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Management Exam II
| Question | Answer |
|---|---|
| Goal | desired future circumstance or condition that the organization attempts to realize |
| Plan | blueprint for goal achievement specifying the necessary resource allocations, schedules, tasks, and other actions |
| Planning | determining the organization’s goals and defining the means for achieving them |
| Equation for Planning | Goal + Plan = Planning |
| What are the levels of goals and plans? (4) | - Operational Goals/Plans, Lower management (Departments, Individuals) - Tactical Goals/Plans, Middle management (Major divisions, functions) - Strategic Goals/Plans, Senior management (Organization as a whole) - Mission Statement |
| Strategic goals | official goals; broad statements describing where the organization wants to be in the future |
| Strategic plans | define the action steps by which the company intends to attain strategic goals - A blueprint that defines organizational activities and resource allocations - Tend to be long-term |
| Tactical goals | the result that major divisions and departments within the organization intend to achieve - Apply to middle management |
| Tactical plans | define what major departments and organizational subunits will do to implement the organization’s strategic plan - Tend to be short term |
| Operational goals | results expected from departments, work groups, and individuals Precise and measurable |
| Operational plans | developed at the lower levels of the organization to specify action plans toward achieving operational goals and to support tactical plans - Goals stated in quantitative terms - Schedules are an important component |
| What is the Organizational Planning Process? | - Develop the plan - Translate the plan - Plan operations - Performance management - Monitor and learn |
| Mission | the organization’s reason for existence |
| Mission statement | a formal and broadly stated definition of purpose that distinguishes the organization from others of a similar type |
| What is the purpose of a mission statement? (2) | - Provides basis for development of all subsequent goals and plans - Often focuses on the market and customers, and identifies desired fields of endeavor |
| What is the purpose of a mission statement? (1) | - Can describe company characteristics such as corporate values, product quality, location of facilities, and attitude toward employees |
| What are the approaches to managing goal conflict? (5) | - Build a coalition - Modify goals by time or location - Address conflicts with debate and dialogue - Break down barriers and promote cross-silo cooperation - Manager departures |
| Coalition management | building an alliance of people who support managers and influence efforts toward achieving goals |
| What are the benefits of aligning goals using a strategy map? (2) | - Effectively designed organizational goals and aligned - Aligned goals are consistent and mutually supportive so that the achievement of goals at lower levels permits the attainment of higher-level goals |
| Strategy map | visual representations of the key drivers of an organization’s success |
| How does a strategy map relate to goals and plans? | Show how specific goals and plans in each area are linked |
| What are some examples of types of goals that contribute to accomplishing the company's mission? (4) | - Learning and growth goals - Internal business process goals - Customer service goals - Financial performance goals |
| Give examples of planning approaches? (3) | - Management by objectives (MBO) - Single-use plans - Standing plans |
| Key Performance Indicators (KPIs) | tool used to assess what is important to an organization and how well the organization is progressing toward achieving its strategic goal |
| Name 5 characteristics of effective goals | - Are specific and measurable - Have a defined time period - Cover key result area - Are challenging but realistic - Are linked to rewards |
| Management by Objectives (MBO) | a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance |
| Management by Means (MBM) | a new systemic approach that focuses attention on the methods and processes used to achieve goals |
| Determine the steps of the MBO Process (4) | 1. Set goals (Corporate strategic goals, departmental goals, individual goals) 2. Develop action plans 3. Review progress and take corrective action 4. Appraise overall performance |
| What are the benefits of using MBO Process (4) | - Focuses manager and employee efforts on activities that will lead to goal attainment - Can improve performance at all company levels - Improves employee motivation - Aligns individual and departmental goals with company goals |
| Single-use plans | plans developed to achieve objectives that are not likely to be repeated in the future which include programs and projects |
| Standing plans | ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization which include organizational policies, rules, and procedures |
| Single-Use Plans: Program | - Plans for attaining a one-time organizational goal - Major undertaking that may take several years to complete - Large in scope; may be associated with several projects |
| Single-Use Plans: Project | - Also a set of plans for attaining a one time goal - Smaller in scope and complexity than a program; shorter in time horizon - Often one part of a larger program |
