MGMT 301 EXAM 2 Study Guide PDF

Preview

Summary

MGMT 301 EXAM 2 Study Guide Professor Ronald Johnson...

Description

MGMT 301 Exam 2: Study Guide 

10/31/2019

The Big Four:  Decision-making o Problem solvinginvolves identifying and taking action to resolve problems  Planning o The process of setting performance objectives and determining how to accomplish them; key step in MGMT process o Personal process for each individual; formal and informal  All people need to plan  Controlling o Ensuring results by measuring performance and taking corrective action  Measurement (Metric)  Out of Controlwhat can we do to stay in control  General Motors 2014 car recall problems  Have the right things happen the right way at the right time o After-action review  Structured review of lessons learned and results accomplished through a complete project, task force assignment, or special operation  Strategy o A comprehensive plan guiding resource allocation to achieve long-term organization goals o An approach to get to an end game that just might work  Our approach to accomplish goals o Strategic intent



   

Focuses organizational energies on achieving a compelling goal  E.g. fencers who preformed in class are focused on making it into the Olympics o Bigger picture above planning, organizing, leading, controlling  Comes before management process  E.g. Disney’s strategy is to be an international amusement park company Chapter 4 – Decision Making Decisions & information: Decision Making = Problem Solving/current State, future state  What’s going on in the moment Knowledge of Workers  Add value to organizations through their intellectual capabilities

    

Decisional Roles Information Roles  Information sought, received, transferred among insiders and outsiders

Technological Competency The ability to understand new technologies and to use them to teir best advantage

 Informational used for entrepreneurship, resource allocation, disturbance handling, negotiation



Information Competency The ability gather and use information to solve problems



Planning, Organizing, Leading, Controlling

In

oles n used for ceremonies, motivation, and networking

Analytical Competency The ability to evaluate and analyze information to make actual decisions and solve real problems

 Inform

Example

2



o Chilean Mine Collapse  August 5, 2010  Owners walked away from mine—gave up the responsibility  President believed that the miners were alive even without communication btw outside and them  Decided to do everything to get them out  It was a day of life and hope; he believed you have to look no matter what— right thing to do  Crisis managementcannot waste a second, work quickly  Used Centre Rock Inc. to drill hole (risks and benefits, unknown results) Performance opportunity vs. Threat  Performance opportunity (help) o A situation that offers the possibility of a better future if the right steps are taken  Performance threat (hurt) o A situation where something is wrong or likely to be wrong  Example – Coca Cola buys Honest Tea o Honest Tea (small range of products worth 35 million) – Founder Seth Goldman  Threatcoca takes them on (out muscle)  Opportunityfinancial power from C.O., distribution network, marketing, muscledrives business o Coca Cola (large range of Products) – CEO Muhtar Kent  Threatstea, venture capitalist or funds elsewhere, drop in soda popularity  Opportunityleverage brand into something bigger, new products



3

  

Managers & Problems  Problem Avoider o Ignore information that would otherwise signal the presence of a performance threat or opportunity o Prefer not to deal with problems  Problem Solver o Make decisions and try to solver problems, but only when required o Deal reasonable with threats, but can miss performance opportunities  Problem Seeker o Always looking for problems to solve or opportunities to explore o Anticipate threats and opportunities  Examples o Costa Concordia Problem Avoider  Launched in 2007 – Sailed in Mediterranean  Jan 13, 2012 – ship began sinking  Captain took unsafe risky route, hit side/bottom of canal  Captain fell off (abandoned) shiptold to get off  32 people died  Captain = problem avoider  Did not take action

4



 

