MIDTERM Business Management

equality

everyone gets a box to see over the fence

equity

everyone gets a box of right height to actually see over the fence

DEI policy drawbacks

saying you have this policy might actually lead to more discrimination

diversity lens vs diversity culture

diversity lens:

ask yourself are we negatively impacting certain groups

what can we do to make all groups better?

diversity culture:

if its “make it look pretty and show diversity”, are we just checking off a box in expense of productivity?

equitable culture

everyone has the opportunity, which makes it fair

→equity is about fairness and organizational justice

→ not fair if you only promote the ppl you like

inclusive management culture

ppl transparent

empower you with information

wanna get to know you ]

ask for your opinions

young ppl learn from old ppl

exclusive management culture

manager has favorites

in cliques

power distance (senior management doesnt talk to lower employees, creates power)

culture that keeps info tight, hard to get ahold of ppl, hard to learn, less social opportunities

when/when is it not okay to discriminate in hiring? +important piece of evidence

can discriminate on performance, promotions, clothing (someone not qualified vs qualified)

anything except for protected groups

**what im doing might need mathematical evidence that doing this discrimination will make my team better

protected groups of negative discrimination

disabled, height, weight (but if working on farm, disabled person might not be able to, if job requires you to see over a certain height, etc)

race and color

national origin and religion

sex (pregnant/orientation/gender identity)

genetic info (family history)

stereotyping

age (gen Z vs millennial)

can get you in trouble if asking ceratin ppl certain questions you dont ask everyone (Ex: asking indian coworker how many sibs do you have)

gender wage gap why?

different behaviors

women have to stop to have kids then come back

men ask for more money, less fear of rejection, versus women will wait for someone to notice their worth THEN get a raise

diversity of location and status

learning is easier when youre right in front of someone

remote, hybrid, office, freelancer, unemployed workers

remote worker

might not have the same connections with coworkers/managers, isolating

can work from anywhere

more friction in communication (body language and tone not there)

hybrid worker

in office sometimes, advantage over full remote

freelancer worker

create more diversity, part time employee

unemployed worker

lowest status

when looking for a job, you still wanna be in another job

segregation in leadership groups

why do you want to break out into a smaller group or clique? goal should be to change whole main organizations, ppl assume due to race or sex but usually due to other factors

not true prejudice

Hofstede Global Study points

power distance

hofstede global study

the extent to which a society expects equality among its members (=distrib of power or where power is concentrated among the few at the top)

US low

China high

individualism vs collectivism

hofstede global study

the degree to which ppl focus on their groups

individualistic: strongly value personal achievement and focus on individual needs (US)

collectivist: achievements and decisions are made with the group in mind

gender differences

hofstede global study

preference for masculine vs feminine traits in society

masculine: assertiveness, competitiveness, power, material success (Japan)

feminine: nurturing relationships, good quality of life, caring for others (Sweden)

uncertainty avoidance

hofstede global study

how much a society can cope with uncertainty of the future

high uncertainty avoidance: rely on set rules and structures about the way things are done to deal with it (Greece)

low uncertainty avoidance: more relaxed (Singapore)

long term vs short term business thinking

hofstede global study

the extent to which ppl are willing to forego short-term gains for future rewards, in particular, by emphasizing the virtues of persistence, saving, and thrift (US, Japan)

foregoing future rewards for short term gains in the past or the present, with an emphasis on immediate gratification and quick result (Ghana).

reflexive decision making

(DI/ID: DiSC)

shoot from the hip

dominate until they realize they should shut up

making decision with 90% of the data

put pressure on themselves, want to move on and quickly, tons of things on list

as soon as theres a problem you want to fix it

reflective decision making

CS/SC DiSC

careful, worker bees, concientious

Consistent style decision making

followers of predictability

more ppl will follow you if they can predict what youll do/say

DiSC what components are

Bonos six thinking hats

Only valuable if you need it, if ppl r thinking abt how they feel/unwilling to let go of the microphone