| Standing Plans: Policy | - Broad in scope - general guide to action - Based on organization's overall goals/strategic plan - Defines boundaries within which to make decisions |
| Standing Plans: Rule | - Narrow in scope - Describes how specific action is to be performed - May apply to specific setting |
| Standing Plans: Procedure | - Sometimes called a "standard operating procedure" - Defines a precise series of steps to attain certain goals |
| Benefits of planning (4) | - Provide a source of motivation and commitment - Guide resource allocation - Are a guide to action - Set a standard of performance |
| Limitations of planning (4) | - Can create too much pressure - Can create a false sense of certainty - May cause rigidity in a turbulent environment - Can get in the way of intuition and creativity |
| Contingency planning | define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions |
| Scenario building | forecasting technique that looks at current trends and discontinuities and visualizes future possibilities |
| Stretch goals | reasonable yet highly ambitious and compelling goals, characterized by both extreme difficulty and extreme novelty, that energize people and inspire excellence |
| Crisis planning | preparing organization, managers, and employees to cope with catastrophic events that could destroy the firm |
| What are the essential stages of crisis planning? (2) | Prevention and preparation |
| Crisis planning: Prevention | - Build relationships - Detect signals from the environment |
| Crisis planning: Preparation | - Designate crisis management team and spokesperson - Create detailed crisis management plan - Set up effective communication system |
| How important is strategic management? | It determines which organizations succeed and which ones struggle |
| What happens if a company has bad strategic management? | Strategic blunders can hurt a company |
| What does it mean to think strategically about the organization and competition? (3) | - Take the long-term view - See the big picture - Positively affect performance and financial success |
| T/F Today's environment requires no one to think strategically | False. Today’s environment requires everyone to think strategically |
| Strategic managemeent | set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals |
| What is the first step in strategic management? | The first step in strategic management is to define explicit strategy |
| Strategy | plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals |
| Competitive advantage | what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace |
| Name the four elements of competitive advantage | - Target customers - exploit core competence - achieve synergy - create value |
| Core competence | something the organization does especially well in comparison to its competitors |
| Synergy | occurs when organizational parts interact to produce a joint effect that is greater than the sum of its parts acting alone |
| What are the three levels of strategy in organizations? | - Corporate-Level Strategy: What business are we in? - Business-Level Strategy: How do we compete? - Functional-Level Strategy: How do we support the business-level strategy? |
| Name categories that are apart of the Business-Level Strategy (3) | - Consumer Products Unit - Biotechnology Unit - Media Unit |
| Name categories that are apart of the Functional-Level Strategy (4) | - Finance - R&D - Manufacturing - Marketing |
| Corporate-level strategy | pertains to the organizations as a whole and the combination of business units and product lines that makes up the corporate entity |
| Business-level strategy | pertains to each business unit or product line |
| Functional-level strategy | pertains to the major functional departments within the business unit |
| Strategy formulation | includes the planning and decision-making that lead to the establishment of the firm’s goals and the development of a specific strategic plan |
| Strategy execution | the use of managerial and organizational tools to direct resources toward accomplishing strategic results |
| SWOT analysis | audit of internal and external factors |
| SWOT analysis: Internal | Strengths and Weaknesses |
| SWOT analysis: External | Opportunities and Threats |
| How do you acquire information for a SWOT analysis? | Information is acquired from reports, surveys, discussions, and meetings |
| Describe the strategic management process | - Evaluate current: Mission, Goals, Strategies - Scan Internal and External Environment - Identify Strategic Factors: SWOT - Define new: Mission, Goals, and Strategies - Formulate Strategy: Corporate, Business etc - Execute Strategy through changes |
| Approaches to understanding corporate-level strategy (3) | - Portfolio strategy - Boston Consulting Group (BCG) matrix - Diversification |
| Strategic business units (SBUs) | business division of the organization that has a unique business mission, product line, competitors, and markets relative to other SBUs in the corporation |
| Portfolio strategy | pertains to the mix of SBUs and product lines to provide synergy and competitive advantage |
| BCG matrix | organizes business along two dimensions- business growth rate and market share |
| T/F The combination of high/low market share and high/low business growth rate provides four categories for a corporate portfolio | True |
