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404 Cards in this Set

  • Front
  • Back
Situational Analysis
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
targets or ends the manager wants to reach
SMART goals
S - Specific M - Measurable A - Attainable R - Relevant T - Time bound
The actions or means managers intend to use to achieve organizational goals
Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so
Strategic Planning
A set of procedures for making decisions about the organization’s long- term goals and strategies.
Strategic Goals
Major targets or end results relating to the organization’s long- term survival, value, and growth.
A pattern of actions and resource allocations designed to achieve the organization’s goals.
6 Steps of Planning
Step 1: Establishment of Mission, Vision, and Goals Step 2: Analysis of External Opportunities/ Threats Step 3: Analysis of Internal Strengths/Weaknesses Step 4: SWOT Analysis, Strategy formulation Step 5: Strategy Implementation Step 6: Strategic Co
SWOT Analysis and Strategy Formulation
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
Strategic Control System
A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action.
Tactical Planning
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.
Operational Planning
The process of identifying the specific procedures and processes required at lower levels of the organization
concentration strategy
focuses on a single business competing in a single industry.
Vertical integration
The acquisition or development of new businesses that produce parts or components of the organization’s product. Companies that integrate vertically often do so to reduce their costs
Concentric Diversification
A strategy used to add new businesses that produce related products or are involved in related markets and activities.
Conglomerate Diversification
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.
Business Strategy
The major actions by which a business competes in a particular industry or market
Low-Cost Strategy
A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no- frills product.
Differentiation Strategy
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.
Functional Strategy
Strategies implemented by each functional area of the organization to support the organization’s business strategy.
Mechanistic Organization
A form of organization that seeks to maximize internal efficiency.
Organic Structure
An organizational form that emphasizes flexibility. The organic structure stands in stark contrast to the mechanistic organization. It is much less rigid and, in fact, emphasizes flexibility.
core competence
the capability,knowledge,expertise,skill— that underlies a companys ability to be a leader in providing a range of specific goods or services. It allows the company to compete on the basis of its core strengths and expertise, not just on what it produces.
Strategic Alliances
A formal relationship created among independent organizations w/the purpose of joint pursuit of mutual goals. organizations share administrative authority, form social links, & accept joint ownership. Alliances increase speed &innovation &lower costs
A good alliance: Individual excellence
Both partners add value, and their motives are positive ( pursue opportunity) rather than negative ( mask weaknesses).
A good alliance: Importance
Both partners want the relationship to work because it helps them meet long- term strategic objectives.
A good alliance: Interdependence
The partners need each other; each helps the other reach its goal.
A good alliance: Investment
The partners devote financial and other resources to the relationship.
A good alliance: Information
The partners communicate openly about goals, technical data, problems, and changing situations
A good alliance: Integration
The partners develop shared ways of operating; they teach each other and learn from each other
A good alliance: Institutionalization
The relationship has formal status with clear responsibilities
A good alliance: Integrity
Both partners are trustworthy and honorable
The Learning Organization
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
The High-Involvement Organization
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading
Scale Economies
Big is good. Size creates scale economies, that is, lower costs per unit of pro-duction. And size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital.
Economies of Scope
Size creates economies of scope; materials and processes employed in one product can be used to make other, related products. With such advantages, huge companies w/lots of money may be the best at taking on large foreign rivals in huge global markets.
Diseconomies of Scale
Small is better. The costs of being too big. ― Small is beautiful‖ has become a favorite phrase of entrepreneurial business managers.
The planned elimination of positions or jobs.
A successful effort to achieve an appropriate size at which the company performs most effectively.
Survivor's Syndrome
Loss of productivity and morale in employees who remain after a downsizing
Customer Relationship Management
A multifaceted process focusing on creating two- way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.
Value chain
The sequence of activities that flow from raw materials to the delivery of a good or service, w/additional value created at each step.
total value created
what customers are willing to pay
profit margin
When the total value created— that is, what customers are willing to pay — exceeds the cost of providing the good or service,
Research and development
Focus on innovative and new products.
Inbound logistics
Receive and store raw materials and distribute them to operations
Transform the raw materials into the final product
Outbound logistics
Warehouse the product and handle its distribution
Marketing and sales
Identify customer requirements and get customers to purchase the product
Offers customer support such as repair after the item has been bought.
Total Quality Management (TQM)
An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high- quality goods and services
Deming's 14 points of quality
Deming’s ― 14 points‖ of quality emphasized a holistic approach to management that demands intimate understanding of the process— the delicate interaction of materials, machines, and people that deter-mines productivity, quality, & competitive advantage
Deming's points of quality, 1-5
1) create constancy of purpose, 2) adopt the new philosophy, 3) cease dependence on mass inspection, 4) end the practice of awarding business on price tag alone, 5) improve constantly the system of production and service.
