MNGT4400_FinalExamStudyGuide MNGT 4400
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This 8 page Study Guide was uploaded by Peyton Oglesby on Saturday April 30, 2016. The Study Guide belongs to MNGT 4400 at Auburn University taught by Lucian Bifano in Summer 2015. Since its upload, it has received 43 views. For similar materials see Organizational Change in Business, management at Auburn University.
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Date Created: 04/30/16
MNGT 4400 FINAL EXAM STUDY GUIDE Things to know about Apple o Personal attributes of Macintosh Graphical user interface Ease of use o Largest user Marketing and advertising Printing and publishing o IPod Industries it had effect on: music industry, cds, dvds Steve Jobs treated music as a system o Leaders of the smartphones in the early timeà nokia, blackberry, etc. o Pixar-replaced individuals animating cartoons by hand with a digital approach The Whirlpool Case o Problem Assessment Methodology Self-discovery to identify and justify changes they wanted to make Active participation - Activity Value Analysis (employees went through this) SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) Global Awareness program McKinsey consulting engaged University professors engaged to assess employee opinions o 5 Strategic Imperatives Identified - The need for … An intense consumer focus Low cost manufacturing Value-based product planning Cross-function and cross-business project planning A stronger relationship with Sears o Change Decisions Strategy shift from cost-leader to value-add differentiation A new organizational structure with strategic business units focused on the major brand appliance groups Elimination of the bottom 10% of non-value-add items from the Activity Value Analysis 10% reduction in management headcount o Adopting and Institutionalizing the changes Management was able to build on the previous activities creating readiness Subjective assessment of readiness across 250 managers on a scale of 1-5 by category Management demonstrated vision, inspiration, honesty and competence Pervasive communications in the form of live speeches, recorded speeches, written communications and electronic media o Key Messages 1. New structure and a new era for Whirlpool 2. Shortcomings of the current structure and reasons for undertaking this change 3. Consequences of not changing 4. Key focus areas 5. New structure will establish a sense of ownership and entrepreneurial spirit while fixing responsibility and accountability 6. Key principles for decision making and the importance of the customer 7. No turning back o Key Messages 1. Recognition of Whirlpool’s people, talent, history, memories and past successes 2. Fierce competition and less success today than in the past driving the need for change 3. Vision for the future and recognition of the challenge ahead 4. What is needed from everyone 5. No turning back - say goodbye to the past o Compensation Change Incentive pay based on the performance of the strategic business units, not whirlpool overall o Key Messages- via 5 Elements view o CONTEXT- the appliance industry marketplace and environment o DISCREPANCY- whirlpools problems o APPROPRIAATENESS- no other choice o EFFICACY- whirlpool’s capacity and capability to change o SUPPORT- Management commitment o VALENCE- personal consequences of success or failure o Key Messages- via 8 Steps View 1. Establish a sense of urgency 2. Form a powerful guiding coalition 3. Create a vision 4. Communicate the vision 5. Empower others and remove obstacles 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change 8. Institutionalize new approaches and anchor them in the culture o Key Messages- via Transition Curve View Stage Strategy Denial Provide Info Listen, say goodbye to the Resistance past Exploration Direct energy in positive way Reinforce positive Commitment outcomes Whirlpool had a steady climb in the stock market Their change process was SUPER long, it was very methodical Whirlpool is a successful case of transition The Home Depot Case o Home Depot at the time Startup mentality organization Over 1,100 big-box stores Growth record that outpaced Wal-Mart Financial and operational challenges Poor inventory turns Low margins Weak cash flow Freewheeling entrepreneurial culture Referred to as a “$40 billion start-up” Valued store manager autonomy A strong aversion to bureaucracy and hierarchy Founders held in high regard by employees o Immediate Issues Inability to capitalize on economies of scale Focus on sales over profitability Poor investor returns Store manager autonomy valued over consistency A shortage of experienced store and district managers Intuition versus hard data in decision making Lack of accountability Strong competition from Lowe’s o Naredelli’s Strategy Naredelli was striving to have a centralized management philosophy 1. Enhance the core by improving current and future store profitability 2. Extend the business by offering related service 3. Expand the market-geographically and by serving new types of customers 4. Introduce metrics, processes, programs and structure into the company o Key Initiatives Centralization of key functions - purchasing and merchandising Consistent store layout and signage Data-centric decision making Improved human resources management practices Annual performance reviews and assessments Improved training and development programs Weekly management conference