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MGT Exam 2
Terms in this set (54)
What does D.A.O.I.D.
D-Dive deeply into DATA
A- ANALYZE the data using various statistical methods
O-bring OTHERS into the process
I-set the data and analysis aside and apply INTUITION, IMAGINATION, INSPIRATION,etc
D- before implementing the decision =, check the DATA one more time
how do you break Groupthink
1) Increase diversity of the group (both demographic and cognitive)
2) Devils advocate
Lesley's decision making
saw that many places had an employee of the month program, so she started one too. It did not work as expected. It caused employees to compete against each other, eroding teamwork. She realized that an employee hall of fame would be much better-every employee could be recognized for good work.
Walmart decision making flaw
Tried to export its american-based management methods to other nations, assuming that what worked in the US would work well overseas too. It did not
What is the thumbtack metaphor
you need to be broad and human, and sharp and focused
Decision making definition
The process by which people respond to opportunities and threats by analyzing options, choosing goals, and selecting courses of action
Two types of decision making
Programmed Decision Making
"Routine, virtually automatic decision making that follows established rules and guidelines where we have made similar decisions before"
Walmart and Lesley did this
Non Programming decision making
"Non-routine decisions that occur in response to unusual, unpredictable and unique circumstances when there are no rules to follow, and where we have uncertain or ambiguous information, thereby requiring us to use our intuition, judgement and discernment"
3 Methods of decision making
Classic method of decision making assumptions
Identify all possible alternatives
evaluate all possible alternatives using pure logic
forecast the consequences of every alternative
be perfectly rational, logical, and analytical in choosing the one best course of action
Administrative Method assumptions
for a work that is risky and uncertain
1)we are limited in our ability to be perfectly rational and logical: limits of time, money, bring power. This is called "bounded rationality".
2) we have incomplete, ambiguous information
3) therefore, instead of being perfectly rational, logical and analytical in choosing the best option, we engage in satisficing: choosing the best good enough option
The chain of innovation
Security-> Teachability-> Learning-> Creativity->Innovation
the implementation and commercialization (sale) of creative ideas. Like the "D" in R&D
How to get everyone to be creative individually?
1) Provide employees with both the opportunity and the ability to take risks
2)If people take risks, they will sometimes fail
3)to build creativity creativity, the managers must reward the right kind of failure
1)The failure didn't come from laziness
2)The failure did not occur because of violations of ethics
3)The Employee can explain how and why it happened
4)The employee has learned and changed
5) The failure is not replaced
Corporate mission statements mush address
2)Why? Why are we in business? To serve peoples needs and wants, thus adding the value to their lives. That is the point of all organizaiotns, whether for-profit or not-for-profit.
3)What? what produces and services dow e offer to serve those needs and wants?
4)Where? Where are our operations?
5)How? How will we wet ourselves apart from the competition?
3 levels of planning
Addresses whole organization over 3 to 5 year period
Each division or function within a company generates a plan for a year long tine period
Quarterly plan for a department within a division or function
Illustrated by the Value chain diagram's six ways that we can create value for potential customers and thus earn money from them
Value chains 6 ways
1) P:procuring (Getting stuff no one else has)
2)T: transforming(like assembling)
3) H: holding (Keeping items in inventory)
4) P:Promoting: (Marketing,advertising,selling)
5)D:Distributing(Customers pay more for convenience)
Forward vertical integration
toward the customer
Backward vertical integration
toward the raw materials
Fundamental question of International Expansion
To what extent do we customize our products for different national cultures,verses standardizing our products worldwide for global efficiency
Customize products in every local culture. It is proper strategy for consumer products that people use near or in their bodies
Strategy of selling the same standardized product everywhere in the world. This is efficient. it is the proper strategy for industrial commodity products
What did Mr. H say about getting trust and respect?
"You must realize that you're going to have to pay your dues to get trust and respect in a company. So there is just no substitution for spending time in the trenches."
What did Mr. R say about numbers?
"You've got to KNOW YOUR NUMBERS, no getting around that. You've got to know them BETTER THAN YOUR BOSS does. Numbers are clear and unquestionable items of authority. If you're an expert with them, you can become unquestionable. It is an invaluable skill to gain the RESPECT AND CREDIBILITY of your superiors."`
What did Mr. T say about difficult aspects of management?
"One of the most difficult aspects of strategic management is being able to make the correct decision QUICKLY. Experienced leaders are able to sort through this data and determine which information is RELEVANT and which is not."
What did Mr. M say about tough decisions?
"Every day you are faced with though and difficult decisions that will have a high effect on the company. The answer isn't always right there in front of you in a textbook. Most of the time you have to GO WITH YOUR GUT INSTINCT to make a decision, and that decision MAY NOT ALWAYS BE RIGHT."
What does Mr. C say about bad decisions?
1) One of the things that makes us successful is our REFUSAL TO FOLLOW THE CROWD. We are almost completely CONTRARIAN. I urge the same type of attitude in aspiring executives. i blame a HERD MENTALITY for many of the bad decisions that are made in the business world."
What did Mr. J say about creativity?
"The greatest contribution that a leader can give any employee is the openness to think and be CREATIVE WITHOUT THE FEAR of making a mistake. We've all made mistakes, and we LEARN FROM THOSE MISTAKE and FROM MISTAKES COMES OUR CREATIVITY."
What did Mr. V say about say about what to study?
"Be very observant and study the last 10 years because you have got to see it all"
what did Mr. B say about decision-making?
"When making strategic decisions, it is the job of the strategic manager to think logically, BUT to think in a different way. This is how companies gain competitive advantage. Do not get set in your ways. Just because a strategy worked in one situation does not mean that strategy will work in another."
What did Mr. D say about planning?
"Nothing ever goes according to plan. Never look at a plan and think that you have it all figured out."
What did Mr. W say about moving up the ladder?
"People who work hard will push up the ladder quickly."
How do we cultivate discernment?
1) Value nontraditional thinking
2) Embrace change, ambiguity, and uncertainty
3)Broaden your horizons
What did Holbein add about focus?
All elite performance requires undivided focus
What did Balzac say about security?
"Nothing is a greater impediment to being on good terms with others than being ill at ease with yourself.'
What did Ray Kroc say about teachability?
"As long as you're green, you're growing. As soon as you're ripe, you start to rot."
Walt Disneys motto
"No chipped paint, all the horses jump"
Story of Walt Disney
"The cartoonist's disappointment inspired him with a grand vision."
When you find your vision, do two things to make it real... what are they
1)Write it down
2)Talk to several key people
Who never embrace the victim mentality
"Good leaders never embrace a victim mentality"
what is the never embracing the victim mentality?
An external locus of contro
what do self millionaires have in common
Self made millionaires have one thing in common: they work hard
5 things that good problem solvers do
1)they anticipate problems
2)They adoptive truth
3)They see the big picture
4)They handle one thing at a time: "How do you eat an entire elephant? One bite at a time." And "a journey of 1000 miles begins with one step."
5)They don't give up a major goal when they're down
Why is all work good work? (WSJ)
"All work is good work. We can learn from the fundamental principles of success in any type of work"
What is organic growth?(WSJ)
Tweaking existing brands
What is the radical idea that medtronic has for setting prices for customers?
Medtronic is increasingly signing contracts with customers the adjust prices based on how well the products work in patients, rather than simply having the customer pay a fixed per-unit cost regardless of a devices performance in individual patients
How is PayPal making customers and merchants better off? (WSJ)
Its important to make it a more frictionless experience... With PayPal one touch, with a simple fingerprint or click of a button you can follow through with a purchase. The result is that it increases CONVERSION for merchants.
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