BIG ISSUEpeople refuse to make a decision because they don’t want to deal with the fall out  Ship floated in July 2014  1.5 billon euros to get the boat out  Captain on trial for man slaughter o PSU Ice Hockey – breaks ground Feb 2012 Problem Seeker  Deal with the Pegula's to build a new ice hockey arena  Donated $100 million to break ground on the project  Great for school recruitment, join division 1 hockey  Tim Culey ex. Athletic Director  Creates a business for the school (ice skating, renting out, events)  Fall 2011 – Before scandal  Joe Paterno seeks out Terry to keep him from taking money back Cognitive Decision-Making Styles Systematic vs. Intuitive  Systematic o Approaches problems in a rational and analytical fashion  Intuitive o Approaches problems in a flexible and spontaneous fashion  Example o US Airways Flight 1549 – Captain Chesley “Sully” Sullenburger  Lost both engines to a bird strike

5

  

Decides to land on the Hudson river Was a former fighter pilot/safety training coordinator Characteristics  Practical applied info, something’s not right  Thinking/analyzing what could happen  Feeling – needs to save the people  Intuitive thinker – landing in the Hudson (smooth water)

Facts/ Goals 

Theory/Concept

Systematic vs. Intuitive

ive Feelers (IF's)

Thoughtful

Facts/Feelings

  







Sensing

Feeling

Sensation Fee (SF's)

Intuitive Thinkers (IT's)

Thinking

Senation Thinkers (ST's)

Intuition

Sensation thinker  Emphasize the impersonal rather than the personal and take a realistic approach to problem solving  Like hard facts, clear goals, certainty and situations of high control Intuitive Thinkers  Comfortable with abstraction and unconstructed situations; idealistic, prompt toward intellectual and theoretical positions  Logical and impersonal but avoid details Intuitive feelers  Prefer broad and global issues; insightful and tend to avoid details  Comfortable with intangibles; value flexibility and human relationships Sensation Feelers  Emphasize both analysis and human relations; realistic and prefer facts

6

 

 

 Open communicators and sensitive to feelings and values Decision Making Steps: Types of Problems  Programmed o Policy set in place, has been done before (LOW RISK OF FAILURE)  Non-Programmed o New policies, never been done (HIGH RISK OF FAILURE) Risks & decision making types of environments  Certain o Optimized decision 



Risk o Able to compute probability (Mary Barra launching new car)  Uncertain o Duplicating object, unsure if it will be accepted  Example o Coke launches tea (programmed)  Risk is that its never launched tea before, good at launching Optimizing Decision  Classical decisional model (Rationality – acts in a perfect world)

7



o Describes decision making with complete information o Characteristics  Structured problem  Clearly defined  Certain environment  Complete information  All alternatives and consequences known o OPTIMIZING DECISION: choose absolute best among alternatives  Behavioral Decision Model (Bounded Rationally – acts with cognitive limitations) o Describes decision-making with limited information and bounded rationality o Characteristics  Unstructured problem  Not clearly defined  Uncertain environment  Incomplete information  Not all alternatives and consequences known o SATISFICING DECISION: choose first “satisfactory” alternative Traditional Decision Making Model

Identify Problem

Evaluate Results

Develop Alternatives



Implement Decision



Decide on Action

Example  Super Soaker – Developer Lonnie Johnson

8



o Opportunitymove people from 1 to 15 units (or $$$$) o Alternativestook 8 years to develop o Actionlicenses gun o ImplementLaunch first round in market o Problemconsumers don’t understand first model o Fix/improve/try againcreate marketing plan, show uses, improve design o Evaluate Results Blows out! Start chart over Six Sigma Process - DMAIC  Define o What is our company’s purpose? o Opportunity or problem we have  Measure o What is the current state? o Different data points from past performance  Analyze o What should we do? o Look at data collected from measuring step both quantitatively and qualitatively  Improve o How can we make this process better? o Adjust based on data found  Control

9



o How should we implement? o Change factors that will make the process better/more successful, improve performance Example o CISCO  Define – Routers, wires & more  Measure – Group of talented people but the didn’t mesh (work well together)  Analyze – needed to improve rating  Improve – improve process & productivity  Control – focus on what the viewer wants  Finding better values in their core, context critical to mission o Amazon – CEO Jeff Bezos  Everything from a-z! Started as just books online  Define – wants to create same day delivery  Measure – how same day delivery will work for half (50%) of population  Analyze – places where using drones for delivery is difficult  Improve – allow control centers capability of using drones  Control – how to organize control centers who use drone delivery

