Exam Notes PDF

Why and How Do Managers Plan Planning: -​ The process of setting objectives and determining how to best accomplish them Objectives: -​ Identify the specifics results or desired outcomes that one intends to achieve Plan: -​ A statement of action steps to be taken in order to accomplish the o...

Why and How Do Managers Plan Planning: -​ The process of setting objectives and determining how to best accomplish them Objectives: -​ Identify the specifics results or desired outcomes that one intends to achieve Plan: -​ A statement of action steps to be taken in order to accomplish the objectives Add Figure 4.1 Steps in the Planning Process -​ Define your objectives -​ Determine where you stand in relations to objectives -​ Develop premises regarding future conditions -​ Analyze alternatives and male a plan -​ Implement the plan and evaluate results Benefits of Planning -​ Improves focus and flexibility -​ Improves action orientation -​ Improves coordination and control -​ Improves time management Types of Plans Used by Managers Short-range and long-range plans -​ Short-range plans = 1 year or less -​ Intermediate-range plans = 1 to 2 years -​ Long-range plans = 3 or more years -​ People vary in their capability to deal effectively with different time horizons -​ Higher management levels focus on longer time horizons Strategic and Tactical Plans Strategic plans: set broad, comprehensive, and longer-term action directions for the entire organization Tactical Plans: define what needs to be done in specific functions to implement strategic plans -​ Production plans  -​ Financial plans -​ Facilities plans -​ Marketing plans -​ Human resource plans Functional plans: describe how different operations within an organization will help advance the overall strategy Chapter 5 Strategic Management Basic concepts of strategy (On EXAM) -​ Competitive advantage: operating with an attribute or set of attributes that allows an organization to outperform its rivals -​ Cost and quality -​ Knowledge and speed -​ Barriers to entry -​ Financial resources Sustainable competitive advantage: one that is difficult for competitors to imitate Basic concepts of strategy Strategy: a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish organizational goals with sustainable competitive advantage Strategic intent: focusing all organizational energies on a unifying and compelling goal. Add 5.2 Image Essentials of strategic analysis Corporate strategy: - Sets long-term direction for the total enterprise Business strategy: - Identifies how a divisions or strategic business unit will compete in products or services Functional strategy: - Guides activities within one specific area of operations Analysis of mission: - The reason for an organization’s existence -An important test of the mission is how well it serves the organization’s stakeholders Organizational Culture Analysis of objectives: -Operating objectives direct activities toward key and specific performance results Typical operating objectives: -​ Profitability -​ Financial health -​ Cost efficiency -​ Customer service -​ Product quality -​ Market share -​ Human talent -​ Innovation -​ Social responsibility SWOT Analysis What are your Strengths? -​ Manufacturing efficiency -​ Skilled workforce -​ Good market share -​ Strong financing -​ Superior reputation What are our Weaknesses -​ Outdated facilities -​ Inadequate research development -​ Obsolete technologies -​ Weak management -​ Past planning failures What are our Opportunities -​ Possible new markets -​ Strong economy -​ Weak market rivals -​ Emerging technologies -​ Growth of existent market What are our Threats -​ New competitors -​ Shortage of resources -​ Changing market tastes -​ New regulations -​ Substitute products PEST Analysis Political: laws and regulations, government policies. Economic: general environment influenced by customer spending, resource supplies, and investment capital. Socio-Cultural: norms, customs, social values, gender roles Technological: developments in technology and the edge of another technology revolution Corporate-level strategy formulation Grand or master strategies Growth strategies -​ Seek an increase in size and the expansion of current operations Stability strategies -​ Maintains current operations without substantial changes Renewal Strategy -​ Tries to solve problems and overcome weaknesses that are hurting performance Combination strategy -​ Pursues growth, stability, or retrenchment in some areas Growth and Diversification strategies Growth strategies Seek an increase in size and the expansion of current operations Types of Growth strategies: -Concentration strategies(doing the same thing) -Diversification strategies ​ -Related diversification ​ -Unrelated diversification ​ -Vertical diversification Restructuring strategies: Tries to correct weaknesses by changing the mix or reducing the scale of operations by: -​ Restructuring through turnaround -​ Restructuring through downsizing -​ Restructuring through divestiture Jan 6 2025 Planning and Controlling Controlling: Is the process of measuring performance and taking necessary action to make sure standards and objectives are met Steps in the Control Process 1.​ Set performance objectives and standards  2.​ Measure actual performance 3.​ Compare actual performance against established standards 4.