclear
    • little if any knowledge of alternatives
  20. Classical Models
    • 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)
  21. Administrative Model
    Describes how managers actually make decisions including those that are:

    • Non programmed
    • uncertain
    • ambiguous
    • not qualitative

    Use due to "bounded rationally"
  22. Bounded Rationally
    People have limits on the information they can process in making a decision, so their use of rationality is limited
  23. Satisficing
    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
  24. Intuition
    • Based on years of practice and hands on experience (i.e. not naive guessing)
    • facilitates satisficing
  25. Political Model
    Sub category of Administrative model

    • describes how anagers often make decisions in conjunction with others
    • includes coalition building/ bargaining
  26. Decision Making Steps
    • 1. Recognition of decision requirement
    • 2. Diagnosis and analysis of causes
    • 3. Development of Alternatives
    • 4. Implementation of choosen alternatives
    • 5. Evaluation and Feedback
  27. Directive Style
    • Used by people who prefer simple clear cut solutions
    • they are efficient and rational
  28. Analytical Style
    • 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
  29. Conceptual Style
    • 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
  30. Behavioral Style
    • Often the style adopted by managers having a deep concern for others
    • They consult with others to determine the feelings of others
  31. Vroom-Jago Model
    • Helps gauge the oppropriate amount of partiipation styles (autocratic, democratic)
    • participation is permitted either to: enhance decision quality, foster subordinate morale, or both
  32. Planning for a Turbulent Environment
    • Contingency Plans
    • Scenario Building
    • Crisis Planning
  33. Core Competence
    something the organization does especially well in comparison to its competitors

    comptetitive advantage
  34. Synergy
    when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone
  35. Delivering Value
    Delivering value is at the heart of strategy, value can be defined as the combination of the benefits received and costs paid
  36. Porters five competitive forces
    • 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
  37. Differentiation
    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
  38. Cost 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
  39. Focus strategies
    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
  40. New trends in strategy
    • 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
  41. Brainstorming
    uses a face-to-face interactive group to spontaneously suggest a whide range of alternatives for decision making
  42. Devil's advocate
    who has the role of challenging the assumptions and assertions made by the group
  43. point - counter point
    which breaks a decision making group into two subgroups and assigns them different often competing responsibilities
  44. group think
    tendency of people in a group to suppress contrary opinions
  45. escalating commitment
    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
  46. Knowledge Management
    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
  47. data
    simple absolute facts and figures that may be of little use in and of themselves
  48. Information
    is data that has been linked with other data and converted into a useful context for a specific use
  49. Organizational Chart
    is the visual representation of an orgainzations structure

    VErtical structure - coordination from top to bottom

    Horizontal stucture - departmentalization - who works together
  50. Wrok Specializtion
    • 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
  51. Chain of command
    the like of authority, shown in the organizational chart, that links all persons and shows who reports to whom
  52. Authority
    • Managers have authority because of the positions the hold - not who they are
    • to be effective, it must be accepted bu subordinates
  53. Responsibility
    • duty to perform the task and employee has been ssigned
    • Authority should be commernsurate with responsibility
  54. Delegation
    • Process tp transfer authority and reponsibility to positions below
    • delegation does not reduce responsibility
    • benefits both the organization and the individual employee
  55. Line Authority
    means that people in management positions have formal authority t direct and control immediate subordinates
  56. Staff authority
    is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise

    a communication relationship
  57. Span of Management
    • 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
  58. Centralization
    Authority at the top - little delegation
  59. Decentralization
    Authority is pushed down to the lower levels, much delegation
  60. Functional Apporach
    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
  61. Divisional Approach
    • 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
  62. Matrix approach
    • 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
  63. Team approach
    • 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
  64. Network Approach
    • 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
  65. General Goals of human resource management
    Attract, Develop, and mainain an effective work force
  66. Affirmative Action
    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
  67. HRM Planning
    Set goals on sich factors as

    • demand for products or services
    • available labor market
    • available financial resources
  68. Internal Recruiting
    "Promotion from Within"

    • canadites familiar with the organization
    • less costly
    • generates comitment/ morale
  69. External recruiting
    • 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
  70. job description
    clear and concise summary of the specific tasks, duties, and responsibility
  71. Job Specification
    outlines the knowledge, skills, education, physical abilities and other charcteristics needed to adequately perform the job
  72. Realistic Job Preview (RJP)
    • both positive and negaitve information about the ob and organization
    • reduces turnover
  73. Performance Appraisal innaccuracies
    • stereotyping
    • lack of information
    • halo error
    • homogenity (leniency, central tendendy, or strictness)
    • recency rates
  74. Improving performance appraisal techniques
    • keep better records
    • use rankings
    • mutliple raters
    • MBO
    • Behaviorally anchored rating scales
  75. Job Evaluation
    • Wage and salary structure
    • - point system - skill, effort, responsibility, job conditions

    determines typical or average pay for a job not a specific individual
  76. Criteria-plan benefit packages
    • recent trend
    • all employees do not want/need the same exact benefits
    • employees selct benefits based on the greatest value to them
  77. Exit interview
    an interview conducted with departing employees to determine why they are leaving
  78. Benefits of valuing diversity
    • 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
  79. Ethnocentrism
    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
  80. Ethnorelativism
    belief that groups and subcultures are inherrently equal

    leads to pluralism which accommodates several subcultures
  81. glass ceiling
    • 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
Card Set
Mgmt 2