calls Weekly employee video-casts Broader participation in planning and employee task forces o Was it necessary for Home Depot to change its culture? o Was Nardelli an effective change agent? o Why did the board of directors felt it was time for a new CEO? Nardellis compensation was his reason for him leaving the company, they board wanted to adjust his compensation to align with his performance Family Businesses o The Issues “Only 30% of family businesses last into the 2 ndgeneration; 12% are viable into the third.” o The Solution Top family-led businesses do 4 key things to increase success throughout generations: 1. Establish good governance practices and insure good oversight from a professional board 2. Preserve what makes them special 3. Identify future leaders from within and outside the family 4. Bring discipline to CEO succession planning o Family owned businesses play a key role in the global economy They account for an estimated 80% of companies worldwide They are the largest source of long-term employment in most countries In the United States they employ 60% of workers and create 78% of new jobs They represent one-third of Standard & Poor's 500 companies They are 40% of the 250 largest firms in France and Germany They are more than 60% of large corporations in East Asia and Latin America o Organizational Change Ethics Ethics and behavior go hand in hand Ethics has to do with behavior … with what you actually DO. Does your behavior “measure up”to society’s standards? If your behavior “measures up,” you are generally thought of as an ethical person. If it doesn’t you are not! What standards define ethical behavior A moral code - what is good and what is bad? Codes of law Professional standards Organizational policies, rules, and regulations Societal norms - what others expect Personal values and beliefs Actions under stress and in challenging times Why do people take unethical actions Malice - intentional evil Sociopathy - lack of conscience Personal greed Envy, jealousy, resentment Will to win or achieve at any cost Fear of failure Corporate culture Decision Making Tests Front Page of the Newspaper Dignity and poise “Golden Rule” Equal treatment Personal Gain Behavior Under Pressure “The Smell Test” Diversity 2015 Facebook’s employee population demographics versus their customer demographics Hispanics represent just 4% and African Americans are only 2% of Facebook’s US workforce – the same as last year Around the globe, 68% of Facebook employees are men – down from 70% last year 55% of Facebook employees in the USA are white, while Asians make up 36% - last year the percentages were 57% and 34% When it comes to technical employees, the numbers are more stark – 84% are male, 51% white and 43% Asian – last year was 85% male, 53% white and 41% Asian Senior-level male employees are down from 77% last year to 73% Facebook’s 1.5 billion users span races and cultures and the majority of its users are women. Environment Environmental Responsibility Organizational Drivers Commitment to environmental responsibility Reduced costs or cost avoidance Regulatory compliance Company image Competitive advantage Challenges Community Organizational responsibilities to the community Do an organization’s actions create a community responsibility? o Plant or facility closings o Infrastructure required for new facilities o Layoffs o Headcount growth o Other actions Social Responsibility Research shows that, more than ever, consumers expect more from the businesses where they shop. Just 6 percent of the consumers surveyed believe the singular purpose of business is to make money for shareholders, with more than 90 percent saying they want to see more of the products and services they use supporting corporate social responsibility. Overall, more than 80 percent of those surveyed consider social and environmental issues when deciding where to work, what to buy, where to shop and which products and services to recommend to others. Reflections on our journey o Theme 1 “Nothing endures but change” and it is happening at an ever increasing speed o Theme 2 Your role in organizational change will vary depending on the situation Change recipient Opinion leader Horizontal change agent Local change agent Global change agent o Theme 3 Dealing with the people aspect of change is critical to success Denial Resistance Exploration Commitment 1. Is Change needed? How urgent? 2. What needs to be changed? 3. Are the changes appropriate? 4. Is the org. serious about said changes? 5. Can I/we successfully make the change? 6. What’s in it, good or bad, for me? o Theme 4 Scientific methods for data collection and analysis are key to effective problem determination It is important to understand and avoid decision style biases throughout the change process- especially “Groupthink” o Theme 5 Fundamental mistakes smart people make implementing organizational change can be avoided by using proven processes 1. Establish a sense of urgency 2. Create a guiding coalition 3. Develop a vision and a strategy 4. Communicate the change vision 5. Empower employees for broad-based action 6. Generate short term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture o Theme 6 The most effective change agents possess a common set a core values Competence Vision The ability to inspire others Honesty Integrity Credibility Ethical standards and behavior o
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