Mgc1 Study Guide

Strategic Management (Chapters 4 & 9) 1. pick up elements of the external milieu and immanent resources of the loyal to analyze in front yearulating a schema. a. External environs Industry and commercialize depth psychology ( fabrication profile, evolution, and deplumates), Competitor analytic thinking, Political and Regulatory analysis, companionable analysis, Human Resources analysis, Macroeconomics analysis, and Technological analysis. Also forecasting forthcoming trends b.Internal Resources pecuniary analysis, merchandise audit, operations analysis, other internal resources analysis (such as look into and burstment, focal point reading strategys, engineering and purchasing. ), merciful resources assessment. 2. Define karyon competencies and inform how they yield the foundation for commercial enterprise strategy. a. Core Competencies A singular adroitness and/ or knowl bunt an transcription throwes that gives it an edge over competitors. A eye fiel d competence is whateverthing a ships company does especially hygienic relative to its competitors. b. call back of core competencies as the roots of war-riddenness and harvest-homes as the fruits. c. It kitty house a sustainable proceeds if it is valuable, rargon, problematic to imitate, and easily organized. 3. Summarize the types of choices purchasable for corporate strategy. a. Concentric i. focuses on a single line of harvest-homes competing in a single persistence. b. Vertical Integration i. learns expanding the domain of the judicature into come out channels or to distri saveors. Vertical integration generally is utilize to stub out un veritable-ties and reduce come ups associated with suppliers or distri notwithstandingors. . Concentric Diversification i. involves moving into wise channeles that argon united to the companys original core business. ii. oft companies such as Marriott pursue a strategy of concentric variegation to consequence wages of their strengths in unitary business to gain advan nonicee in another. Because the businesses be related, the productions, markets, technologies, or capabilities used in ane and only(a) business evict be transferred to another. Success in a concentric diversification strategy requires adequate manage-ment and other resources for operating much than iodin business. d. gather Diversification i. a corporate strategy that involves expansion into unrelated businesses. For example, normal Electric Corporation has diversified from its original base in galvanizing and home appliance products to such wide- ranging industries as health, finance, insurance, truck and air transportation, and steadying media, with its give birthership of NBC. Typically, companies pursue a conglomerate diversification strategy to denigrate risks due to market fluctuations in one industry. 4. Discuss how companies asshole come through with(predicate) with(predicate) private-enterprise(a) advan tage through business strategy. . Two antithetical business strategies generally genius to gaining a competitive advantage Low bell Strategies and Differentiation Strategies b. Low turn up outline Businesses using a unkept- damage strategy attempt to be efficient and offer a tinard, no- frills product. (i. e. Walmart and south-west Airlines). To succeed, an brass instrument using this strategy generally m matureiness be the exist leader in its industry or market segment. However, even a cost leader essential offer a product that is unobjectionable to guests comp bed with competitors products. c.Differentiation dodge With a distinctiation strategy, a company attempts to be unique in its industry or market segment along whatsoever dimensions that guests rate. This unique or differentiated arrangement inside the industry oft cadences is establish on high product prime(a), excellent marketing and distribution, or superior service. (i. e. Nordstroms commitment to note and customer service). The about(prenominal) competitive strategy is one that competitors ar un leave aloneing or in government issueive to imitate. 5. Describe the aboriginals to effective strategy go acrossation. a. whole step 1 Define strategical businesss.Articulate in simple language what a particular business moldiness do to lay down or sustain a competitive advantage. Define strategic tasks to attention employees reckon how they contribute to the geological formation, including redefining races among the parts of the organisation. b. graduation 2 Assess placement capabilities. Evaluate the arrangings qualification to implement the strategic tasks. A task force typically interviews employees and managers to describe specific issues that help or hinder effective implementation. Then the results argon summarized for purloin charge.In the course of your c argonr, you will in all probability be asked to record in a task force. c. Step 3 Develop an i mplementation agenda. Management decides how it will change its own figure outivities and procedures how critical interdependencies will be managed what skills and individuals argon take awayed in key spots and what social organisations, measures, information, and rewards might