MGT300 Exam 2

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MGT300 Exam 2
2013-10-11 15:16:26
chapter 14

Exam on Modules 4, 5, and 6
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  1. Alternative course of action
    After identifying and weighting the criteria that will guide the decision-making process, next step is to identify possible course of action that could solve the problem

    generate as many courses as possible
  2. Planning
    Choosing a goal and developing a strategy to achieve that goal
  3. Benefits of Planning
    1. managers and employees put forth greater effort

    2. leads to persistence/working hard for long periods of time- even with little short-term success

    3. direction; encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don't

    4. proved to work for both companies and individuals
  4. Pitfalls of Planning
    1. can impede change and prevent or slow needed adaptation

    2. can create a false sense of certainty; all plans are based on assumption

    3. detachment of planners; focus on big picture and not concerned with details of implementation
  5. Operational Plans
    Day to day plans, developed and implemented by lower-level managers, for producing or delivering the organizations products and services over a 30 day to 6 month period

    direct behavior, efforts, and priorities of operative employees

    3 kinds: single-use, standing, and budgets
  6. Single-Use Operational Plan
    deals with unique, one time only events

    identifying missing and injured workers and establishing a command center to communicate with employees families after plant explosion
  7. Standing Operational Plan
    used repeatedly to handle frequently recurring events

    3 kinds: policies, procedures, rules and regulations
  8. Policies (Standing Plan)
    indicate the general course of action that should be taken in respond to a particular events or situation

    states why policy exists and what outcome it should produce

    ex: travel policies with expense guidelines
  9. Procedures (Standing Plan)
    indicate the specific steps that should be taken in response to a particular event

    more specific than policies

    • ex: handling defective products at manufacturing company
    • Step 1: Rejected material is locked in a secure area with “reject” documentation attached.
    • Step 2: Material Review Board (MRB) identifies the defect and notes how far outside the standard the rejected products are.
    • Step 3: MRB determines the disposition of the defective product as either scrap or rework.
    • Step 4: Scrap is either discarded or recycled, and rework is sent back through the production line to be fixed.
    • Step 5: If delays in delivery will result, MRB member notifies customer
  10. Rules and Regulations (Standing Plan)
    describe how a particular action should be performed or what must happen or not happen in response to a particular event

    more specific than procedures

    ex: forbidding managers from writing job reference letters because a negative reference may prompt a former employee to sue for defamation or character
  11. Budgeting Operational Plan
    quantitative planning through which managers decided how to allocate available money to best accomplish company goals
  12. Groupthink Dynamics
    occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution

    pitfall of group decision making

    • likely to occur under following conditions:
    • 1.The group is insulated from others with different perspectives.
    • 2.The group leader begins by expressing a strong preference for a particular decision.
    • 3.The group has no established procedure for systematically defining problems and exploring alternatives.
    • 4.Group members have similar backgrounds and experiences
  13. Rational Decision Making
    systematic process of defining problems, evaluating alternatives, and choosing optimal solutions that provide maximum benefits to organization
  14. SMART
    goals that are Specific, Measurable, Attainable, Realistic, and Timely
  15. Goal Commitment
    determination to achieve a goal

    not automatic
  16. Resources
    assets, capabilities, processes, employee time, information, and knowledge that an organization uses to improve its effectiveness and efficiency and create and sustain competitive advantage
  17. Sustained Competitive Advantage
    a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
  18. SWOT Analysis
    Looking at internal strengths and weaknesses and external opportunities and threats
  19. Core Capabilities
    less visible, internal decision making routines, problem solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs
  20. Distinctive Competence
    what a company can make, do, or perform better than its competitors

    ex: Honda and Subaru in quality and reliability
  21. Corporate Level Strategy
    the overall organizational strategy that addresses the questions "What business or businesses are we in or should we be in?"

    2 major approaches: portfolio strategies and grand strategies
  22. Portfolio Strategies
    minimizes risk by diversifying investment among various businesses or product lines
  23. Grand Strategy
    broad strategic plan used to help an organization achieve its strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use
  24. Strategic Reference Point Strategy
    Choose between:

    risk-avoiding strategy: conservative, aims to protect an existing competitive advantage

    risk-seeking strategy: aggressive, aims to extend or create a sustainable competitive advantage
  25. Acquisitions
    purchase of a company by another company
  26. Growth Strategy
    strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
  27. Leadership
    process of influencing others to achieve group or organizational goals
  28. Leadership Traits
    Drive: high levels of effort and is characterized by achievement, motivation, initiative, energy, and tenacity

    Desire to Lead: want to be in charge and think about ways to influence or convince others about what should/shouldn't be done

    Honesty/Integrity: being truthful and doing what they say they will do

    Self-Confidence: believing in one's abilities

    Emotional Stability: remain even tempered and consistent in their outlook and in the way they treat others

    Cognitive abilities: smart, capacity to analyze large amounts of seemingly unrelated, complex info and see patterns, opportunities, threats

    Knowledge of the business: understand the key technological decisions and concerns facing their companies
  29. Fiedler's Contingency Theory
    leadership theory that states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style

    • 1. assesses leaders by conduct and performance of the people they supervise
    • 2. assumes that leaders are generally unable to change their leadership styles and that they will be more effective when their styles are match to the proper situation
    • 3. assumes that the favorableness of a situation for a leader depends on the degree to which the situation permits the leader to influence the behavior of group members
  30. Path-Goal Theory
    leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment
  31. Normative Decision Theory
    suggests how leaders can determine an appropriate amount of employee participation when making decisions
  32. Transactional Leadership
    based on an exchange process, in which followers are rewarded for good performance and punished for poor performance
  33. Achievement-Oriented Leadership
    leader sets challenging goals, has high expectations of employees, and displays confidence that employees will assume responsibility and put forth extraordinary effort