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105 Cards in this Set
- Front
- Back
Planning |
1. Setting goals and deciding how to achieve them
2. Coping with uncertainty by formulating future courses of action to achieve specified results |
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Reasons Not To Plan |
1. Planning requires you to set time aside to do it.
2. You may have to make some decisions without a lot of time to plan. |
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Benefits Of Planning |
1. Planning helps you check on your progress.
2. Planning helps you coordinate activities.
3. Planning helps you think ahead.
4. Planning helps you cope with uncertainty!!! |
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Strategies Types for Dealing with Uncertainty (Raymond Miles and Charles Snow) |
1. Defenders: "Let's stick to what we do best"; experts at producing narrowly defined products 2. Prospectors: "Let's create our opportunities"; focus on developing new products 3. Analyzers: Let let other take the risk then imitate or improve. 4. Reactors: Make adjustments only when forced to by environment. |
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The Adaptive Cycle (Raymond Miles and Charles Snow) |
1. Entrepreneurial: selecting and making adjustments of products and markets
2. Engineering: producing and delivering the products
3. Administrative: establishing roles, relationships, and organizational processes |
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Mission Statement |
"What is our reason for being?" |
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Vision Statement |
"What do we want to become?" |
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Strategic Planning |
Done by top managers for the next 1-5 years
Long term decisions about overall direction of organization |
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Tactical Planning |
Done by middle managers for the next 6-24 months
Implement policies/plans of top management; make decisions without clearly defined procedures |
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Operational Planning |
Done by first-line managers for the next 1-52 weeks
Direct daily tasks of non managerial personnel; make decisions with well-defined set of procedures |
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Goal |
specific commitment to achieve a measurable result within a stated time period |
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Action Plan |
Defines course of action needed to achieve the stated goal |
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Operating Plan |
Defines how you will conduct your business based on the action plan; identifies clear targets (revenues, cash flow, etc) |
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Types of Plans |
Standing Plan
Single Use Plan |
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Standing Plans |
Policy: standing plan the outlines the general response to a designated problem
Procedure: Standing plan that outlines response to a particular problem
Rule: Standing plan that designates specific required action |
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Single Use Plans |
Program: single use plan encompassing a range of projects or activities
Project: single use plan of less scope and complexity than a program |
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SMART Goals |
Specific Measurable Attainable Results-oriented Target Date |
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Management by Objectives (MBO) |
1. Jointly Set Objectives 2. Develop Action Plan 3. Periodically Review Performance 4. Give Performance Appraisal and Rewards |
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Requirements for MBO to be successful |
1. Top management must be committed
2. It must be applied organization-wide
3. Objectives must "cascade" (work their way down getting more specific along the way) |
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Planning/Control Cycle Steps |
Planning 1. Make the plan 2. Carry out the Plan
Control 3. Control the direction by comparing results 4. Control the direction by: a. correcting deviations b. improving future plans |
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Business Plan |
document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success |
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Strategy |
large scale action plan that sets the direction for an organization |
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Strategic Management |
process that involves managers from all parts of the organization in the formulation and implementation of strategies and strategic goals |
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Reasons organizations should adopt strategic management and strategic planning |
1. providing direction and momentum
2. encouraging new ideas
3. developing a sustainable competitive advantage |
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Sustainable competitive advantage occur when organization can get and stay ahead in: |
1. being responsive to customers
2. innovating
3. quality
4. effectiveness |
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Michael Porter |
"most important strategist working today" |
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Strategic Positioning |
attempts to achieve sustainable competitive advantage by preserving with is distinctive about the company-Michael Porter |
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Key Principles of Strategic Positioning |
1. Strategy is the creation of a unique and valuable position
2.Stratagy required trade off is in competing
3. Strategy involves creating a "fit" among activities |
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3 Sources of strategic positioning |
1. few needs, many customers
2. broad needs, few customers
3. broad needs, many customers |
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5 steps of strategic management process |
1. Establish the mission and the vision. 2. Establish the grand strategy with environmental scanning. 3. Formulate the strategic plans. 4. Carry out the strategic plans. 5. Maintain strategic control. |
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Grand Strategy |
after assessment of current organizational performance, explains how the organization's mission is toe be accomplished |
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3 common grand strategies |
1. growth: expansion
2. stability: little or no significant change
3. defensive (retrenchment): reduction in organization's efforts |
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Strategic Formulation |
process of choosing among different strategies and altering them to best fit the organization's needs |
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Strategy Implementation |
putting strategic plans into effect |
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Strategic Control |
monitoring the execution of strategy and making adjustments if necessary
a. engage people b. keep it simple c. stay focused d. keep moving (Bryan Barry) |
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3 Kinds of strategic planning tools/techniques |
1. competitive intelligence
2. SWOT analysis
3. forecasting |
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competitive intelligence |
gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately |
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Ways to gain competitive intelligence |
public prints and advertising
investor information
informal sources |
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Environmental Scanning |
careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats |
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SWOT Analysis |
Internal: strengths, weaknesses
External: opportunities, threats |
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2 types of forecasting |
trend analysis: hypothetical extension of a past series of events into the future
contingency planning (scenario analysis): creation of alternative hypothetical but equally likely future conditions |
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Porter's 5 competitive forces (from Porter's model for industry analysis) |
1. threats of new entrants 2. bargaining power of suppliers 3. bargaining power of buyers 4. threats of substitute products or services 5. rivalry among competitors |
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Porters's 4 competitive strategies |
1. Cost leadership strategy: keep costs/prices low for a wide market) 2. Differentiation strategy: offer unique and superior value for a wide market 3. Cost focus strategy: keep costs/prices low for a narrow market 4. Focused differentiation strategy: offer unique and superior value for a narrow market
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single product strategy |
company makes and sells one product within its market
pro: focused con: vulnerable
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diversification strategy |
operating several businesses in order to spread the risk
unrelated: independent business lines related: related business lines (reduced risk, management efficiencies, synergy) |
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BCG (Boston Consulting Group) matrix |
means of evaluating strategic business units on the basis of
1. their business growth rates 2. their share of the market |
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Execution: the discipline of getting things done |
Larry Bossidy
Rama Charan |
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execution |
central part of any company's strategy. consists of questioning, analysis, and follow-through to mesh strategy with reality. |
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3 core processes of business |
People: who will benefit you in the future
Strategy: how success will be accomplished
Operations: what path will be followed |
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7 essential types of leader behaviors |
1. know your people and your business 2. insist on realism 3. set clear priorities 4. follow through 5. reward the doers 6. expand people's capabilities 7. know yourself |
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decision |
choice made from among available alternatives |
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decision making |
process of identifying and choosing alternative courses of action |
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rational (classical) model of decision making |
explains how managers should make decisions |
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4 steps in rational decision making |
1. identify the problem
2. think up alternative solutions
3. evaluate alternatives and select solution
4. implement and evaluate chosen solution |
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nonrational model of decision making |
explains how managers actually make decisions |
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3 nonrational decision models |
1. satisficing: managers seek alternatives until that find satisfactory, not optimal
2. incremental: managers take small short term steps to alleviate a problem
3. intuition: making a choice without use of conscious thought or logical inference |
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7 implementation principles of evidence based management
Jeffrey Pfeffer and Robert Sutton |
1. treat organization as unfinished prototype 2. no brag, just facts 3. see your organization as outsiders do 4. not just for senior executives 5. like everything else, you still need to sell it 6. if all else fails, slow the spread of bad practice 7. best diagnostic question" what happens when people fail? |
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What makes it hard to be evidence based? |
1. there's too much evidence 2. there's not enough good evidence 3. the evidence doesn't quite apply 4. people are trying to mislead you 5. YOU are trying to mislead you 6. the side effects outweigh the cure 7. stories are more persuasive, anyway |
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Key attributes among analytic competitors |
1. use of modeling: predictive modeling-the data mining technique used to predict future behavior
2. having multiple applications
3. support from the top |
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risk propensity |
willingness to gamble or to undertake risk for the possibility of gaining an increased payoff |
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decision making style |
reflects the combination of how an individual perceives and responds to information |
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value orientation |
the extent to which a person focuses on either task and technical concerns or people and social concerns |
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tolerance for ambiguity |
the extent to which a person has a high need for structure or control in his or her life |
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directive style |
action oriented decision makers who focus on facts
task/technical concern oriented low tolerance for ambiguity |
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analytical style |
careful decision makers who like lots of info
task/technical concern oriented high tolerance for ambiguity |
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conceptual style |
decision makers who rely on intuition and have a long term perspective
people/social aspect oriented high tolerance for ambiguity |
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behavioral style |
most people oriented decision makers
people/social aspect oriented low tolerance for ambiguity |
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Uses for knowledge of decision making styles |
know thyself
influence others
deal with conflict |
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ethics officer |
someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas |
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decision tree |
graph of decisions and their possible consequences |
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When confronted with a decision manger should ask: |
1. is the proposed action legal?
2. if yes, does the proposed action maximize shareholder value?
3. if yes, is the proposed action ethical?