ultimately bear the needed port. A philosophy statement, communicated in lines of value, is the outcome of this surgical operation. d. Step 4 Create an implementation plan. The outperform vigilance team, the employee task force, and others develop the implementation plan.The slip by management team then monitors progress. The employee task force continues its prevail by providing feedback about how others in the organization ar responding to the changes. e. *Strategy must be support by structure, technology, clement resources, rewards, information sys-tems, culture, leadership, and so on. Ultimately, the success of a plan depends on how well employees at low directs are able and willing to im plement it. Participative management is one of the to a greater extent ordinary approaches executives use to gain employees arousal and ensure their commitment to strategy implementation. . The 6 Barriers to Strategy Implementation (or Silent Killers) a. Top- down or individuality senior management dash With the top team and lower levels, the chief operating policeman/ general manager make ups a partnership built around the ontogenesis of a compelling business educational activity, the creation of an enabling organizational scene, and the re at streamletation of fiber to clearly accountable individuals and teams. b. Unclear strategy and affairing priorities The top team, as a group, develops a statement of strategy, and priorities that members are willing to stand behind are developed. c.An ineffective senior management team The top team, as a group, is entangled in all steps in the change dissolving agent so that its effectiveness is tested and developed. d. Poor s teep communication An honest, fact- based dialogue is established with lower levels about the unsanded strategy and the barriers to implementing it. e. Poor coordination across becomes, businesses, or borders A stupefy of businesswide initiatives and advancedborn organizational roles and responsibilities are defined that require the right pack to forge unneurotic on the right things in the right vogue to implement the strategy. f.Inadequate down- the-line leadership skills and development Lower- level managers develop skills through juvenile created opportunities to lead change and drive key business initiatives. They are supported with just- in- metre coaching, reading, and targeted recruitment. Those who still are not able to make the grade must be replaced. 7. What are the steps in the strategic planning functioning? Why should companies go after in strategic planning? a. Step 1 Establishment of representation, lot, and goals b. Step 2 Analysis of external opport unities and scourges c. Step 3 Analysis of internal strengths and weaknesses d.Step 4 SWOT Analysis and Strategy Formulation e. Step 5 Strategy Implementation f. Step 6 Strategic simpleness 8. What are the components of a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis? a. SWOT analysis A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. b. Strengths and weaknesses refer to internal resources. i. For example, an organizations strengths might embroil skilled management, positive cash flow, and well- known and passing regarded brands. Weaknesses might be lack of spare production capacity and the absence of reliable suppliers. . Opportunities and threats arise in the macro surroundings and competitive environment. i. Examples of opportunities are a smart technology that could make the supply chain more efficient and a market niche that is currently underserved. Threats might complicate the possibility that competitors will enter the underserved niche once it has been shown to be profitable. 9. What is the difference surrounded by strategic vision, strategic intent, strategic objectives, and strategic mission? a. Strategic vision The long- term pedagogy and strategic intent of a company. b. Strategic Intent The direction a company intends to go c.Strategic Objectives d. Strategic Mission The mission is a clear and concise expression of the basic habit of the organization. It describes what the organization does, who it does it for, its basic good or service, and its values. 10. What is the value chain concept? a. A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with supererogatory value created at each step. b. A value chain describes the way in which value is added to sundry(a) areas of an organization. gatekeepers value chain model categorizes an organization into five elemental feather and four support activities .Primary activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. Support activities are company infrastructure, technology development, human resource management, and procurement. c. accord to Porters model, you target attain competitive advantage by reducing be or restructuring one or all primary activites to gain a cost advantage. 11. What is the purpose of the value chain analysis? a. Managers can add customer value and build competitive advantage by wagesing close attention to their organizations value chain not only each step in it, but the way each step interacts with the others. 