Deming's points of quality, 6-12
6)institute training and retraining, 7) institute leadership, 8) drive out fear, 9)break down barriers among departments, 10)eliminate slogans, exhortations, arbitrary targets, 11) eliminate numerical quotas, 12) remove parriers to pride in workmanship.
Deming's points of quality, 13-14
13) institute a vigorous program of educaiton and retraining, 14) take action to accomplisht he transformation
Six Sigma Quality
At Six Sigma, a product or process is defect-free 99.99966 percent of the time— less than 3.4 defects or mistakes per million.
Malcolm Baldrige National Quality Award
An award given annually to companies that demonstrate quality excellence and establish best-practice standards in industry.
ISO 9001
A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers.
Customer focus
Learning and addressing customer needs and expectations
Establishing a vision and goals, establishing trust, and providing employees with the resources and inspiration to meet goals.
Involvement of people
Establishing an environment in which employees understand their contribution, engage in problem solving, and acquire and share knowledge.
Process approach
Defining the tasks needed to successfully carry out each process and assigning responsibility for them.
System approach to management
Putting processes together into efficient systems that work together effectively.
Continual improvement
Teaching people how to identify areas for improvement and rewarding them for making improvements.
Factual approach to decision making
Gathering accurate performance data, sharing the data with employees, and using the data to make decisions
Mutually beneficial supplier relationships
working in a cooperative way with suppliers
The principal idea of reengineering is to revolutionize key organizational systems and processes to answer the question: ― If you were the customer, how would you like us to operate?
Technology and Organizational Agility
The systematic application of scientific knowledge to a new product, process, or service.
the methods, processes, systems, and skills used to transform resources ( inputs) into products ( outputs).
Small Batch Technologies
Technologies that produce goods and services in low volume
Large Batch Technologies
Technologies that produce goods and services in high volume.
Continuous Process Technologies
A process that is highly automated and has a continuous production flow
Mass Customization
The production of varied, individually customized products at the low cost of standardized, mass- produced products
High variety and customization
Product design
Collaborative design; significant input from customers Short product development cycles Constant innovation
Quality management
Quality measured in customer delight Defects treated as capability failures
Organizational structure
Dynamic network of relatively autonomous operating units Learning relationships Integration of the value chain Team- based structure
Workforce management
Empowerment of employees High value on knowledge, information, and diversity of employee capabilities New product teams Broad job descriptions
Low- cost production of high- quality, customized products
Computer- Integrated Manufacturing
The use of computer- aided design and computer- aided manufacturing to sequence and optimize a number of production processes
Flexible Factories
Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling.
Lean Manufacturing
An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement. strives for high quality, speed, and low cost
Time-Based Competition
Time- based competition ( TBC) Strategies aimed at reducing the total time needed to deliver a good or service.
The movement of the right goods in the right amount to the right place at the right time
Just-In-Time (JIT)
A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.
Elimination of waste
Eliminate all waste from the production process, including waste of time, people, machinery, space, and materials.
Perfect quality
Produce perfect parts even when lot sizes are reduced, and produce the product exactly when it is needed in the exact quantities that are needed.
Reduced cycle times
Accomplish the manufacturing process more rapidly. Reduce setup times for equipment, move parts only short distances ( machinery is placed in closer proximity), and eliminate all delays. The goal is to reduce action to the time spent working on the parts
Employee involvement
In JIT, employee involvement is central to success. The workers are responsible for production decisions. Managers and supervisors are coaches. Top management pledges that there will never be layoffs due to improved productivity.
Value- added manufacturing
Do only those things that add value to the finished product. If it doesn’t add value, don’t do it. For example, inspection does not add value to the finished product, so make the product correctly the first time & inspection wont be necessary
Foolproofing, or fail- safing
To prevent problems from arising, their cause( s) must be known and acted on. Thus, in JIT operations, people try to find the ― weak link in the chain‖ by forcing problem areas to the surface so that preventive measures may be determined and implemented.
Simultaneous Engineering
A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high- quality products that meet customers’ needs.
Time- based competition
Brings speed to all organization processes
The boundaryless organization
one in which there were no meaningful barriers between the organization and its environment. In such an organization, structures, technolo-gies, and systems are perfectly aligned with the external challenges and opportunities it confronts.
Porters Five Forces
1) Rivalry 2) Threat of Substitutes 3) buyer power 4) supplier power 5) threat of new entrants and entry barriers
Total quality management (TQM)
An integrated effort designed to improve quality performance at every level of the organization. focus is on serving customers, identifying the causes of quality problems, and building quality into the production process.