| Corporate portfolio categories include... (4) | - Star: High market share; high growth rate - Cash cow: High market share; low growth rate - Bright prospect: Low market share; high growth rate - Dog: Low market share; low growth rate |
| Diversification | strategy of moving into new lines of business |
| Merger | occurs when two or more organizations combine to become one. |
| Joint venture | involves a strategic alliance or program by two or more organizations |
| Related diversification | expansion into new business related to existing business activities |
| Unrelated diversification | expansion into new lines of business that are not related |
| Vertical integration | expansion into businesses that supply to the business or are distributors |
| Name Porter's Five Forces | - Rivalry among competitors are affected by: - Potential new entrants - Bargaining power of buyers - Bargaining power of suppliers - Threat of substitute products |
| Differentiation strategy | distinguish products and services |
| Cost leadership strategy | aggressively seek efficient facilities, cost reductions, and cost controls |
| Focus strategy | concentration on a specific region or buyer |
| What are two ways to execute a focus strategy | Either differentiation or cost leadership approach |
| Characteristics of Porter’s Competitive Strategies (4) | - Differentiation - Cost Leadership - Focused Differentiation - Focused Cost Leadership |
| Types of global strategy (3) | - Globalization strategy - Multi-domestic strategy - Glocalization strategy |
| Globalization strategy | use of standardized product design and advertising strategies throughout the world. It is based on the assumption that a single global market exists for many consumer and industrial products |
| Multi-domestic strategy | handling of competition in each country remains independent of industry competition in other countries which is especially important for service companies |
| Glocalization strategy | combines global coordination to attain efficiency with local flexibility to meet needs in different countries |
| Strategy Execution | Final step in the strategic management process - Most important but most difficult part |
| Embeddedness | deep understanding and acceptance of organizational direction and purpose throughout the organization |
| Factors That Contribute to the Failure of Strategy Execution (4) | - Employee resistance - Manager behavior doesn't support new direction - Inadequate budget or resources - Other barriers |
| Tools for Putting Strategy into Action (4) | - Visible leadership - Clear roles and accountability - Human resources - Candid communications |
| Decision | a choice made from available alternatives |
| Decision making | the process of identifying problems and opportunities and then resolving them |
| Programmed decisions | involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. A basic routine decision |
| Non-programmed decisions | made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. |
| Certainty | situation in which all information the decision maker needs is fully available |
| Risk | decision has clear-cut goals and good information is available, but future outcomes associated with each alternative are subject to change of loss or failure |
| Uncertainty | goals are known, but information about alternatives and future events is incomplete |
| Ambiguity | goals to be achieved or problems to be solved are unclear, alternatives are difficult to define, and information about outcomes is unavailable |
| What are the three main models of decision-making? | - Classical model - Administrative model - Political model |
| If you're making programmed decisions how likely are you to go through the whole decision making step process? | Not likely, but if you are making non-programmed decisions, managers would go through the whole process |
| Decision-Making Steps Order | 1. Recognition of decision requirement 2. Analyze underlying causal factors 3. Development of alternatives 4. Selection of desired alternatives 5. Implementation of chosen alternative 6. Evaluation and feedback |
| Problem | organizational accomplishment is less than established goals |
| Opportunity | managers see potential accomplishments that exceed current goals |
| 5 whys | a question-asking method used to explore the root cause underlying a particular problem |
| Risk propensity | willingness to undertake risk in exchange for the opportunity of gaining an increased payoff |
| Decision styles | distinctions among people with respect to how they evaluate problems, generate alternatives, and make choices |
| Decision styles examples (4) | - Directive style - Analytical style - Conceptual style - Behavioral style |
| Directive style | prefer simple, clear-cut solutions to problems |
| Analytical style | base decisions on all available rational data |
| Conceptual style | use a board amount of information to solve problems creatively |
| Behavioral style | exhibit a deep concern regarding effect of decision on others |
| Why do managers make bad decisions? | - being influenced by initial impressions - justifying past decisions - seeing what you want to see - perpetuating the status quo - being influenced by emotions - being overly-confident |
| Anchoring bias | occurs when we allow initial impressions, statistics, and estimates to act as anchors to our subsequent thoughts and judgements |
| Loss aversion | stronger response to a potential loss than to an expected gain. Seeing what you want to see |
