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63 Cards in this Set
- Front
- Back
Four elements for managing in the new competitive landscape
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1) Globalization
2) Technological change 3) Knowledge management 4) Collaboration across boundaries |
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Five drivers for competitive advantage
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1) Innovation
2) Quality 3) Service 4) Speed 5) Cost competitiveness |
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Definition of management
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The process of working with people and resources to accomplish organizational goals effectively and efficiently using FOUR functions: Planning, Organizing, Leading, Controlling (POLC)
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Planning
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Delivering strategic value (setting goals)
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Organizing
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Building a dynamic organization (allocating resources)
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Leading
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Mobilizing people (motivate/empowering employees)
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Controlling
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Learning and changing (monitoring and correcting)
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Management levels and skills
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1) Top-level managers
2) Middle-level managers 3) Frontline managers |
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Top-level managers
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Senior executive responsible for the overall management of the organization
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Middle-level managers
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Located in the middle layers of the organizational hierarchy reporting to top-level managers
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Frontline managers
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Supervise the operational activities of the organization; also called operational managers
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Globalization
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- Strong demand for products/services from all over the world
- strong demand for talent - internet access across the globe - world has shrunk - global marketplace (efficient/advanced logistics) |
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Technological change
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- The internet's impact on globalization: increased speed of communication, the internet as a marketplace
- Problems: stress when employees/supervisors do not set limits on being connected, lengthening of the workday due to constant access |
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Knowledge management
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- growing need for good, new ideas generates demand for knowledge workers
- challenges: managers cannot simply measure output of knowledge workers, managers should provide knowledge workers with interesting work to increase motivation |
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Collaboration across boundaries
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- People in different parts of the organization must collaborate with one another; often times, across the globe
- collaboration also entails moving beyond the boundaries of the organization itself |
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Ten manager roles
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1) Monitor
2) Disseminator 3) Spokesperson 4) Figurehead 5) Leader 6) Liaison 7) Entrepreneur 8) Disturbance handler 9) Resource allocator 10) Negotiator |
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Managing your career
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- be both specialist and a generalist
- be self-reliant: to take full responsibility for yourself, your actions, and your career - be connected: to have many good working relationships with your team - actively manage your relationship with your organization - survive and thrive |
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History of management
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Classical Approaches
- Systematic management - Scientific management - Bureaucracy - Administrative management Contemporary Approaches - Quantitative management - Organizational behavior - Systems theory - Contingency theory Current and future revolutions |
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Levels of goals and plans
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1) MIssion Statement
2) Strategic Goals/Plans; Senior management (organization as a whole) 3) Tactical goals/plans; Middle management (major divisions, functions) 4) Operational goals/plans; Lower management (departments, individuals) |
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SMART goals
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- The situational analysis generates alternative goals -- targets or ends the manager wants to reach and should be SMART
Specific, Measurable, Attainable (but challenging), Relevant, Time-bound Plans are the actions or means managers intend to use to achieve organizational goals |
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Strategic management process
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1) Establishment of mission, vision, and goals
2) Analysis of external opportunities and threats 3) Analysis of internal strengths and weaknesses including resources and core competencies 4) SWOT analysis and strategy formulation including corporate strategy, the BCG matrix, and business strategy 5) Strategy implementation 6) Strategic control |
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SWOT Analysis
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Strengths
Weaknesses Opportunities Threats |
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Core competency
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- Resources are rare
- Resources are organized - Resources are valuable - Resources are inimitable |
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Corporate Strategies
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Identifies a set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities
- Concentration - Vertical Integration - Concentric diversification - Conglomerate diversification |
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Concentration
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Strategy employed for an organization that operates a single business and competes in a single industry
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Vertical Integration
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Acquisition or development of new businesses that produce parts or components of the organization's product
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Concentric diversification
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Strategy used to add new businesses that produce related products or are involved in related markets and activities
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Conglomerate diversification
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Strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities
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Business Strategies
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Describes the major actions by which a business competes in a particular market
- Low-cost strategies - Differentiation strategies - Functional strategies |
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Low-cost strategies
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A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product
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Differentiation strategy
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A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one more more dimensions
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Functional strategies
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Strategies implemented by each functional area of the organization to support the organization's business strategy
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Types of plans
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- SIngle-use plans
- Standing plans - Contingency plans |
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SIngle-use plans
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Designed to achieve a set of goals that are not likely to be repeated in the future, e.g., programs and projects
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Standing plans
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Focus on ongoing activities designed to achieve an enduring set of goals, e.g., policies, rules, and procedures
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Contingency plans
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Actions to be taken when a company's initial plans have no worked or require sudden change, i.e., Plan B
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Types of control systems
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Any process that directs the activities of individuals toward the achievement of organizational goals
- Bureaucratic - Market - Clan |
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Bureaucratic control
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Uses formal rules, standards, hierarchy, and legitimate authority. Works best where tasks are certain and workers are independent.
