UIOWA MANAGEMENT FINAL EXAM

Defintion of management

getting work done through others, concerned with efficiency and effectiveness in the work process

4 Management Functions

Planning

Organizing

Controlling

Leading

MF1: Planning

involves determining organizational goals and a means for achieving them

MF2: Organizing

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company--determining how things get done

MF3: Leading

involves inspiring and motivating workers to work hard to achieve organizational goals

MF4: Controlling

monitoring progress toward goal achievement and taking corrective action when progress is not being made

What is the basic controlling process?

involves setting standards to achieve goals, comparing actual performance to those standards and then making changes to return performance to those standards

Self-Management Process Stages

1. Self-Assessment & Planning

2. Goal Setting

3. Self & Environmental Control

4. Evaluating & Rewarding Progress

S1: Self-Assessment & Planning--Tip

Ask:

Who am I now? Who do I want to be?

What are my strengths? What do I want them to be?

What am I doing now? What I want to be doing?

Where am I now? Where do I want to go?

S1: Self-Assessment & Planning--Mistakes

not having standards

ignoring important parts of our identities

S2: Goal Setting--Tip

What do I need to do in order to get where I want to go?

Set S.M.A.R.T Goals

S2: Goal Setting-Mistakes

failing to set goals--"hope and wish"

setting vague goals--"do your best"

failing to follow through with goals

S3A: Self-Control--Tip

Ask: What is important? What is urgent

Important: produces a desired result

Urgent: Demands immediate Action

S3A: Self-Control--Mistakes

allowing negative emotions or habits to derail us

S3B: Environmental Control--Tip

proactively structure work environment to increase likelihood of success

S3B: Environmental Control--Mistakes

allowing others to control your time

S3B: Morgenstern's Time Management Tips

delete

delay

diminish

delegate

S4: Evaluating and Rewarding Progress--Tip

determine what you've accomplished and reward yourself accordingly

S4: Evaluating and Rewarding Progress--Mistakes

rewarding yourself too early, too late, too much

punishing yourself if you fail

Gaining Management Skills

i. Sources of Learning: reading, reflection, relationship, and real experience.

ii. Skills gains occur best through deliberately: combining multiple sources and self-management

Emotional Control Activities

Count your blessings (list good things that happened to you each day), autobiographical reflection (write about memories)

What are Norms?

informally agreed upon standards that regulate team behavior

What creates norms?

formal written agreements made early in team formation

team managers repeated actions

team's responses to critical events

maximizing benefits of diversity

get to know one another's backgrounds

create time/space for questions to clarify meaning

assume the best intentions

ethical intensity

the degree of concern people have about an issue

Encouraging Ethical Behavior

recruit, select, and hire ethical people

establish a code of ethics

provide training

create an ethical climate-measure and enforce

Shareholder View

purpose of business is to maximize profit, stockholder is the only beneficiary

Stakeholder View

purpose of business is to create value for society, multiple stakeholders are considered and multiple can benefit

Responsibility Strategies

reactive

defensive

accommodative

proactive

RS1: Reactive

a company does less than society expects

RS2: Defensive

admits responsibility for a problem but would do the least required to meet societal expectations

RS3: Accomodative

will accept responsibility for a problem and take a progressive approach by doing all that could be expected to solve the problem

RS4: Proactive

will anticipate responsibility for a problem before it occurs, do more than expected to address the problem, and lead the industry in its approach

components of general environment

economy

technology

sociocultural

political/legal

Culture formation and maintenance

1.organizational stories: make sense of organizational events and changes and emphasize culturally consistent assumptions, decisions, and actions

2. organizational heroes: organizational people admired for their qualities and achievements within the organization

3. organizational ceremonies: gatherings in which symbolic acts commemorate or celebrate notable achievements or changes

Internalization Process (Stages)

1. exporting

2. cooperative contracts

3. strategic alliances

4. wholly owned affiliates

exporting

selling domestically produced products to buyers in other countries

cooperative contracts

an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country

2 types of cooperative contracts

licensing and franchising

licensing

an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service, or use its brand name in a specified foreign market

franchising

a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

strategic alliances

an agreement in which companies combine key resources, costs, risks, technology, and people

wholly owned affiliates

foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

global new ventures

new companies that are founded with an active global strategy and have sales, employees, and financing in different countries

High context cultures

cultures in which nonverbal and situational messages convey meaning

-relationship more important than terms

Low context cultures

cultures in which words convey primary meaning

-nonverbal messages are secondary

-the terms of the deal are more important than building a business

preparing for an international assignment

language and cross-cultural training

consideration of spouse, family, and dual-career issues (adaptability screening)

getting funding

equity

debt

awards from competitions

Key ideas behind 'burn your business plan'

great oral presentation

compelling written story

effective website

hard-hitting financial projections

steps in rational decision making

1. Define the problem

2. Identify decision criteria

3. Weigh the criteria

4. Generate alternative courses of action

5. Evaluate each alternative

6. Compute the optimal decision

SWOT analysis (situational analysis)

an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment

corporate "grand" strategies

growth strategy

stability strategy

retrenchment strategy

CS1: Growth Strategy

focuses on increasing profits, revenues, market share, or number of places to do business

CS2: Stability Strategy

focuses on improving the way the company sells the same products or services to the same customers

CS3: Retrenchment Strategy

focuses on turning around very poor company performance by shrinking the size or scope of the business

corporate strategies

the overall organizational strategy that addresses the question "what business or businesses are we in or should we be in?