Customer-defined quality
The meaning of quality as defined by the customer
Conformance to specifications
How well a product or service meets the targets and tolerances determined by its designers.
Fitness for use
A definition of quality that evaluates how well the product performs for its intended use
Value for price paid
Quality defined in terms of product or service usefulness for the price paid
Support services
Quality defined in terms of the support provided after the product or service is purc
Psychological criteria
A way of defining quality that focuses on judgmental evaluations of what constitutes product or service excellence.
Prevention Costs
costs that are incurred to prevent poor quality
Appraisal Costs
Costs incurred in the process of uncovering defects - prevent poor quality.
Internal failure Costs
Costs associated with discovering poor product quality before the product reaches the customer. costs that the company hopes to prevent.
External failure costs
Costs associated with quality problems that occur at the customer site. costs that the company hopes to prevent.
Customer Focus
Goal is to identify and meet customer needs.
Continuous Improvement
A philosophy of never-ending improvement
Plan – do– study– act (PDSA) cycle
A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.
Studying the business practices of other companies for purposes of comparison
Employee empowerment
Employees are expected to seek out, identify, and correct quality problems
Cause-and-effect diagrams
charts that identify potential causes for particular quality problems
A flowchart is a schematic diagram of the sequence of steps involved in an operation or process
A checklist is a list of common defects and the number of observed occurrences of these defects
Control Chart
a very important quality control tool. These charts are used to evaluate whether a process is operating within expectations relative to some measured value such as weight, width, or volume.
Scatter diagrams
graphs that show how two variables are related to one another. They are particularly useful in detecting the amount of correlation, or the degree of linear relationship, between two variables.
Pareto analysis
a technique used to identify quality problems based on their degree of importance. The logic behind Pareto analysis is that only a few quality problems are important, whereas many others are not critical
chart that shows the frequency distribution of observed values of a variable. We can see from the plot what type of distribution a particular variable displays, such as whether it has a normal distribution and whether the distribution is symmetrical.
Product design
Products need to be designed to meet customer expectations
Quality function deployment (QFD)
A tool used to translate the preferences of the customer into specific technical requirements
The probability that a product, service, or part will perform as intended
Process management
Quality should be built into the process; sources of quality problems should be identified and corrected.
Quality at the source
The belief that it is best to uncover the source of quality problems and eliminate it.
Managing supplier quality
Quality concepts must extend to a company’s suppliers
Deming Prize
A Japanese award given to companies to recognize efforts in quality improvement
ISO 9000
A set of international quality standards and a certification demonstrating that companies have met all the standards specified.
ISO 9000:2000 – Quality Management Systems – Fundamentals and Standards
Provides the terminology and definitions used in the standards. It is the starting point for understanding the system of standards
ISO 9001:2000 – Quality Management Systems – Requirements
This is the standard used for the certification of a firm’s quality management system. It is used to demonstrate the conformity of quality management systems to meet customer requirements
ISO 9004:2000– Quality Management Systems – Guidelines for Performance
Provides guidelines for establishing a quality management system. It focuses not only on meeting customer requirements but also on improving performance
ISO 14000
A set of international standards and a certification focusing on a company’s environmental responsibility especially with greater interest in green manufacturing and more awareness of environmental concerns
Management systems
management systems development and integration of environmental responsibility into the overall business.
Operations standards
Include the measurement of consumption of natural re- sources and energy
Environmental systems standards
Measure emissions, effluents, and other waste systems.
plays a critical role in the TQM process by providing key inputs that make TQM a success. Goal of marketing is to understand the changing needs and wants of the customer.
a major participant in the TQM process because of the great cost consequences of poor quality.
important in the TQM process because of the need for exact costing. TQM efforts cannot be accurately monitored and their financial contribution assessed if the company does not have accurate costing methods.
critical in TQM because of the need to properly translate customer requirements into specific engineering terms.
Whereas marketing is busy identifying what the customers want and engineering is busy translating that information into technical specifications, purchasing is responsible for acquiring the materials needed to make the product
Human resources
critical to the effort to hire employees with the skills necessary to work in a TQM environment
Information systems (IS)
IS should work closely with a company’s TQM develop- ment program in order to understand exactly the type of information system best suited for the firm, includ- ing the form of the data, the summary statistics avail- able, and the frequency of updating.
The pursuit of lucrative opportunities by enterprising individuals.
Entrepreneurship is inherently about innovation— creating a new venture where one didn’t exist before.
Individuals who establish a new organization without the benefit of corporate sponsorship.
