GMS200 Mid Term + Final

Talent

Intellectual Capital

Intellectual Capital

Combined brainpower and shared knowledge of an organizations employees. A knowledge worker’s mind is crucial to employers and adds to the intellectual capital of an organization

Tech IQ

The ability to use current technologies at work and in person life

Ex: Inventory check, sales transactions, order supplies, telecommuting

Globalization

The worldwide interdependence of resource flows, produces markets, and business competition that characterize our economy

Ethics

The code of moral principles that set standards of conduct of what is “good” and “right” as well as “bad” and “wrong” in both business and individual behaviour

Corporate Governance

Board of directors hold top management responsible for organizational performance (Financial and ethical performances, Sustainability)

Diversity

Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness. Diverse workforce challenges and offers opportunities to employers.

How does diversity bias occur in the workplace

Prejudice — Display of negative, irrational opinion and attitudes

Discriminations — Unfairly treating members of some groups

Glass ceiling effect — an invisible barrier or ceiling

Organizations

Collection of people working together to achieve a common purpose

Provides goods and services of value to customers and

Organizational Performance

Value creation

Productivity

Performance Effectiveness

Performance Efficiency

Value Creation

Important notion for organizations

• Occurs when businesses earn a profit or nonprofit organizations add wealth to society

Value is created when an organization’s operations add value to the original cost of resource inputs

Productivity

Overall measure of the quantity and quality of work performance with resource utilization taken into account

Performance effectiveness

Output measure of task or goal accomplishment

Performance efficiency

An input measure of the resource costs associated with goal accomplishment

Workplace changes that provide a context for studying management

• Focus on valuing human capital

• Demise of “command-and-control’

• Emphasis on teamwork

• Pre-eminence of technology

• Important of networking

• New workforce expectations

• Concerns for sustainbility

Importance of human resources and managers

People are not ‘costs to be controlled’

High performing organizations treat people as strategic assets or Human Capital

Managers

• Directly Supports, Supervises, and helps activate the work effort of others

• The people who managers help are the ones whose contributions represent the real work of the organization

Levels of management

• Board of directors — Make sure organization is run well

• Top Managers — Responsible for performance of an organization as a whole

• MIddle Managers — Oversee large departments or divisions

• Team leaders — supervise non-managerial workers

Quality of work life

An indicator of the overall quality of the human experiences in the workplace

QWL Indicators

• Respect

• Fair Pay

• Safe working conditions

• Opportunities to learn are use new skills

• Room to grow and progress in a career

• Protection of individual rights

Organization as an upside-down pyramid

• Manager’s are to support worker efforts

• Customers are at the top served by workers supported by the managers

Functions of Management

• Planning

• Organization

• Leading

• Controlling

Management

Process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals

Managers are responsible for the four functions

Planning

Process of setting objectives and determining what actions should be taken to accomplish them

Organizing

Process of assigning tasks, allocating resources, and coordinating work activities

Leading

Process of arousing people’s enthusiasm and inspiring them to work hard to achieve goals

Controlling

Process of measuring work performance, comparing results, and taking corrective action

Characteristics of managerial work

• Long Hours

• Intense pace

• Fragmented and varied tasks

• Many communication media

• Filled with interpersonal relationships

Managerial competencies

Technological Competency, Informational Competency, Analytical Competency

Technological Competency

Ability to understand new technologies and to use them to their best advantage

Informational Competency

Ability to locate, gather, organize, and display information for decision-making and problem solving

Analytical competency

Ability to evaluate and analyze information to make actual decisions and solve real problems

What is useful information

Data, information that drives management decision-making

Data

Raw facts and observations

Information

Information drives management decision-making

Characteristics of useful information

• Timely

• High Quality

• Complete

• Relevant

• Understandable

Management Information System:

Using the latest technologies to collect, organize, and distribute data

Data Mining

Process of process of analyzing data to product useful information for decision-makers

Big Data

exists in huge quantities and are difficult to process without sophisticated mathematical and analytical techniques

Management analytics

involves the systematic evaluation and analysis of data to make informed decisions

Business Intelligence

Taps information systems to extract and report data in organized ways that are useful to decision-makers

Data visualization

Visually update and display key performance metrics and information on a real-time basis through executive dashboards

Information needs in organizations

Information exchanges with the external environment

Information exchanges within the organization

Information exchanges with the external environment

• Gather intelligence information

• Provide public information

Information exchanges within the organization

Facilitate decision-making

Facilitate problem-solving

Managers as information Processors

• Continually gather, share, and receive information

• Today, as much electronic as it is face to face

• Always on, always connected

Problem Solving

Process of identifying a discrepancy between actual and desired performance and taking action to resolve it