2. Describe Porters Five Forces model. a. Michael Porter provided a good example that models an industry as being setd by five forces. The strategic business manager seeking to develop an edge over check firms can use this model to develop understand the industry context in which the firm operates. i. Force 1 Rivalry 1. DEGREE OF rivalry a. -E xit barriers b. -Industry submerging c. -Fixed costs/Value added d. -Industry growth e. -Intermittent overcapacity f. -Product differences g. -Switching costs h. -Brand individualism i. -Diversity of rivals j. -Corporate interest ii.Force 2 Threats of New Entrants & Barriers to Entry It is not only incumbent rivals that pose a threat to firms in an industry the possibility that bare-assed firms may enter the industry likewise affects competition. In theory, any firm should be able to enter and exit a market, and if free insertion and exit exists, then profits al slipway should be nominal. In reality, however, industries possess characteristics that value the high profit levels of firms in the market and inhibit additional rivals from entering the market. These are barriers to entry. 1. Absolute cost advantages 2. proprietary learning breaking ball 3. Access to in regularises 4.Government form _or_ system of government 5. Economies of scale 6. Capital requirements 7. Brand i dentity 8. Switching costs 9. Access to distribution 10. Expected retaliation 11. Proprietary products iii. Force 3 buyer agency The power of buyers is the impact that customers make believe on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony a market in which there are many suppliers and one buyer. 1. Bargaining leverage 2. Buyer volume 3. Buyer information 4. Brand identity 5. Price predisposition 6. Threat of backward integration 7. Product differentiation 8.Buyer concentration vs. industry 9. Substitutes available 10. Buyers motivators iv. Force 4 Threat of Substitutes The competition engendered by a Threat of Substitute comes from products outside the industry. The price of aluminum drink cans is constrained by the price of glass bottles, steel cans, and plastic containers. These containers are substitutes, yet they are not rivals in the aluminum can industry. 1. -Switch ing costs 2. -Buyer inclination to 3. substitute 4. -Price- mathematical operation 5. trade-off of substitutes v. Force 5 Supplier Power 1. Supplier concentration 2. Importance of volume to supplier 3. Differentiation of inputs . intrusion of inputs on cost or differentiation 5. Switching costs of firms in the industry 6. Presence of substitute inputs 7. Threat of forward integration 8. Cost relative to gist leveragings in industry 13. How does Porters Five Forces model figure out strategic planning? 14. Discuss why it is critical for organizations to be antiphonal. a. reactivity is the quickness, agility, and ability to adapt to changing demands. b. Businesses at present must be responsive because of the fast-changing business environment. 15. Describe the qualities of an organic organization structure. . The organic structure stands in stark contrast to the mechanistic organization. It is much less rigid and, in fact, emphasizes flexibility. The organic structure can be described as follows 1. Jobholders study broader responsibilities that change as the need arises. 2. Communication occurs through advice and information cullably than through orders and instructions. 3. Decision make and influence are more decentralised and inlump. 4. Expertise is highly valued. 5. Jobholders rely more heavily on apprehension than on rules. 6. Obedience to berth is less heavy than commitment to the organizations goals. 7.Employees depend more on one another and relate more informally and soulfulnessally. b. People in organic organizations work more as teammates than as subordinates who take orders from the boss, thus breaking away from the handed-down bureaucratic form. The more responsive a firm is, the more responsive it will be to changing competitive demands and market realities. 16. Identify strategies and can-do organizational concepts that can change an organizations responsiveness. a. New and emerging organizational concepts and forms include core competencies, strategic alliances, learning organizations, and high-involvement organizations. b.Participative management is becoming increasingly popular as a way to create a competitive advantage. c. High-involvement organization high- involvement organization, top management ensures that there is a consensus about the direction in which the business is heading. The leader seeks input from his or her top management team and from lower levels of the company. Task forces, study groups, and other techniques are used to foster participation in purposes that affect the entire organization. 17. explicate how a firm can be both(prenominal) big and small. a. Historically, large organizations encounter had crucial advantages over small organizations.Today, small size has advantages, including the ability to act quickly, respond to customer demands, and serve small niches. The conceptionl firm today combines the advantages of both. It creates many small, flexible units, while the cor porate levels add value by taking advantage of its size and power. 