Management Final

mission statement

statement that expresses the purpose of the organization

vision statement

statement that expresses what the org should become and where it wants to go strategically, clarity, future focus, abstractness/challenge, idealism

values statement

expresses what the company stands for, core priorities, values its employees embody, what its products contribute to the world, includes personal responsibility, entrepreneurship, honesty, courage, connection, fun, belonging

types of planning

strategic, tactical, operational

strategic planning

determines what the org long term goals should be for the next 1-5 yrs with the resources they expect to have, done by upper management

tactical planning

determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 yrs, by middle management

operational planning

determining how to accomplish specific tasks with avaliable resoruces within 1 week to 1 year period, by first line managers

long term goals

strategic goals, span 1 to 5 years and focus on achieving strategies identified in company's strategic plan

short term goals

tactical or operational, typically span 12 months and are connected to strategic goals in a hierarchy known as means end chain

means end chain

hierarchy of goals, in the chain of mgt (operational, tactical, strategic) the accomplishment of low level goals are the means leading to accomplishment of high level goals or ends, how goals are connected across an organization

smart goals

goal are specific, measurable, attainable, results oriented, target dates

management by objectives (mbo)

four step process where 1. managers and employees set joint objectives for employee, 2. managers develop action plans 3. managers and employees periodically review employee performance 4. manager makes performance appraisal and rewards employee according to results

cascading goals

objectives are structrued in a unified hierarchy, becoming more specific at lower levels of the org

planning/control cycle

continuous process managers use to eval progress in achieving strategic goals and to make modifications as needed

strategic positioning

strategy that attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company, 1. create something unique and valuable 2. requires trade offs 3. strategy involves creating a fit among activities

levels of strategy

corporate, business, functional

corporate level strategy

focuses on the org as a whole

business level strategy

focuses on individual business units or product/service lines

functional level strategy

plan of action by each functional area of the org to support higher level strategies

strategic management process

1. est mission, vision, values 2. assess current reality 3. formulate strategies and plans 4. implement strategies and plans 5. maintain strategic control

swot

situational analysis, strengths, weaknesses, opportunities, and threats affecting the org

vrio

framework for analyzing resource of capability to determine its competitive strategic potential by answering questions about value, rarity, imitability, and organization

forecast

a vision or projection of the future

trend analysis

hypothetical extension of a past series of events into the future

scenario analysis

creation of alternative hypothetical but equally likely future conditions

corporate level strategies

growth, stability, defense

growth strategy

expansion, as sales rev, mkt share, employees, or number of customers is served, innovation

stability strategy

strategy with little or no significant change

defensive strategy

retrenchment, strategy of reduction in the org's efforts

vertical integration

diversification strategy where a firm expands into businesses that proivde the supplies it needs to make its product or that distribute and sells products

porter's five forces

5 primary competitve forces 1. threat of new entrants 2. bargaining power of suppliers 3. bargaining power of buyers 4. threates of substitute products or services 5. rivalry among competitors

porter's four competitive strategies

market wide: cost leadership, differentiation, narrow markets: cost focus, focused-differentiation

cost leadership strategy

keeping cost and prices below competitors to target a wide audience

differentiation strategy

offer products or services that are of unique and superior value compared with competitors but to target a wide audience

cost focus strategy

keep cost and prices of a product or service below competitors, target a narrow audience

focused differentiation strategy

offer products and services unique and of superior value compared to competitors and target a narrow mkt

rational decision making

classical model, style of decision making that explains how managers should make decisions, assumes managers will make logical decisions that are the optimal means of furthering the org's best interests

stages in rational decision making

1. identify problem or opportunity 2. think up alt solutions 3. eval alts and select solution 4. implement and eval chosen solution

nonrational decision making

models of decision making that explain how managers make decisions, assume decision making is nearly always uncertain and risky, difficult for managers to make optimum, satisficing, intution

bounded rationality

satisficing, ability of decision makers to be rational is limited by numerous constraints

satisficing model

managers seek alts until they find one that is satisfactory, not optimal

evidence based decision making

process of gathering and analyzing high quality data to develop and implement a plan of action

decision making styles

analytical, conceptual, directive, behavioral

directive decision making

action oriented and focus on facts

analytical decision making

careful decision makers who like info and alternative choices

conceptual style

decision makers rely on intuition and have long term perspectives

behavioral style

most people oriented decision makers

availability bias

use of info readily available from memory to make judgments

representativeness bias

tendency to generalize from a small sample or single event

confirmation bias

biased way of thinking in which people seek info to support their pov and discount data that do not support it

