MGMT 3000 Guhde Test 2

Idealist Motivation

(INNOVATION) Small-business owners who are rewarded by the chance to work on something new and creative.

Optimizer Motivation

(FULFILLMENT) Owners who get personal satisfaction from being business owners.

Hard Worker Motivation

(CHALLENGE) Owners who thrive on the challenge of building a larger, more profitable business

Juggler Motivation

(MULTITASK) High-energy people who enjoy handling every detail of their own businesses.

Sustainer Motivation

(WORK + FAMILY) Owners who enjoy the chance to balance work and personal life

Entrepreneurship

The process of initiating a business venture, organizing the necessary resources, assuming the associated risks, and enjoying the rewards.

6 Core Characteristics of Successful Entrepreneurs

1. Autonomy 2. Entrepreneurial Sacrifice 3. High Energy 4. Need to Achieve 5. Self-Confidence 6. Locus of Control

Goal

a desired future circumstance or condition that the organization attempts to realize.

Why Goals are Important

Because organizations exist for a purpose, and goals define and state that purpose.

Plan

A blueprint for goal achievement that specifies the necessary resources allocations, schedules, tasks, and other actions.

Planning

determining the organization's goals and defining the means for achieving them (a combination of plans and goals)

(level 2 of goals and plans: strategic)

senior management input... the organization as a whole. (company level)

(level 3 of goals and plans: tactical)

middle management input... the major divisions and functions. (divisional level)

(level 4 of goals and plans: operational)

lower management input... the departments and individuals. (departmental level)

Strategic Goals

Broad statements describing where the organization wants to be in the future.

Strategic Plans

defines the action steps by which the company intends to attain strategic goals. (cash, personnel, space, and facilities)

Tactical Goals

the results that major divisions and departments within the organization intend to achieve.

Tactical Plans

designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy. (ex. covers the next year or so, define what major departments will do)

Operational Goals

Precise and measurable goals (ex. 150 sales applications each week, 90% of deliveries on time)

Operational Plans

Used to specify action steps toward achieving operational goals and help meet tactical and strategic goals.

Performance Management Tools include all of the following except...

Management by Objectives

Planning Maps

Single-use plans

Standing plans

planning maps

The Five Steps of the Organizational Planning Process

1. Develop the Plan

2. Translate the Plan

3. Plan Operations

4. Performance Management

5. Monitor and Learn

What step of the organizational planning process involves...

- define mission, vision

Develop the Plan

What step of the organizational planning process involves...

- set goals

Develop the Plan

What step of the organizational planning process involves...

- manage goal conflict

Develop the Plan

What step of the organizational planning process involves...

- define tactical plans and objectives

Translate the Plan

What step of the organizational planning process involves...

- develop strategy map

Translate the Plan

What step of the organizational planning process involves...

- define contingency plans and scenarios

Translate the Plan

What step of the organizational planning process involves...

- define operational goals and plans

Plan Operations

What step of the organizational planning process involves...

- select measures and targets

Plan Operations

What step of the organizational planning process involves...

- set stretch goals

Plan Operations

What step of the organizational planning process involves...

- crisis planning

Plan Operations

What step of the organizational planning process involves...

- management by objectives

Performance Management

What step of the organizational planning process involves...

- single use plans

Performance Management

What step of the organizational planning process involves...

- standing plans

Performance Management

What step of the organizational planning process involves...

- hold planning reviews

Monitor and Learn

What step of the organizational planning process involves...

- hold operational reviews

Monitor and Learn

Mission

the organization's reason for existence

mission statement

broadly stated definition of a purpose that distinguishes the organization from others of a similar type.

Two purposes of a well-defined mission

1. articulating strategic direction, setting framework for development of subsequent goals and plans

2. motivating and inspiring employees

Coalitional Management

building an alliance of people who support a manager's goals and influencing other people to accept and work toward those goals.

Strategy Map

a visual representation of the key drivers of an organization's success.

These strategy map goals...

- increase revenues in existing markets

Financial Performance Goals

These strategy map goals...

- increase productivity and efficiency

Financial Performance Goals

These strategy map goals...

- increase revenues in new markets and products

Financial Performance Goals

These strategy map goals...

- build and maintain good customer relationships

Customer Service Goals

These strategy map goals...

- be the leader in quality and reliability

Customer Service Goals

These strategy map goals...

- provide innovative solutions to customer needs

Customer Service Goals

These strategy map goals...

- build good relationships with suppliers and partners

Internal Business Process Goals

These strategy map goals...

- improve cost, quality, and flexibility of operations

Internal Business Process Goals

These strategy map goals...