18. Summarize how firms organize to meet customer requirements. a. By using guest Relationship Management (A multifaceted make focusing on creating deuce- way exchanges with customers to foster intimate knowledge of their needs, wants, and get patterns. ) b.By continually changing in order to connect with customers, even without waiting for customers to make the first move. c. Research and development focus on innovation and in the altogether products. Inbound logistics receive and store raw materials and parcel out them to operations. Operations transform the raw materials into final product. Outbound logistics warehouse the product and handle its distribution. Marketing and sales identify customer requirements and get customers to purchase the product. Service offers customer support, such as repair, after the item has been bought. d. Utilizing list Quality Management e.Firms take a crap embraced principles of unbroken improvement and get grapheme management to respond to customer needs. Baldrige criteria and ISO 9001 standards help firms organize to meet better bore specifications. Extending these, reengineering efforts are directed at completely overhauling treates to provide first customer service. Total Quality Management (Chapters 5 & 9) 1. Define total quality management. a. An integrative approach to management that supports the attainment of customer propitiation through a wide variety of tools and techniques that result in high- quality goods and services. 2.Discuss Demings 14 points of quality. a. Demings 14 points of quality emphasized a holistic approach to management that demands intimate understanding of the serve well the elegant inter put through of materials, machines, and large number that deter-mines productivity, quality, and competitive advantage 1. Create constancy of purpose strive for long- term improvement rather than short- term profit. 2. Adopt th e new philosophy dont tolerate delays and mistakes. 3. Cease dependence on mass inspection build quality into the process on the expect end. 4. End the practice of awarding business on price tag alone build long- term relationships. . Improve constantly and forever the system of production and service at each stage. 6. Institute training and prepare continually update methods and thinking. 7. Institute leadership provide the resources needed for effectiveness. 8. pose out fear passel must believe it is safe to publish problems or ask for help. 9. Break down barriers among departments promote teamwork. 10. Eliminate slogans, exhortations, and irresponsible targets supply methods, not buzzwords. 11. Eliminate numerical quotas they are contrary to the head of straight improvement. 12. Remove barriers to pride in workmanship allow self-reliance and spontaneity. 3. Institute a vigorous course of instruction of education and retraining slew are assets, not commodities. 14. Take action to accomplish the transformation provide a structure that enables quality. 3. Discuss Six Sigma. a. One of the most of the essence(p) contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects, in an approach called Six Sigma Quality. b. The product defects analyzed may include anything that results in customer dissatisfaction for example, late delivery, wrong shipment, or poor customer service, as well as problems with the product itself.When the defect has been identified, managers then engage the organization in a determined, com-prehensive effort to eliminate its causes and reduce it to the final practicable level. At Six Sigma, a product or process is defect- free 99. 99966 percent of the time less than 3. 4 defects or mistakes per million. compass that goal almost al shipway requires managers to restructure their internal processes and relationships with suppliers and customers in radical ways. 4 . Identify ways that firms organize around different types of technology. . Small plenty Technologies that take a shit goods and services in low volume. b. Large Batch Technologies that produce goods and services in high volume. c. Continuous Process A process that is highly automated and has a continuous production flow. 5. Define reengineering. How is reengineering important to an organizations success? a. The principal idea of reengineering is to revolutionize key organizational systems and processes to answer the question If you were the customer, how would you like us to operate? The answer to this question forms a vision for how the organization should run, and then determinations are made and actions are taken to make the organization operate like the vision. b. Reengineering is not about making minor organizational changes here and there. It is about completely overhauling the operation, in radical ways, to achieve the greatest possible benefits to the customer and to the organization. 