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Planning Process (pg 173)
- 1. develop the plan
- Define mission, vision
- 2. Translate the plan
- define tactical plans and objectives
- develop strategy map
- define contingency plans and scenarios
- identify intelligence teams
- 3. plan operations
- define operational goals and plans
- select measures and targets
- set stretch goals
- crisis planning
- 4. execute the plan
- use:
- management by objectives
- performance dashboards
- single use plans
- decentralized responsibility
- 5. Monitor and learn
- hold planning reviews
- hold operational reviews
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plan (174)
- a blueprint specifying the resource allocations, schedules, and other at ions necessary for attaining goals
- planning helps managers think toward the future rather than thinking merely in terms of day to day activities
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goal
a desired future state that the organization wants to realize
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planning
the act of determining goals and defining the means for achieving them
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Crisis Planning (181)
- enables them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response
- reduces the incidence of trouble
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Crisis planning stages (182)
- 1. Crisis prevention
- ( build relationships, detect signals from the environment)
- involves activities managers undertake to try to prevent crises from occurring and to detect warning signs of potential crises
- building open, trusting relationships with key stakeholders such as employees, customers, suppliers, governments, unions, and the community
- 2. Crisis preparation
- includes all the detailed planning to handle a crisis when it occurs
- designate crisis management team and spokesperson
- create detailed crisis management plan
- set up effective communications system
- Crisis management plan (CMP) is a detailed written plan that specifies the steps to be taken and by whom if a crisis occurs
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Strategic management (186)
refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
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SWOT Analysis (189)
(strengths, weakness, opportunity, threats)
- includes a careful assessment if strengths, weaknesses, opportunities, and threats that affect organizational performance
- internal strengths are positive internal characteristics
- weaknesses are internal characteristics that might inhibit or restrict the organizations performance
- threats are characteristics of the external environment that may prevent the organization from achieving its strategic goals
- opportunities are characteristics of the external environment that have the potential to hoop the organization achieve or exceed its strategic goals
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Porters 5 forces (194)
- 1. potential new entrants
- 2. bargaining power of buyers
- 3. bargaining power of suppliers
- 4. threat of substitute products
- 5. rivalry among competitors
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Tools for putting strategy into action (197)
These tools are used solve the problem of poor strategy execution
- 1. Candid Communication
- open lines of communication
- encourages debate
- be honest
- 2. Clear roles and accountability
- delegate authority and responsibility
- create teams
- define roles
- 3. Visible leadership
- motivate people
- shape cultures and values
- model desired behaviors
- 4. Appropriate human resource practices
- recruit employees
- manage transfers and promotions
- provide training
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Programmed decisions (210)
- involve situations that have occurred often enough to enable decision rules to be developed and applied in the future
- made in response to recurring organizational problems
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Non-programmed decisions ex. JPmorgan
made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization
Decisions to acquire a company, build a new factory, develop a new product or service, enter a new geographical market or relocate headquarters to another city are all nonprogrammer decisions
risk
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Certainty (211)
- means that all the information the decision maker needs is fully available
- few decisions are certain in the real world, most contain risk or uncertainty
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Uncertainty
means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete
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Classical model of decision making (214)
based on rational economic assumptions and manager beliefs about what ideal decision making should be
- Four assumptions
- 1. decision maker operates to accomplish goals that are known and agreed on. Problems are precisely formulated and defined
- 2. decision maker strives for conditions of certainty , gathering complete information. All alternatives and potential results of each are calculated
- 3. criteria for evaluating alternatives are known. The decision maker selects the alternative that will maximize the economic return to the organization
- 4. decision maker is rational and uses logic to assign values, order preferences, evaluate alternatives, and make the decision that will maximize the attainment of organizational goals
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Classical model continued
- considered to be normative, which means it defines how a decision maker should make decisions
- Does not describe how managers actually make decisions so much as it provides guidelines on how to reach an ideal outcome for the organization
- most useful when applied to programmed decisions and to decisions characterized by certainty or risk
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Managerial decision making process (221)
- 1. Recognition of decision requirement
- 2. diagnosis and analysis of causes
- 3. development of alternatives
- 4. selection of desired alternatives
- 5. implementation of chosen alternative
- 6. evaluation and feedback
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1. Recognition of decision requirement
- managers conront a decision requirement in the form of either a problem or an opportunity
- awareness of a problem or opportunity is the first step in decision sequence and requires surveillance of the internal and external environment for issues that merit executive attention
- this process resembles the military concept of gathering intelligence
- information comes from periodic financial reports, performance reports and other sources that are designed to discover problems before they become too serious
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2. Diagnosis and analysis of causes
- diagnosis is the step in which managers analyze underlying causal factors associated with the decision situation
- ex. what is the stat of disequilibrium affecting us?
- when did it occur?
- where did it occur?
- how did it occur? ect...