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Market control
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Uses prices, competition, profit centers, and exchange relationships. Works best where tangible output can be identified and market can be established between parties.
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Clan control
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Involves culture, shared values, beliefs, expectations, and trust. Works best where there is "no one best way" to do a job and employees are empowered to make decisions
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The Control Cycle
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1) Setting performance standards
2) Measuring performance 3) Comparing performance with the standard 4) Taking corrective action to correct problems and reinforce success |
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Approaches to Bureaucratic Control
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- Feedforward control
- Concurrent control - Feedback control |
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Feedforward control
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The control process used before operations begin including policies, procedures, and rules designed to ensure that planned activities are carried out properly
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Concurrent control
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The control process used while plans are being carries out including directing, monitoring, and fine-tuning activities as they are performed
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Feedback control
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Control that focuses on the use of information about previous results to correct deviations from acceptable standard
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Six sigma
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At this level, a process is producing fewer than 3.4 defects per million units, meaning the process is operating at a 99.99966% level of accuracy
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Operations Management
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The management of systems or processes that create goods and/or provide services
Affects: - companies' ability to compete - nation's ability to compete internationally |
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Key differences between manufacturing goods vs. services operations
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1) customer contact
2) uniformity of input 3) labor content of jobs 4) uniformity of output 5) measurement of productivity 6) production and delivery 7) quality assurance 8) amount of inventory 9) evaluation 10) ability to patent |
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Why manufacturing matters
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- over 18 million workers in manufacturing jobs
- accounts for over 70% of value in US exports - average full-time mfg compensation pkg is about 20% higher than average of all workers - manufacturing workers more likely to have benefits, e.g., health and life ins, disability, retirement plans, and vacation and sick leave - productivity growth in mfg in the last 5 years is more than double US economy - more than half of the total R&D performed is in the mfg industries - mfg workers in CA earn an avg of about $25,000 more a year than service workers - when a CA mfg job is lost, an avg of 2.5 service jobs are lost - an OM from mfg applies to service industry as well |
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Operation management evolution
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- Industrial evolution (1770s)
- Scientific management (1911) Mass production Interchangeable parts Division of labor - Human relations movement (1920-60) - Decision models (1915, 1960-70s) - Influence of Japanese manufacturers (80s) |
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Competitiveness
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How effectively an organization meets the wants and needs of customers relative to others (other competitors) that offer similar goods or services
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Distinctive competencies
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- The special attributes or abilities that give an organization a competitive edge
- If you are not careful in combining two or more approaches, you may lose focus and do not achieve advantage in any category because strategy formulation takes into account the way organizations compete and a particular organization's assessment of its own strengths and weaknesses. |
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Operations strategy
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The approach, consistent with organization strategy, that is used to guide the operations function
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Value Analysis
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An examination of the function of parts and materials in an effort to reduce cost or improve the performance of a product
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Design for Operations (DFO)
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Taking into account the operational capabilities of the organization in designing goods and services.
Failure to take this into account can: - reduce productivity - reduce quality - increase costs |
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Standardization
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Extent to which there is an absence of variety in a product, service or process, e.g. calculators, automatic car-wash
These products are: - immediately available to customers - interchangeable parts - e.g. GM's standardization on key components (brakes, electrical systems) |
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Mass Customization
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A strategy or producing basically standardized goods of services, but incorporating some degree of customization
1) delayed differentiation 2) modular design |
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Delayed differentiation
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"postponement" - not quite completing production until customer preferences are known, e.g. HP printers-A/C, manuals
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Modular design
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a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.
It allows: - easier diagnosis and remedy of failures - easier repair and replacement - simplification of manufacturing and assembly |
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Reverse engineering
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Dismantling and inspecting a competitor's product to discover product improvements
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Concurrent engineering
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Bringing together product design and manufacturing engineering people early in the design phase to simultaneously develop the product/processes
- "over-the-wall" approach - breaking the traditional "us vs. them" mentality |
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Remanufacturing
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Refurbished used products by replacing worn-out or defective components
- these products can be sold for 50% of the cost of a new product - can use unskilled/semiskilled labor - some gov'ts require manufacturers to take back used products |
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Quality function deployment
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An approach that integrates the "voice of the customer" into the product and service development process
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