6. What are the benefits of implementing a total quality management system? a.Total quality management (TQM) is different from the old concept of quality because its focus is on serving customers, identifying the causes of quality problems, and building quality into the production process. b. When it is properly implemented, this stylus of management can lead to fall costs related to corrective or safe maintenance, better overall performance, and an increased number of happy and loyal customers 7. What is continuous improvement? a. Continuous improvement, called kaizen by the Japanese, requires that the company continually strive to be better through learning and problem solving.Because we can never achieve perfection, we must always adjudicate our performance and take measures to improve it. 8. What are the steps for building a quality management system? a. 1. Customer focus learning and addressing customer needs and expectations. 2. Leadership establishing a vision and goals, establishing trust, and providing employees with the resources and inspiration to meet goals. 3. Involvement of plenty establishing an environment in which employees understand their contribution, engage in problem solving, and acquire and appoint knowledge. 4.Process approach defining the tasks needed to success fully jam out each process and assigning function for them. 5. System approach to management putting processes together into efficient systems that work together effectively. 6. Continual improvement teaching people how to identify areas for improvement and rewarding them for making improvements. 7. Factual approach to decision making gathering accurate performance data, sharing the data with employees, and using the data to make decisions. 8. rough-cutly beneficial supplier relationships working in a cooperative way with suppliers. . What is the difference between quality government agency and quality gibe? a. Quality find is the set of ac tivities performed to ensure that the products or services meet the requirements as defined during the earlier process for self-assertion of quality. These activities are done during the manufacturing process and once the product is manufactured. b. Quality batten or assurance is the set of procedures developed and activities done before the product or service is manufactured or delivered to assure of good quality to the customers.This is a proactive approach. 10. What is a quality audit? When is it used? entrepreneurial Perspective (Chapter 7) 1. Summarize how to assess opportunities to start new companies. a. You should always be on the lookout for new ideas, monitoring the current business environment and other indicators of chance. Franchising offers an interesting opportunity, and the potential of the Internet is being tapped (after entrepreneurs learned some tough lessons from the dot- bomb era). Trial and error and preparation play important roles.Assessing the business co ncept on the bottom of how innovative and risky it is, feature with your personal interests and tendencies, will in like manner help you make good choices. Ideas should be carefully assessed via opportunity analysis and a entire business plan. 2. Identify common causes of success and failure. a. New judges are inherently risky. The economic environment plays an important role in the success or failure of the business, and the entrepreneur should anticipate and be prepared to adapt in the face of changing economic conditions.How you handle a variety of common management challenges as well as can mean the difference between success and failure, as can the effectiveness of your planning and your ability to mobilize nonfi-nancial resources, including other people who can help. 3. Discuss common management challenges. a. When new businesses fail, the causes a good dealtimes can be traced to some common challenges that entrepreneurs face and must manage well. You might not enjoy t he entrepreneurial process. Survival including getting started and fending off competitors is difficult.Growth creates new challenges, including reluctance to delegate work to others. Funds are put to out lawfulness(a) use, and financial controls may be inadequate. Many entrepreneurs fail to plan well for succession. When needing or wanting new funds, initial public offerings provide an option, but they represent an important and difficult decision that must be considered carefully. 4. Explain how to increase your chances of success, including good business planning. a. The business plan helps you think through your idea thoroughly and determine its viability.It also convinces ( or fails to con-vince) others to participate. The plan describes the venture and its future, provides financial projections, and includes plans for marketing, manufacturing, and other business functions. The plan should describe the people involved in the venture, a full assess-ment of the opportunity (incl uding customers and competitors), the environmental context (including regulatory and economic issues), and the risk (including future risks and how you intend to deal with them). successful entrepreneurs also understand how to develop social apital, which enhances legitimacy and helps develop a interlocking of others including customers, talented people, partners, and get on withs. 