Decision

A choice among possible alternative courses of action

Performance threat

Something is wrong or has the potential to go wrong

Performance opportunity

SItuation offers take the chance for a better future if the right steps are taken

Problem solving approaches/styles

Problem avoiders and Problem solvers

Problem avoiders

Inactives in information gather and solving problems

Problem solvers

Reactive in gathering information and solving problems

Problem seekers

Proactive in anticipating problems and opportunities and taking appropriate action to gain an advantage

Systematic thinking

Approaches problem in a rational, step-by-step, and analytical fashion

Intuitive thinking

approaches problems in a flexible and spontaneous fashion

Effective mult-dimensional thinking requires

Skill at strategic opportunism

• Remaining focused on long-term objectives

• Being Flexible or resolving short-term problems

Type of problems

Structured Problems, Unstructured Problems

Structured Problems

Familiar problems, straightforward and clear with respect to information needs

Programmed decisions apply solutions that are readily available from past experiences to solve structured problems

Unstructured problems

Problems that are full of ambiguities and lack information, requires a very specific solution to meet the demands of a unique problem

Crisis Decision making

Unexpected problem that can be disastrous if not dealt quickly and appropriately

Rules of Crisis Management

• Figure out what is going on

• Remember that speed matters

• Remember that slow counts too

• Respect the danger of the unfamiliar

• Value the skeptic

• Be ready to fight ‘fight fire with fire’

Certain Environment

Offers complete factual information on possible action alternatives and their consequences

Risk Environment

lacks complete information but offers probabilities of the likely outcomes for possible action alternatives

Uncertain environment

Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives

Three environments for problem solving and decision making

• Certain environment

• Risk Environment

• Uncertain environment

Steps in decision making process

• Identifying and define the problem

• Generate and Evaluate alternative courses of action

• Decide on a preferred course of action

• Implement the decision

• Evaluate results

Identifying and define the problem (Step 1)

Focuses on information gathering, processing and deliberation

• Decision objectives should be established

Common mistakes in defining problems

• Defining the problem too broadly/narrowly

• Focusing on symptoms instead of causes

• Choosing the wrong problem to deal with

Generate and Evaluate Alternative Courses of Action (step 2)

• Potential solutions are formulated and more information is gathered, data are analyzed, the advantages and disadvantages of alternative solutions are identified

Approaches of evaluating alternatives

Stakeholder analysis, Cost-Benefit analysis

Criteria for Evaluating Alternatives

• Benefits

• Costs

• Timeliness

• Acceptability

• Ethical Soundness

Common mistakes of evaluating alternatives

• Abandoning the search for alternatives too quickly

• Lack of self-confidence and commitment

• Unanticipated positive or negative side effects

Decide on a preferred course of action (Step 3)

Two Approaches: Classical Model and Behavioural Model

Classical Model Approach

Leads to optimizing decisions

Behavioural Model approach

leads to satisficing decisions

Implement the decision (Step 4)

• Involves taking action to make sure solution decided becomes reality

• Managers need to have willingness and ability to implement action plans

• Lack of-participation error should be avoided

Evaluate Results (Step 5)

• Involves comparing actual and desired results

• Positive and negative consequences of chosen courses of action should be examined

• If actual results fall short of desire results, the manager returns to earlier steps in the decision-making process

Ethical Reasoning Spotlight questions

• Utility

• Rights

• Justice

• Caring

Utility

Does the decision satisfy all constituents or stakeholders?

Rights

Does the decisions respect the rights and duties of everyone?

Justice

is the decision consistent with the canons of justice?

Caring

Is the decision consistent with my responsibilities to care

Issues in decision making

• Why do decision errors happen?

• How do we frame the problem?

• Heuristics are strategies for simplifying decision-making

Availability Bias

Base a decision on recent information or events

Representativeness Bias

Base a decision on similarity to other situations

Anchoring and Adjustment Bias

base a decision on incremental adjustment from a prior decision point

Framing Error

trying to solve a problem in the context perceived, positive or negative

Confirmation Error

focusing on information that confirms a decision already made

Escalating Commitment

continuing a course of action even though it does not work

Creative Decision making

Creativity is the generation of a unique approach that solves problems/exploits opportunities

Big-C Creativity

When extraordinary things are done by exceptional people

Little-C Creativity

When average people come up with unique ways to deal with daily events and situations

Three Types of situational creativity drivers

• Team Creativity Skills

• Management Support

• Organizational Culture

Global Economy

Resources, supplies, product markets, and competition are worldwide in scope

Globalization

Growing interdependence among elements in the global economy

World 3.0

Balancing cooperation in the global economy with national identities and interests

Global Management

managing business and organizations with interests in more than one country

Global Manager

has global perspective, and is culturally aware and informed on current international affairs

International businesses

Conducting for-profit transactions of goods and services across national boundaries