1. data

2. gut and emotion

3. negative

4. positive

5. creative

6. decide which hat

data hat

what do we have, what do we need, flaw is for data

positive hat

everything sound great

gets ppl excited and motivated

brings ppl together

get vision of future

gut and emotion hat

what does your gut feel, some ppl think emotions are unreliable

good if we dont have enough data available

for ppl who feel negatively abt the project, ask them why you dont think it will work (these ppl will make mistakes and sabotage)

creative hat

generating ideas that help us move forwardd

use your imagination to solve a problem

negative hat

everyone has to be negative'

give space for worries/disagreements

yellow and green hats

brainstorming

employee handbook

helps establish what rules, processes, protocols the organization has

could be great, could be out of date or vague

the more clarity and confidence in handbook, you will get ppl reading it or leveraging it to get organizational justice in an HR issues, protects employees and company (hard without organizational justice)

-what is missing

-what is out of date

-what is written between the lines

-what is standard across handbooks

-what is unique to the company

organizational justice

procedural justice (fairness of the processes and rules used to make decisions, focuses on how the decision is made, ex when the manager decides who gets a promotion)

informational justice (who was told first and was it kind, fairness of the explanations and information people receive about decisions), ex When a manager explains why an employee did not receive a raise.

distributive justice, am I getting paid fairly

intrapersonal justice (fairness of how people are treated during interactions with others, especially when decisions are communicated or carried out. ex When a manager delivers criticism to an employee)

minimum viable product

the least (most basic) you can do to get a product on the market, then you can iterate it with customers and make it better

distinguishing between needs and wants

find priorities and whats urgent

if they “need” something but you say no, then see what happens next

find the minimum that you actually need

scope creep

you have a list of things to do, and someone adds more and more to the list

you THOUGHT this was the job but ppl are adding more

enemy of the internal engineer (add another window etc)

tug of war between preparation, design, skill, knowledge level, the builder/engineer saying something wont work so they can create the real MVP

overpromise and underdeliver

what we know vs what well figure out

know things from experience

find out things through more experience

deadlines and accountability

putting a time limit

short term deadlines and small goals to see how much you can trust an employee

proactive team enviro brings more accountabilityt

project management tools

gantt chart

Xmind

(accountability tools)

gantt chart

plan of what ppl will do and when

needs start and end date

can use diff colors for what happens in reality to see if ppl are poorly managing time or lying

Xmind

mind map

think big on a project

unlimited amount of space

skeleton of a project

the creative process (3 stages)

1. what is the problem/opportunity? (my car is overheating)

2. when do you have your “aha” moments? (where did i solve this problem in the past? enviro where i have good ideas)

3. have you played the “what if” game? (what if X goes wrong? see how prepared you are, reduces the likelihood OF what if events)

nominal grouping

nominal grouping: large groups of ppl, give them a name for voting

focus groups/survey data

how do we collect unbiased data?

beware of data sensitivity and speaker confidentiality (careful talking abt names and scandalous info, protect data and paraphrase, promise to keep them safe, cant ask them not to speak of things)

focus group

small ish group, representative of whole group

focus group with structured voting (using stickers, put stickers on whatever topics are most important)

hard if ppl dont trust each other

beware of popularity vs criticality of issues (person who is very influential, ppl may put stickers w their topic)

survey data

good if requirements and if ppl care, bad if ppl dont care or if they dont do it at all

quantitative techniques for decisions

break even and cost benefit analysis

start up runway

budgeting: metaverse and boards

start up runway

quantitative technique for decisions

create new branch within company

how long is the runway (money/time/employees) before run out of money)

break even analysis

quantitative technique for decisions

how much money do we need to make to not lose money

what are my fixed and variable costs

covering costs

cost-benefit analysis

quantitative technique for decisions

what are the pros and cons, try to decide if its worth doing

are costs lower than benefits

budgeting types (2)

metaverse

boards

metaverse

quantitative technique for decisions (budgeting)

investing money

useful for practicing surgeries

mark zuckerberg main investor, asking board members to invest with him, they go w the person w the most shares

budgeting

quantitative technique for decisions

you know how much money you have in the bank, how much you make or lose

what we expect to spend, how we have to spend, how long itll last

boards

quantitative technique for decisions (budgeting)

groups of ppl voted in

above business

making decisions or getting budget approval

big data

comes from the internet, how things are being used

→collecting from customers, public, employees

→using data to change decision making

businesses pulling data from websites and tracking customer experience

more physical, how is business gonna track you eating an apple

trouble with accuracy of data

*organizations look to collect as much data as possible as long as they have the tools to analyze that data and collect it and ppl are interested in making changes

the five P’s

1. perfect

2. planning

3. prevents

4. poor

5. performance

dont leave things for the last minute

good to say to someone with poor time management skills

perfectionists waste…

too much time planning and not doing

nonperfectionists…

wing it, focus on high result

strategic planning

power dynamic→hard to say no when head is excited abt something, easy to say no when ppl lower than you suggest something

think ahead to future

metaverse, google glass, apple VR headset, all waste of money

operational planning

day-to-day how to make product (ex:making sure website is working properly)