New- venture creators working inside big companies
Small Business
A business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.
business incubators
Protected environments for new, small businesses
Entrepreneurial Venture
new business having growth and high profitability as primary objectives
transaction fee model
Charging fees for goods and services
advertising support model
Charging fees to advertise on a site.
intermediary model
Charging fees to bring buyers and sellers together
affiliate model
Charging fees to direct site visitors to other companies’ sites
subscription model
Charging fees for site visits.
initial public offering (IPO)
Sale to the public, for the first time, of federally registered and underwritten shares of stock in the company
An entrepreneurial alliance between a franchisor ( an innovator who has created at least one successful store and wants to grow) and a franchisee ( a partner who manages a new store of the same type in a new location).
opportunity analysis
A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital
business plan
A formal planning step that focuses on the entire venture and describes all the elements involved in starting it.
People’s judgment of a company’s acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values.
social capital
A competitive advantage in the form of relationships with other people and the image other people have of you.
A project team designated to produce a new, innovative product
Informal work on projects, other than those officially assigned, of employees’ own choosing and initiative.
entrepreneurial orientation
The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services
A small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable
work teams
Teams that make or do things like manufacture, assemble, sell, or provide service
project and development teams
Teams that work on long-term projects but disband once the work is completed
parallel teams
Teams that operate separately from the regular work structure, and exist temporarily
management teams
Teams that coordinate and provide direction to the subunits under their jurisdiction and integrate work among subunits.
transnational teams
Work groups composed of multinational members whose activities span multiple countries
virtual teams
Teams that are physically dispersed and communicate electronically more than face- to- face.
Self-Managed Teams
Autonomous work groups in which workers are trained to do all or most of the jobs in a unit, have no immediate supervisor, and make decisions previously made by frontline supervisors
traditional work groups
Groups that have no managerial responsibilities
quality circles
Voluntary groups of people drawn from various production teams who make suggestions about quality.
semiautonomous work groups
Groups that make decisions about managing and carrying out major production activities but get outside support for quality control and maintenance
autonomous work groups
Groups that control decisions about and execution of a complete range of tasks
self- designing teams
Teams with the responsibilities of autonomous work groups, plus control over hiring, firing, and deciding what tasks members perform
group members attempt to lay the ground rules for what types of behavior are acceptable
hostilities and conflict arise, and people jockey for positions of power and status
group members agree on their shared goals, and norms and closer relationships develop
the group channels its energies into performing its tasks
social loafing
Working less hard and being less productive when in a group
social facilitation effect
Working harder when in a group than when working alone.
Shared beliefs about how people should think and behave.
Different sets of expectations for how different individuals should behave
task specialist
An individual who has more advanced job- related skills and abilities than other group members possess.
team maintenance specialist
Individual who develops and maintains team harmony
The degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.
A team member who keeps abreast of current developments and provides the team with relevant information.
A team strategy that entails making decisions with the team and then informing outsiders of its intentions.
A team strategy that entails simultaneously emphasizing internal team building and achieving external visibility.
A team strategy that requires team members to interact frequently with outsiders, diagnose their needs, and experiment with solutions.
Work- flow relationships
emerge as materials are passed from one group to another. A group commonly receives work from one unit, processes it, and sends it to the next unit in the process. Your group, then, will come before some groups and after others in the process.
Service relationships
exist when top management centralizes an activity to which a large number of other units must gain access. Common examples are technology services, libraries, and clerical staff. Such units must assist other people to help them accomplish their goals.
Advisory relationships
are created when teams with problems call on centralized sources of expert knowledge. For example, staff members in the human resources or legal department advise work teams.
Audit relationships
develop when people not directly in the chain of command evalu-ate the methods and performances of other teams. Financial auditors check the books, and technical auditors assess the methods and technical quality of the work.
Stabilization relationships
involve auditing before the fact. In other words, teams some-times must obtain clearance from others— for example, for large purchases— before they take action.
Liaison relationships
Managers often are called to mediate conflict btw 2 units. Public relations, sales, purchasing agents, &others who work across organizational boundaries serve in liaison roles as they maintain communications between the organization & the outside world.
A reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement
A style of dealing with conflict involving cooperation on behalf of the other party but not being assertive about one’s own interests
A style of dealing with conflict involving moderate attention to both parties’ concerns
A style of dealing with conflict involving strong focus on one’s own goals and little or no concern for the other person’s goals.
A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties’ satisfaction.
superordinate goals
Higher- level goals taking priority over specific individual or group goals.
A third party who intervenes to help others manage their conflict.
Any process that directs the activities of individuals toward the achievement of organizational goals.