"2 approaches:

-portfolio strategy

-grand strategy

CS: Portfolio Strategy

a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

BCG Matrix

a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds

(stars, dogs, cash cows, question marks)

dogs

have small shares in a slow growing market

cash cows

have large shares in a slow growing market

question marks

have small shares in a fast growing market

stars

have a large share of a fast-growing market

control process

1. set standard

2. measure actual performance

3. compare with standard

4. identify deviations

5. analyze deviations

6. take corrective action

3 types of control

1. feedforward control

2. concurrent control

3. feedback control

feedforward control

-monitoring inputs

-anticipating and preventing problems

concurrent control

-monitoring processes

-adjusting ongoing activities

feedback control

-monitoring products

-learning from past mistakes

budgets

most widely used control device

organizations usually have many budgets:

-sales budgets (revenue)

-operating budgets (expenses)

-income statements (revenue, expenses, and net income)

-balance sheet (assets, liabilities, & net worth)

experiential innovation

-uncertain environments

-intuition, flexibility

-goal: new product/service

compression innovation

- certain environments

- series of steps

- goal: Faster/cheaper

creative work environment components

organizational encouragement

supervising engagement

work group engagement

freedom

lack of organizational impediments

challenging work

resistance to change

opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change

mechanistic design

a very clear chain of command

vertical communication

centralized authority

low delegation

high specialization

organic design

think broadly about who to report to

lateral communication

decentralized authority

high delegation

high generalization

line authority

the right to command immediate subordinates in the chain of command

staff authority

the right to advise, but not command, others who are not subordinates in the chain of command

delegation of authority

the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

3 transfers of delegation of authority

1. manager transfers full responsibility for the assignment to the subordinate

2. the manager gives the subordinate full authority over the budget, resources, and personnel needed to do the job

3. transfer of accountability

people-centered approach

human capital

human resource management

human capital

potential of workforce, captured in their knowledge/skill/motivation

people-centered practices

-protection of job security

-rigorous hiring process

-employee empowerment

-compensation linked to performance

-comprehensive training

-reduction of status differences

-sharing of key information

general model of HR

recruitment and selection, compensation and rewards, performance appraisal and management, training and development all go into desired performance

Recruiting Technique Success Rates

51% of all hires were from inside the company; 49% of the rest: one fourth of those came from internal referrals, the rest from external hiring sources

tips for recruiting

-use social networks of existing employees and friends. employees won't vouch for someone that hurts reputation

-use personal contact (shows how they act with you)

-target desired applicants (better than broach search)

-proofread ads

managers as teachers

-explain basic concepts (TELL)

-demonstrate performance (SHOW)

-solicit practice (WATCH)

-provide constructive feedback (ENCOURAGE)

-repeat as necessary

job analysis

a purposeful, systematic process for collecting information on the important work-related aspects of a job

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

job specification

a written summary of the qualifications needed to successfully perform a particular job

structured interviews

interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions

unstructured interviews

interviews in which interviewers are free to ask the applicants anything they want

appraisal options

evaluating employee performance relative to standards.

-objective measures (best)

-subjective ratings: graphic rating scale is the worst, behavior observation Scale (BOS) and BARS are better.

Behavior Observation Scale (BOS)

rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance

training objectives and methods

impart information & knowledge: films and videos, lectures, planned readings;

develop analytical and problem solving skills: case studies, coaching and mentoring, group discussions;

practice, learn or change job behaviors: on-the-job training, role-playing, simulations and games, vestibule training (real equipment)

all three: computer-based learning

terminating employees

always make sure it's a last resort and for a good reason. employee should be aware of severity and possibility in order for them to have a chance to address the issue.

wrongful discharge: legal doctrine that requires employers to have a job-related reason to terminate employees.

functional turnover

loss of poor-performing employees who voluntarily choose to leave a company

dysfunctional turnover

loss of high-performing employees who voluntarily choose to leave a company

individual motivation

set of forces that initiates, directs, and make people persist in their efforts to pursue a goal

job performance equation

performance = ability x motivation

needs theories (maslow, alderfer, mcclelland)

theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs

alderfer ERG theory

3 fundamental needs all have varying degrees

-existence

-relatedness

-growth