-increase the production of widgets for a big order (make sure we dont make to many but we dont run out)→whe do we say no? time constraints, supply constraints

—decide who should be given what task and what shift (do I need to allocate certain shifts to certain ppl)

-map out which prospects need to be called out and when (decide which ppl should be called first, go to richest client first)

Situational analysis

what is the situation? should we reassess the business bc the situation just changed?

think mcdonalds $5 meal return wendys $1 frosty (if something significantly changes and the customers cant pay the bills, do situational analysis and drop prices)

*customer focused businesses adapt faster→ppl give feedback immediately, if they dont want it they wont buy it (biz to biz gets slower feedback)

SWOT analysis

pros and cons but more comprehensive

unique selling point (USP)

plan how to sell yourself, product, service

think references, if ppl are talking good things about you, thats not just u bragging

*understand what youre selling

how are we actually different, then how do we sell it? if i know my comp, ill be able to separate myself

benefit and pain selling

benefit selling

what most ppl do to encourage someone to buy something

fast car, nice phone, etc

say some things that most ppl would like

dont rlly know what will apply to them, so throw them all out there (you dont know if the person your speaking to will like it or think its unique)

pain selling

asking ppl whats their pain and go from there

“sounds like your problem is…” so heres this thatll solve it!

didnt say a lot, asks questions then chooses which USP you think theyll like

find the discomfort or reason theyre here, higher likelihood of getting the sale

benchmarking

doing research into a dollar amt, what youre earning/selling

checking out competition, compare results

checking expectations

competiton price benchmarking

you wanna buy something from a vendor, do research to make sure u arent overpaying

for the tavern, dont compare to mcdonalds, compare to allen st

pricing out product/service→you have to compare the enviro, service, taste, other food $

wage benchmarking

deciding how much to pay someone, ask, what does the industry pay these ppl?

SMART goals

realities of setting SMART goals

difference between hope and confidence is experience and information

sometimes youre just running on caffience and hopeium (driving their goals, how much of it is real)

hope bad bc you dont rlly think it through

sometimes what youre doing is hard to measure (ex: goal of happy customers)

founders and leaders struggle to predict timelines (unpack if theyve done it before, ask what could slow them down)

“show me the incentive and ill show you the behavior”

charlie munger

give reward for performance

management by objectives (MBO) (4 things)

more thorough and comprehensive managers

everything by the book

good if you dont see employees often (manages expectations)

1. everything you do must have an objective (things you do to achieve a goal in a timeline)

2. holds them accountable

3. every objective must be linked to a department goal (why doing it if now)

4. more admin work for managers but helps micromanagers (some ppl feel micromanaged if manager is too in control)

growth strategies

concentration strategy

failed e

concentration strategy

growth strategy in which a business focuses on its existing core business, products, or services and tries to expand within that area rather than entering completely unrelated industries.

ex: Open new branches or stores in different locations.

Growth comes from doing more of what the business already does, rather than diversifying into unrelated activities

Why did Foxtons' geographical expansion into the US fail?

Foxtons assumed that a successful model in one geographical market could be transferred to another without fully overcoming the differences in competition and market conditions.

Geographical expansion can increase revenue, but it also increases risk. A business should evaluate local demand, competitive conditions, and costs before expanding internationally.

What are mergers and acquisitions?

Mergers and acquisitions (M&A) are methods of external growth, in which businesses combine or one business takes control of another.

Organic growth develops the business internally; M&A allows growth by combining with or purchasing another business.

merger

Two businesses combine their operations into a combined business. In practice, mergers can differ in how control and ownership are shared.

aquisition

One business purchases and takes control of another business.

How does the Cadbury–Wrigley example demonstrate the importance of M&A?

