MGMT Exam 1
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MGMT Exam 1
What are the key characteristics of teams?
Common goal, interdependance, clear boundaries, authority to manage own work, operate in social system
Members have similar skills, and work in a same unit of functional structure with minimal task interdependence
multiple skills, assembly line type of interdependence
Produce an entire product, with little supervision, and low interdependance between groups
review panel, advisory council, committee; provides recommendations to decision makers
Task force/Project Team
Multi skilled temporary entity whose job is to solve a problem, realize an opportunity, or create a product or service
Multi Skilled workers, located away from the organization, relatively free of hierarchy
Members operate across space, time, and organizational boundaries
Team Type based on type of work
Tactical- excecute and operationalize well-defined plans
Problem-Solving- to resolve problems on an ongoing basis
Creative- to create something new, to innovate
Desired and valued future toward what team members are working
Advantages of team goals
Foundation of team vision, motivating team while providing common direction and purpose
3 Characteristics of Good Goals
3 Forms of task interdependence
Disengaging from the team process and failing to contribute to the team's recommendations or other deliverables
How can managers reduce social loafing
remind them of team norms
3 parts of an Effective team
1. Produce Meaningful Results
2. Contribute to Team Members' Satisfaction
3. Enhance Ability of Team Members to Work Together in the future
Set of behavior people are expected to perform because they hold a certain position
Tuckmans Stages Model
Team defines task
Team members experience conflict and different perspectives
Uncovering ways to create new standards
Adopting and playing roles that enhance activities of the group
team completes the task
Sense of belonging
Faultline in a team
Team is composed of individuals who identify within a subgroup of the team
Informal rules and shared expectations
Factors that effect team cohesion
difficulty to enter team
external competition and challenges
Degree of attraction members feel towards their team and their motivation to remain members
Team Cohesion and team performance
generally positive, but can lead to group think and misalignment of team goal and organization goal
3 dimensions of interpersonal trust
1. competence ie
: education, career, family
2. integrity ie
: code of honor
Foundations of team trust
- (high trust) values, and mental models increases with social team identity
- (medium trust )Predictability and competence, fairly robust
based on deterance, fragile and limited potential
Three Types of Team Conflict
Difference in opinion and view point about task. Can be constructive. Also called "substantive".
Disagreement on how to work together on a team, can be minimized by agreeing on rules ahead of time.
Not related to task, personal accusations, destructive for teams.
5 conflict styles
Tries to find a mutually beneficial solution for both parties
Tries to sooth over, avoid conflicts altogether
Tries to win conflict
Giving in to other sides wishes
actively searching for a middle ground between parties
Steps to minimize conflict
1. Define issues, positions, and perspectives
2. Identify differences in interests in issues
3. Take specific actions to resolve disagreement
High Emotional Intelligence EQ
Supported team norms
Smaller goals to reach a larger one. Reduces team conflict somehow?
Three Perspectives on organizations (Scott & Davis)
Rational System Organization
Pursuit specific goals with formalized structures.
focuses on efficiency
: how well resources are used to achieve a goal
Natural System Organization
Participants are pursuing multiple interests, both disparate and common, using the organization as a resource
-organizations are like people
focuses on effectiveness
internal appropriateness of goals chosen and goal achievement
Open System Organization
Interdependant flows and activities embedded in wider source materials and environment
-organizations are like an ecosystem
-focuses on effectiveness external appropriateness of goals chosen and goal achievement
5 elements of organizations
1. Group of people
2. strategy and goal orientated
3. exist in a definable environment and attempt to create and maintain boundaries
4. formal and informal structure
5. tasks that must be completed using technology to accomplish goals
how well resources are used to achieve a goal
the appropriateness of the goals chosen and the degree to which they are achieved
(Taylor & Gilbreth) Study of the relationships between people and tasks to redesign the work for higher efficiency.
disadvantages of Scientific Management
Workers could under perform, Dull work, workers did not get a shared of the increased output
There is no "one best way" of managing, environment is constantly changing and managers have to adapt.
(Follet & Balnard)(1868-1933)
emphasized understanding human behaviors, needs, and attitudes, as well as social interactions and group processes.
(in response to WWII)
Focusing on both efficiency and effectiveness
Total Quality Management
managing total organization to deliver better quality to customers
system of organization and administration to ensure efficiency and effectiveness
5 characteristics of bureaucracy (Administrative Management)
1. Division of Labor
2. hierarchical authority
3. Managers subject to rules and procedures
4. Management separate from the ownership
5. Personel selected and promoted based on qualifications
Fayol 14 principles
Part of Administrative Management
Average human is lazy, dislikes work, and will do as little work as possible.
