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MGMT 3000 Introduction to Management Lyons Exam 2 Review UGA

by: Samantha Snyder

MGMT 3000 Introduction to Management Lyons Exam 2 Review UGA MGMT 3000

Marketplace > University of Georgia > Business, management > MGMT 3000 > MGMT 3000 Introduction to Management Lyons Exam 2 Review UGA
Samantha Snyder
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Study guide contains key terms and an outline of "need to know" information organized by chapter All information in the study guide was pulled from provided class notes, lecture, and the require...
Principles of Management
Charles W. Lyons, J.D.
Study Guide
Management, Lyons, uga, exam, 2, test, review, samantha, Snyder, samanthasnyder
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This 9 page Study Guide was uploaded by Samantha Snyder on Monday October 3, 2016. The Study Guide belongs to MGMT 3000 at University of Georgia taught by Charles W. Lyons, J.D. in Fall 2015. Since its upload, it has received 3 views. For similar materials see Principles of Management in Business, management at University of Georgia.


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Date Created: 10/03/16
Exam review—Monday, March 28 • Look at chapter outlines on MindTap Chapter 7 o Section 7-3—Organizational Structures o Functional Structure— a structure that organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales and accounting – STABLE ENVIRONMENT § Advantages: Works well for small businesses, businesses with a small number of products—best suited to firms where the most important aspect of competition is efficiency of production or functional exper tise (i.e. economies of scale) • Creates efficiency and expertise, easy flow of communication, straightforward approach to supervision, reduced redundancy § Disadvantages: unable to coordinate between departments to react to changes in the business environment, many employees have a narrow view of company goals and are unable to see the bigger picture o Divisional Structure— a structure that groups diverse functions into separate divisions – HETEROGENEOUS ENVIRONMENT § some firms have different industries under their umbrellas that are just too different to be run any other way than silo’d —slide 34 § Advantages: Coordination among functions is much more fluid in a divisional structure than a functional structure , allows for more accountability § Disadvantages: core functions are repeated in each division, potential for competition between divisions, may have a lower level of functional expertise than a purely functional structure o Matrix Structure—divisional and functional managers for each employee to report to – COMPLEX ENVIRONMENT § Advantages: “managers find that they need technological expertise within functions and horizontal coordination across the functions” § Disadvantages: creates confusing and inefficient scenarios for managers working in a functional group and across divisions, requires and outstanding amount of coordination o Network Structure— a structure where “knowledge workers” are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization – VOLATILE ENVIRONMENT § tech firms, about being able to bring your key people in on any project, anywhere § Advantages: This structure adapts very quickly to environmental changes and can provide a strong competitive advantage § Disadvantages: low level of accountability, process duplication, expensive to invest in technologies necessary to connect a geographically dispersed team o Example used in class: Hewlett -Packard moved thru all of these o Know advantages, disadvantages, when each is appropriate — “don’t memorize table 7.1, UNDERSTAND it” o Be familiar with Rule of 150 § Rule of 150—over 150 employees, managers no longer know what individual employees do, employees no longer know what other employees do, a need for organization surfaces o Basic idea of division of labor—WRONG IN TEXBOOK —use slide § Vertical Specialization : how much an employee creates, executes, and administers activities in a certain area of the firm § Horizontal Specialization : the breadth of activities that are performed in a certain job § Level of division of labor is related to the expectation on how long employees will stay with the firm § Highly specialized jobs can help develop firm expertise and competency in a certain skill (advantage) but can lead to low satisfaction for a worker (disadvantage) if the work is tedious and repetitive which can lead to high turn over (but also efficient replacement training) o Coordinating mechanisms —know these § Bureaucratic (centralized control) vs clan approach (decentralized control) • Clan approach example: Zappos , Netflix o Organizational structures serve 3 main purposes 1. Defines the roles of the labor force 2. Coordinates activities between members 3. Identifies the borders of the firm and external relationship o Mutual Adaptation: the process by which firms impact the nature of their overarching industrial environment and adapt their organization in response to evolving contextual factors § Critically important in industries with constant change, like technology or fashion § Structure follows strategy—decisions should be aligned with the life -cycle stage of the firm o Startup: less job specialization, heightened communication, broad decision rights and open boundaries—more formal structures, i.e. functional o Growth: emphasize on div ision of labor and specify distinct coordinating mechanisms to increase efficiency and control o Maturity: typically becomes more informal, less emphasis on coordination—more informal structures, i.e. decentralized, matrix structures o Delegationàdecentralized, hierarchical à centralized o Ambidextrous organizations —stay flexible, its KEY! o Ambidextrous Firms: firms that make an effort to be efficient in current strategic operations when preparing for changes on the environmental horizon Chapter 8 o Outline—culture is so important and powerful, but not tangible so It’s hard to measure it o Culture: the way individuals in an organization uniquely and collectively think, feel and act OR “a pattern of shared basic assumptions that was learned by a group as it solved its problems…that has worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” o Helpful elements to