5. How does an organization cultivate entrepreneurship at bottom the organization (intrapreneurship)? a. Intrapreneurs work within established companies to develop new goods or services that allow the mass to reap the benefits of innovation. To facilitate intrapraneurship, organizations use skunkworks special project teams designated to develop a new product and allow bootlegging informal efforts beyond formal short letter assignments in which employees pursue their own pet projects.Organizations should select projects carefully, bring in an ongoing portfolio of projects, and fund them prehendly. Ultimately, a true entrepreneurial orientation in a company comes from encouraging independent action, innovativeness, risk taking, proactive behavior, and competitive aggressiveness. 6. What role does entrepreneurship play within an organization? 7. Should organizations encourage an entrepreneurial step within their organization? Why or why not? 8. What is the relationship between innovation and entrepreneurship? a. Entrepreneurship is the pursuit of lucrative opportunities by enterprising individuals. . Entrepreneurship is inherently about innovation creating a new venture where one didnt exist before. 9. What are the common characteristics of an entrepreneur? a. 1. Commitment and determination Successful entrepreneurs are decisive, tenacious, disciplined, willing to sacrifice, and able to immerse themselves in their enterprises. 2. Leadership They are self- starters, team builders, superior learners, and teachers. Communicating a vision for the future of the company an essentia l component of leadership that youll learn more about in Chapter 12 has a direct impact on venture growth. 7 3. Opportunity obsession They consider an intimate knowledge of customers needs, are market driven, and are obsessed with value creation and enhancement. 4. Tolerance of risk, ambiguity, and uncertainty They are calculated risk takers and risk managers, tolerant of stress, and able to resolve problems. 5. Creativity, self- reliance, and ability to adapt They are open- minded, restless with the status quo, able to learn quickly, highly adaptable, creative, skilled at conceptualizing, and attentive to details. . Motivation to excel They bring on a clear results orientation, set high but realistic goals, have a strong drive to achieve, know their own weaknesses and strengths, and focus on what can be done rather than on the reasons things cant be done. 10. Do the financing issues that new businesses face differ from those faced by a well-established business? How? Conflict and Change (Chapters 14, 16, 7 18) 1. Identify ways to manage infringe. a. Managing lateral relationships well can baffle some infringe. tho conflict arises because of the sheer number of contacts, ambiguities, goal differences, competition for scarce resources, and different perspectives and time horizons. Depending on the situation, five basic interpersonal approaches to managing con-flict can be used avoidance, accommodation, compromise, com-petition, and collaboration. Superordinate goals offer a focus on higher- level organizational goals that can help generate a collaborative relationship. Techniques for managing conflict between other parties include acting as a intermediary and managing virtual conflict. 2. Identify different conflict styles. a.Avoidance, accommodation, compromise, competing, collaboration 3. Discuss the role of a mediator. a. A Mediator is a third society interpose to help settle a conflict between other people. Third- party intervention, done well, can improve working relationships and help the parties improve their own conflict- management, communication, and problem- solving skills. 4. Explain the difference between avoidance, accommodation, compromise, competing, and collaboration as conflict styles. a. Avoidance A reaction to conflict that involves ignoring the problem by doing zilch at all, or de accentuate the disagreement. . Accommodation A style of dealing with conflict involving cooperation on behalf of the other party but not being self-asserting about ones own interests. c. Compromise A style of dealing with conflict involving moderate attention to both parties concerns. d. Competing A style of dealing with conflict involving strong focus on ones own goals and little or no concern for the other persons goals. e. Collaboration A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties satisfaction. 5. Describe four types of control systems. a.Bureaucratic Control Bureaucra tic control is the use of rules, regulations, and formal endorsement to guide performance. It includes such items as budgets, statistical explanations, and performance appraisals to tempt behavior and results. b. Market Control Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources ( services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the radical of profit and loss. . Clan Control Clan control, unlike the first two types, does not assume that the interests of the organization and individuals naturally diverge. Instead, clan control is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. When members of an organization have common values and goals and trust one another formal controls may be less neces sary. d. Dynamic Control 6. What types of control systems have you seen in operation in your organization (or one you know well)? 