   

10

 



Issues in decision making— Group decision making  Advantages o Bring greater amounts of information, knowledge, and expertise to a problem o Expand the number for creative action alternatives o Helps members gain a better understanding of any decisions and work hard to implement them  Disadvantages o Difficult and time consuming o More people likely that more problems will arise o Social pressure to conformpremature agreement o Intimidated to go with apparent wishes of others who have authority/act aggressively/uncompromising  Members feel forced or railroaded into a decision advocated by one vocal individual or group o Last minute decisions because of lack of time Heuristics overall  Availability Heuristic o Uses readily available information to assess a current situation  Representativeness Heuristic o Assesses the likelihood of an occurrence using a stereotyped set of similar events  Anchoring and adjustment Heuristic o Adjusts a previously existing value or stating point to make a decision  Framing error

11

  

o Solving a problem in the context perceived Chapter 5 – Planning Planning Overview: Personal planning – Time Management  Judging o Formal, structure planning approach  Likely to create to-do lists  Perceive time as linear – plan for organization  Perceiving o Informal, unstructured planning approach, flexibility  Not likely to create to-do list  Time is rotating web – open to prioritizing and change  Spontaneous  Example o Big Rocks  Priorities in a situation are like rocks  Big rocks = major priorities  Must be completed first!  Put big rocks in jar first followed by sand and smaller rocks (smaller priorities)  Priorities do not fill jar correctly if small rocks go first  THUS: Ranking priorities are key/effective for time management

12





Process of Planning  Define objectives o Where you want to go; be specific enough to know you have already arrived when you get there and how far off you are along the way  Compare current state to objectives/determine where you stand on objectives o Where you presently stand in reaching the objectives; identify strengths that work in your favor and weaknesses that can hold you back  Compare future alternatives/ develop premises regarding future conditions o Generate alternative scenarios for what may happen; identify things that may help or hinder progress toward your objectives  Analyze alternatives/make plan o Choose the action alternative most likely to accomplish your objectives; describe what must be done to implement this course of action  Implement the plan & Evaluate the results o Take action; measure progress toward objectives as implementation proceeds; take corrective actions and revise the plan as needed 4 components of good planning  Action Oriented o Keeping a results driven sense of direction o Focused on actually doing something and takes an active approach to planning o Complacency Avoidance  Important to create better plans and preform better in the future  Complacency trap  Being lulled into inaction by current successes or failures  An event or occurrence that traps planners  Priority oriented

13







o Making sure the most important things get first attention o Similar to big rocks = big priorities (must go first) Advantage oriented o Ensuring that all resources are used to best advantage o Most effective and efficient way of doing something Change oriented o Anticipating problems and opportunities so they can be best dealt with o Focused on anything that might affect change Example o Amusement Park planning discussion (Shanghai)  Marketing  Takes care of advertising, research and promotions  Finance  Tries to raise capital and finance the construction through either debt or equity  Accounting  Budgets, audits and manages both taxes and expenses  Management  Hires the proper people, schedules, trains, and sets goals for the project  Supply Chain  Organizes resources, supplies, and determines the logistics for the project  Risk Management

14



 



Studies government regulations, covers insurances, and ensures project security THE #1 METRIC IS SAFETY!

