Study Guide 2
Study Guide 2 MANGMT 3000 - 01
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Jessica Braun MD
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This 19 page Study Guide was uploaded by elenaspeake on Monday September 14, 2015. The Study Guide belongs to MANGMT 3000 - 01 at University of Missouri - Columbia taught by Timothy Waid in Fall 2014. Since its upload, it has received 46 views. For similar materials see Principles of Management in Business, management at University of Missouri - Columbia.
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Date Created: 09/14/15
Management Study Guide Test 2 CHAPTER 3 4 Pillars of Society 1 Government 2 We the people 3 Corporations 4 GodMoralityOtherUnexplained forces Stakeholders the people whose interests are affected by an organization s activities Internal consist of employees owners and the board of directors Primary constituents External people or groups in the organization s external environment that are affected by it Task specific environment General environment Outside of the organization The role of organizations in society Owners consist of all those who can claim the organization as their legal property Shareholders or stockholders Board of Directors members elected by the stockholders to see that the company is being run according to their interests 5 12 individuals Oversee chief The Task Environment Customers those who pay to use an organization s goods or services Competitors people or organizations that compete for customers or services Competitive environment Supplier a person or organization that provides raw materials services equipment labor or energy to other organizations Distributor a person or organization that helps another organization sell its goods and services to customers Strategic allies the relationship of two organizations who join forces to achieve advantages neither can perform as well alone Employee organizations Unions and Associations Local communities Financial institutions 0 Government regulator regulatory agencies that establish ground rules under which organizations may operate 0 Special interest groups groups whose members try to in uence specific issues Nongovernmental organizations 0 Mass Media The General Macro Environment 0 Economic forces consist of the general economic conditions and trends that may affect an organization s performance Unemployment in ation interest rates economic growth 0 Technological forces new developments in methods for transforming resources into goods and services Mcommerce mobily applications 0 Sociocultural forces in uences and trends originating in a country s a society s or a culture s human relationships and values that may affect an organization 0 Demographic forces in uences on an organization arising from changes in the characteristics of a population Such as age gender ethnic origin 0 Politicallegal forces changes in the way politics shape laws and laws shape the opportunities for and threats to an organization 0 International forces changes in the economic political legal and technological global system that may affect an organization Ethical dilemma situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal Ethics standards of right and wrong that in uence behavior Values relatively permanent and deeply held underlying beliefs and attitudes that help determine a person s behavior 0 Organizations may have 2 value systems that con ict 1 The value system stressing financial performance 2 The value system stressing cohesion and solidarity in employee relationships 4 Approaches to Deciding Ethical Dilemmas 1 Utilitarianism guided by what will result in the greatest good for the greatest number of people 2 Individualism guided by what will result in the individual s best long term interest which ultimately are in everyone s selfinterest 3 Moral rights view guided by respect for the fundamental rights of human beings 0 Driven by freedom quality dignity 4 Justice view guided by respect for impartial standards of fairness and equity SarbanesOxley of 2002 0 Often shortened to SarbOX or SOX 0 Established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance How do people learn ethics Kohlberg s Theories 0 Level 1 Preconventional follows rules 0 Level 2 Conventional follows expectations of others 0 Level 3 Postconventional guided by internal values How Organizations Can Promote Ethics 1 Creating of a strong ethical climate 2 Screening prospective employees 3 Instituting ethics codes and training programs 4 Rewarding ethical behavior protecting whistleblowers Supply Chain 0 Supplier Proctor and Gambie I Organization WalMart I Distributor Amazoncom 0 Companies do not compete against companies Supply chains compete against supply chains Relationship between change in environments and change in organizations 0 The greater the change in environment the greater the change in organizations 0 The less the change in environment the lesser the change in organizations 0 BackwardDownward vertical integration 0 ForwardUpward vertical integration CHAPTER 6 Strategy large scale action plan that sets the direction for an organization Strategic management process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals Why Strategic Management and Strategic Planning are Important 1 Provide direction and momentum 2 Encourage new ideas 3 Develop a sustainable competitive advantage Sustainable competitive advantage occurs when an organization can stay ahead in 4 areas 0 Being responsive to customers Amazon 0 Innovation salesforcecom 0 Quality Nordstrom 0 Effectiveness Coca Cola Social Responsibility manager s duty to take actions that will benefit the interests of society as well as