4. if no, would it be ethical not to take the action? |
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4 ineffective reactions when confronted with a decision |
1. relaxed avoidance: manager takes no action in belief there will be no great consequence 2. relaxed change: manager opts for first available alternative that's low risk 3. defensive avoidance: can't find solution so they procrastinate, pass the buck, deny the risk 4. panic: so frantic to get rid of the problem they can't deal with it realistically |
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3 effective reactions when confronted with a decision |
1. importance: determine priority of decision
2. credibility: evaluate how much is known
3. urgency: decide how quickly to act |
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9 common decision making biases "heuristics" |
1. availability bias: use only available info 2. representative bias: over generalizing 3. confirmation bias: seek info to support you 4. sunk cost bias 5. anchoring & adjustment bias: influenced by initial figure 6. overconfidence bias 7. hindsight bias: i knew it all along 8. framing bias: influenced by presentation 9. escalation of commitment: overly invested |
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advantages of group decision making |
1. greater pool of knowledge 2. different perspectives 3. intellectual stimulation 4. better understanding of decision rationale 5. deeper commitment to the decision |
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disadvantages of group decision making |
1. a few people dominate or intimidate 2. groupthink: agreeing for sake of unanimity 3. satisficing: agreeing to get done faster 4. goal displacement: the primary goal is subsumed by a secondary goal |
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4 characteristics of groups |
1. less efficient
2. size affects decision quality
3. may be too confident
4. knowledge counts |
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participative management |
process of involving employees in: setting goals making decisions solving problems making changes in the organization |
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group problem solving techniques |
brainstorming: for increased creativity
delphi technique: for consensus of experts
computer aided a. chauffer driven: push button consensus b. group driven: anonymous networking |
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organizational/corporate culture |
system of shared beliefs and values that develops within an organization and guides the behavior of its members |
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organizational structure |
formal system of task and reporting relationships |
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4 types of organizational culture |
clan: internal focus and values flexibility over stability and control adhocracy: external focus and values flexibility market: strong external focus and values stability and control hierarchy: internal focus and values stability and control |
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3 levels of organizational culture |
1. observable artifacts: physical manifestations of culture
2. espoused values: explicitly stated values and norms preferred by the organization
3. basic assumption: core values of organization |
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how employees learn culture |
1. symbols: object or act the conveys meaning
2. stories
3. heroes: person who embodies values of the organization
4. rites and rituals: ceremonies |
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importance of culture |
1. gives members an organizational identity
2. facilitates collective commitment
3. promoties social system stability
4. shapes behavior by helping employees make sense of their surroundings |
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Organization perspectives that can increase performance |
1. strength perspective: success results when a firm has a strong culture
2. fit perspective: success results when culture fits within firm's business context
3. adaptive perspective: success results when culture helps the firm adapt |
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Mechanisms for culture change |
1. formal statements 2. slogans and sayings 3. stories, legends, and myths 4. leader reactions to crisis 5. role modeling, training, and coaching 6. physical design 7. rewards, titles, promotions, and bonuses 8. organizational goals/ performance criteria 9. measurable and controllable activities 10. organizational structure 11. organizational systems and procedures |
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organization (Chester Barnard) |
system of consciously coordinated activities or forces of two or more people |
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3 types of organizations |
1. for-profit
2. nonprofit
3. mutual-benefit |
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organization chart |
box-and-lines illustration showing the formal lines of authority and organization's official positions |
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4 common elements of organizations (Edgar Schein) |
common purpose: means for unifying members
coordinated effort: working together
division of labor: work specialization
hierarchy of authority: chain of command |
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3 more common elements of organization |
span of control
authority, responsibility, and delegation
centralization vs decentralization of authority |
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Organizational design |
concerned with designing the optimal structures of accountability and responsibility for the organization to execute it's strategies
1. traditional design 2. horizontal design 3. designs that open boundaries between organizations |
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traditional organizational designs |
1. simple
2. functional
3. divisional
4. matrix |
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simple structure |
for the small firm
authority centralized in single person/flat hierarchy
few rules
low work specialization |
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functional structure |
grouping by similar work specialties |
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divisional structure |
product division
customer division
geographic division |
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matrix structure |
combines functional and divisional chains of command so that there are 2 command structures (horizontal and vertical) |
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horizontal organizational design |
teams are used to improve collaboration and work on shared tasks by breaking down internal boundaries |
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designs that open boundaries between organizations |
hollow: operate with central core, outsourcing functions to outside vendors
modular: outsource pieces of product to outside firms
virtual: internet connected partner for temporary project |
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contingency design |
process of fitting the organization to its environment |
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4 factors to consider in designing organization's structure |
1. environment: mechanistic vs organic
2. environment: differentiation vs integration
3. life cycle
4. link between strategy and structure |
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Environment: mechanistic vs organic (Burns and Stalker Model) |
mechanistic organization: authority is centralized, tasks and rules are clearly specified, employees are closely supervised
organic organization: authority is decentralized, fewer rules and procedures, employees are encourage to cooperate and respond quickly to unexpected tasks |
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Environment: differentiation vs integration (Lawrence and Lorsch Model) |
Differentiation: tendency of parts of organization to disperse and fragment
Integration: tendency of parts of organization to draw together to achieve a common purpose |
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Life Cycle |
Birth Stage: non-bureaucratic, when organization is created Youth Stage: pre-bureaucratic, growth and expansion Midlife Stage: bureaucratic, growth evolving into stability Maturity Stage: very bureaucratic, large and mechanistic |