Management 3000 Exam 1
Tim Waid
Terms
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- Intellectual Capital
- Knowledge of the workforce that can be used to create value. Knowledge is foundation in measuring organizational performance.
- Ethics
- Influences workplace b/c it's manager's job to run the company in a way that displays ethical behavior and integrity to make sure they don't get in legal trouble
- Technology
- Always changing, being updated in workplace. That raises importance and value of knowledgeable workers in company
- Globalization
- Bringing increased interdependencies among nations and economies. Gov'ts must worry about competition of nations like corporations worry about competitors.
- How must companies value the talent of the workforce in regard to a diverse talent pool?
- Gender, ethnicity, race, able-bodiedness, and lifestyles
- Environment's influence on Organizations
- They operate in open systems thanks to adapting to environmental changes. Environmental feedback tells company how they're doing, provides chances for constructive feedback to make needed changes.
- Productivity
- Measures quantity and quality of company's outputs relative to costs of company's inputs.
- Effectiveness
- Measures your ability to accomplish the goals of the company
- Efficiency
- Measures your ability to allocate your resources to accomplish these goals as cost effectively as possible
- What are some ways organizations are changing?
- Increased belief in human capital, change from managers just telling workers what to do to those who participate and treat employees with respect, emphasis on teamwork, changes in technology, importance of networking
- Various types of managers
- Board of trustees (make sure company is run properly and in right direction), top managers (set strategy and lead org consistently to company's mission and purpose), middle managers (oversee work of large departments and divisions of the company), team leaders (work hand in hand w/ hourly employees to make sure day-to-day stuff runs well).
- Quality of work life
- Overall quality of experiences in the workplace. If worker is happier & has good experience each time they show up, they'll be more productive.
- Organization
- A collection of people working together to achieve a common purpose. Open system that transform resource inputs into outputs in form of goods or services. They perform and create value.
- How do organizations create value?
- Create profits and/or social wealth (making world a better place), create positive perception/brand recognition, create jobs
- What are the four management activities?
- Plan, Organize, Lead, Control
- Plan
- Specify the goals to be reached and decide appropriate actions to take to get those goals --> WHAT ARE YOU GOING TO DO?
- Organize
- Assemble & coordinate resources (human, financial, physical, informational, and others) needed to achieve goals --> what do you NEED to do it?
- Lead
- Stimulate individuals to high performance both individually and in groups through direction, motivation, and communication --> HOW are you going to do it? (style)
- Control
- Monitor progress and implement needed changes to ensure goals are met --> DID you do it?
- Strategic (Top-level) managers
- Senior executives responsible for overall management, develop long-term strategies for survival, growth and effectiveness of company. Macro environment, long-term, general, subjective, all stakeholders
- Operational (frontline) managers
- Supervise day-to-day operations of hourly employees. Competitive environment, short-term (all about TODAY), detail, objective, deal with employees/customers
- Tactical (Mid-level) managers
- Translate general goals and plans made by strategic managers into specific objectives. Deals with both strategic and operational managers (ex: director of regional stores)
- Downward flow of management info
- Top to bottom. Long term strategies, external environment info, policies, directives, goals, plans.
- Upward flow of management info
- Hourly employees to top managers. Suggestions, feedback, day-to-day detail, product/customer info
- Directive management view
- Top to bottom. What can you employees do for us managers?
- Supportive management view
- Hourly employees are on frontline "fighting the battle." What can managers do for the employees?
- Line manager
- Responsible for work activities directly affecting organization's outputs (BOH manager)
- Staff manager
- Use tech expertise to advise and support efforts of line workers (buying supplies)
- Functional manager
- Responsible for a single area of activity/specific department
- General manager
- Responsible for complex units that include many functional areas
- Administrators
- Work in public and non-profit organizations
- Management skillset
- Hard skills (what you know/think/do) vs Soft skills (what you show/feel/illustrate), Micro vs Macro skills, Specialized skills vs General skills, Formal vs Informal skills, Networking (relating w/ people and sources of info) skills vs Server (become source of info for others) skills
- How are organizations and managers evaluated?
- Through productivity, effectiveness (output measure), and efficiency
- Dimensions of productivity
- Goal attainment vs resource utilization. Achieve goals and waste resources? or some other way?
- What are benefits of planning?
- Improves: focus and flexibility, action orientation, coordination, time management, control.
- What are the steps of planning?
- Specify, benchmark, anticipate, options, measure
- Strategic plans
- Set broad, comprehensive and long-term action directions for entire organization. Vision clarifies purpose of org and what it hopes to be in the future (expressed in mission statement)
- Tactical plans
- Help implement all or parts of the strategic plan
- Functional plans
- Indicate how different operations w/in org will help accomplish overall strategy. Includes: production, financial, facilities, marketing, HR, logistics plans
- Operational plans
- Highest level of detail. Identify short-term activities to implement strategic plans. Includes: policies, procedures, budgets
- Policies
- Standing plans that communicate guidelines for decisions
- Procedures
- Rules that describe actions to be taken in specific situations
- Budgets
- Plans that commit resources to projects or activities. (Zero based budgets allocate resources as if each budget were brand new)
- Forecasting
- Assumptions about what will happen in the future. Qualitative ones use expert opinions. Quantitative use math and stats.
- Benchmarking
- Use of external comparisons to evaluate performance and identify possible future actions. Adopt best practices of other organizations to achieve superior performance
- Characteristics of effective goals
- Specific, Measurable, Acceptable/Attainable, Realistic & challenging, Timed (SMART)
- Principles of effective goals
- Avoid too many goals at the same time. Proper format: to (action verb) (measurable goal) (by deadline)
- What is a value chain?
- Analysis of org as a series of activities - each of which adds or removes value to or from products and/or services
- Primary value processes
- "Touch these." Receive and store raw materials, make the product or service, deliver the product or service, market and sell it, service post sale
- Support value processes
- Administrative management, HR management, R&D, purchasing (leave these alone)
- What are the two distribution models?
- Traditional: buy (from manufacturer), hold (in warehouse), sell (at retail store) --> ex: IBM. Modern: sell (online to customer), source (other companies make other components), ship (through 3rd party) --> ex: Dell
- Logistics
- Movement of parts, subassemblies and finished goods w/in a supply chain involving handling and transportation
- Just-in-time Inventory
- Ordering and/or delivering the exact amount of goods required at exactly the right time they're needed to reduce inventory, save costs, and improve quality
- Cycle time
- Amount of time from an order placement until order receipt for customer.
- Economies of scope
- Mass production. # of machines > # of people. Specialization, lower costs, control.
- Push vs pull approach
- Push: top to bottom (including customer), directive management, managing is science, org tells you what you need (standardization). Pull: supportive management, managing is art, org asks employee/customer what they want (customization)
- Outsourcing
- Company focuses on core-competency work, sends 'out' other work
- Offshoring
- Company seeks low-cost manufacturing sites overseas
- Insourcing
- Company offers value-added activity to business partner 'inside'
- Reshoring
- Shift back to state-side production
- What are the five macro environment forces?
- Economic, legal-political, socio-cultural, technological, natural environment
- What are primary constituents?
- Employees, customers, stockholders, communities, suppliers
- What are secondary constituents?
- Gov't, media, creditors, unions, education system
- What are some competitive advantages?
- Products, pricing (Walmart), Customer service (Amazon), cost efficiency, quality (Honda), knowledge, speed (Wendy's, Taco Bell), entry barriers, financial resources (Apple, Exxon)
- What are two dimensions of environmental uncertainty?
- Degree of complexity and rate of change.
- What do good mission statements identify?
- Customers (Starbucks), products and/or services (Harley Davidson), location (Walgreens), underlying philosophy (PETA). Important test is: how well it serves org's stockholders
- SWOT analysis
- Examine org's current position by looking at: internal Strengths and Weaknesses, external Opportunities and Threats. Match strengths and opportunities, avoid exposure of weaknesses to threats.
- Growth strategies
- Seek an increase in size and expansion of current operations (McDonalds, Walmart, Subway).
- Concentration strategies
- Grow w/in same business area (Pepsi pushing Mountain Dew on consumers)
- Diversification strategies
- Grow by acquiring or investing in new and different business areas. Related: Pepsi buying Gatorade. Unrelated: Walt Disney going from cartoons to theme parks. Vertical integration: Pepsi buying Taco Bell, KFC and Pizza Hut