109 terms

Business Management Ch 8-11

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Terms in this set (...)

4 topics of Planning
Planning, Organizing, Leading and Controlling
Management consultant and well known author
Steven Covey "7 ways various people do things"
Planning improves coordination and control
it assists in the evaluation as it identifies the objectives; McDonalds scrapped a technology upgrade because it could not deliver at the cost of $170 million
Short-range
one year or less
long-range
three or more years in the future
Strategic plans
long term directions for the organization
Vision
Clarifies the purpose-and hopes for the future-there is often a vision statement in a strategic plan.
Tactical plans
implement strategic plans
Forms of functional plans
Production, Financial, Facilities, Logistics, Marketing and Human Resource Plans
Operation plans
short term activities to implement strategic plans
Policy
a standing plan that communicates broad guidelines for decisions and actions.
Procedures
rule describing actions taken in specific situations.
Zero-based budget
allocates resources as if each budget were brand new; start from scratch; forces the review of how the money is being spent-elimination of waste.
Fixed budget
Allocates a stated amount of resources for a specific purpose, such as $50,000 for equipment purchases in a given year.
Flexible budget
Allows resources to vary in proportion with various levels of activity, such as having extra money available to hire temporary workers when workloads exceed certain levels.
Forecasting
predicting what will happen in the future
Qualitative
opinion
Quantitative
Mathematical models and statistical analysis.
Contingency Planning
What happens if? Identifies alternative courses of action to take when things go wrong.
Scenario Planning
Identifies alternative future scenarios and makes plans to deal with each.
Benchmarking
Uses external and internal comparisons to plan for future improvements; often looks at successes and measures against them; looks for best practices which allow for superior performance.
Internal benchmarking
Sharing one another's best practices
External benchmarking
Looking at companies with best practices in a specific area.
Goal Alignment
Hierarchy of goals and objectives; one set of goals is required to accomplish a higher level one.
Pyramid in text
Mission and purpose; Top management objective; senior management objective; middle management objective; supervisory objective - specific and skills based.
Goal alignment between team leader and member
Jointly plan; individually set
jointly control; essentially a team approach with the individual responsibility in the middle.
Can goals be quantified?
Yes; work activities as goals; specific objectives; flexibility and reassessment.
Participatory planning
goals and roles; includes the persons who will be affected by plans and/or those who will implement them.
Competitive advantage
the ability to do something so well that one outperforms competitors.
Sustainable competitive advantage
do so in such a way that it is difficult or costly to imitate.
Strategy
is a comprehensive plan guiding resource allocation to achieve long-term organizational goals.
Corporate
this is where the direction is set and level and type of competition is identified.
Business
the strategy for a single business unit (of a large corporation). The SBU will have a strategy within the corporate strategy.
Functional Strategy
Finance: Human Resources: Manufacturing and Marketing; These are the supports for the business strategy; guides the activities within one specific area of operations.
Strategic Management
formulating and implementing strategies.
Strategic Analysis
process of reviewing the organization, the environment, and the competitive position as well as current strategies.
Strategy formulation
crafting strategies to guide the allocation of resources
Strategic implementation
putting the strategies into action
Basic mission in the organization
Peter Drucker; Business mission; customers; customers value; results; plan.
Patogonia
Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
Stakeholders
strategic constituencies in the organization's mission statement. Employees; communities; customers; suppliers; shareholders
Core values
broad beliefs about what is or is not appropriate behavior.
SWOT analysis
strengths, weaknesses, opportunities and threats
Internal assessment
strengths and weaknesses
External assessment
opportunities and threats.
Five Forces Analysis of industry attractiveness
Michael Porter; Industry competition; new entrants; substitute products or services; bargaining power of suppliers; bargaining power of customers.
GE portfolio planning model
BCG matrix
Stars
dominant position, growing industry.
Question marks
poor position in a growing industry; may be due to newness or recent entry
Cash cows
dominant position-low growth industry
Dogs
poor position-low growth industry; divest the dogs
Growth
may be growth through concentration in the same business area; growth through diversification moving to new and different business area.
Vertical integration
when a business acquires the suppliers or distributers.
Retrenchment or restructuring
Downsizing; Bankruptcy-protects from most creditors while management reorganizes-through the courts.
Divestiture-selling or parts or products.
Global strategies
Adopts standardized products and advertising to use worldwide.
Multidomestic Strategy
Customizes products and advertising to best fit local needs; McDonalds
Transnational strategy
Efficiencies of global operations with attention to local markets; Ford strategy - however, sales are different in Germany
Cooperative Strategies
Strategic Alliances; Co-option-working with competitors (United Airlines and Lufthansa- the Star Alliance
Differentiation
Competitive Strategies; Uniqueness
Focused differentiation - unique product in a "niche" market - Rolex watches
Formal Organization structure
Division of work; supervisory relationships; formal communication channels; major subunits; levels of management.
Informal Organization structure
Social Network Analysis - informal structures and embedded social relationships that are active in an organization.
Departmentalization
Max Weber
Functional Strctures
Similar skills and similar tasks are laced together; economies of scale; task assignments; high quality technical problem solving; in-depth training and skill development within functions; clear career paths within functions.
Functional chimneys
a lack of communication and coordination across functions; also called functional silos; has resulted in teams.
Divisional Structures
groups together people working on the same product, in the same area, with similar customers, or on the same processes.
Product structures
groups together people and jobs focused on a single product of service; problem is the group ownership of the product.
Geographic structures
Americas; Europe; Asia; the US
Nike has a similar model
Customer structure
Banks are big ones along with retails; people and jobs which serve the same customers or clients.
Advantages to customer structure
flexibility, coordination, points of responsibility, expertise, ease in changing; Question as to the economy of scale
Matrix Organization
combination of functional and divisional structures
Team Structure
team structures may use either permanent or temporary teams.
Project teams
think NASA and various projects - Permanent team
Advantages - break down barriers; shared knowledge; common goals; focus
Negatives - may take longer; relationships become important; meeting times - ability to work together; reliance on each other.
Network structures
Central core of full time employees surrounded by outside contractors and partners.
Strategic alliances
cooperation with another organization to pursue mutual activities.
Boundaryless structure
Eliminates internal boundaries amount subsystems and external boundaries with external environment; GE
Virtual Organization
Working for home - uses IT and the internet to engage shifting network of strategic alliances.
Advantage not paying for big office.
Bureaucracy
Efficiency versus red tape; mechanistic design; rules, regulations, procedures; tight design-pyramid form.
Learning Organization
continuous adaptation through problem solving, innovation and learning.
Levels of authority
Tall versus flat; each level increases the hierarchy and increases the pay level at the top. However, the leader may need to delegate and that is the issue of the span of control
Tall structures
more managers, more costly, less flexible and may be less customer friendly.
Flat structures
have fewer levels-but there is more responsibility for control with the person on the top.
Trend
delegation, empowerment and horizontal structures-especially in the high tech and information technology areas.
Organizational culture
system of shared beliefs and values that guides behavior in organizations.
British Airways - like working for the FBI
General Mills - Patrician culture of conflict avoidance
Accidental Petroleum - Autocratic Environment
Oracle - a company full of men who would walk over their mothers to the to the top.
Positive cultures
respect for members, customer driven and performance oriented; Zappos.com and Disney
Socialization
process through which new members learn the culture of the organization; strong influence on the new member-the mentor and the first supervisor are very important.
Observable culture
when walking around-visible actions and events;
Heroes-pictures of past employees on wall
Ceremonies-having lunch once a month
Rites and Rituals-how people are dealt with
Legends and Stories-who did well and where they went.
Metaphors and Symbols
Core culture
consists of core values-which are the underlying assumptions.
Innovation and risk taking - Apple, Twitter
Ethics and Integrity
Social Responsibility - Wholefoods, Target
Customer Service - Nordstrom
Performance - only top 10% survive
Teamwork-some organization want you to be part of a team.
Alan Mulally and Ford
Came out of the financial crisis unlike the other auto companies; changed the culture; transparency, eliminated bureaucracy, made the company more open.
Workplace Spirituality
Meaningful purpose; trust and respect; honesty and openness; personal growth and development

