Rutgers Intro to Management Hubbard Midterm

-Serve the needs of society for goods and services

-To use resources productively in creating value for customers, employees, and shareholders

-To create jobs and to be good citizens in the communities they serve

Why do businesses exist?

Adam Smith, Frederick Taylor, Gilbreaths

Who was part of Scientific Management Theory

Job Specialization/Division of Labor

What did Adam Smith believe in?

-Study the Work, experiment with improvements

-Codify the best methods for doing the work

-Hire/Align worker skills with the jobs to be done

-Provide fair pay and incentives

What were Frederick Taylor's 4 principles to increase efficiency?

-Analyze all tasks, break into components

-Find better ways to perform each component

-Reorganize each component so overall more efficient

What were Gilbreath's 3 steps?

Max Weber and Henri Fayoli

Who was part of Administrative Management Theory?

5 principles of bureaucracy to ensure efficiency and effectiveness. Describes a formal system of organization and administration.

Max Weber's theory

14 principles of efficiency

Henry Fayoli's theory

Mary Parker Follet, Elton Mayo, Douglas McGregor

Who were proponents of behavioral management theory?

Emphasized the human side of management.

Mary Parker Follet

-Hawthorne Studies showed that performance of employees is influenced by their surroundings

-Birth of HR movement

Elton Mayo

Douglas Mcgregor:

People are inherently lazy

Theory X

Douglas Mcgregor:

Workers are motivated

Theory Y

Quantitative

Operations Management

Total Quantity Management

Management Information Systems

Management Science Theory

uses math and models

Quantitative Management

Specialized techniques for optimizing production systems

Operations Management

Integrated Process Management

Measurement and evaluation

Total Quantity Management

Provides easy access to external and internal data to enhance decision making

Management Information Systems

No one best way to organize

Rapidly changing environment=>organic structure

Stable environment=>organic structure

Contingency Theory

-Deregulation

-Globalization

-Technology

-Mergers and Acquisitions

-Business education

-Capitalism Model Focus

Forces of Change

A set of actions that a company's managers must take to outperform competitors and achieve profitability

Strategy

achieved when it provides buyers with superior value compared to rivals or offers same value at a lower cost

Competitive Advantage

Advantage persists despite best efforts of competitors to beat them

Sustainable advantage

Proactive strategy

Deliberate Strategy

Reactive strategy

Emergent Strategy

describes how to create value for customers and generate a profit for a company

Business Model

Approach to satisfying customers needs and wants at a price the customers will consider good value

Customer Value Proposition

Value>Price>Cost to firm

Profit Formula

where company is headed

establishes strategic and financial targets

outlines competitive moves

Strategic Plan

Outlines aspirations for the future

Strategic Vision

Describes the company's purpose and scope of present business

Mission

Beliefs, traits, and behavioral norms that employees are expected to portray

Values

Performance targets high enough to stretch a company to perform at full potential

Stretch Objectives

when a company relentlessly pursues objectives

Strategic intent

financial performance targets

Financial objectives

strengthening the market standing and prospects

Strategic objectives

used to combine both financial and strategic objectives

Balanced scorecard

-Political

-Economic

-Social

-Technological

-Environmental

-Legal

PESTEL

-Rivals

-Potential New Entrants

-Bargaining Power of Customer

-Bargaining Power of Supplier

-Producers of Substitute Products

Five Forces

Changes in the long-term industry growth rate

Globalization

New internet capabilities

Changes in who buys and how they use it

Technological change and process innovation

Entry or Exit of Firms

Regulations

Cost and Efficiency

Driving Forces

Strategy elements, product attributes, operational approaches, resources, and competitive capabilities that are essential to surviving and thriving in an industry.

Key Success Factors

Productive input or competitive asset owned by the firm (brand)

Resource

The capacity of a firm to perform some internal activity competently (R&D)

Capability

Land/Real Estate

Cash

Patents, copyright

IT systems

Tangible Resources

Human assets, intellectual capital

Brand

Relationships

culture

Intangible resources

Tests competitive power. Valuable, Rare, Inimitable, Non Substitute able

VRIN Test

Primary activities and related support activities that create customer value

Value Chain

-Strengths

-Weaknesses

-Opportunities

-Threats

SWOT Analysis

Activity that a company has learned to perform with proficiency

Competence

Capability that enables a company to perform a particular set of activities better than its rival

Distinctive competence

Activity a company performs proficiently and that is also central to its strategy and competitive success.

Core Competence

Achieving Lower Cost

Low Cost Provider

Differentiating the firm's product

Broad Differentiation

Price Sensitive Buyer Segment

Focused Low-Cost

Meeting specific tastes

Focused Differentiation

Upscale product attributes at a lower cost

Best-cost provider

Factors that have a strong influence on company costs

Cost Drivers

Increasing size of business to reduce unit costs

Economy of scale

Factors that have a strong differentiating effect

ie. Customer service, Sales

Value Drivers

Any process that directs the activities of individuals toward the achievement of organizational goals

Control

Formal Rules, standards, hierarchy, and legitimate authority

Bureaucratic Control

Uses prices, competition, profit centers, and exchange relationships

Market Control

Involves culture, shared values, beliefs. Works best when there is no one way to do the job

Clan Control

Expected performance for a given goal

Standard

collecting performance information before a task in done

Feed-forward control

collecting performance information while a task or project is done

Concurrent control

collecting performance information after a task is done

Feedback control

Investigating what is being done and comparing results with corresponding budget

ie. Sales, income, expenses, cash budget

Budgeting

the price charged by one business unit to another unit within the same organization

Transfer Price

The delegation of responsibility to employees for behaving and making decisions in the best interest of the firm

Empowerment

Bridges corporate governance and controls. Helps firms reach objectives and regulate behaviors.

Enterprise Risk Management

risks associated with financial assets, liabilities, and financial contracts

Financial Risks

The Process by which managers create a specific type of organizational structure and culture so a company can operate in the most efficient and effective way

Organizational Design

1. Create productive and meaningful jobs

2. Group jobs and create organizational structure to allow them to achieve goals.

3. Integrate and coordinate workflows

4. Establish organization culture

Steps to organizational Design

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve goals

Organizational Structure

Strategy

Environment

HR

Technology

4 factors that suggest need for adaptive structure

structure with fewer levels and wide spans of control

Flat Structures

structure of reporting to functional and product managers

Matrix Structures

all activities managers engage in to attract and retain employees and to ensure they perform at a high level and contribute to the accomplishment of organizational goals

Human Resource Management

Recruitment and Selection

Training and Development

Performance Appraisal and Feedback

Pay and Benefits

Labor Relations

5 components of HRM

the equal right of all citizens to obtain employment regardless of gender, age, race, etc

EEO

HR planning and job analysis

Recruitment and Selection

Based on interviews, references, paper and pencil tests, performance tests, etc

Selection

Skills needed for current job.

Expanding capabilities to qualify for higher positions and responsibilities

Training and Development

Evaluating job performance and contributions to the organization.

Performance Appraisal and Feedback

arrangement of jobs into categories

Pay Structure

activities managers engage in to ensure that they have effective working relationships with unions.

Labor relations

Emotions, Perceptions, Motivations

Inner Work Life Dynamics

Reactions to workday events such as happiness, fear, anger

Emotions

Meaning and value, what needs to be done, role in team

Perceptions

What to do, whether to do it, how to do it

Motivation for work

-Specific

-Measurable

-Actionable

-Realistic

-Time bound

SMART objectives

A combination of proactive and reactive elements

Realized Strategy

Five Forces

Driving Forces

Key Success Factors

Industry outlook for profitability

What to look for to analyze industry and competitive environment