- such questions help specify what actually happened and why
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3. Development of alternatives
- generate possible alternative solutions that will respond to the needs of the situation and correct the underlying causes
- for a programmed decision, feasible alternatives are easy to identify and in fact usually are already available within the organizations rules and procedures
- non-programed decisions require developing new courses of action that will meet the companies needs
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4. Selection of desired alternative
- managers try to select the most promising of several alternative courses of action
- best alternative is one in which the solution best fits the overall goals and values of the organization and achieves desired results using the fewest resources
- managers want to select the choice with the least amount of risk and uncertainty
- risk propensity- the willingness to undertake risk with the opportunity of gaining an increased payoff
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5. implementation of chosen alternative
- involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out
- may require discussion with people affected by the decision
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6. Evaluation and feedback
- decision makers gather informations that tells them how well the decision was implemented and whether it was effective in achieving its goals
- feedback proves decision makers with informations that can precipitate a new decision cycle
- feedback is the part of monitoring that assesses whether a new decision needs to be made
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Tall structure (253)
an overall narrow span and more hierarchical levels
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flat structure
a wide span, horizontally dispersed, and has fewer hierarchical levels
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functional structure (257)
- the grouping of positions into departments based on similar skills, expertise, work activities and resource use
- can be thought of as departmentalization by organizational resources because each type of functional activity- accounting, human resources, engineering, and manufacturing represents specific resources for performing the organizations task
- strong vertical design
- people within a department communicate primarily with others in the same department to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy
- managers and employees are compatible because of similar training and expertise
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divisional structure (258)
- occurs when departments are grouped together based on similar organizational outputs
- sometimes called a product structure, program structure, or self-contained unit structure
- large corporations producing products for different markets
- divisions are created as self contained units with separate functional departments for each division
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matrix approach (260)
- combines aspects of both functional and divisional structure simultaneously in the same part of the organization
- dual line of authority make this approach unique
- evolved as a way to improve horizontal coordination and information sharing
- supports a formal chain of command for both functional (vertical) and divisional (horizontal) relationships
- provides excellent coordination simultaneously for each geographic region and each product line
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matrix approach continued
- Two-boss employees- those who report to two supervisors simultaneously, must resolve conflicting demands from the matrix bosses
- Matrix boss- the product or functional boss, who is responsible for one side of the matrix
- the top leader is responsible for the entire matrix
- top leader- oversees both the product and functional chains of command, responsible to maintain a peer of balance between the two sides of the matrix
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team approach (262)
- gives managers a way to delegate authority, push responsibility to lower levels and be more flexible and responsive in a complain and competitive global environment
- cross-functional teams- consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems
- permanent teams- groups of employees who are organized in a way similar to a formal department
- team based structure- the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organizations goals
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virtual network structure ( 263)
- the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization
- coordinated electronically
- spread all over rather being housed under one roof
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geographic division (260)
- all functions in a specific country or region report to the same division manager
- focuses company activities on local market conditions
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advantages and disadvantages of each structure (266)
exhibit 7.9
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task force (270)
- temporary team or committee designed to solve a short term problem involving several departments
- members represent their departments and share information that enables coordination
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project managers
- increase coordination among functional departments
- a person who is responsible for coordinating the activities of several departments for the completions of a specific project
- located outside of the departments and have responsibility for coordinating several departments to achieve desired project outcomes
- set budget goals, marketing targets and strategies and obtain the cooperation from advertising, production and sales personnel needed for implementing product strategy
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organizational change (292)
the adoption of a new idea or behavior by and organization
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disruptive innovation
- becoming a goal for companies that want to remain competitive on a global basis
- refers to innovations in products, services, or processes that radically change an industries rules of the game for producers and consumers
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ambidextrous approach (293)
- incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations
- ex. a loose, flexible structure and greater employee freedom are excellent for the creation and initiation of ideas; however these same conditions often make it difficult to implement a change because employees are less likely to comply
- managers encourage flexibility and freedom to innovate and propose new ideas with creative departments, venture teams
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cooperation (295)
creating conditions and systems to facilitate internal and external coordination and knowledge sharing
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entrepreneurship
managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation
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creative organization
(297)
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bias (365)
- prejudice-tendency to view people who are different as deign deficient
- stereotypes- component of prejudice, rigid, exaggerated, irrational beliefs, associated with a particular group of people
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to reduce barriers...
- managers need to start with an understanding of complex attitudes, opinions and issues that already exist in the workplace or that employees bring into the workplace.
- These include factors that shape personal bias; prejudice, discrimination, stereotypes and ethnocentrism
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diversity training (376)
to help people identify their own cultural boundaries, prejudices and stereotypes and develop the skills for managing and working in a diverse workplace
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diversity awareness training
- make employees aware of the assumptions they make and to increase peoples sensitivity and openness to those who are different from them
- help people recognize that hidden and overt biases direct their thinking about specific individuals and groups
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sexual harassment (377)
- generalized- involves sexual remarks and actions that are not intended to lead to sexual activity but that are directed toward a coworker based solely on gender and reflect on the entire group
- inappropriate/offensive- thought not sexually threatening, it causes discomfort in a coworker, whose reaction in avoiding that harasser may limit his or her freedom and ability to function in the work place
- solicitation with promise of reward- this action treads a fine line as an attempt to purchase sex with the potential for criminal prosecution
- coercion with threat of punishment- the harasser coerces a coworker into sexual activity by using the threat of peer (through recommendations, grades, promotions) to jeopardize the victims career
- sexual crimes and misdemeanors- the highest level of sexual harassment, these acts would, if reported to the police, be considered felony crimes and misdemeanors
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