M&A can allow a business to grow quickly, acquire complementary products, and strengthen its competitive position. However, success depends on whether the benefits justify the purchase price and integration costs.

mechanistic organization

there a system, larger you are, the more rules you need to keep everything fair, lots of structure and bureaucracy, hard for someone to come in and make a ton of changes

government, hierarchical (CFO, CEO, ppl respect the ppl above them)

hierarchy keeps things stable for a long time

organic organization

startups (random, could be going out of business) and growth businesses

hope that everyone has good values, are team players, are accountable

rules and standard operating procedure done on the fly

macro view organizational stages

courtship (flirting w idea of starting biz, planning, no prototype)

infancy (young but up and running, making/selling, all abt production)

gogo (chaos and production, making mistakes but pl want their products)

adolescence (have ambitions but comfy here)

prime (increase production, pushing boundaries of norms)

mature (focusing on merging/partnering)

high performance

aristocracy (been around forever, oil/utility, not producing a ton, lots of administration)

early bureaucracy (beginning of the end, some survive (govt))

bureaucracy

death

formal vs informal authority

Formal authority: Power that comes from a person's official position or role within an organisation.

(A store manager has the authority to assign shifts, supervise employees, and approve certain expenses because of their job title.)

boss/employee

Informal authority: Influence a person gains through personal qualities, experience, knowledge, relationships, or the respect of others, rather than through an official position.

(An experienced employee has no managerial title, but colleagues regularly ask for their advice and follow their recommendations.)

leader/subordinate

Centralized authority vs. decentralized authority

Centralized authority: Decision-making power is concentrated at the top levels of management.

Example: A retail company's head office decides the prices, advertising campaigns, and staffing policies for all its branches.

Decentralized authority: Decision-making power is delegated to lower-level managers or individual departments.

Example: A supermarket allows its local branch managers to adjust staffing schedules and select certain products based on local demand.

reasons we delegate

we cant do everything ourselves

hard for others to grow without new challenges

develops ownership, responsibility, and accountability

ppl need time to learn new skills

delegation feeds what three drivers of motivation

autonomy (give more responsibilities to someone, they feel more freedom)

mastery (some ppl motivated by being the best at something)

purpose (motivated by purpose of company/to help ppl)

reasons why we dont delegate 3 things

fear (it wont be done/not done right, controlling ppl feel this)

trust level (uncertainty on task ability, on willingness, capacity)

“carrying up” the task (you like doing the task, task gives you status or power)

not delegating… how could it get misread

some ppl frustrated that you dont trust them enough, think theyre not good enough, ppl that are ambitious and want to learn more

some ppl content w this bc job is tediouus and they could already have a lot on their plate

some ppl dont want to be in charge/be a leader

delegation questions to ask

-urgency of task (reward/punish deadline)

-which goals does this task help achieve? (make sure they know relevance)

-why does it matter/whats the cost of not doing it? (if it doesnt get done well lose money/time, cost them a promotion, lose trust)

why is this task being delegated to them?(unique skills, experience, timing)

strong measurement

good for delegation

strong measurements to see if they work well

good bandwidth (capacity to do something)]

growth mindset

always believe theres a possibility to get better, emphasize the word “yet”

fixed mindset comes from ppl doing whats worked well in the past (original recipe)

*cant have a growth mindset forever, ppl will take advantage of u, cost u money and time

trust levels 1-4

1. understanding (starts here, help them get better by letting them into the meeting, provide psychological safety)

2. recommending (not delegating yet, just experimenting, expect guesstimates, adds value/feel belonging, more confidence, give them some wins)

3. empowered (im ready to do what you tell me to do, recommendations usually correct, allow minor failures, requires patience)

4. leading/teaching (great way to perfect something, strategizing on future, delegating to others)

delegation training equation

time it takes to teach them how to do something (vs time it takes you to do something) X amt of times it has to be done

skill will matrix

tool for deciding delegation conversation

sandbox delegation rules

1. everything inside sandbox is theirs to decide (safe protective place to play w idea/task)

2. everything outside the sandbox requires approval (boundary so they dont go too far)

3. redraw sandbox boundaries when appropriate (give them more responsibility etc)

micromanaging vs coaching

coach-help them figure it out (just let them be, supportive)

micromanager-make sure it gets done on time and correctly (suspicious, always coming over)

monitoring 3 best practices

high vs low performing team

high-strong communication, close friendships, enthusiasm

low-dont like ppl, no comm, bad chemistry