The Control Cycle (The Control Process)
1) setting performance standards, 2) measuring performance, 3) comparing performance against the standards and determining deviations, 4) taking action to correct problems and reinforce successes
principle of exception
A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard
bureaucratic control
The use of rules, regulations, and authority to guide performance.
feedforward control
The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly
concurrent control
The control process used while plans are being carried out, including directing, monitoring, and fine- tuning activities as they are performed
feedback control
Control that focuses on the use of information about previous results to correct deviations from the acceptable standard
Management Audits
An evaluation of the effectiveness and efficiency of various systems within an organization
external audit
An evaluation conducted by one organization, such as a CPA firm, on another
internal audit
A periodic assessment of a company’s own planning, organizing, leading, and controlling processes
Budgetary Controls
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling
Sales budget
Usually data for the sales budget include forecasts of sales by month, sales area, and product
Production budget
The production budget commonly is expressed in physical units. Required information for preparing this budget includes types and capac-ities of machines, economic quantities to produce, and availability of materials.
Cost budget
used for areas of the organization that incur expenses but no revenue, such as human resources and other support depart-ments. Cost budgets may also be included in the production budget. costs may be fixed (like rent) or variable (like raw materials)
Cash budget
shows the anticipated receipts and expenditures, the amount of working capital available, the extent to which out-side financing may be required, and the periods and amounts of cash available.
Capital budget
The capital budget is used for the cost of fixed assets like plant and equipment. Such costs are usually treated, not as regular expenses, but as investments because of their long- term nature and importance to the organization’s productivity
Master budget
The master budget includes all the major activities of the business. It brings together and coordinates all the activities of the other budgets and can be thought of as a ― "budget of budgets"
activity- based costing ( ABC)
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.
balance sheet
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity
The values of the various items the corporation owns.
The amounts a corporation owes to various creditors
stockholders’ equity
The amount accruing to the corporation’s owners
profit and loss statement
An itemized financial statement of the income and expenses of a company’s operations
Financial Ratios
Ratios help indicate possible strengths and weaknesses in a company’s operations. Key ratios are calculated from selected items on the profit and loss statement and the balance sheet.
current ratio (Liquidity Ratio)
A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short- term liabilities.
debt- equity ratio (Leverage Ratio)
A leverage ratio that indicates the company’s ability to meet its long- term financial obligations
return on investment ( ROI) (Profitability Ratio)
A ratio of profit to capital used, or a rate of return from capital.
management myopia
Focusing on short- term earnings and profits at the expense of longer- term strategic obligations
7 "deadly sins" of performance measurement
1. vanity 2. provincialism 3. narcissism 4. laziness 5. pettiness 6. inanity 7. frivolity
balanced scorecard
Control system combining four sets of performance measures: financial, customer, business process, and learning and growth.
Market Control
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
transfer price
Price charged by one unit for a good or service provided to another unit within the organization
Clan Control: The Role of Empowerment and Culture
Control based on the norms, values, shared goals, and trust among group members.
The Tyranny of the Or
The belief that things must be either A or B and cannot be both; that only one goal and not another can be attained.
organizational ambidexterity
Ability to achieve multiple objectives simultaneously.
Organization Development
The systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness.
focused on customers, continually fine- tuned based on marketplace changes, and clearly communicated to employees
good people, with decision- making authority on the front lines, doing quality work and cutting costs.
one that motivates, empowers people to innovate, rewards people appropriately ( psychologically as well as economically), entails strong values, challenges people, and provides a satisfying work environment.
making the organization easy to work in and easy to work with, characterized by cooperation and the exchange of information and knowledge throughout the organization
Realizing that current practices are inappropriate and that new behavior is necessary
force- field analysis
An approach to implementing the unfreezing/ moving/ refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change
Strengthening the new behaviors that support the change
total organization change
Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.
proactive change
A response that is initiated before a performance gap has occurred
reactive change
A response that occurs under pressure; problem-driven change.
Companies that take the current industry structure and its evolution as givens, and choose where to compete.
Companies that try to change the structure of their industries, creating a future competitive landscape of their own design.
Learning Cycle
Explore, Discover, Act
human resources management (HRM)
Formal systems for the management of people within an organization
Demand Forecasts
determining how many and what type of people are needed. Demand forecasts for people needs are derived from organizational plans.
Labor Supply Forecasts
managers must fore-cast the supply of labor, that is, how many and what types of employees the organization actually will have. The organization estimates the number and quality of its current employees as well as the available external supply of workers.
job analysis
A tool for determining what is done on a given job and what should be done on that job.
human capital
The knowledge, skills, and abilities of employees that have economic value.
The development of a pool of applicants for jobs in an organization.
