Exam 2 Review
Exam 2 Review
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Date Created: 10/05/15
Planning 0 Benefits of Planning 0 Intensified effort Managersampemployees put forth effort when following a plan 0 Persistence Working hard for long periods Planning encourages persistence even when there may be little chance of short term success 0 Direction Plans encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don t 0 Creation of task strategies Planning not only encourages people to work hard for extended periods and to engage in behaviors directly related to goal accomplishment it also encourages them to think of better ways to do their jobs 0 Pitfalls of Planning 0 Impedes change and prevents or slows adaptation Sometimes companies become so committed to achieving the goals set forth in their plans or on following the strategies and tactics spelled out in them that they fail to see that their plans aren t working or that their goals need to change 0 Creates a false sense of certainty Planners sometimes feel that they know exactly what the future holds for their competitors their suppliers and their companies If however their assumptions about the future are wrong then the plans which are based on the assumptions will only lead to failure 0 Detachment of planners In theory strategic planners and top level managers are supposed to focus on the big picture and not concern themselves with the details of implementation ie carrying out the plan According to Henry Mintzberg detachment leads planners to plan for things they don t understand 0 How to Make a Plan that Works 0 1 Set Goals V 73177 39V 757 39 SpeCIflc 59 Dar Glow Dw l p Track amtam gums cenmmmmm emetiw pmgrlss flexibility 39 Measurable Abier391 l39rlgi zi39unaxmt J Attainable Realistic Timely o 2 Develop commitment 39 Goal commitment Yarn The determination to achieve a goal It is not automatic managers and workers must choose to commit themselves to a goal Set goals collectively Most popular approach to increase goal commitment Rather than assigning goals to workers managers and employees choose goals together Make the goal public Obtain top management s support Top management can show support for a plan or program by providing funds speaking publicly about the plan or participating in the plan itself 0 3 Develop effective action plans An action plan lists the specific steps how people who resources what and time period when for accomplishing a goal 0 4 Track progress toward goal achievement Set proximal goals and distal goals Proximal goals are short term goals or subgoals whereas distal goals are long term or primary goals The idea behind setting proximal goals is that achieving them may be more motivating and rewarding than waiting to reach far off distal goals Proximal goals are less intimidating and more attainable than distal goals which often feel like biting off more than you can chew Proximal goals enable you to achieve a distal goal one little piece at a time Gather and provide performance feedback Regular frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort direction and strategies Proper action on performance feedback can keep you from failing to adapt one of the pitfalls of planning 0 5 Maintain exibility Optionsbased planning keep options open by making small simultaneous investments in many alternative plans Then when one or a few of these plans emerge as likely winners you invest even more in these plans while discontinuing or reducing investment in the others Availability of slack resources a cushion of resources like extra time or money that can be used to address and adapt to unanticipated changes 0 Revise existing plan or Begin planning process anew 0 Planning from Top to Bottom Vision Middle Managers 539 Pirate avail Managers 0 Starting at the Top ll Strategic plans make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years 393 Purpose statement a statement of a company s purpose or reason for existing Strategic objective a more specific goal that unifies company wide efforts stretches and challenges the organization and possess a finish line and a time frame 0 Bending in the Middle Tactical plans specify how a company will use resources budgets and people to accomplish specific goals related to its strategic objective 0 6 months to 2 years Management by Objectives MBO A management technique often used to develop and carry out tactical plans 0 1 discuss possible goals 2 collectively select goals that are challenging attainable and consistent with the company s overall goals 3 jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives and 4 meet regularly to review progress toward accomplishment of those goals 0 Finishing at the Bottom Operational plans the day to day plans for producing or delivering the organization s products and services Operational plans direct the behavior efforts and priorities of operative employees for periods ranging from 30 days to 6 months 0 Singleuse Plans deal with unique one time only events 0 Standing Plans can be used repeatedly to handle frequently recurring events 0 Policies indicate the general course of action that company managers should take in response to a particular event or situation 0 Procedures are more specific than policies because they indicate the series of steps that should be taken in response to a particular event 0 Rules and regulations are even more specific than procedures because they specify what must or must not happen and often describe precisely how a particular action should be performed 0 Budgets quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals 0 Steps to Rati0nal Decision Making 0 1 Define the problem A problem eXists when there is a gap between a desired state what is wanted and an eXisting state the situation you are actually facing First managers have to be aware of the gap Second managers have to be motivated to reduce the gap between a desired state and an eXisting state Third managers must also have the knowledge skills abilities and resources to fiX the problem 0 2 Identify decision criteria The standards used to guide judgments and decisions O 3 Weight the criteria Deciding which criteria are more or less important Absolute comparisons each criterion is compared with a standard or ranked on its own merits Relative comparisons each criterion is compared directly with every other criterion 0 4 Generate alternative courses of actions After identifying and weighting the criteria that