of the organization Corporate Social Responsibility notion that corporations are expected to go above and beyond following the law and making a profit Carroll s Global Corporate Social Responsibility Pyramid Bottom to top 0 Economic Responsibility Be profitable Do what is required by global capitalism 0 Legal Responsibility Obey the law Do what is required by global stakeholders 0 Ethical Responsibility Be ethical Do what is expected by global stakeholders 0 Philanthropic Responsibility Be a good global corporate citizen Do what is desired by global stakeholders Philanthropy making charitable donations to benefit humankind Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company 0 performing different activities from rivals or performing similar activities in different ways What is an Effective Strategy 1 Strategy is the creation of a unique and valuable position 2 Strategy requires tradeoffs in competing 3 Strategy involves creating a fit among activities 0 Serve Few needs of many customers Walgreens Broad needs of few customers Whole Foods Broad needs of many customers Walmart The Strategic Management Process Ln4gtwzgt Establish the mission and the vision Establish the grand strategy with environmental scanning Formulate the strategic plans Carry out the strategic plans Maintain strategic control Big Bang the life of an organization begins with initial mission statement purpose Multitasking managers of the organization work in all 5 phases all of the time simultaneous Neverending story the cycle of life continues through reinvention Common Grand Strategies Growth strateEV involves expansion as in sales revenues market share number of employees or number of customers Stability involves little or no significant change Defensive involves reduction in the organization s efforts Retrenchment How Companies Can Implement Grand Strategies 1 Growth Concentration expand within your existing business areas Diversification expand by entering new business areas Related similar to what you ve done in past Unrelated different Vertical Integration when you purchase a supply chain supplier or distributor 2 Retrenchment Liguidation you close and sell off your assets Restructuring you reduce sizeefforts and you reorganize debt Divesture sell off part of your business to focus on core competencies Strategy formulation process of choosing among different strategies and altering them to best fit the organization s needs Think it Strategy implementation putting strategic plans into effect Do it Strategic Control consists of monitoring the execution of strategy and making adjustments if necessary Engage people Keep it simple Stay focused Keep moving 0 2 measures 1 Effective Are we reaching our goals 2 Efficiency Are we using our resources wisely Competitive Intelligence gaining information about one s competitors activities so that you can anticipate their moves and react appropriately 0 Public prints and advertising investor information informal sources 0 Best practices Environmental Scanning careful monitoring of an organization s internal and external environments to detect early signs of opportunities and threats that may in uence the firm s plans SWOT Analysis 0 Organizational strengths skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission 0 Organizational weaknesses drawbacks that hinder an organization in executing strategies in pursuit of its mission 0 Organizational opportunities environmental factors that the organization may exploit for competitive advantage 0 Organizational threats environmental factors that hinder an organization s achieving a competitive advantage Forecasting 0 Trend analysis hypothetical extension of a past series of events into the future 0 Contingency planning creation of alternative hypothetical but equally likely future conditions Also called scenario planning and scenario analysis Porter s 5 Competitive Forces 1 Threat of new entrants 2 Bargaining power of suppliers 3 Bargaining power of buyers 4 Threat of substitute products or services 5 Rivalry among competitors Porter s 4 Competitive Strategies 1 Costleadership strategv keep the costs and hence prices of a product or service below those of competitors 0 wide market targeted 0 lowest price in the industry 2 Differentiation strategv provide a good or service with a unique or different value and customers are willing to pay 0 wide market targeted Costfocus keep the costs of a product below those of competitors 0 narrow market targeted 0 focused strategy Focuseddifferentiation offer products that are of unique and superior value compared to those of competitors 0 narrow market targeted 0 focused strategy Strategic management is Reinvention 0 Example Apple Nike Mizzou Singleproduct strategy company makes and sells only one product within its market 0 Benefit focus 0 Risk vulnerability 0 Make one thing and make it well Diversification Strategv operating several businesses under one ownership that are not related to one another 0 Related unrelated Advantages of Related Diversification 0 Reduced risk because more than one product 0 Management efficiencies administration spread over several businesses 0 Synergy the sum is greater than the parts The BCG Matrix a means of evaluating strategic business units on the basis of their business growth rates and their share of the market Corporate Strategy 0 Single Product Problems infrequent but may be severe low risk high impact Advantages economies of scale or scope Disadvantages core competencies never change 0 RelatedUnrelated Diversification Problems more frequent but may be less severe high risk low impact Advantages synergies from using core competencies in related area and expanding core