Management theory 6-9

programmed decisions

- common situations that allow decision rules to be developed and applied in the future- they become routine

- Responding to recurring organizational problems

non programmed decisions

- made in response to situations that are unique, poorly defined, unstructured, and have important consequences for the organization

decision making models

1. Classical Model

2. Administrative Model

3. Political Model

classical model

- decision-making based on rational economic assumptions

- Managers' beliefs about what ideal decision-making should be

- Considered to be normative- this is how a decision maker should make decisions

classical model example

Retailer opening a new store

administrative model

- descriptive- describes how managers make decisions in complex situations

- Recognizes human and environmental limitations

- Focuses on organizational factors that influence individual decisions

administrative model example

mid-sized manufacturer choosing a new software system for inventory management

political model

- useful for making non-programmed decisions

- Used when conditions are uncertain, information is limited, and managers disagree about what goals to pursue or what course of action to take

- Create a coalition- an informal alliance among managers who support a specific goal

six steps in the managerial decison making process

1. recognition of de4 personal decision making stylescision requirement

2. diagnosis and analysis of causes

3. development of alternatives

4. selection of desired alternatives

5. implementation of chosen alternative

6. evaluation and feedback

4 personal decision making styles

1. directive

2. analytical

3. conceptual

4. behavioral

directive

- prefer simple, clear-cut solutions

- Efficient, rational, and rely on existing rules or procedures

analytical

- carefully consider alternatives

- base decisions on objective, rational data from management control systems

- Search for the best possible decisions based on the information available

conceptual

- consider a broad amount of information

- Socially oriented and talk to others about problems and alternatives

- Solve problems creatively

behavioral

- concerned with the personal development of others

- Make decisions that help others achieve their goals

- 1:1 meeting to understand feelings about the problem

authority

formal and legitimate right of a manager to make decisions, issue offers, and allocate resources

responsibility

duty to perform the task or activity as assigned

delegation

- a process that managers use to transfer authority and responsibility to positions below them in the hierarchy

-Lower-level managers are motivated, more efficient, flexible, and creative

centralization

- decision-making power at the top of the organization

- Communication flows from top-> down

- Improved efficiency, better resource allocation, streamlined communication

decentralization

- Decision-making is distributed across organizations

- Organizations can respond quickly to dynamics

- Employees have more chances for promotions and career growth

horizontal coordination

- promotes collaboration, agility, and innovation

- Enables faster decision-making and more employee autonomy

- Empowers employees and fosters open communication

- Utilizes coordination from the managers and collaboration between people in different departments

reengineering coordination

1. task force: a temporary team or committee to solve a problem involving several departments

2. Project managers: responsible for coordinating the activities of several departments for the completion of a specific project

3. cross-functional teams: team meets regularly to solve ongoing problems or common interests

relational coordination

refers to frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect

organizational innovation

- creation and implementation of a new idea, solution, or behavior by an organization

example:

Google allows employees to spend part of their time on personal innovation projects, leading to products like Gmail

disruptive innovation

- changes in products or services that start small

- End up completely replacing an existing product or service

example:

Netflix: changed how to rent videos and DVDs, putting Blockbuster out of business

reverse innovation

- international trend

- Change occurs in wealthy countries and transfers the new products to emerging markets

example:

John Deere: developed a high-quality, low-cost tractor for farmers in India that is in demand in the U.S.

ambidextrous approach

- creating structures and processes that both encourage creative ideas and enable the efficient and effective implementation of innovations

example:

Lowe's: established the Lowe's Innovation Labs in partnership with Virginia Tech to develop technology that will improve store operations and customer experience

product innovation

development or improvement of goods or services to meet customers' needs, increase quality, or create new market opportunities

process innovation

improving how products or services are created or delivered- focusing on efficiency, cost reduction, or quality enhancement

organizational development

- planned, systematic process of change

- Uses behavioral science knowledge techniques to create a positive corporate culture

- Improve the way people and departments relate to one another

- Focuses on human social aspects of organization

- Works to change attitudes and relationships

- Strengthening the organization's capacity for adaptation and renewal

3 major organizational development techniques

1. team building

2. survey feedback

3. large group intervention

human resource management (HRM)

- design and application of formal systems in a company

- Effective and efficient use of human talent to accomplish company goals

- Attracting, developing, and retaining talent

- Recruitment and training —> compensation and employee relations

human capital is....

- skills, knowledge, and experiences possessed by an individual or population

- Viewed in terms of their value or cost to an organization

human capital example

college education, training, job experience

strategic apporach to HRM

- Find the right people

- Maintain an effective workforce

- Manage talent

- All managers are involved in managing human resources

- Employees are viewed as assets- humans provide the competitive edge

- HRM aligns the company's goals with the right way to manage its people

issues concern managers to hire the right people

- to become more competitive on a global basis

- For improving quality, innovation, and customer service

- Knowing the right people to retain after mergers, acquisitions, or downsizing

- To apply new information technology to HRM processes

find the right people

- HRM planning

- job analysis

- forecasting

- recruiting

- selecting

maintain an effective workforce

- wages and salary

- benefits

- labor relations

- terminations

manage talent

- training

- development

- appraisal

1st: human resource planning

- predicting HR needs and matching individuals with expected openings

- Big picture questions to begin the process

- Following these questions forms more specific questions pertaining to specific openings

2nd: recruiting

- AKA talent acquisition

- Process of identifying, attracting, and hiring employees to fill open positions

- Posting job openings to onboarding new hires

- Internal recruiting/ promote from within vs external recruiting

3rd: selecting

- Employers analyze applicants' characteristics or qualifications

- Determine the best fit for the job; who to hire

- The most commonly used devices are applications, interviews, and employment tests

developing talent

1. training and development

2. on-the-job training

3. social learning

4. promotion within

5. Corporate universities

stereotyping

- based on false assumptions

- assigns negative traits to members of a group

- assumes that all members of a group have the same characteristics

unconscious bias

based on cultural differences

- views cultural differences as positive or neutral

- does not assume that all individuals within a group have the same characteristics

challenges underrepresented employees face

1. ethnocentrism

2. ethnorelativism

3. pluralism

4. monoculture

ethnocentrism

The belief that one's own group is inherently superior to other groups

ethnorelativism

Belief that groups and subcultures are inherently equal

pluralism

Describes an environment in which the organization accommodates several subcultures

monoculture

A culture that accepts only ONE way of doing things and ONE set of values and beliefs

women in the workforce

-Companies with senior-level women executives OUTPERFORM those companies that do not have senior-level women executives- both financially and organizationally

- An invisible barrier that separates women and underrepresented groups of people from senior management positions is known as a glass ceiling

- Women of color face a double dose of discrimination known as double jeopardy

- Women are likely to be more collaborative, less hierarchical and more relationship-oriented than men

LEGO

- LEGO is fan-based

- Use their fans input to create new products

- Fans are very important

Lewins State 3 model

1. unfreeze

2. change

3. refreeze

unfreeze

prepare the organization for change unfreeze

change

move from the old ways to the new ways

unfreeze

stabilize and reinforce the change

departmenalization

1. functional

2. divisional

3. matrix

4. team-based

5. visual network

functional

a company is divided into different compartments based on individuals

divisonal

made up of people organized under a company president and divided into subdivisions

matrix

where a company is organzied by both departments and projects at the same time

team based

when a company is organzied around a team insetad of departments

visual network

when a company keeps its main head quarters small