will guide the decision making process the next step is to identify possible courses of action that could solve the problem In general at this step the idea is to generate as many alternatives as possible 0 5 Evaluate each alternative systematically evaluate each alternative against each criterion The key is to use information to systematically evaluate each alternative against each criterion 0 6 Compute the optimal decision Done by multiplying the rating for each criterion by the weight for that criterion and then summing those scores for each alternative course of action that you generated 0 Limits to Rational Decision Making 0 In theory fully rational decision makers maximize decision by choosing the optimal solution 0 In theory fully rational decision makers maximize decision by choosing the optimal solution 0 To make completely rational decisions managers would have to operate in a perfect world with no real world constraints Of course it never actually works like that in the real world Managers face time and money constraints They often don t have time to make extensive lists of decision criteria And they often don t have the resources to test all possible solutions against all possible criteria I Managers often satisfice choose a good enough alternative 0 Advantages of Group Decision Making 0 Groups do a better job than individuals at De ning the problem and generating alternative solutions 0 Pitfalls of Group Decision Making 0 Groupthink group members feel intense pressure to agree with each other so that the group can approve a proposed solution I The group is insulated from others who might have different perspectives I The group leader begins by expressing a strong preference for a particular decision I The group has no established procedure for systematically defining problems and eXploring alternatives I Group members have similar backgrounds and experiences 0 Takes considerable time Reconciling schedules so that group members can meet takes time Furthermore it s a rare group that consistently holds productive task oriented meetings to effectively work through the decision process Some of the most common complaints about meetings and thus group decision making are that the meeting s purpose is unclear participants are unprepared critical people are absent or late conversation doesn t stay focused on the problem and no one follows up on the decisions that were made 0 Strong willed members Sometimes one or two people perhaps the boss or a strong willed vocal group member can dominate group discussions and limit the group s consideration of different problem definitions and alternative solutions And unlike individual decisions where people feel personally responsible for making a good choice another potential problem is that group members may not feel accountable for the decisions made and actions taken by the group 0 Structured Conflict O Ctype cognitive con ict focuses on problem and issue related differences of opinion willingness to examine compare reconcile differences to produce the best possible solution 0 Atype affective con ict emotional reaction that can occur when disagreements become personal results in hostility anger resentment distrust cynicism apathy 0 Creating Ctype con ict 0 Devil s advocacy assigning an individual or a subgroup the role of critic The following five steps establish a devil s advocacy program 1 Generate a potential solution 39I 2 Assign a devil s advocate to criticize and question the solution 3 Present the critique of the potential solution to key decision makers 4 Gather additional relevant information 5 Decide whether to use change or not use the originally proposed solution o Dialectical Inquiry forcing decision makers to state the assumptions of a proposed solution a thesis and then generate a solution that is the opposite antithesis of the proposed solution The following are the five steps of the dialectical inquiry process 1 Generate a potential solution quot 2 Identify the assumptions underlying the potential solution 3 Generate a con icting counterproposal based on the opposite assumptions 4 Have advocates of each position present their arguments and engage in a debate in front of key decision makers 5 Decide whether to use change or not use the originally proposed solution 0 Nominal Group Technique in name only it begins with a quiet time in which group members independently write down as many problem definitions and alternative solutions as possible In other words the nominal group technique begins by having group members act as individuals Then meet and share ideas 0 Delphi Technique the members of a panel of experts respond to questions and to each other until reaching agreement on an issue The first step is to assemble a panel of experts Unlike other approaches to group decision making however it isn t necessary to bring the panel members together in one place Because the Delphi technique does not require the experts to leave their offices or disrupt their schedules they are more likely to participate The second step is to create a questionnaire consisting of a series of open ended questions for the group In the third step the group members written responses are analyzed summarized and fed back to the group for reactions until the members reach agreement Asking group members why they agree or disagree is important because it helps uncover their unstated assumptions and beliefs Again this process of summarizing panel feedback and obtaining reactions to that feedback continues until the panel members reach agreement 0 BrainstormingElectronic brainstorming group members build on others ideas I The more the better All ideas are acceptable no matter how wild or crazy they might seem Other group members ideas should be used to come up with even more ideas Criticism or evaluation of ideas is not allowed I Electronic brainstorming group members use computers to communicate and generate alternative solutions Strategy 0 Competitive Advantage 0 Resources assets capabilities processes employee time information and knowledge that an organization controls 0 Competitive advantage providing greater value for customers than competitors 0 Sustainable competitive advantage when other companies cannot duplicate the value a firm is providing to customers Resources must be Valuable Rare Imperfectly imitable Nonsubstituable 0 3 Steps of strategyMaking Process 0 Assess
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