Spirituality is not associated with religion-but rather a shared belief.
Multinational organization
Inclusiveness, pluralism and respect for diversity.
Pluralism
different cultures influential in setting key values and policies
Structural integration
well represented at all levels
Informal integration
mentoring and support
Absence of prejudice and discrimination
training and task activities
Minimum intergroup conflict
diversity not leading to destructive conflicts between cultures.
Organizational subcultures
people who share similar beliefs and values based on work and personal experiences
Ethnocentrism
belief that one's membership group or subculture is superior to all others
Glass ceiling
Diversity; reach a point beyond which promotion is difficult.
Harassment and Discrimination
Pay; pregnancy; biculturalism-adopt characteristics of majority cultures in order to succeed.
Affirmative Action
comes from Executive Order 11246 and not from legislation; legislation was in the late 60's and 11375 which brought women under the umbrella came shortly later.
EEO (Equal employment opportunity
came from the Civil Rights Act of 1964 (Title 9)
Title Seven
this act referred to equality in employment.
Top Down Change
from management and management involvement
Bottom Down change
comes from all levels (often when new groups of employees are hired and grow into the management positions in the organization)
Organizational Behavior
Kurt Lewin; Concept of Unfreezing; changing; refreezing; make change slowly.
Improvisational change
continual adjustments as changes are being implemented.
Force-coercion strategy
Legitimacy-rewards punishment - my way or the highway.
Rational Persuasion
Expertise - know what you are talking about.
Shared Power
Reference-personal values and commitments; change agent shares power by recognizing that people have varied needs and complex motivations.