Managers should closely supervise them and create strict rules.
Employees are not lazy, and given the chance they will do good for an organization.
Managers should decentralize authority and give employees an environment that provides for workers to be self directed and execute initiative.
Workers attitude toward their managers affect the level of workers' performance
Ability to see both distinct elements of a system or situation and the complex changing interaction among those elements
5 Elements of General Environment
Global, Technological, Political/Legal, Economic, Socio-Cultural
Changes that do not alter the basic nature of competition in the task environment
Change that fundamentally transforms the nature of competition in the task environment
Technological Dimension of Gen. Environment
Means firm uses to produce outputs (new espresso machines)
Economic Dimension of Gen. Environ
General economic environment where firm performs activity (first quarterly loss ever in 2002)
Political/Legal Dimension in Gen Environment
Politcal events, regulations, and laws that affect firm in its environment (lawsuits related to obesity)
Socio/Cultural Dimension in Gen. Environment
demographic characteristics, and customs and values, of a society (changing values with respect to diet)
Global Dimension in a Gen. Environment
extent a firm effects or effects other entities in a foreign countries (resistance on cultural grounds to new stores)
How does the task environment differ to the general environment?
The task environment includes enitites that directly affect the firm in a more immediate way.
3 components of Task Environment
Competitiors in Task Environment
Any organization that produces goods or services targeted at a similar group of customers. (Burger King vs. McDonalds)
Supplier in Task Environment
Company that provides resources or services for a firm. (Coca-Cola provides soft drinks for McDonalds)
Customers in Task Environment
People or other organizations that buy the firm's products or services.
Elements of Internal Environment (4)
2. Board of Directors
Owners (Internal Environment)
People or institutions that maintain legal control of the organization. (Stockholders)
Board of Directors (Internal Environment)
Group of individuals elected by the shareholders and charged with overseeing the direction of the firm.
Employees (Internal Environment)
People that make the products and provide the services that allow the firm to exist.
Culture (Internal Environment)
Pattern of basic assumptions about the way the organization should work, and manner in which individuals in the organization should interact with each other.
Several Dimensions of a firm that directly affect the firm from within its boundaries.
How to deal with environmental uncertainty?
Develop models and forecasts. Systematic Data Collection. Brand Loyalty and barriers to entry.
2 components of uncertainty
Complexity- multiple and interconnected components
Dynamism- Frequency, speed of change & magnitude of change
Difference between market force and non market forces.
Market force (brand loyalty) (influences environment)
Nonmarket force (legislative barriers to entry)(controls environment)
WHat is Strategy
A set of decisions and actions used to formulate a competitively superior fit between the organization and the environment
External and internal converge to vision/mission,to objectives, to strategy formulation, to strategy implementation
The summary of the aims and values of a company, organization, or individual.
What constitutes an effective mission statement?
provides direction and inspiration
serves as a focal point
Process of identifying how a firm can best align its resources to carve out a defensible position in the market place
3 components of strategy
1. Choosing a set of activities
2. Makng Tradeoffs
3. Creating Fit among activities
Corporate Level Strategy
set of strategic alternatives that an organization chooses as it manages its operations simultaneously across several industries and several markets.
: Industry attractiveness, what industries should we be in? Allocation of resources among businesses.
Different Business level Strategies
Porter's 5-force Model
1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Rivalry among Existing Competitors
4. Threat of Substitutes
5. Bargaining Power of Customers
when volume of a product produced by a firm enables it to reduce per unit cost
Firm seeks to be unique in its industry
Stretegy which company "focuses" sales efforts on a specific geopgraphical region, specific group of purchasers, or a specific product type.
tool allows managers to take a snapshot of their firm's internal strengths, weaknesses, as well as opportunities and threats that are evident in the external environment
The process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales.
How can value chain help managers create a sustainable competitive advantage?
By studying value chains, managers can better understand the connections among the different systems. These enhance competitive advantage by creating tight links between producer and supplier.
What are 3 types of diversification strategies?
1. Single-Product Strategy
2. Related (Horizontal Diversification)
3. Unrelated Diversification
develops greater core competency but suffers more from cyclicity
Related (Horizontal) Diversification
Firm that owns more than one business that uses similar tangible and intangible resources.
tries to achieve economies of scope
firm that manages several businesses with no relation.
one corporation owns business units that make inputs for other business units in the same corporation
Advantages and Disadvantages to Vertical Integreation
potentioal cost reductions, improved coordination and quality control
tendency for lack of efficiency, potential for obsolescence in technology, higher administrative costs