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- Selecting the best strategy for an organization to achieve its mission and goals
- Weakness... both of these are internal
- Threats... both of these are external
The 2 major business level strategies companies have in the market place... explain
- Low Cost- have the lowest cost among their rivals... Ex: lower manufacturing, advertising cost, Walmart
- Differentation- distinguish themselves from competitors with better design, quality... Ex: Mercedes Benz
- expanding a company's operations either backward or forward in the production process.
- Ex: raw materials, producer, bottler, distribution Ex: Cow's milk (farm), Milk maker, bottler, supermarket
- Goes both back and forwards
Diversification (two types)
- Expanding a company's business into a new industry in order to produce new kinds of goods/services
- related- expanding into an industry that is related to one that a company is already in.. Ex: Proctor&Gamble and their paper towel and diaper divisions share packaging costs
- unrelated- expanding into an industry that isn't related to one they're in.. shying away from recently.. too hard for managers to be informed of all industries
The key to leadership is...
The five types of power are.. explain
- Legitimate- power that derives from one's position in the organization
- Reward- power that derives from one's ability to give or withhold rewards
- Coercive- power that derives from one's ability to punish others
- Expert- power that derives from the special knowledge or skills that one has
- Referent- power that derives from other's respect, admiration, and loyalty... refers to a third party
The best form of power is...
Depends on the situation
The least effective form of power is...
Legitimate because you have done nothing to earn it. Worst strategy to get someone to say "yes"
What is Empowerment?
- Empowerment is the expansion of employees knowledge, tasks, and decision making responsibility
- Ex: giving assembly line workers responsibility of inspecting products for defects instead of an upper manager
The Five P's
Prior Planning Prevents Poor Performance
The 8 traits for effective leadership
- high energy
- tolerance for stress
The axis of contingency for leadership
- 2 features are Task and Relationship... Can be both Hi and Low for both of them
- Task leaders- focused on high level performance and focus on task accomplishment
- Relationship leader- concerned with developing high quality relationships with subordinates and being liked by them
- Leaders that inspire and energize their subordinates by making them aware of the importance of their tasks as they tie into the mission and goals of the organization
- Ex: giving better working conditions, providing training, and emphasizing the "team concept" of the company (if you're gone for no reason it hurts your co-workers)
Emotional intelligence (why important)
- "the ability to manage oneself and one's relationships in mature and constructive ways."
- It is important because the moods and emotions leaders experience on the jobs, and their ability to control and display those emotions as they manage their relationships with subordinates can influence their effectiveness as leaders
- It can lead to increased creativity among followers.
4 components of Emotional Intelligence?
- social awareness
- relationship management
the Hawthorne Effect
- "people will work harder for you if they like you"
- if managers are nice to their workers, they tend to be more productive and work harder
- (This is not always necessarily true, but just the premise of the hawthorne effect)
What is human capital?
productive potential of each individual
the strategic assumption regarding human capital?
People are important and employees are valuable... and if people are important than how we treat people is important
The shared set of norms and values that make up an organization
what are the four functions of organizational culture?
- Organizational identity- "we are all about our employees at this company, the safety of our employees is the top priority"
- Collective Commitment- getting all employees to buy in on the mission statement and goals of the company
- Social System Stability- the extent to which the work environment is perceived as positive and reinforcing "i.e. having company parties"
- Sense Making Device- helping employees understand the general goals of the company and why high performance is necessary for the success of the company
what are four kinds of organizational culture?
- Clan- family
- Market- Competition
- Hierarchy- controlled by the boss, all about the owner
- Adhocracy- creative, employees given free reign
Why bother finding a mentor? define too
- the process of forming and maintaing intensive and long lasting relationships between developers (those who provide career and social support) and a junior person
- creates unity by promoting the acceptance of an organizations core values
- the socialization aspect of mentoring also provides a sense of membership
who is it all about?
Who is it all about? whose point of view should you always start with?
the customer's point of view!!!
similarities and difference samong employees in terms of age, cultural background, abilities, race, religion, and sex.
what is a managers goal?
achieving high performance by using resources efficiently and effectively to satisfy customers and achieve organizational goals
the three steps involved in the first component of management?
- the first component is Planning
- deciding which goals the org. will pursue
- deciding what strategies to adopt to achieve those goals
- deciding how to allocate resources to pursue strategies to achieve those goals
the primary responsiblity of a manager/leader is to maximize...?
the 3 components of performance
- customer satisfaction
What is the preferred method for outperforming the competition?
what social measure is used to determine standards of acceptable or unacceptable behavior?
what is a key performance enhancing leverage point for managers?
diversity, rewards, compensation
what are the elements of managing in the global environment?
- competitve advantage
- ethical standards
- diverse workforce
- new techonology
- global crisis management
a competitive advantage is a... for a new competitor?
barrier to entry
what is bringing down barriers to entry?
what is the role of national culture?