| Confirmation bias | occurs when a manager puts too much value on evidence that is consistent with a favored belief or viewpoint and discounts evidence that contradicts it |
| Innovative decision making examples (6) | - Start with brainstorming - Use hard evidence - Engage in rigorous debate - Avoid groupthink - Know when to bail - Do a premortem and postmortem |
| Brainstorming | uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem |
| Electronic brainstorming | brings people together in an interactive group over a computer network |
| Evidence-based decision making | a commitment to make more informed and intelligent decisions based on the best available facts and evidence |
| Devil's advocate | person assigned the role of challenging the assumptions and assertions made by the group |
| Groupthink | tendency of people in groups to suppress contrary opinions |
| Escalating commitment | continuing to invest time and money in a solution even when there is strong evidence that it is not appropriate |
| Postmortem, or after-action review | disciplined procedure whereby managers invest time in reviewing the results of decisions ona regular basis and learn from them |
| Premortem | purposefully imagining a decision has been implemented and has failed miserably, and then identifying reasons for the failure so that probelmeatic issues can be addressed in advance. |
| Old, Tall Structure | - Traditional - Centralization - Smaller spans of management |
| New, Flat Structure | - The people-driven workplace - Decentralization - Higher spans of management - Less formalization |
| Factors shaping structure | - Environment - Strategy - Technology |
| Organizing | the deployment of organizational resources to achieve strategic goals |
| Why is organizing important? | Because it follows a strategy |
| What is the correlation between strategy and organizing | Strategy defines what to do, and organizing defines how to do it |
| Organization structure | - The set of formal tasks assigned to individuals and departments - Formal reporting relationships - The design of systems to ensure effective coordination of employees across departments |
| Organization chart | the visual representation of an organization’s structure |
| Division of labor | the degree to which organizational tasks are subdivided into separate jobs |
| T/F: Division of labor is losing popularity because too much specialization leads to employee isolation and boredom | True |
| Chain of command | an unbroken line of authority that links all employees in an organization and shows who reports to whom |
| Authority | the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes |
| Authority examples (3) | - Authority is vested in organizational positions, not people - Authority flows down the vertical hierarchy - Authority is accepted by subordinates. |
| Responsibility | the duty to perform the task or activity as assigned |
| Accountability | the mechanism through which authority and responsibility are aligned |
| Delegation | the process that managers use to transfer authority and responsibility down the hierarchy |
| Line authority | managers have formal authority to direct and control immediate subordinates |
| Staff authority | narrow authority that includes the right to advise, recommend, and counsel in the staff specialists’ area of expertise |
| Line departments... | Line departments perform tasks that reflect the organization’s primary goal and mission |
| Staff departments... | Staff departments support line departments |
| Span of management | the number of employees reporting to a supervisor |
| Factors of span of management (4) | - Less supervision/larger spans of control - Work is stable and routine - Subordinates perform similar work - Subordinates are in one location |
| Factors of span of management cont. (5) | - Subordinates are highly trained - Rules and procedures are defined - Support systems and personnel are available -Few nonsupervisory activities -Manager prefers a large span |
| Tall structure | span of management that is narrow and has many hierarchical levels |
| Flat structure | span of management that is wide and has few hierarchical levels Common structural problem is too many levels with a span that is too narrow |
| Centralization | decision authority is located near the top of the organization |
| Decentralization | decision authority is pushed downward to lower organizational levels |
| Factors that influence centralization (3) | - Rapid change and uncertainty in the environment are associated with decentralization - Fits the firm’s strategy - Crisis requires centralization |
| Departmentalization | basis for grouping position into departments and departments into the total organization |
| Five approaches of departmentalization | - Functional - Divisional - Matrix - Team - Virtual network |
| Functional structure | the grouping of activities by common function from the bottom to the top of the organization |
| T/F: Positions are grouped into departments based on similar skills, expertise, work activities, and resource use | True |
| Divisional structure | departments are grouped together based on similar organizational outputs |
| Geographic or customer-based divisions (2) | - Focuses company activities on local market conditions - Competitive advantage: selling a product adapted to a given country |
| Matrix approach | combines both functional and divisional approaches simultaneously, in the same part of the organization - Improves coordination and information - Dual lines of authority make the matrix unique |