​ Take corrective actions as needed Feedforward Controls -Focus on the control inputs: ​ -Human ​ -Material ​ -Financial - To ensure that they meet the necessary standards -Focus on preventing the problems before they occur -Example: Careful hiring and training of new employees Concurrent Controls -​ Monitor employees’ work to ensure consistency with performance standards, rules, and regulations -​ Often involves checkpoints at which decisions are made whether to continue the progress, take corrective action, or stop work altogether -​ Example: Direct supervision of employee work Feedback Controls -​ Reviewing information to determine whether performance meets established standards -​ Focus on the outputs of the organization after processing or production is complete Automobile Dealer Example -​ Sales of new or used cars -​ Feedforward Controls: Careful inspection of new cars and cautious selection of sales employees to ensure high quality and profitable sales -​ Concurrent: Monitoring how sales people act with customers during the sales task -​ Feedback controls: Counting the number of new cars sold during the month and telephoning buyers about their satisfaction with the sales transactions Internal Control -​ When employees exercise internal control over their own behavior, they demonstrate self-discipline and self.-control -​ Self-control is more likely in an organization where the individuals understand and believe in the organization’s mission, know their own objectives, and have the resources to do their job well The following can be used as external control measures; -​ Bonus pay -​ Employee stock ownership -​ Gain-sharing -​ Profit-sharing  -​ Pay for performance (or Merit Pay) -​ Skills-Based pay (or pay for Knowledge) Douglas McGregor’s Hot Stove Rules of Discipline 1.​ Discipline Immediately 2.​ Be Consistent 3.​ Penalize Actions, not personality 4.​ Provide a rationale and forewarning Jan 7 2025 What is Ethical Behavior Ethics -​ Code of moral principles -​ Set standards of good or bad or right or wrong in one's' conduct Ethical Behaviour -​ What is accepted as good and right in the context of the governing moral code -​ Legal behavior is not necessarily ethical behavior -​ Personal values help determine individual ethical behavior Alternate views of ethics Utilitarian view of ethics: -​ Greatest good to the greatest number of people. Individualism view of ethics: -​ Primary commitment is to one's long term self-interest Moral-Rights views of ethics: -​ Respects and protects the fundamental rights of all people. Justice view of ethics: -​ Fair and impartial treatment of people according to legal rules and standards Cultural Issues in Ethical Behaviour Cultural relativism: -​ Ethical behaviour is always determined by a cultural context Cultural Universalism: -​ Behaviour unacceptable in one’s home environment should not be acceptable anywhere else -​ Considered by some to be ethical imperialism Get the picture for this Core or Universal Values: How international businesses can respect core or universal values: Respect for human dignity -​ Create a culture that values employees, customers, and suppliers. -​ Keep a safe workplace -​ Produce safe products and services Respect for basic rights -​ Protect rights of employees, customers, and communities -​ Avoid anything that threatening safety, health, education, and living standards Be good citizens -​ Support social institutions, including economic and educational systems. -​ Work with local governments and institutions to protect the environment. Ethics in the workplace -​ An ethical dilemma occurs when certain choices may be considered unethical, despite possible potential for personal and/or organizational benefit Ethical dilemma include: -​ Discrimination -​ Sexual Harassment -​ Conflicts of interest -​ Customer confidence -​ Organizational resources Ethical Decision Making Checklist for dealing with ethical dilemmas: -​ 1.Recognize the ethical dilemma -​ 2. Get the facts -​ 3. Identify your options -​ 4. Test each option:Is it legal? Is it right? Is it beneficial? -​ 5. Decide which option to follow -​ 6. Double-check decision by asking “spotlight” questions: “How would I feel if my family found out about my decision?” “How would I feel about this decision if it were in the local news?” -​ 7. Take action Jan 8 2025 Rationalization for unethical behavior Unethical behavior can be rationalized by convincing yourself that: -​ The behaviour is not actually illegal -​ The behaviour is truly in everyone’s best interests -​ Nobody will ever find out -​ The organization will “protect” you Maintaining High Ethical Standards Whistleblowers: Expose the misdeeds of others in order to: -​ Preserve ethical standards -​ Protect against wasterful, harmful, or illegal acts ​ Laws protecting whistleblowers may vary Code of Ethical Conduct Codes of ethics: -​ A formal statement of an organization’s values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas Areas often covered by an organization's code of ethics: -​ Bribes and kickbacks -​ Political contributions -​ Honesty of bools or records -​ Customers/supplier relationships -​ Co-worker relationships -​ Confidentiality of corporate information Ethical Role Models  -​ Top managers serve as ethical role models -​ All managers can influence the ethical behaviour of people who work for and with them -​ Excessive pressure can foster unethical behaviour -​ Managers should be realistic in setting attainable performance goals for others Social Entrepreneurship -​ A unique form of entrepreneurship that seeks novel ways to solve pressing social problems at home and abroad Examples include -​ Housing and job training for homeless -​ Bringing technology to poor families -​ Improving literacy among disadvantaged youth -​ Offering small loans to start minority-owned businesses Jan 9 2025 Social Responsibility Corporate social responsibility: -​ Obligates organizations to act in ways that serve both its own interests and the interests of society at large Stakeholder issues and analysis Organizational Stakeholders: -​ Those persons, groups, and other organizations directly affected by the behavior of the organization and holding a stake in its performance Add image 14.7 sample stakeholder model Perspectives on Social Responsibility Classical view: -​ Management’s only responsibility is to maximize profits Socioeconomic view: -​ Management must be concerned for the broader social welfare, not just profits Evaluating Corporate Social Performance Criteria for evaluating corporate social performance: -Social responsibility Audit: assess organization's accomplishments in the areas of CSR -Asks: is the organization’s… ​ - Economic responsibility met? Is it profitable? ​ - Legal responsibility met? Does it obey the law? ​ - Ethical responsibility met? Is it doing the right thing? ​ - Discretionary responsibility met? Does it voluntarily contribute to the broader community and become a leader in advancing social well-being? Carroll’s Four part model image On multiple choice Jan 10 2025 Conflict A disagreement between people on: -​ Substantive issues regarding goals and tasks, allocation of resources, distribution of rewards, policies and procedure, and job assignments -​ Emotional issues arising from feelings of anger, distrust, dislike, fear, and resentment, as well as personality clashes Conflict that is well managed can help promote creativity and high performance Functional conflict: -​ Moderately intense conflict  -​ Constructive and stimulates people toward greater work efforts, cooperation, and creativity Dysfunctional conflict: -​ Low-intensity and very high-intensity conflict -​ Destructive and hurts task performance Integrative devices for resolving conflicts: -​ Using liaison personnel, special task forces, cross-functional teams, or a matrix organization -​ Changing reward systems -​ Changing policies and procedures -​ Training in interpersonal skills People’s conflict management styles reflect different combinations of co-operative and assertive behaviour: -​ Cooperativeness is the desire to satisfy the other party’s needs and concerns -​ Assertiveness is the desire to satisfy one’s own needs and concerns Figure 12.10 Alternative conflict management styles add image Jan 13 2025 Motivation : The forces within the individual that account for the level, direction, and persistence of effort expended at work. Reward: a work outcome of positive value to the individual Extrinsic rewards: valued outcomes given to someone by another person. Intrinsic rewards: valued outcomes that occur naturally as a person works on a task Theories of Motivation: Maslow’s Hierarchy of needs theory Deficit principle -​ A satisfied need is not a motivator of behaviour. Progression principle -​ A need at one level does not become activated until the next lower-level need is satisfied Theories of Motivation Maslow’s image Theories of motivation: ERG ERG theory Developed by Clayton Alderfer. Three need levels: -​ Existence needs: desires for physiological and material well-being. -​ Relatedness needs: desires for satisfying interpersonal relationships. -​ Growth needs: desires for continued psychological growth and development ERG theory -​ Any/all needs can influence behavior at one time. -​ Frustration-regression principle -​ An already satisfied lower-level need becomes reactivated when a higher-level need is frustrated. Theories of motivation: Acquired need Developed by David McClelland. People acquire needs through their life experiences Needs that are acquired: -​ Needs for Achievement Desire to do something better or more efficiently, to solve problems, or to master complex tasks. People who are high in Achievement prefer to work in stuff that involves individual responsibility, achievable but challenging goals and feedback on work -​ Need for Power Desire to control other persons, to influence others, or to be responsive for other people. Personal power versus social power People high in power prefer work that involves control over other people, has an impact on people and events, and brings public recognition and attention. -​ Need for Affiliation Desires to establish and maintain friendly and warm relations with other people People high in affiliation prefer work that involves interpersonal relationships, provides companionship and brings social approval. Theories of motivation: 2 Factor theory Developed by Fredrick Herzberg Hygiene factors -​ Element of the job context( working condition, interpersonal relationships, salary) -​ Sources of job dissatisfaction Satisfier factors: -​ Elements of the job content(sense of achievement, recognition, responsibility. -​ Sources of job satisfaction and motivation