sunk cost bias

way of thinking where managers add up money already spent on a project and conclude it is too costly to simply abandon it

anchoring and adjustment

tendency to make decisions based on an initial figure

overconfidence bias

bias in which people's subjective confidence in their decision making is greater than their objective accuracy

hindsight bias

tendency of people to view events as being more predictable than they really are

framing bias

tendency of decision makers to be influenced by the way a situation or problem is presented to them

escalation of commitment bias

when decision makers increase their commitment to a project despite negative information about it

categorical thinking bias

tendency of decision makers to classify people or info based on observed or inferred characteristics

advantages of group decision making

knowledge diversity, different perspectives, info accumulation, better understanding of decision rationale, deeper commitment to the decision

disadvantages of group decision making

a few people dominate, groupthink, satisficing, goal displacement

groupthink

cohesive group's blind unwillingness to consider alternatives when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation

after action review

review of recent decisions in order to identify possible future improvements

organizational (corporate) culture

set of shared taken for granted implicit assumptions that group holds about actions and environment

levels of organizational culture

observable artifacts, espoused values, basic assumptions

observable artifacts

physical manifestations such as dress, awards, myths, and stories about the company

espoused values

explicitly stated values and norms preferred by an org

enacted values

values and norms actually exhibited in the org

organizational socialization

process by which people learn values, norms, and required behaviors that permit them to participate as members of an org

how employees learn organizational culture

symbols, stories, heroes, rites/rituals. organization socialization

common elements of organizations

common purpose, coordinated effort, division of labor, hierarchy of authority

person organization (po) fit

extent to which your personality and values match the climate and culture of an org

common purpose

goal that unifies employees or members and gives everyone an understanding of the org's reason for being

coordinated effort

coordination of individual efforts into a group or org wide effort

division of labor

work specialization, arrangement of having discrete parts of a task done by different people, work divided into particular tasks assigned to particular workers

hierarchy of authority

chain of command, control mechanism for making sure the right people do the right things at the right time

flat organization

organizational structure with few or no levels of middle management between top managers and those reporting to them

unity of command

principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands

span of control

number of people reporting directly to a given manager

organizational design

create optimal structures of accountability and responsibility that an org uses to execute its strategies

types of organizational structures

simple, functional, divisional, matrix, horizontal, hollow, modular, virtual

simple structure

an org has authority centralized in a single person as well as a flat hierarchy, few rules, low work specialization

functional structure

structure whereby people with similar occupational specialities are put together in formal groups

divisional structure

structure where people w diverse occupational specialities are put together in formal groups according to products/services, customers/clients. or geographic regions

matrix structure

organizational structure that combines functional and divisional chains of command in a grid so there are two command structures vertical and horizontal

horizontal structure

team based design, temporary or permanent, used to improve collaboration and work on shared tasks by breaking down internal boundaries

boundaryless organization

fluid, highly adaptive org whose members linked by it, collab on common tasks may include competitors, suppliers, and customers

hollow structure

network structure, org has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

modular structure

firm assembles product chunks or modules provided by outside contractors

virtual structure

org whose members are geographically apart but work with internet

human resource management

activities managers perform to plan for, attract, develop, and retain a workforce

human capital

economic or productive potential of employee knowledge, experience, and actions

social capital

economic or productive potential of strong, trusting, and cooperative relationships

high performance work system

approach to strategic hrm deploys bundles of interally consistent hr practices to improve employee ability, motivation, and opportuntieis across the entire org

recruiting

process of locating and attracting qualified applicants for jobs open in the org, internal and external

internal recruiting

hiring from inside, making people aready employed by the org aware of job openings

talent marketplaces

digital platforms that use ai to match existing employees with job openings, training opportunities and mentoring relationships

external recruiting

attracting job applications from outside the org

selection

screening of job applications to hire the best candidate, legally defensible tools, background info, interviews, employment tests

legal defensibility

extent to which selection device measures job related criteria in a way free of bias, reliability, validity

reliability

degree to which a test measures the same thing consistently so individuals socre remains the same over time assuming characteristics measured stayed the same

validity

extent to which a test measures what it purports to measure and extent to which it is free of bias