| Two-boss employees | employees who report to two supervisors simultaneously and must resolve conflicting demands front he matrix bosses |
| Matrix boss | the product or functional boss who is responsible for ones side of the matrix |
| Top leader | person who oversees both the product and functional chains of command and is responsible for the entire matrix |
| Cross-functional teams | consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems |
| Permanent teams | groups of employees who are organized ina way similar to a formal department |
| Team-based structure | the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization’s goals |
| Outsourcing | farming out certain activities, such as manufacturing or credit processing |
| Virtual network structure | the firm subcontracts most of its major functions to separate companies and coordinates their activities from a smaller organization at headquarters |
| Structural Approach: Functional (Advantages) | - Efficient use of resources; economies of scale - In-depth skill specialization and development - Top manager direction and control |
| Structural Approach: Divisional (Advantages) | - Fast response; flexibility in an unstable environment - Fosters concern for customer needs - Excellent coordination across functional departments |
| Structural Approach: Matrix (Advantages) | - More efficient use of resources than a single hierarchy - Flexibility, adaptability to a changing environment - Interdisciplinary cooperation; expertise available to all divisions |
| Structural Approach: Team (Advantages) | - Reduced barriers among departments; increased compromised - Shorter response time; quicker decisions - Better morale; enthusiasm form employee involvement |
| Structural Approach: Virtual network (Advantages) | - Can draw on expertise worldwide - Highly flexible and responsible - Reduced overhead cost |
| Structural Approach: Functional (Disadvantages) | - Poor communication across functional departments - Slow response to external changes; lagging innovation - Decisions concentrated at the top of hierarchy, creating delay |
| Structural Approach: Divisional (Disadvantages) | - Duplication of resources across divisions - Less technical depth and specialization - Poor coordination across divisions |
| Structural Approach: Matrix (Disadvantages) | - Frustration and confusion from a dual chain of command - High conflict between two sides of the matrix - Many meetings; more discussion than action |
| Structural Approach: Team (Disadvantages) | - Dual loyalties and conflict - Time and resources spect on meetings - Unplanned decentralization |
| Structural Approach: Virtual Network (Disadvantages) | - Lack of control; weak boundaries - Greater demands on managers - Weaker employee loyalty |
| Coordination | the managerial task of collaborating across departments |
| Collaboration | a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what could be achieved working alone |
| Reengineering | radical redesign of business processes to achieve dramatic improvements. |
| Evolution of organization structures | Traditional vertical structure -> Cross-functional teams and project managers -> Re-engineering to horizontal teams |
| Task force | temporary team or committee designed to solve a problem involving several departments |
| Project manager | person who is responsible for coordinating the activities of several departments for the completion of a specific project |
| What is the highest level of horizontal coordination | Relational coordination |
| Relational coordination | frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect. Also the employees coordinate directly with each other across units. |
| Mechanistic organization | efficiency is the goal in a stable environment |
| Organic organizations | innovation is the goal in a rapidly changing environment |
| Workflow technology | knowledge, tools, techniques, and activities used to transform organizational inputs into outputs |
| Small-batch production | firms produce goods in batches of one or a few products designed to customer specification |
| Mass production | standardized production runs of a large volume of identical products |
| Continuous process production | entire workflow is mechanized and runs without stopping (will not be asked I think) ex: gas or paint |
| Technical complexity | degree to which machinery is used in production without people |
| Organizational innovation: | the creation of a new idea, solution, or behavior by an organization |
| Causes of change (2) | - Outside forces - Managers |
| Change concepts (2) | - Disruptive innovation - Ambidextrous approach |
| Disruptive innovation | innovations in products or services that typically start small and end up completely replacing an existing product or service technology for products and consumers |
| Disruptive innovation... (2) | - Becoming a goal for global companies - Many come from small entrepreneurial firms |
| Product innovation | a change in the organization’s products or service outputs |
| Process innovation | a change in the organization’s production processes |
| Technology change | Pushing the changes from the bottom up, because the lower level is more in line with the production side of it |
| Structural change | Top-down approach |