competencies Disadvantages expand core competencies too far and expose weaknessthreat Business Strategy Cost leader Vulnerabilities cost sensitivities in supply chain low quality upturn in economy Differentiation CHAPTER 8 Organizational Culture system of shared beliefs and values that develops within an organization and guides the behavior of its members VBBs Values beliefs behaviors Also called corporate culture personality social glue Vision I Strategy I Culture I Structure and Internal practices I Collective attitudes and behaviors I Achievement of Goals Structure Who reports to who Who does what Match culture and structure to achieve goals When goals change culture andor structure may change Correct culture structure matches exist for various goals 4 Types of Organizational Culture Clan Culture Internal exibility Encourages collaboration among employees Emphasis family consensus employee development Ex Southwest Airlines Adhocracy Culture External exibility Attempts to create innovative products by being adaptable creative and quick to respond to changes in the marketplace Emphasis risk taking new methods customer responsiveness Ex Apple Market Culture External stabilitycontrol Driven by competition and a strong desire to deliver results Emphasis productivity profits shareholders hard work quality deadlines Ex Subway McDonalds Hierarchy Culture Internal stabilitycontrol Apt to have a formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms Bureaucracy Emphasis rules efficiency Organizational Culture shared values beliefs and behaviors learned as a member of a social group Characteristics of culture learned shared transmitted overtime and through experiences Three Levels of Organizational Culture 1 Outer circle Observable Artifacts Physical manifestations such as manner of dress awards myths and stories about the company Visible behavior exhibited by managers and employees Symbols ex Apple Heroes ex Sam Walton Stories Myths and Legends ex Nordstrom Slogans ex Walmart and Target Ceremonies and rituals ex venture stores Physical artifacts ex UC Berkeley Second layer in circle Espoused Values Espoused Values explicitly stated values and norms preferred by an organization Enacted Values represent the values and norms actually exhibited in the organization Ingrained I know them Inaccuracies doing something different than what you say smallest circle in middle Basic Assumption beliefs about the most fundamental aspects of reality time space and human nature Represent the core values of the organization s culture Those taken for granted and highly resistant to change Unconscious Taken for granted How Employees Learn Culture Symbo an object act quality or event that conveys meaning to others My narrative based on true events which is repeated and sometimes embellished upon to emphasize a particular value m person whose accomplishments embody the values of the organization Rites and rituals activities and ceremonies planned and unplanned that celebrate important occasions and accomplishments in the organization s life Four Functions of Organizational Culture 1 Organizational identity 2 Collective commitment 3 Social system stability 4 Sensemaking device Cultures for Enhancing Economic Performance Three Perspectives 1 Strength 2 Fit 3 Adaptive have greater long term financial The Process of Cultural Change Formal statements mission literature manuals pamphlets Slogans and sayings Stories legends and myths Leader reaction to crises opportunity to shinefail defining Role modeling training and coaching Physical design layout cubicle vs open space Rewards titles promotions and bonuses Organizational goals and performance criteria Measurable and controllable activities 10 Organizational structure vertical vs at horizontal vs narrow 11 Organizational systems and procedures wmsowewwr Organization a system of consciously coordinated activities or forces of two or more people 0 Forprofit nonprofit mutualbenefit Organization Chart box and lines illustration showing the formal lines of authority and the organization s official positions or work specializations 0 Vertical levels Who reports to whom chain of command 0 Horizontal slices who does what work specialization Common Elements of Organizations 1 Common purpose unifies employees or members and gives everyone an understanding of the organization s reason for being 2 Coordinated effort the coordination of individual effort into group wide effort 3 Division of labor arrangement of having discrete parts of a task done by different people 0 Efficiency Hierarchy of authoritv control mechanism for making sure the right people do the right things at the right time 0 Unity of command report to one person Span of control refers to the number of people reporting directly to a given manager Narrow dissimilar tasks nonroutine tasks Wide similar tasks routine tasks Authority responsibility and delegation Authority rights inherent in a managerial position to make decisions and utilize resources Accountability managers must report and justify work results to the managers above them Responsibility obligation you have to perform the tasks assigned to you Delegation process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy Centralization vs Decentralization of Authority Centralized authority important decisions are made by higher level managers Few at top tell people at the bottom what to do Decentralized authoritv important decisions are made by middle level and supervisory level managers Many at the bottom inform few at the top what they ve done Formal authority title is important Informal authority title is not important Basic Types of Organizational Structures Simple structure