SKU  Stock keeping unit o The number of options  A shirt that comes in 5 different colors; each color is a sku Planning Hierarchy  Lower-level objectives help to accomplish higher-level ones Mi ssi on & Pu rp Top Managm ent Objective Senior Managment Objective



Middle Management Objective

Supervisory Management Objective

Workers Objectives



 

Impact on control and coordination o Organizing people to follow the same game plan, work toward the same purpose  Alignment & Follow Through o Links people and different levels of management o Alignment of objectives within the organization o Each level follows through with the set objectives Business Planning: Long and short range  Long o Future Vision (3+ years) o A few of us plan in this time frame  Short

15

  

o Execute Now (3-12 months) o Most of us plan in this time frame Adjusted based on company/product

Strategic Plan  Identifies long-term directions for the organization (What are they going to do?)   o Operational or Tactical Plan  Sets out ways to implement a strategic plan (same/specific things to make a business unit go)    Functional Plan  Identifies how different parts of an enterprise will contribute to accomplishing strategic plans (channels to create product) o Financialdeal with money required to support various operations o Facilitiesdeal with facilities development and work layouts o Marketingdeal with the requirements of selling and distributing goods or services o Human Resourcedeal with the recruitment, selection, and placement of people into various jobs o Productiondeal with the methods and technology needed by people in their work  Example o Direct TV commercial  Star peeked in high school (stuck in the past)  Didn’t plan for future

16





Strategically  Plan out where you want to go to college  Operational  Pic a major (more specific)  We decided to leave High School because we what to be more o Nordstrom (Case Study 5)  Family owned company geared toward an lower upper-upper middle class  Strategy  Customer service most important (personalized service)  Happiness/satisfaction is the end result  Well trained, respected, and valued associates/employees who put customer first  Quick product turn over rates  Only mark down specific items move poor selling items to rack stores  Integration of online and store stock – allows customers to purchase out of stock items in one store and have them shipped o Associate and online shoppers see the same item inventory Policies and procedures  What you want your company to follow  Company policy (broad guidelines) o Standing plan that communicated broad guidelines for decisions and actions  E.g. it’s no smoking everywhere  Company Procedures (specific actions)

17



o Rules that precisely describes actions to take in specific situations  E.g. how to deal with smoking  Example o The office Jim & Pam Romance  No dating policy  dating distracts from work, break ups are hard  If they want to date procedureleave office, disciplinary Budget Connects Plans with Resources  Budget o A plan that commits resources to projects or activities o Financial budget  Projects cash flow and expenditures o Operating budget  Plot anticipated sales or revenues against expenses o Nonmonetary budget  Allocate resources such as labor, equipment, and space o Fixed budget  Allocates a fixed amount of resources for a specific purpose o Flexible budget  Allows resources to vary in proportion with various levels of activity  Zero-based budget o Allocates resources as if each budget was brand new

18

 

Tools & Techniques: Big six planning tools  Forecasting o Using statistical tools and intuition based on experience to predict a culture state o Bases what will happen often what happened in the past  Contingency o Identifying actions to take when a strategic or tactical plan must change based on circumstances (good or bad)  Sensitivity analysisworst and best the company can do o Almost always a problem to be solved  Scenario o Considering future scenarios and developing plans to address these issues o Anything outside of our control that can affect us (disasters)  Benchmarking o Comparing your company to outside organizations both in your industry and in other business o Go and talk to people who are successful and find out what you can do better  IMPROVEMENT  Participatory o Includes those implement and/or who will implement your plan in the process o What is the best way to build itengage everyone  Goal setting o Developing clear and quantified goals/measures that guide an organization and the individuals who work there

19

     

Specificclearly targeted key results and outcomes to be accomplished; clear to anyone/all Timelylinked to specific timetables and due dates Measureabledescribed so results can be measured without ambiguity; no doubt when accomplished or missed Challenginginclude a stretch factor that moves toward real gains; focused on doing better Attainablealthough goal is challenging, it’s realistic and possible to achieve

Example o Gulfstream  Aerospace, release of new private jet G650  Costs $65 million, $10 million deposit  Forecasting  Must determine how many people will be needed for production of the plane  Contingency  When designing plane, must determine the expected count of planes to be sold (estimated 200 planes)  Worst case 50 planes; best case 400 o Want for more can create...