| Innovation strategies for products and processes (3) | - Discovery - Horizontal collaboration and open innovation - Innovate roles and structures |
| Innovation Strategies: Discovery | - Creativity - Bottom-up approach - Internal contests - Idea incubators |
| Innovation Strategies: Horizontal Collaboration and Open Innovation | - Horizontal coordination mechanisms - Customers, partners - Open innovation |
| Innovation Strategies: Innovation Roles and Structures | - Idea champions - New venture teams - Skunkworks - New venture fund |
| Discovery stage | Discovery is the stage where ideas for new products and technologies are born |
| Creativity | generation of novel ideas that might meet perceived needs or respond to opportunities for the organization |
| Bottom-up approach | encouraging the flow of ideas from lower levels |
| Characteristics of innovative companies (3) | - Work with customers to understand needs and develop solutions - Use new technology effectively - Shared new product development process supported by top management |
| Characteristics of innovative companies cont. (2) | - Members from key departments cooperate in the development of new products or services - Cross-functional team guides project from beginning to end |
| Horizontal linkage model | research, manufacturing, and sales, marketing simultaneously contribute to new products and technologies |
| Open innovation | search for and commercialization of new ideas beyond the organization and industry |
| Crowdsourcing | an approach to open innovation that involves obtaining information, ideas, or opinions from a large group of people |
| Innovation by acquisition example | buying start-up companies |
| Corporate intrapreneurship | development of an internal entrepreneurial spirit, philosophy, and structure to encourage employees to act like entrepreneurs |
| Idea champion | a person who sees the need for and enthusiastically supports productive change within the organization |
| Idea incubator | an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics |
| New-venture team | unit separate from the rest of the organization that is responsible for developing and initiating a major innovation (the only one we really need to know for the exam) |
| Skunkworks | separate, small, informal, autonomous, secretive group that focuses on breakthrough ideas for the business |
| In-house venture | a start-up that a company launches within the company rather than as a separate entity. |
| People change | changes to the mindset of a few employees |
| Culture change | changes to the mindset of the organization as a whole. Remember culture refers to the organization |
| Tools that smooth the culture change process (2) | - Training and development programs - Organization development |
| Entities that are bought through a merger... | may have different cultures, have a new set of people, and need to change their culture. Many employees may walk out the door if it's not great. People inherently do not like change |
| Training and Development | - Training is a frequently used approach to changing people’s mindsets - Training programs can be offered to large blocks of employees - Emphasize training and development for managers |
| Managers' behavior and attitudes... | - will influence people and lead to culture change. - sets the tone which means management needs to know so the ideals can be filtered down… need to adapt or walk out the door |
| Organization development (OD) | a planned, systematic process of change that uses behavioral science techniques to create a positive corporate culture and improve the way people and departments relate to one another |
| Examples of how OD focuses on the human and social aspects of the organization (4) | - Encourage a sense of community - Push for the organizational climate of openness and trust - Provide opportunities for personal growth and development - Conflict management |
| Popular specialized techniques of organization development (3) | - Team building - Survey feedback - Large-group intervention |
| Team building | activities that enhance the cohesiveness and success of organizational groups and teams |
| Survey feedback | begins with an employee questionnaire, and then an OD consultant provides feedback to the employees regarding responses and problems identified |
| Large-group intervention | brings together participants from all parts of the organisation to discuss problems or opportunities and plan for change. |
| Which is/are the best method(s) of specialized techniques of organizational development? | The best methods are team building and survey feedback because you wont be able to get good information through large-group interventions |
| Lewin's three-stage model for implementing change (3 stages) | - Unfreezing - Changing - Refreezing |
| Why do people resist change? | - Self interest - Lack of understanding and trust - Uncertainty - Different assessments and goals - Tradition - Time, cost, and energy |
| Need for change | a disparity between existing and desired performance levels |
| Tactics for implementing changes approaches (5) | - Top management support - Communication, education - Participation - Negotiation - Coercion |
| When to use: Top management support | - Change involves multiple departments or reallocation of resources - Users doubt the legitimacy of the change |
| When to use: Communication, education | - Change is technical - Users need accurate information and analysis to understand the change |
| When to use: Participation | - Users need to feel involved - Design requires information from others - Users have the power to resist |
| When to use: Negotiation | - Group has the power over implementation - Group will lose out in the change |
| When to use: Coercion | - A crisis exists - Initiators clearly have the power - Other implementation techniques have failed |
| Objective of the HRM department | to attract, develop, and retain qualified employees. |
| Human resource management (HRM) | the design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals |
| Human capital | the economic value of the combined knowledge, experience, skills, and capabilities of employees |
| Strategic role of HRM (3) | - HR drives organizational performance - Human capital is cited as the top factor in competitive success - Talent management is a top concern for all managers. |
| Top three factors for maintaining competitive success | - Human capital - Customer relationships - Product and service innovation |
| Strategic issues for managers (2) | - Hiring the right people to become more competitive on a global basis - Hiring the right people for improving quality, innovation, and customer service |
| Strategic issues for managers cont. (2) | - Knowing the right people to retain after mergers, acquisitions, or downsizing - Hiring the right people to apply new information technology (IT) to HRM processes |
| Company strategies for human resource management: Find the right people (5) | - HRM planning - Job analysis - Forecasting - Recruiting - Selecting |
| Company strategies for human resource management: Maintain an effective workforce (4) | - Wages and salary - Benefits - Labor relations - Termination |
| Company strategies for human resource management: Manage Talent (3) | - Training - Development - Appraisal |
| What is the point of laws? | Laws ensure equal opportunity, stop discrimination, and define enforcement agencies |
| Discrimination | hiring or promoting applicants based on criteria that are not job-relevant |
| Affirmative action | requires employers to take positive steps to guarantee equal employment opportunities for people within protected groups. (Just to make sure companies have diversity… dont hear much about it today) |
| What happens if you fail to comply with EEO legislation? | It can result in substantial fines and penalties for employers |
| T/F: Sexual harassment, a violation of the Civil Rights Act, is not a growing concern | False |
| Equal Opportunity/Discrimination Laws: Civil Rights Act (Amendment) | 1991: Provides for possible compensatory and punitive damages, plus traditional back pay, for cases of intentional discrimination brought under Title VII of the 1964 Civil Rights Act. Shifts the burden of proof to the employer. |
| Equal Opportunity/Discrimination Laws: Americans with Disabilities Act (ADA) | 1990: Prohibits discrimination against qualified individuals by employers on the basis of disability and demands that "reasonable accommodations" be provided for disabled employees to allow performance of duties |
| Equal Opportunity/Discrimination Laws: Vocational Rehabilitation Act | 1973: Prohibits discrimination based on physical or mental disability and requires that employees be informed about affirmative action plans. |
| Equal Opportunity/Discrimination Laws: Age Discrimination in Employment Act (ADEA) | 1967 (amended in 1978 and 1986): Prohibits age discrimination and restricts mandatory retirement |
| Equal Opportunity/Discrimination Laws: Civil Rights Act, Title VII | 1964: Prohibits discrimination in employment on the basis of race, religion, skin color, sex, or national origin |
| Health Insurance Portability and Accountability Act (HIPAA) | 1966: Allows employees to switch health insurance plans when changing jobs and get the new coverage regardless of preexisting health conditions; prohibits group plans from dropping a sick employee |
| Family and Medical Leave Act (FMLA) | 1993: Requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies |
| Equal Pay Act | 1963: Prohibits gender-based differences in pay for substantially equal work |
| Patient Protection and Affordable Care Act (PPACA) | 2010: Imposes a fee on firms with 50 or more employees if the government subsidizes their employees' health care coverage; prevents insurers from denying coverage based on preexisting conditions or charging women more than men |
| Consolidated Omnibus Budget Reconciliation Act (COBRA) | 1985: Requires continued health insurance coverage (paid by the employee) following termination |
| Occupational Safety and Health Act (OSHA) | Establishes mandatory safety and health standards in organizations |
| End of Lifetime Employment | The new social contract is based on the concept of employability rather than lifetime employment |
| Individuals | Develop their own skills and abilities Demonstrate their value to the organization |
| Employer | Offers creative training and development opportunities |
| Blind Hiring | Managers focus on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience |
| Artificial intelligence (AI)'s connection to blind hiring | AI can be used through its algorithms to reduce bias in hiring decisions |
| Employer brand | promoting an organization as a highly desirable place to work. Example: Nutramax or Founders |
| Matching model | the organization and the individual attempt to match the needs, interest, and values that they offer each other |