- excel at innovative product development and next-generation market opportunities

Internal Business Process Goals

These strategy map goals...

- promote employee development via ongoing training

Learning and Growth Goals

These strategy map goals...

- enable continuous learning and knowledge-sharing

Learning and Growth Goals

These strategy map goals...

- cultivate a culture of innovation and high performance

Learning and Growth Goals

What are the five effective approaches to use when goals are in conflict or when managers disagree over which goals to pursue?

1. Building a Coalition

2. Addressing conflict with debate and dialogue

3. Promoting Collaboration

4. Modifying Goals

5. Manager Departures

Directive Decision Style

prefer simple, clear-cut solutions to problems

Analytical Decision Style

base decisions on all available rational data

Conceptual Decision Style

use a broad amount of information to solve problems creatively

Behavioral Decision Style

exhibit a deep concern regarding effect of decision on others

Anchoring Bias

a cognitive bias that causes us to rely too heavily on the first piece of information we are given and therefore interpret newer information from the reference point of our anchor, instead of seeing it objectively.

Loss Aversion

place a higher value on avoiding losses than on potential gains

Confirmation Bias

occurs when the manager puts too much value on evidence that is consistent with a favored belief and discounts evidence that contradicts it

Brainstorming

uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem

Electronic Brainstorming

brings people together in an interactive group over a computer network, rather than meeting face to face

Evidence-based decision making

a commitment to make more informed and intelligent decisions based on the best available facts and evidence

Building a Coalition

A form of managing goal conflict involving building an alliance of people who support a manager's goals and influencing other people to accept and work toward those goals.

Modifying Goals by Time or Location

a form of goal conflict resolution in which managers deal with two important goals by adapting them over space and time

Address Conflicts with Debate and Dialogue

a goal conflict resolution in which good managers allow conversation to occur to discuss multiple viewpoints of a problem.

Break Down Barriers and Promote Cross-Silo Cooperation

a goal conflict resolution in which a manager allows people to cooperate and discuss across departments, divisions, and levels.

Manager Departures

A goal conflict resolution in which it is decided that the best way to resolve goal conflict is for the manager to leave

5 Characteristics of Effective Goals

1. Specific and Measurable

2. Defined Time Period

3. Linked to Rewards

4. Challenging but Realistic

5. Cover Key Result Areas

Key Performance Indicators

The quantifiable metrics a company uses to evaluate progress toward critical success factors

Management by Objectives

a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

4 steps of MBO process

1. Set Goals - what are we trying to accomplish?

2. Develop Action Plans - defines the course of action needed to achieve the stated goals.

3. Review Progress - to ensure action plans are working.

4. Appraise Overall Performance

(MBM) Management by Means

focuses attention on the methods and processes used to achieve goals (helps MBO)

Single-Use Plans

Used to develop a set of goals that are not likely to be repeated in the future

Standing Plans

ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization

What are the four benefits to planning?

1. Goals and plans provide a source of motivation and commitment.

2. They guide resource allocation.

3. They are a guide to action.

4. They set a standard of performance.

What are four potential limitations to planning?

1. They can create too much pressure.

2. They can create a false sense of certainty.

3. They can cause rigidity in a turbulent environment.

4. They can get in the way of intuition and creativity

Contingency Plans

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions

Scenario Building

involves looking at current trends and discontinuities and visualizing future possibilities

Stretch Goals

reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.

Crisis Planning

"in the moment" planning for sudden, unexpected events

Two stages of Crisis Planning

1. Crisis Prevention - activities that managers undertake to prevent crises and to detect warning signs of potential crises.

2. Crisis Preparation - includes all the detailed planning to handle a crisis when it occurs.

Strategic Management

the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Strategy

the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals.

Competitive Advantage

what sets the organization apart from others and provides it with a distinctive edge?

What are the four elements of competitive advantage?

1. Target Customers

2. Achieve Synergy

3. Create Value

4. Exploit Core Competence

Corporate-Level Strategy

What business are we in?

Business-Level Strategy

How do we compete?

Functional-Level Strategy

How do we support the business-level strategy?

Strategy Formulation

comprises the planning and decision making that lead to the establishment of the firm's goals and the development of a specific strategic plan

Strategy Execution

administration and implementation of the strategic plan

Strategic Business Units

individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors

Portfolio Strategy

the mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation

BCG Matrix

a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market

Diversification

strategy of moving into new lines of business

Merger

method of diversification in which two or more organizations combine to become one.

Joint Venture

involves a strategic alliance or program by two or more organizations (ex. Sikorsky Aircraft and Lockheed Martin teamed up to bid on a new contract for a fleet of Marine One helicopters

Related Diversification

a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity