FOM review.docx

**[FOM review]** ============================ Effectiveness Vs Efficiency --------------------------- Efficiency: Doing things right (or getting the most output from the least amount of input) - Managers might deal with low input, meaning they might lack human resources, money, and equipmen...

**[FOM review]** ============================ Effectiveness Vs Efficiency --------------------------- Efficiency: Doing things right (or getting the most output from the least amount of input) - Managers might deal with low input, meaning they might lack human resources, money, and equipment. The manager needs to find ways to use those resources as efficiently as possible Effectiveness: Doing the right things (or completing activities so that organizational goals are attained) - Being efficient is one thing that managers need to think about, but they also need to consider being effective, which translate to achieving and attaining organizational goals - It's easier to be effective if YOU IGNORE EFFICIENCY - Poor management: (Both inefficiency and ineffectiveness OR effectiveness achieved without regard for efficiency) - Good management: (Attaining both EFFECTIVENESS and EFFICIENTLY) Planning-well-designed goals (well-written-goals) ------------------------------------------------- Types of planning - Breadth (Strategic plans): apply to the whole organization and cover the organization\'s overall goals - Tactical (Operational plans): specific details on how overall goals are to be achieved - Long-term plans: plans beyond 3 years - Specific-term plans: one year or less - Specific plans: are plans that are clearly defined and leave no room for interpretation (EX: A manager who wants to increase his work unit's output by 8% over the next 12 months might establish specific procedures, budget allocations, and work schedules to reach that goal) - Directional plans: flexible plans and set general guidelines - Single-use plan: A one-time plan designed to meet the needs of a unique situation - Standing plans: plans that are ongoing and provide guidance for activities performed repeatedly A close-up of a label Description automatically generated Decision making: Biases and Errors ----------------------------------  - Heuristics: using "rules of thumb to simplify decision-making. - Overconfidence bias: holding unrealistically positive views of oneself and one's performance. - Immediate Gratification Bias: choosing alternatives that offer immediate rewards and avoid immediate costs. - Anchoring effect: fixating on initial information and ignoring subsequent information - Selective perception bias: selecting, organizing, and interpreting events based on the decision maker's biased perceptions. - Confirmation Bias: seeking information that reaffirms past choices while discounting contradictory information. - Framing bias: selecting and highlighting certain aspects of a situation while ignoring others. - Availability Bias: losing decision-making objectivity by focusing on the most recent events. - Representation Bias: drawing analogies and seeing identical situations where one exists. - Randomness Bias: Creating unfounded meaning out of random events. - Sunk cost errors: forgetting that current actions cannot influence past events and relate only to future consequences. - Self-serving bias: taking quick credit for failure - Hindsight bias: mistakenly believing that an event could have been predicted once the actual outcome is known Organizing: Contingencies variables for organizational design ------------------------------------------------------------- 1. Overall strategy of the organization 2. Size of the Organization 3. Technology use by the organization 4. Degree of environmental uncertainty 1. Strategy: Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and support change. \+ Innovation: pursuing competitive advantage through meaningful and unique innovations favors an organic structure \+ Cost minimization: Focusing on tightly controlling costs requires a mechanistic structure for the organization 2. Size: As an organization grows large, its structure tends to change from organic to mechanistic with increased specialization, departmentalization centralization, and rules/Regulations. \+ less than 2000 = Organic, more than 2000 = Mechanistic 3. Technology \+ Organization adapts their structures to their technology. \+ Woodward's classification of firms based on the complexity of the technology employed: -Unit production: of single units or small batches -Mass production of large batches of output -Process production: in continuous process of output \+ Routine technology = mechanistic organizations \+ Non-routine technology = organic organization 4. Environmental Uncertainty \+ Mechanistic organizational structure tends to be most effective in stable and simple environments. \+ The flexibility of organic organizational structures is better suited for dynamic and complex environments. Organizing: Different kind of departmentalization ------------------------------------------------- Departmentalization: How jobs are grouped together 1. Functional departmentalization: Group employees based on work performed (engineering, accounting, Its, human resources) Placing people with same skill in one group and creating a bunch of groups that have different skill. 2. Product departmentalization: Groups employees based on major product areas in the corporation. (women's footwear, men's footwear, and apparel and accessories) Advantage: increase accountability for product performance because all activities related to a specific product are under a single manager 3. Customer Departmentalization: Groups employees based on customer's problems and needs (Wholesale, retail, government) Customers in each department (WRG) have common sets of problems and needs that can be met by specialists in that department. 4. Geographic departmentalization: Groups employees based on location served (North, South, Midwest, East) If the organization's customers are spread over large geographic area, this type of departmentalization can be valuable. Example: Coca Cola operates in two broad geographic areas, in North America and the international sector. (bring up the Mexico shit) 5. Process departmentalization: Groups employees based on the bases of work or customer flow (Testing, payment) Employees are organized around common skills needed to complete certain tasks. Ex: Bring up the National ID making process, filled out info, take pic, scan finger, legal docs Motivation: Herzberg's two-factor theory ---------------------------------------- (Motivation hygiene theory) Two-factor theory: The guy proposes that intrinsic factors (internal) are related to job satisfaction and motivation, whereas extrinsic factors (external) are associated with job dissatisfaction. - When they feel good: they say it's from internal factors (the job itself), such as achievement, recognition, and responsibility. - When they feel bad: they say it's from external factors, such as company policy, administration, supervision, interpersonal relationship, and working conditions.  Motivation: hierarchy of need theory ==================================== Meaning: there's 5 hierarchy of human needs: physiological, safety, social, esteem, and self-actualization A pyramid of colors with text Description automatically generated ================================================================= Each level must be satisfied before the next need, and individual moves up the hierarchy from one level to the next - Lower order needs are satisfied externally, and higher-order needs are satisfied internally. Individual behavior personality traits-at the workplace ======================================================= Locus of control: The degree to which people believe they control their own fate First case: (Internal) Second case: (external) those fuckers believe that their lives are control by outside force The manger might say: The stuff wrong (Poor performance or other things) with the boss, coworker, and employees are cause by internal factor (themselves) and external factors (Outside forces) Machiavellianism: A measure of the degree to which people are practical, maintaining emotional distance, and believe that ends justify means. Good for jobs that focus on result: jobs that require bargaining skill or a job that rewards for winning (a commissioned salesperson) able to predict performance using MACH Not good for job that focus on performance: meaning the result doesn't matter much its hard to use MACH to predict the performance People are characterizing by cunning, manipulation, not caring about ethics and morality Ex: A Mach leader might use flattery, deceive, or persuasion to gain power Self-esteem: An individual's degree of like or dislike for himself/herself SE directly related to expectation for success. Ppl with high SE: believe they have the ability to succeed at work. Those mfks take more risk and more likely to choose unconventional jobs Ppl with low SE: more susceptible to external influence, they depend on positive feedback from others. They are more likely to seek approval from others. In managerial position: Low SE concern about pleasing others, ppl with high SE is more satisfied with their job Self- monitoring: A personality trait that measures the ability to adjust behavior to external situational factors Highly sensitive to external factors and can behave differently depending on the situation. High SM: they good at display their public personality and hiding their private personality Low SM: those mfk can't do that at all, their true personality is always on display High SM will be more successful in managerial positions that require the person to play multiples roles, and even contradicting roles. (TBH better not say this shit in the exam, wanna know why just text me or sth) Risk taking: Influence worker behavior so that they are willing to take chances High risk ppl: less time and less info to decide on their decision Low risk ppl: opposite of high-risk ppl The result from both of em are the same: although it depends Leadership traits theories ========================== Drive: leader shows a high effort level, have a strong desire to achieve, are ambitious, have a lot of energy, and show initiative. Desire to lead: Leaders have a strong desire to influence and lead others, demonstrating a willingness to take responsibility. Honesty and integrity: Leaders build trusting relationships with followers by being truthful, and showing consistency with what they are saying Self-confidence: Followers look to leaders who don't self-doubt. Leaders need to show self-confidence to convince followers of their goals and decisions. Intelligence: Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and create visions, solve problems, and make correct decisions. Job-relevant knowledge: Effective leaders have a high degree of knowledge about the company, industry, and technical matters, allowing them to make well-informed decisions and understand the implications. Extraversion: leaders are energetic, lively people who are sociable, assertive, and rarely silent or withdrawn. Proneness to guilt: Guilt-proneness is positively related to leadership effectiveness because it produces a strong sense of responsibility for others. Leadership view: symbolic vs omnipotent view ============================================ Symbolic view: The view that much of the organization's success or failure is due to external factors outside manager's control Omnipotent view: The view that managers are directly responsible for an organization's success or failure  Teamwork: group development =========================== Forming stage: First stage of group development, people join the group then define the group purpose, structure, and leadership. - Has 2 phases, first: occurs when ppl joins the group, second: define group purpose, structure, and leadership. (this stage is very uncertain because the members are testing out shit) Storming stage: Second stage of group development, which is characterized by conflict inside the group. - There is conflict over who will control the group and what the groups needs to do - When this stage is complete, there will be clear hierarchy of leadership Norming stage: Third stage of group development, which is characterized by close relationship and cohesiveness - When the group creates a strong sense of trust, friendship, and goodwill among the members Performing stage: Fourth stage of group development, when the group is fully functional and works on the group task - When members start doing their task after the group's purpose and hierarchy are clear and knowing each other. Adjourning stage: Final stage of group development for temporary groups, during which groups prepare to disband. - The members prepare to disband and focus on wrapping up the group activities (some are happy cause of the accomplishment and some fucking cry because they gotta disband) Control: three steps in controlling =================================== 1. Measuring actual performance -Management by walking around -Written reports -oral reports -statistical report 2. Comparing actual performance against standard -employee's motivation -the budget or cost in the process (productivity) -the variance between the standard performance and actual performance (effectiveness) 3. Taking managerial action to correct lacking standards -takes no action -correct actual performance -revise standard