authority is centralized in a single person with few rules and low work specialization Functional structure people with similar occupational specialties are put together in formal groups Divisional structure people with diverse occupational specialties are put together in formal groups by similar products customers or geographic regions Product divisional structure is the most dominant Matrix structure an organization combines functional and divisional chains of command in a grid so that there are 2 command structures vertical and horizontal Horizontal design teams or workgroups either temporary or permanent are used to improve collaboration and work on shared tasks by breaking down internal boundaries Hollow structure the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster Modular structure firm assembles product chunks or modules provided by outside contractors Functional Structure Advantages Efficiency Expertise Training development Disadvantages Functional chimney problem lack of cooperation communication collaboration common purpose Lack of general skills Upward deferral of decisions Divisional Structure Advantages Flexibility adaptable to environment Conceptual expertise Clear responsibility quick response Disadvantages Costly Divisional chimney problem Divisional goals instead of corporate goals Differences between Functional Structure and Divisional Structure Focus Functional efficiency Divisional effectiveness Size Functional smaller Divisional larger Corporate strategy Functional single product Divisional diversification Production Functional mass production Divisional customization Power Functional decisional making Divisional decentralized decisional making Levels Functional many vertical levels Divisional at fewer levels Slices Functional narrow very many Divisional wide few Design Functional mechanistic Divisional organic 0 Environment Functional simple and stable Divisional dynamic and complex Mechanistic Organizations Designs 0 Fixed and rigid 0 Centralized hierarchy of authority 0 Many rules and procedures 0 Specialized tasks 0 Formalized communication 0 Few teams or task forces 0 Narrow span of control taller structures 0 Environment simple and stable Organic Organizations Designs 0 Changing 0 Decentralized hierarchy of authority 0 Few rules and procedures 0 Shared tasks 0 Informal communication 0 Many teams or task forces 0 Wider span of control atter structures 0 Environment dynamic and complex Differentiation tendency of the parts of an organization to disperse and fragment Integration tendency of the parts of an organization to draw together to achieve a common purpose Stages in the Life of an Organization 1 Birth stage the organization is created 2 Youth stage growth and expansion 3 Midlife stage period of growth evolving into stability 4 Maturity stage organization becomes very bureaucratic large and mechanistic CHAPTER 9 Human Resource Management consists of the activities managers perform to plan for attract develop and retain an effective workforce 0 Paperwork and laws 0 Science Strategic Human Resource Planning consists of developing a systematic comprehensive strategy for understanding current employee needs and predicting future employee needs 0 Tangible intangible resources 0 Attitudesvalues of employees teamwork trust ethics 0 Human capital economic potential of employees knowledgeexperience 0 Social capital economic potential of employees relationships Job Analysis determining the basic elements of a job by observation and analysis 0 Interview 0 Observe 0 Analyze work process 0 Algorithmic manual assembly line 0 Heuristic creative nonroutine Job Description summarizes what the holder of a job does and why they do it 0 Duties of job Job Specification describes the minimum qualifications a person must have to perform a job successfully 0 Work experience 0 Education certifications 0 Personal factors Human Resource Inventory report listing your organization s employees by name education training languages and other important information National Labor Relations Board enforces procedures whereby employees may vote for a union and collective bargaining Collective bargaining negotiations between management and employees about disputes over compensation benefits working conditions and job security Privacy Act employee can view letters of reference Fair Labor Standards Act of 1939 0 Established minimum living standards for workers engaged in interstate commerce including provision of a federal minimum wage 0 Overtime pay if work more than 40 hours per week 0 Fair Minimum Wage Act changed to 725 in 2009 0 Family and Medical Leave Act 12 weeks paidunpaid leave for childbirth adoption family emergencies Equal Employment Opportunity Commission job is to enforce antidiscrimination and other employment related laws 0 Civil Rights Act 1964 Title VII prohibits discrimination based on race religion color national origin gender Added later age 40 disability physical intellectual mental psychological emotional family status pregnancy Disability 0 Reasonable accommodation do essential function of job provide reasonable accommodation 0 Undue hardship as long as employee isn t stressed financially 0 Major life activity disability claimed must affect them outside of work walk care standing learning 5 senses Discrimination occurs when people are hired or promoted or denied hiring or promotion for reasons not relevant to the job 0 Job relevant qualifications 0 Typically not job relevant financial background political values lifestyle Affirmative Action focuses on achieving equality of opportunity within an organization including establishment of minority hiring goals 0 spirit 0 Steps taken