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Singapore airlines uses a dual strategy of...

Quality service and cost leadership. (Walmart does cost leadership too

Dual Strategies are unprofitable because...

they have contradictory investments and organizational procedures.

Efficiency

using resources wisely ad in a cost effective way (internal environment) (dependent on the ability to adapt to internal environment [pressures])

Effectiveness

making right decisions and successfully implementing them. (external environment)

Jesus

our Savior.

Porter's Five Force model

-Power of suppliers
-Power of Consumers
-Threat of New Entrants
-Threat of Substitute Products
-Industry Rivalry

Five Force model

Competitive Rivalry is in the center that points to each one. Threat of New Entrants points to the center. Power of Suppliers points to the center. Power of Consumers points to the center. Threat of Substitute Products points to the center.

Levels of Management

Top Management/ Middle Management/ First-Line Management

Failure to communicate strategy

causes frontline workers to invent their own strategy

to maximize labor productivity

What is the primary motivation for all management theory

No strategy for management

possibility of being non-efficient and non-effective

Classic management

Scientific Management and Administrative Management

Taylorism

Analyzing workflows with objective of improving labor productivity.

Gross innefficiencies

Total resources wasted during labor process

Soldiering

Research led to a key observation: Workers purposely operating well below their capacity

Initiative

will power..internal desire....??

Incentive

gift/reward

the initiative and incentive method

offered an incentive to increase productivity but left it up to the worker to figure out how

time studies

scientifically determining the optimum way to perform a job

challenges/limitations of scientific management

-not conducive to dynamic business environment
- monotonous routine
- innovation dampened
- jobs are "deskilled"

a key element of effective management

determining the alignment of the environment and the organization and maintaining that alignment

external environment

general environment and task environment are part of the

internal environment

-Owners
-Board of Directors
-Employees
-Physical Environment
-Culture

market of input

suppliers of raw materials, components, labor, and service (such as expertise) to a firm.

market of outputs

the ability of customers to put pressure on the firm.

threat of new inputs

profitable markets will have new entrants.

general environment

-international dimension
-technological dimension
-economic dimension
-socioculture dimension
-political-legal dimension

task environment

-customer
-competitors
-suppliers
-strategic partners
-regulators

the key is to no simply identify the inputs

but to see how they create a response in the organization.

environment

constant creates a response

(its cold outside so you put on a jacket)

Relationship between organizations and their environment

effectiveness follows how well the organization understands, reacts to, and influences its environment.

Measuring organizational effectiveness

-systems resource approach
-internal process approach
-goal approach
-strategic constituencies approach
-combined (Domain) approach

systems resource approach

effectiveness: is the ability to acquire scarce and valued resources from the environment.

preffered: a clear connection exists between inputs and outputs.

(inputs) --> transformation --> outputs

importance on inputs

Internal process approach

effectiveness: is the ability to excel at internal efficiency, coordination, motivation, and employee satisfaction.

preferred: costs, outputs, and satisfaction are easily measurable.

inputs --> (transformation) --> outputs

importance on transformation

Goal approach

effectiveness: is the ability to excel at one or more output goals.

preferred: goals are clear, time bound and measurable.

inputs --> transformation --> (outputs)

importance on outputs

strategic constituencies approach

the extent to which the organization satisfies the demands and expectations of strategic stakeholders

preferred: constituencies have powerful influence on the organization and the organization must.

(inputs)--> (transformation) --> (outputs)

Decentralization

Systematically delegating power and authority throughout the organization to middle- and lower-level managers.

multiculturalism

the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.

diversity

when members of a group differ from one another along dimensions such as age, gender,or ethnicity.

Typically NO

Do individuals often seek diversity in social groups?

Manager challenge

hiring individuals based on ability to progress the firms initiatives, and not based on hiring managers comfort level.

Increasing diversity/multiculturalism benefits organization how?

-changing demographics in the labor force.
-increased awareness that diversity improves the quality of the workforce
-legislative and legal actions mandating and fostering diversity
-the globalization movement

individual strategies for managing diversity and multiculturalism

-understanding
-empathy
-tolerance
-willingness to communicate

job design

the determination of an individual's work related responsibilities

Organization Change

Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).

planned change

Is designed and implemented in an orderly and timely fashion in anticipation of future events.

Reactive Change

Is a piecemeal response to events and circumstances as they develop.

Lewin Model

unfreezing, implementing change, refreezing

unfreezing

Individuals must be shown why the change is necessary.

Change

The change itself is implemented

Refreezing

Involves reinforcing and supporting the change so that it becomes a permanent part of the system

Innovation

The managed effort of an organization to develop new products or services or new uses for existing products or services

forms of innovation

radical, incremental, technical, managerial, product, process

Radical Innovation

A new product, service, or technology developed by an organization that completely replaces the existing product, service, or technology in an industry.

Incremental Innovation

A new product, service, or technology that modifies an existing one.

Job Specialization Alternatives

job rotation, job enlargement, job enrichment

Job Specialization (Division of Labor)

The degree to which the overall task of the organization is broken down and divided into smaller component parts

Job Rotation

Involves systematically moving employees from one job to another.

Job Enlargement

Increases the total number of tasks workers perform

Job Enrichment

Attempts to increase both the number of tasks a worker does and the control the worker has over the job.

Departmentalization

The process of grouping jobs according to some logical arrangement.

Rationale for Departmentalization

Organizational growth exceeds the owner-manager's capacity to personally supervise all of the organization

Types of Departmentalization

functional, product, customer, location

authority

Power that has been legitimized by the organization

Delegation

The process by which managers assign a portion of their total workload to others.

Decentralization

Systematically delegating power and authority throughout the organization to middle- and lower-level managers.

Centralization

Systematically retaining power and authority in the hands of higher-level managers.

coordination

The process of linking the activities of the various departments of the organization.

The Need for Coordination

Where departments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.

directing

...

planning/decision-making

coming up with ideas and goals and how to implement them

organizing

Deciding how to best use your resources to achieve your goal

controlling

monitoring employees and maintaining a the company goals

leading

motivating your employees to achieve the goals of the organization

what order does the Management Process go in..

1.) Planning and Decision Making
2.) Organizing
3.)Controlling
4.)Leading

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