ADMS 1000 Study Terms

When studying don;t try to memorise just understand the concept.

possible short answer ADMS

Low Chance

-What sorts of decisions do people make in organisations? SLIDE 26 (maybe high chance)

-Escalation Of Commitment To A Failure Course Of Action/Strategic Decision SLIDE 30

-Organisational Learning, very similar to contingency theory SLIDE 31

-Roles of Managers SLIDE 2

High Chance

-What is a learning organisation (single vs double loop) SLIDE 16, 17

-Functions of Managers SLIDE 3

-contingency theory slide 14

Strategy
Organisational size
Technology
Environment

-contingency approach SLIDE 10

Organisational size
Routineness of task and technology
Environmental uncertainty
Individual differences

-virtual organisation slide 15. (easy to remember) SHOE FACTORY EXAMPLE

Outsourcing
Networking
Shedding non core functions

-What is a learning organisation (single vs double loop) SLIDE 16, 17

Single Loop Learning	Double loop learning
Error detection & Correction Deals with symptoms	Examines the underlying system Looks at root causes
Addresses current problems Maintains status quo	Changes status quo Promotes innovation Modifies policies

Functions of Managers

Planning
- Assessing what the organisation's goals should be
- Generating strategies to achieve the organisation’s goals
Organizing
- Designing work activities:
  - How the work tasks will be group to make best use of resources
  - How the tasks will be assigned, including the issue of staffing
  - How authority will be allocated to carry out the work
Controlling
- Assessing whether the organisation is progressing toward its goals
- Taking steps to ensure problems are dealt with
- Establishing standards of performance
Leading
- Guildin and motivating all members toward the achievement of the organisation’s goals
- Communicating ideas and directions effectively

Highest Chance

-Micheal Porter’s Five forces model SLIDE 17 and maybe the limitations of it SLIDE 18

Threats of new entrants:
1. the ability of new companies to enter into an industry
  1. Can be new firms
  2. Switching costs
  3. economies of scale
Bargaining power of suppliers:
1. suppliers can apply pressure to companies by reducing product quality or demanding more money
  1. how critical are the inputs provided by suppliers
  2. are there many suppliers relative to producers

Threats of substitute products or services
1. when rivals or even companies outside the industry offer more attractive and/or lower cost products
  1. air travel vs rail travel
  2. movie theatres vs netflix
  3. coffee vs tea
Bargaining power of buyers
1. customers can switch to other brands, as well as other sellers. If the product is too similar to another one then they will buy the cheaper one. Like coffee
  1. Are switching costs for buyers high
  2. Are competitive products undifferentiated
  3. How important are the products to buyers

-The VRIO Model SLIDE 20

Value: means whatever a company has that makes it special or better than its competition
Rareness: is about how unique or uncommon these special things are.
Imitability: is about how unique or uncommon these special things are.
Organisation:is about how well the company manages and uses these special things.

-SWOT analysis

Strengths
- VRIO
Weakness
- VRIO
Opportunities
- Micheal Porter
Threates
- Micheal Porter

Different Levels of Strategies:

Business-level
- Cost leadership through
  - economies of scale
    - Proportionate saving in costs gained by an increased level of production.
  - learning curve economies
  - low cost access to factors of production
- Product differentiation
  - the process of distinguishing a product or service from others to make it more attractive
- FOCUS
  - targeting a specific buyer group, a segment of the product line or a geographic market
  - a firm is able to compete efficiently
Corporate-level
- Related diversification
  - occurs when a company moves into a new industry that has important similarities with the company's existing industry or industries
- Unrelated diversification
  - adding new products or services that are unrelated or dissimilar to your existing ones
- Vertical integration
  - backward/upstream
  - forward/downstreak

Rational model of decision making and its problem

Six Stage Model

Identify problems and opportunities
Choose the best decision style
Develop alternative solutions
Choose the best solution
Implement
Evaluate decision outcomes

Problems with six stage model
- Stage 1 and stage 3
  - Definition of the situation
  - Influenced by psychological & sociological factors
  - Bounded rationality
- Stage 4
  - Satisficing
    - Information procession & perceptual errors
- Stage 6
  - Evaluate decision outcomes
    - Escalation of commitment to a failing course of action

Case Study

The Changing Nature of Organizations:

Traditional Bureaucracy
- Tall/hierarchical
- Rigid, rule-oriented
- Buffered from the environment
- Narrow market

Modern Organisations
- Flat
- Fluid
- Integrated
- Global

Four Elements of Organisational Structure

Work specialisation
- functional specialisation
  - division of jobs into simple, repetitive tasks, with high degree of job specialisation
- social specialisation
  - this is the specialisation of individuals rather than the specialisation of jobs (lawyers, doctors, accountants)
Decision making source:
- Centralization
  - top down approach employees at lower levels do are not involved in decision making process
- Decentralisation
  - team based approach , employees at lower levels involved in decision making
Span of control
- the number of workers who report directly to a manager or leader
  - Tall (narrow): lots of layers of management
  - Short (wide): few levels
Formalization
- to make something official or decide to arrange it according to a fixed structure
  - Standardised work
    - rules and regulation determine how work is performed
    - little room for individual discretion
  - Flexible work
    - to be creative and use individual discretion - eg. facebook and apple
Departmentation
- The process of grouping activities into departments

- Mechanistic vs. Organic

	Mechanistic	Organic
Division of labour/work specialisation	Narrow	Wide
Centralization	Centralised	Decentralised
Span of control	Narrow	Wide
Formalization	High	Low

SWOT analysis

Strengths
- VRIO
Weakness
- VRIO
Opportunities
- Micheal Porter
Threates
- Micheal Porter

7 external business factors

Political- governments can restrict business strategies or give u grants.
Global - integrated with economics. It includes globalisation of markets such as Nike, Apple.
Economic - organisations must adapt to changing economic conditions. Economy effects business.
Environmental - sustainable development will protect the environment
Labour - The ways in which labour impacts business (i.e. strikes)
Societal - human rights and how workers should be treated
Technological - spawn new technology and destroy old ones

4 Internal business factors

Style: Refers to the culture and leadership approach within the organisation. It encompasses the values, norms, and behaviours that characterise how things are done.
Structure: Relates to the organisational framework, including how roles, responsibilities, and relationships are defined and coordinated within the company. This includes aspects like hierarchy, departments, and reporting lines.
Strategy: Refers to the overarching plan or direction that guides the organisation towards its objectives. It involves decisions about what markets to enter, how to compete, and how to allocate resources effectively.
Status: This might be a less common term in the context of internal business factors. However, it could refer to the overall position, reputation, or standing of the organisation within its industry or among its stakeholders. It could encompass factors like market share, brand perception, or financial stability.