| Process of finding the right people (4) | - Predict needs through human resource planning - Use recruiting procedures to communicate with potential applicants - Select the best candidate - Welcome new employees |
| Human Resource Planning | the forecasting of HR needs and the projected matching of individuals with expected job vacancies |
| Questions that help define the direction of the organization's HRM strategy (3) | - What new technologies are emerging, and how will these affect the work system? - How much is the volume of the business likely to change in the next five to ten years? - What is the turnover rate, and how much turnover, if any, is avoidable? |
| Recruiting | activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied |
| Job analysis | a systematic process of gathering and interpreting information about the essential duties, tasks, responsibilities, and context of a job |
| Job description | summary of the tasks, duties, and responsibilities of a job |
| Job specification | outline of characteristics needed to perform the job |
| Realistic job preview (RJP) | gives applicants all pertinent and realistic information about the job and the organization... Contributes to employee satisfaction and reduces turnover because RJPs facilitate matching people to positions |
| Virtual recruiting | use of social media’s video and chat features, virtual job fairs, and recruitment software to identify desired candidates |
| Internship | arrangement whereby an intern exchanges free or low-cost labor for the opportunity to explore a career or gain valuable work experience in a particular field |
| DBS Bank's Vital Skills for a Digital World (7) | Digital business view; digital communications; teamwork; using digital work technologies; risk management; data-driven decision making; people-focused intention |
| Selection | process employers use to assess applicants to determine the fit between the job and the applicant.. The most frequently used selection devises include the application form, interview, and employment test |
| Application form | tool used to collect information about the applicant’s education, previous job experience, and other background characteristics. Avoid irrelevant questions or questions with adverse impact |
| Structured interview | set of standardized questions that are asked of every applicant so comparisons can easily be made |
| Behavioral questions | ask people to describe how they have performed a certain task or handled a specific problem |
| Work sample | real example of work that a candidate has produced or a live simulation of the job |
| Employment tests | tests that may include cognitive ability tests, physical ability tests, personality inventories, and other assessments |
| Cognitive ability | measure an applicant’s reasoning, verbal, and mathematical abilities as a predictor of performance |
| Personality tests | assess such characteristics as openness to learning, agreeableness, conscientiousness, creativity, and emotional stability |
| T/F: Studies show that personality tests are worse predictors of future career success than job interviews | False, they are better |
| Online checks... | allow managers to search a candidate’s criminal record, credit history, and other indications of honesty, integrity, and stability as well as view candidate’s presence on social media |
| Developing talent includes... | planned efforts by an organization to facilitate employee’s learning of job-related skills and behaviors |
| On-the-job training (OJT) | an experienced employee shows a newcomer how to perform job duties |
| Social learning | learning informally from others by using social media tools |
| Corporate university | in-house training and education facility that offers broad-based learning opportunities for employees |
| Performance appraisal | observing and evaluating employee performance, recording assessment, and providing feedback |
| 360-degree feedback | process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development |
| Performance review ranking system | method in which managers evaluate direct reports relative to one another and categorize each on a scale |
| Compensation | all monetary payments and all goods or commodities used to reward employees |
| Wage and salary systems (2) | - Job-based pay - Skill-based, or competency-based, pay |
| Organizational environment and other factors contribute to... | employee satisfaction and job performance |
| Job evaluation | process of determining the value or worth of jobs within an organization through an examination of job content |
| Wage and salary surveys | show what other organizations pay incumbents in key jobs |
| Pay-for-performance | ties at least part of compensation to employee effort and performance this is also called incentive pay |
| Benefits required by law (3) | Social security, unemployment compensation, and workers’ compensation |
| Additional benefits include | - Include vacation time, on-site fitness centers, educational reimbursement - Benefits packages should meet the needs of employees |
| T/F: Termination are valuable in maintaining an effective workforce | True... Poor performing employees can be dismissed and Exit interviews can be used to learn about dissatisfaction and reason for departure |
| Exit interview | an interview conducted with departing employees to determine why they are leaving |
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