to eliminate the present effects of past discrimination Affirmative Action Tie breaker equal minimum qualifications of high school degree 0 Choose minority candidate to bring diverse spirit in work place Reverse Discrimination hire the minority when they do not have job qualifications illegal Bonafied Occupational Qualification relevant to job but if employer looks beyond those one is being discriminated foragainst you KSA knowledge skills abilities 0 Nondiscriminating Desire of minority groups in organization in available labor market Adverse Impact occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class 0 Didn t realize outcome would occur Disparate Treatment results when employees from protected groups are intentionally treated differently 0 Saying I will not hire a woman for this job Sexual Harassment consists of unwanted sexual attention that creates an adverse work environment 0 Touch gesture speech visual displays more 0 Manager coworker outsider 0 Quid pro guo tangible economic injury If I sleep with you I ll get a raise Doesn t get a raise 0 Hostile environment offensive work environment Distressing to be surrounded by environment Recruitment process of locating and attracting qualified applicants for jobs open in the organization 0 Internal external 0 1 source of recruiting employee referral Realistic Job Preview Gives a candidate a picture of both the positive and negative features of the job and the organization before he is hired 0 People tend to quit less frequently and be more satisfied 0 Upside lower turnover longer tenure Selection Process screening of job applicants to hire the best candidate 1 Background info Application forms resumes reference checks 2 Interview 3 Tests WEPs 0 Application resume falsehoods 0 References muted When referencing 0 Job title 0 Job duties 0 Dates of employment Unstructured Interview 0 No fixed set of questions and no systematic scoring procedure 0 Involves asking probing questions to find out what the applicant is like 0 Very subjective 0 Very revealing 0 A lot of legal vulnerability Structured Interview 0 Involves asking each applicant the same questions and comparing their responses to a standardized set of answers 0 Situational focuses on hypothetical situations 0 Behavioral explore what applicants have actually done in the past 0 Very objective 0 Legally sound 0 Less revealing Employment tests 0 Legally considered to consist of any procedure used in the employment selection decision process 0 Ability performance personality 0 Reliability same result 0 Validity test measures job relevant skills and traits Orientation 0 Helping the newcomer fit smoothly into the job and the organization 0 Designed to give employees the information they need to be successful 0 Formal meeting employee manual 0 Informal pull employee aside 0 Onboarding bringing people on board Following orientation the employee should emerge with information about 0 The job routine 0 The organization s mission and operations 0 The organization s work rules and employee benefits Layers of culture 0 Observable culture 0 Espoused values 0 Core values basic underlying assumptions Five Steps in the Training Process 1 Assessment Is training needed 2 Objectives What should training achieve 3 Selection Which training methods should be used 4 Implementation How should training be effected 5 Evaluation Is the training working Creating human and social capital Training educating technical and operational employees in how to better do their current jobs 0 Algorithmic jobs 0 Hard skills Development educating professionals and managers in the skills they need to do their jobs in the future 0 Heuristic jobs 0 Soft skills Job Coach expert employee assigned to guide new employee Job Rotation new employee works in different job functions to acquire conceptual skills along with technical skills Performance management the continuous cycle of improving job performance through goal setting feedback coaching rewards and positive reinforcement Performance appraisal consists of assessing an employer s performance and providing him with feedback 0 Objective appraisal Based on fact and often numerical Measure results Harder to challenge legally Also called results appraisal 0 Subjective appraisal Based on a manager s perceptions of an employees traits and behaviors BARS rates employee gradations in performance according to scales of specific behaviors Who should make performance appraisals 0 Peers and subordinates 0 Customers and clients 0 Selfappraisals Forced ranking all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve Effective Performance Appraisal 0 Formal appraisal conducted at specific times throughout the year and based on performance measures that have been established in advance Documented Legal enforcement strong Strong tie to promote pay fire 0 Informal appraisal conducted on an unscheduled basis and consists of less rigorous indications of employee performance Not documented Weak legal enforcement Weak tie to promote pay fire Summary of Typical Job Performance Appraisal 50 hard skills 50 soft skills 50 objective score 50 subjective summary Compensation wages or salaries incentives and benefits Base pay basic wage or salary paid employees in exchange for doing their jobs Problems with Performance Appraisals Time time consuming for manager Inaccurate manager has incomplete info Imperfect manager uses perception bias vs reality Inconsistent unevenly weighted to recency and critical effects drawn to highs and lows Infrequent annual Lack meritocracy rewards are not based on individual merits You get paid in life according to performance appraisal
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