deciphering a company’s culture —list § An appreciation of the company’s values/philosophy/purpose § An understanding of the group’s boundaries § An understanding of the company’s power structure § An understanding of the work rules and norms § An evaluation of the company’s reward and punishment syste m o Levels of culture § Artifacts: visible organizational structures, processes, languages, published list of values, artistic creations, technologies, and observable rituals and ceremonies § Beliefs and Values: the meanings that members of an organization attach to artifacts § Assumption: a behavior that stemmed from a belief held by a group that is no longer visible, but has become deeply embedded in the organization o How does culture develop —founder, leaders, teams o Determinants of culture —figure 8.1: people, formal organization, task requirements, leader o Organizational Commitment: the desired end result of socialization whereby employees become committed to the organization and its goals § Compliance: commitment to the firm based on fair exchange, such as pay for services § Identification: commitment to the firm based on a sense of belonging § Internalization: commitment to the firm based on an alignment of the firm’s values with the individual’s values o Be familiar with 9 methods of socialization —slide 17 o Looked at Microsoft and Nadella trying to change it from risk averse to cutthroat o Mullally successfully changed Ford’s culture o Crucial moments: mergers and acquisitions and how to combine cultures without devaluing the company being acquired • Types of Company Culture—Deal and Kennedy o Work Hard, Play Hard Culture (low risk, high speed feedback) § Where can you find this culture? • Sales, employees take few risks, feedback on performance is almost immediate, employees are high energy and upbeat, high volume salespeople are heroes in this culture § What is special about this culture? • Recognition that one person alone cannot make the company • Focus on team effort, everyone is driven to excel • Contests among employees are common as they drive people to reach new heights o Tough-Guy, Macho Culture (high risk, high speed feedback) § Where can you find this culture? • Entertainment industry, sports teams, advertising • Individualists who enjoy risk and who get quick feedback on their decisions § What is special about this culture? • All-or-nothing culture—people who enjoy excitement and work hard to be the stars are successful, all other employees are “second class citizens” • Teamwork is not highly valued • Difficult environment for people who blossom sl owly—high turnover o Bet-Your-Company Culture (high risk, low speed feedback) § Where can you find this culture? • Pharmaceutical, oil, gas companies, architectural firms —large, capital- intensive industries • decisions are high risk but employees may wait years t o know if decisions paid off § What is special about this culture? • Long-term focused • collective belief in the need to plan, prepare and perform due diligence at all stages of decision making o Process Culture (low risk, low speed feedback) § Where can you find this culture? • Large retailers, banks, insurance companies and gov’t organizations • no single transaction has much of an impact on the organization’s success and it takes years to figure out if a decision was good or bad § What is special about this culture? • Employees find it difficult to measure what they do so they focus on how they do things and, therefore, pay attention to getting the process and details right • High value on technical excellence • Not always measuring actual outcome Chapter 9 o 3 big ideas from outline: how to acquire human capital, how to we manage current employees, what are the contextual forces while doing that (particular legal environment) • Acquiring o External Fit: the process of matching a firm’s structure, systems, HR and management practices to the competitive landscape § Managers must consider the company’s stage of growth (5 stages) and strategic objectives o Stages of Firm Growth Table 9.2, pg 234 § Stage I: Initiation—very entrepreneurial and informal (ideal qualities: flexibility and willingness to ‘get the job done) § Stage II: Functional Growth —technical specialization and increased formality § Stage III: Controlled Growth —development of more formal procedures and increased focus on professional management, product diversification § Stage IV: Functional Integration —creation of multiple product groups/divisions, integration of things like accounting and marketing to create more autonomy § Stage V: Strategic Integration —focus on flexibility, adaptability and integration across business functions (ideal qualities: abilities in cross -functional planning and analysis) o Also consider: the competitive strategy that a company pursues (cost leadership, differentiation, or focus) a lso affects the culture in a company, and therefore the people best suited to work there § Cost leadership à HR should focus on cost -effectively increasing productivity with part-time employees or subcontractors or simplifying tasks to reduce training time § Differentiation à HR should focus on improving quality relative to competitors with constant feedback systems, cross -functional collaboration and employee participation in decision making § Focus à HR should focus on increasing autonomy by providing room for experimentation, development and training o Internal Fit: the process of building and aligning HR practices in support of the company’s strategy o In order for human resources to become a competitive advantage, the resources… 1. Must add value to the firm 2. Cannot exist outside of the firm 3. Cannot be easily imitated by the other companies 4. They cannot be substituted by another resource o Job analysis / realistic job preview o Benchmarking—how much will it cost to get who we want? o Internal vs external recruiting § External recruiting is most expensive during 1 year o Qualitative and quantitative info, social media, work history, GPA § Structured interviews—situational, behavioral, background and job -knowledge questions o Selection tests: specific, cognitive, biographical (biodata), personality, work sample § Danger: can be disparate impact discrimination (unintentional) • Managing (9-3) o Important but skimmed on