Internal Recruiting
The advantages of internal recruiting are that employers know their employees, and employees know their organization.
External Recruiting
External recruiting brings in ― "new blood" to a company and can inspire innovation.
Choosing from among qualified applicants to hire into an organization.
structured interview
Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
situational interview
focuses on hypothetical situations.
behavioral description interview
explores what candidates have actually done in the past
Reference Checks
To make an accurate selection decision, employers have to be able to trust the words of each candidate. Unfortunately, some candidates may hide criminal backgrounds that could pose a risk to the employer or exaggerate their qualifications.
Background Checks
For a higher level of scrutiny, background investigations also have become standard procedure for many companies. The different types of checks include Social Security verification, past employment and education verification, and a criminal records check.
Personality Tests
Employers have been more hesitant to use personality tests for employee selection, because they are hard to defend in court. some personality types are assoc. w/greater job satisfaction &performance.
Drug Testing
Since the passage of the Drug- Free Workplace Act of 1988 applicants and employees have been subject to testing for illegal drugs.
Cognitive Ability Tests
These tests measure a range of intellectual abilities, including verbal comprehension ( vocabulary, reading) and numerical aptitude ( mathematical calculations). About 20 percent of U. S. companies use cognitive ability tests for selection purposes.
Performance Tests
the test taker performs a sample of the job. Most companies use some type of performance test, typically for administrative assistant and clerical positions. The most widely used performance test is the typing test.
assessment center
A managerial performance test in which candidates participate in a variety of exercises and situations.
Integrity Tests
To assess job candidates’ honesty, employers may administer integrity tests. Two forms of integrity tests are polygraphs and paper- and- pencil honesty tests. Polygraphs, or lie detector tests, have been banned for most employment purposes.
The consistency of test scores over time and across alternative measurements
The degree to which a selection test predicts or correlates with job performance
As a result of the massive restructuring of American industry brought about by mergers and acquisitions, divestiture, and increased competition, many orga-nizations have been downsizing— laying off large numbers of managerial and other employees.
The process of helping people who have been dismissed from the company regain employment elsewhere.
People sometimes get fired for poor performance or other reasons.
employment- at- will
The legal concept that an employee may be terminated for any reason.
termination interview
A discussion between a manager and an employee about the employee’s dismissal
938 Fair Labor Standards Act (FLSA)
creates 2 employee categories: exempt & nonexempt. exempt employees dont get overtime. if they have discretion on how they do their job. Non-exempt employees are paid/hr & paid overtime if they work over 40 hrs
The 1964 Civil Rights Act
prohibits discrimination in employment based on race, sex, color, national origin, and religion.
The 1964 Civil Rights Act, Title VII
specifically forbids dis-crimination in such employment practices as recruitment, hiring, discharge, promotion, compensation, and access to training.
The Americans with Disabilities Act, 1990
prohibits employment discrimination against people with disabilities. Recov-ering alcoholics and drug abusers, cancer patients in remission, and AIDS patients are covered by this legislation
The 1991 Civil Rights Act
permitted punitive damages to be imposed on companies that violate protections/rights of employees
the Age Discrimination in Employment Act of 1967
prohibit discrimination against people age 40 and over
The Worker Adjustment and Retraining Notification Act of 1989, a.k.a. WARN Act or Plant Closing Bill
requires covered employers to give affected employees 60 days’ written notice of plant closings or mass layoffs.
adverse impact
When a seemingly neutral employment practice has a disproportionately negative effect on a protected group.
Teaching lower- level employees how to perform their present jobs.
Phase one of training
starts with a needs assessment. Managers conduct an analysis to identify the jobs, people, and departments for which training is necessary. Job analysis and performance measurements are useful for this purpose.
Phase two of training
design of training programs. ased on needs assessment, training objectives and content can be established.
Phase three of training
involves decisions about the training methods to be used and whether the training will be provided on-the-job or off-the-job
phase four of training
evaluate the program’s effectiveness.
Measures of effectiveness
employee reactions (surveys), learning (tests), improved behavior on the job, and bottom-line results (e.g. an increase in sales in defect rates following the training program)
orientation training
Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like.
team training
Training that provides employees with the skills and perspectives they need to collaborate with others.
diversity training
Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce
Helping managers and professional employees learn the broad skills needed for their present and future jobs.
needs assessment
An analysis identifying the jobs, people, and departments for which training is necessary
Performance Appraisal (PA)
Assessment of an employee’s job performance
Trait appraisals
involve subjective judgments about employee characteristics related to performance. They contain dimensions such as initiative, leadership, and attitude, and they ask raters to indicate how much of each trait an employee possesses.