- influences the ways that people behve
- Ex: individualism vs. group culture, drinking alcohol is accepted vs. shunned, 3 hour lunch break vs. 40 minute one
- it is important because it can affect how managers motivate and coordinate employees and how organizations do business
define planning and the three steps
- identifying and selecting appropriate goals and courses of action
- develop the mission statement (broad declaration of org. overriding purpose)
- formulating the strategy
- implementing that strategy
a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
John Deer mission statement
to make the farmers life easier
examples of company goals
Ex: expand overseas by end of year, add 7 new stores by end of year, increase sales by 20%
Culvers mission statement
every guest who chooses culver's leaves happy
IBM mission statement
operating a safe and secure government
active effort to improve the employment opportunities of minority groups and women
what is EEO?
- Equal Employment Opportunities
- gets rid of discrimination
unjust treatment of people due to age, race, ethnicity, creed, or sex
what is the glass ceiling?
the unseen, yet unbreachable barrier that keeps minorities and women from rising to the upper rings of the corporate ladders
what arouses behavior?
what are intrinsic and extrinsic motivation and differences?
- intrinsic-something that you want to do... I really want to do this report
- extrinsic-someone else wants you to do it... do this report or your fired.
what is job satisfaction?
the feelings one has towards the various facets of their job
what is values congruence?
the similarity between individual and organizational values
What is the Expectancy Theory of Motivation?
people are motivated to behave in ways that produce desired combinations of expected outcomes
Vroom's expectancy theory
expectancy represents an individuals belief that a particular degree of effort will be followed by a particular level of performance
5 factors in Vrooms expectancy theory?
- self esteem
- self efficacy
- previous success
- help recieved
- information recieved
- proper materials and equipment
what is goal setting?
- is directing one's activities and effort towards goal relevant activities and away from goal irrelevant activities
- helps regulate effort and increase persistance
insights from goal setting?
- high goals lead to greater performance
- feeback enhances effect of goals
- goal commitment is the most important aspect
why is goal setting important?
goal setting is important because it focuses one on the necessary tasks and away from the irrelevant ones
what is the most accurate predictor of whether goals will be achieved?
Goal Commitment! the extent to which an individual is personally committed to achieving a goal
Who is it all about? Whose viewpoint?
Why do people resist change?
They are losing their power, it requires more work, and they might lose control
What are the three influencing tactics?
- the need for affiliation- i.e. friends
- the need for achievement- rewards, be acknowledged
- the need for power- have power over things
What are the three influencing outcomes?
- commitment- what we are striving for... agreement and persistance in pursuit of common goal
- compliance- okay... reluctant agreement and requiring prodding to satisfy requirements
- resistance- not good... stalling, arguing, rejection
what is the process for managing change?
having a purpose, a time frame, buying in from everyone, proper training, and inclusion
what is pay for performance?
monetary incentive directly tied to results or accomplishments
why do rewards often fail to motivate?
- not enough
- have to give them too much
- benefits become "entitlements"
Why is feedback important?
- feedback can be both instructional and motivational
- it offers areas for improvement and also positive reinforcement for areas that one strives in
What are the stages of group development?
- forming- how do I fit in?
- storming- what's my role here?
- norming- what is expected of me?
- performing- how can I best perform my role?
what are the different models of decision making?
- rational model
- root cause analysis
- evidence based decision making
- garbage can model
- rules of thumb-heuristics
- group decision making
rational model of decision making?
observing problem, developing solutions, and choosing best possible solution
root cause analysis?
- don't have eough information to draw a conclusion by simple observation. must conduct root cause analysis.
- going below what you see
- Ex: bad kid at school
evidence based decision making?
gathering all information about past similar decisions and gathering views of shareholders
garbage can model of decision making? 4 independent parts
- problems, solutions, participants, and choice opportunities
- sloppy and haphazard process
- dump out all the information and make a decision
what is heuristics?
- rules of thumb or shortcuts that help make decisions faster
- come naturally to people, whats been done over time
pros and cons of group decision making?
- pros- more knowledge, perspectives, comprehension
- cons-social pressure, domination by few, group think
what is intuition?
automatic, involuntar, and effortless. comes naturally
what are the two things always lacking in a decision?
time and information
what can sometimes force a decision?
What is the key ingredient of teamwork?
What are intrinsic and extrinsic rewards?
- intrinsic-means they are self granted... employee engagement, they find pleasure in their work
- extrinsic-come from the environment... money or verbal praise
How do I demonstrate that I am the best person for a promotion?
- By buying in and showing Commitment. I'm in. Being pro-active and going above and beyond the call of duty.
- Being punctual and getting things done earlier than on time all go along with being pro-active.
What is the most important component in accomplishing a goal?
What is the primary objective of a manager?
to achieve high performance
what is 360 degree feedback?
feeback from all angles. Individuals own percieved perfomance is compared with the views of their managers, subordinates, and peers
self managed teams?
- groups of workers who are given administrative oversight for their tasks.
- employees act as their own supervisors and must get things done still.
what is centralized decision making?
most of the decision making power is relegated to the top leaders