exam o Reasons for training and development: § Need to orient employees on business practices § Teach skills with a new pie ce of equipment § Educate on new product or service offerings o Needs Assessment: a process by which an organization outlines what type of training needs to be done and who is best positioned to deliver it § Can be done with a gap assessment —comparing the current skillset of a firm to the skills that will be needed in the future o Types of Training § Formal • On-the-job: on the worksite, by supervisor • Off-the-job: in a facility designed to teach specific skills o Ex. McDonald’s Hamburger University § Informal (can be more effective) • Coaching • Mentoring § Effectiveness of training initiatives can be very difficult to measure o Types of feedback and performance reviews § 360-degree feedback—not used for compensation, firing and promotion, used for leadership § Performance Appraisal—measurement of performance, used to make decision on working conditions, promotions, terminations and rewards § know difference between these 2 and what they are used for o Management by O bjectives—slide 21 § participation is key in setting goals and organi zational change— “I could get you on a test question with this” § figure 9.1—stretch goals: goals that are too difficult or complicated o Know difference between job -based (UGA) and skill-based (Netflix) pay o Be familiar with slide 25 —gain sharing, profit sharing, cafeteria plans o Understand downsizing, survivor syndrome o Federal Anti-Discrimination Employment Laws § Narrow exceptions: a bona fide occupational qualification (BFOQ) is “reasonably necessary to the normal operation of that particular business” i.e. their entire business model is built around the occupational qualification • Race can never be a BFOQ • Slide 39 for examples o Expanded Meanings of Employment Discrimination § Disparate (unequal) treatment : intentionally using race, religion, sex, color, or nationality as a basis for treating people differently § Disparate Adverse Impact : an employer’s practice results in fewer minorities being included in the outcome of testing, hiring or promotion practices than would be expected by numerical proportion § Four-fifths (80% Rule): if a member of a minority group does not have a success rate of at least 80% of that minority group, the practice may be considered to have an adverse impact o Sexual Harassment § Quid Pro Quo: when employment outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to being sexually harassed § Hostile Work Environment: when unwelcome and demeaning sexually related behavior creates an intimidating, hostile, and offensive work environment o Offshoring is not necessarily outsourcing Chapter 10 o Outline is VERY helpful!! o Control Cycle: the four-stage process that provides the mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, quantity, and specifications of an organization and its customers § Identifying measures, set targets, measure results, take corrective action o Balanced Scorecard under measuring step in control cycle § Financial Perspective: choosing the financial measurements that are goi ng to be most important for reaching strategic goals • Growth Stage: the stage at the beginning of the business life cycle that is marked by high investment activity (focus on market share measures) • Sustain Stage: the stage in a business life cycle where the company is extracting money, trying to maximize the return on investment (focus on maximizing the return on invested capital) • Harvest Stage: the end of a business lifecycle, where a company attempts to extract as much money as possible from business activity (focus on profitability measurements) § Customer Perspective: linking key customer-based metrics such as market share and retention to the financial performance of a firm • Controlling Customer Defections o Monitoring customer defections § Identify which customers are leaving the company § Measuring the rate at which they are leaving o Obtaining a new customer costs five times as much as keeping a current one o Customers who have left are likely to tell you what you are doing wrong o Understanding why a customer leaves can help fix problems and make changes § Business Process Perspective: focuses on measurements that will improve a company’s ability to serve and deliver value propositions to its customers § Learning and Growth Perspective: Identifies the skills and infrastructure needed to carry out business processes, interact with customers and achieve long -term financial growth; it also helps to identify gaps in capabilities or resources o Control Loss—NOT IN BOOK § Control: • Achieved when behavior and work procedures conform to standards and goals are accomplished. § Control loss: • Occurs when behavior and work procedures do not conform to standards. § Consequences of control loss • Failure to achieve organizational goals • Restatement of earnings • Replacement of senior management • Drop in stock price • Shareholder lawsuits, etc. o Watch the Barcelona video –“I never suggest to watch videos in preparing for exam, but watch this one” o Chipotle—you should still be able to answer these questions if you truly understand the material but you weren’t in class o Know what ABC costing is o Outcomes vs Drivers § Outcomes: measurements of the balanced scorecard that monitor past success § Drivers: measurements of the balanced scorecard that predict future success o Know benchmarking and understand/know steps § Benchmarking is enemy of sustainable competitive advantage § Steps: 1. Identifying the processes to benchmark 2. Choosing measurement criteria and collecting data 3. Finding the best companies for each process 4. Harvesting and analyzing data 5. Creating plans for improvement o Benchmarking promotes competition and reveals the best practices so they can be analyzed, adopted and implemented throughout an industry o Stimulates an unbiased review of internal operations, reveals problems for which others have found solutions, and provides objective data and targets for improvement § o Total cycle time’s relation to quality —the shorter the total cycle time, the better quality a product tends to be o If six sigma, DMIC, ISO 9000 are answer choices, they are probably wrong


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