Behavioral appraisals
while still subjective, focus more on observable aspects of performance. They were developed in response to the problems of trait appraisals.
critical incident technique
In this technique, the manager keeps a regular log and records each significant behav-ior by the subordinate that reflects the quality of his or her performance
Results appraisals
tend to be more objective and can focus on production data such as sales volume (for a salesperson), units produced (for a line worker), or profits (for a manager).
management by objectives (MBO)
A process in which objectives set by a subordinate and a supervisor must be reached within a given time period. involves a subordinate and a supervisor agreeing in advance on specific per-formance goals (objectives)
Managers and supervisors
the traditional source of appraisal information because they are often in the best posi-tion to observe an employee’s performance.
Peers and team member
often see different dimensions of performance and are often best at identify-ing leadership potential and interpersonal skills.
give superiors feedback on how their employees view them.
Internal and external customers
used as sources of performance appraisal information, particularly for companies that are focused on total quality management.
They may be biased upward, the process of self- evaluation helps increase the employee’s involve-ment in the review process and is a starting point for establishing future goals.
360- degree appraisal
Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance
cafeteria benefit program
An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs
flexible benefit programs
Benefit programs in which employees are given credits to spend on benefits that fit their unique needs.
comparable worth
Principle of equal pay for different jobs of equal worth
Equal Pay Act (EPA) of 1963
prohibits unequal pay for men and women who perform equal work. Equal work means jobs that require equal skill, effort, and responsibility and are performed under similar working conditions
The Occupational Safety and Health Act (OSHA) of 1970
requires employers to pursue workplace safety. Employers must maintain records of injuries and deaths caused by workplace accidents and submit to onsite inspections.
labor relations
The system of relations between workers and management
National Labor Relations Act (a.k.a. Wagner Act)
ushered in an era of rapid unionization. made labor organizations legal, established 5 unfair employer labor practices, created the National Labor Relations Board (NLRB).
The Wagner Act
Before the Act, employers could fire workers who favored unions. Assisted the growth of unions by enabling workers to use the law and the courts to organize and collectively bargain for better wages, hours, and working conditions.
economic strike
when the workers go on strike to compel agreement on their terms.
The use of a neutral third party to resolve a labor dispute
union shop
An organization with a union and a union security clause specifying that workers must join the union after a set period of time
right- to- work
Legislation that allows employees to work without having to join a union.
affirmative action
Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.
monolithic organization
An organization that has a low degree of structural integration— employing few women, minorities, or other groups that differ from the majority— and thus has a highly homogeneous employee population.
pluralistic organization
An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds.
organization chart
The reporting structure and division of labor in an organization
An aspect of the organization’s internal environment created by job specialization and the division of labor.
the degree to which differentiated work units work together and coordinate their efforts.
Division of labor
The assignment of different tasks to different people or groups
a process in which different individuals and units perform different tasks.
The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission.
The legitimate right to make decisions and to tell other people what to do.
The authority levels of the organizational pyramid
corporate governance
The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders.
Span of Control
The number of subordinates who report directly to an executive or supervisor
The assignment of new or additional responsibilities to a subordinate
The assignment of a task that an employee is supposed to carry out
means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility.
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.
An organization in which lower- level managers make important decisions. The delegation of responsibility and authority decentralizes decision making. n decentral-ized organizations, more decisions are made at lower levels. makes decision making faster.
centralized organization
An organization in which high- level executives make most decisions and pass them down to lower levels for implementation.
line departments
Units that deal directly with the organization’s primary goods and services
staff departments
Units that support line departments.
Subdividing an organization into smaller subunits.
functional organization
Departmentalization around specialized activities such as production, marketing, and human resources.
divisional organization
Departmentalization that groups units around products, customers, or geographic regions.
matrix organization
An organization composed of dual reporting relationships in which some managers report to two superiors— a functional manager and a divisional manager. Can speed decisions and cut costs
unity- of- command principle
A structure in which each worker reports to one boss, who in turn reports to one boss
network organization
A collection of independent, mostly single- function firms that collaborate on a good or service.
dynamic network
also called the modular or virtual corporation......these are Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment
A person who assembles and coordinates participants in a network.
Designer role
The broker serves as a network architect who envisions a set of groups or firms whose collective expertise could be focused on a particular good or service
Process engineering role
The broker serves as a network co- operator who takes the initiative to lay out the flow of resources and relationships and makes certain that everyone shares the same goals, standards, payments, and the like.
Nurturing role
The broker serves as a network developer who nurtures and enhances the network ( like team building) to make certain the relationships are healthy and mutually beneficial.
Establishing common routines and procedures that apply uniformly to everyone.
The presence of rules and regulations governing how people in the organization interact
coordination by plan
Interdependent units are required to meet deadlines and objectives that contribute to a common goal.
coordination by mutual adjustment
Units interact with one another to make accommodations to achieve flexible coordination.
Coordination and Communication: reduce need for information
a) creating slack resources and ( b) creating self-contained tasks. Slack resources are simply extra resources on which organizations can rely in a pinch so that if they get caught off guard, they can still adjust.
Coordination and Communication: increasing information - Processing capability
Instead of reducing the need for information, an organization may take the approach of increasing its information- processing capability. It can invest in information systems, which usu-ally means employing or expanding computer systems.
knowledge management
capitalizing on the intellect and experience of the organization’s human assets to increase collaboration and effectiveness
systematic application of scientific knowledge to a new product, process, or service.
A change in method or technology; a positive, useful departure from previous ways of doing things.
technology life cycle
A predictable pattern followed by a technological innovation, from its inception and development to market saturation and replacement
technology audit
Process of clarifying the key technologies on which an organization depends
Emerging technologies
still under development and thus are unproved. They may alter the rules of competition in the future. Managers will want to monitor the development of emerging technologies but may not yet need to invest in them until they have been more fully developed
Pacing technologies
have yet to prove their full value but have the potential to alter the rules of com-petition by providing significant advantage.
Key technologies
have proved effective, but they also provide a strategic advantage because not every-one uses them.
Base technologies
those that are commonplace in the industry; everyone must have them to be able to operate. Thus, they provide little competitive advantage
the process of comparing the organization’s practices and technologies with those of other companies
focuses on what can be done and what is being developed. benchmarking examines key and perhaps some pacing technologies, while scanning seeks out pacing and emerging technologies— those just being introduced and still in development
Anticipated Market Receptiveness
The first consideration that needs to be addressed in developing a strategy around technological innovation is market potential.
Technological Feasibility
In addition to market receptiveness, managers must consider the feasibility of techno-logical innovations. Visions can stay unrealized for a long time. Technical obstacles may represent barriers to progress.
Economic Viability
Apart from whether a firm can ― pull off‖ a technological innovation, executives must consider whether there is a good financial incentive for doing so.
Anticipated Competency Development
organizations should ( and do) build their strategies based on core competencies. This advice applies to technology and innovation strategies as well
Organizational Suitability
The final issues that tend to be addressed in deciding on technological innovations have to do with the culture of the organization, the interests of managers, and the expectations of stakeholders
make- or- buy decision
The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself
Internal Development
Developing a new technology within the company has the potential advantage of keeping the technology proprietary. The disadvantage of internal development is that it usually requires additional staff and funding for an extended period
Most technology already is available in products or processes that can be purchased openly. may be faster and cheaper than internal development
Contracted Development
If the technology is not available and a company lacks the resources or time to develop it internally, it may choose to contract the development from outside sources
Certain technologies that are not easily purchased as part of a product can be licensed for a fee.
Technology Trading
Another way to gain access to new technologies.
Research partnerships
arrangements designed to jointly pursue specific new-technology development. Typically, each member enters the partnership with differ-ent skills or resources needed for development to succeed.
Joint ventures
similar in most respects to research partnerships, but they tend to have greater permanence, and their outcomes result in entirely new companies
Acquisition of an Owner of the Technology
If a company lacks the needed technology but wishes to acquire proprietary ownership of it, one option is to purchase the company that owns the technology
chief information officer/ chief technology officer. coordinate the technological efforts of the various business units; act as a voice for technology in the top management team; identify ways that technology can support the company’s strategy
technical innovator
A person who develops a new technology or has the key skills to install and operate the technology.
product champion
A person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.
executive champion
An executive who supports a new technology and protects the product champion of the innovation.
development project
A focused organizational effort to create a new product or process via technological advances.
sociotechnical systems
An approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work
The transmission of information and meaning from one party to another through the use of shared symbols.
one- way communication
A process in which information flows in only one direction— from the sender to the receiver, with no feedback loop
two- way communication
A process in which information flows in two directions— the receiver provides feedback, and the sender is receptive to the feedback
The process of receiving and interpreting information
The process of withholding, ignoring, or distorting information
Media Richness
The degree to which a communication channel conveys information.
Process by which a person states what he or she believes the other person is saying
Downward Communication
Information that flows from higher to lower levels in the organization’s hierarchy
Upward Communication
Information that flows from lower to higher levels in the organization’s hierarchy
Horizontal Communication
Information shared among people on the same hierarchical level.
Informal Communication
grapevine Informal communication network
Organization in which there are no barriers to information flow.