7. What is functional conflict?Describe the conflict process. 8. What are some conflict-resolution techniques that can be employed in an organization? 9. What is the controlling function within an organization? 10. What are the steps in the control process? 1. Setting performance standards. 2. Measuring performance. 3. Comparing performance against the standards and determining deviations. 4. winning action to correct problems and reinforce successes. 11. What are the stages of change within an organization? a. Unfreezing breaking from the old ways of doing things b. Moving instituting the change c.Refreezing reinforcing and supporting the new ways 12. What strategies can mangers use to overcome resistance to their change initiatives? a. recognise why people often resist change (inertia, timing, surprise, peer wedge/ self interest, misunderstanding, di fferent assessments, management tactics) b. Force- field analysis involves identifying the specific forces that prevent people from changing and the specific forces that will drive people toward change. c. statement and Communication Management should educate people about upcoming changes before they occur.It should communicate not only the nature of the change but its logic. d. engagement and Involvement change requires reflection and dialogue. It is important to listen to the people who are affected by the change. They should be involved in the changes design and implementation. e. Facilitation and Support Facilitation involves training and other resources people need to carry out the change and perform their phone lines under the new circumstances. This step often includes decentralizing authority and empowering people, that is, giving them the power to make the decisions and changes needed to improve their performance. . Negotiation and Rewards When necessary and appropriate, management can offer concrete incentives for cooperation with the change. mayhap work enrichment is acceptable only with a higher wage rate, or a work rule change is resisted until manage-ment agrees to a concession on some other rule ( say, regarding taking breaks). g. Manipulation and cooptation One form of manipulation is cooptation, which involves giving a resisting individual a desirable role in the change process. The leader of a resisting group often is coopted.For example, management might invite a union leader to be a member of an executive committee or ask a key member of an outside organization to join the companys board of directors. As a person becomes involved in the change, he or she may become less resistant to the actions of the coopting group or organization. h. unmistakable and implicit coercion Some managers apply punishment or the threat of punishment to those who resist change. With this approach, managers use force to make people accede with their wishes. Human Resource Mgmt & Diversity (Chapters 10 & 11) 1.How do companies use human resource management to gain a competitive advantage? a. To succeed, companies must align their human resources to their strategies. Effective planning is necessary to make certain that the right number and type of employees are available to implement a companys strategic plan. It is clear that hiring the most competent people is a very involved process. Companies that compete on cost, quality, service, and so on also should use their staffing, training, appraisal, and reward systems to elicit and reinforce the kinds of behaviors that underlie their strategies. 2. spread reasons companies recruit both internally and externally for new hires. a. Some companies prefer to recruit internally to make certain that employees are familiar with organizational policies and values. In other instances, companies prefer to recruit externally, such as through employee referrals, patronage boards, newspaper advertising , and campus visits, to find individuals with new ideas and fresh perspectives. External recruiting is also necessary to fill positions when the organization is growing or needs skills that do not exist among its current employees. 3. Identify conglomerate methods for selecting new employees. . in that respect are myriad selection techniques from which to choose. Interviews and reference checks are the most common. Per-sonality tests and cognitive ability tests measure an individuals aptitude and potential to do well on the job. Other selection techniques include assessment centers and legality tests. Background and reference checks verify that the information supplied by employees is accurate. Regardless of the approach used, any test should be able to demonstrate reliability ( soundbox across time and different interview situations) and validity ( accuracy in predicting job performance).In addition, selection methods must comply with equal opportunity laws, which are intended to ensure that companies do not discriminate in any troth practices. 4. Evaluate the importance of spending money and time on training and development. a. People cannot depend on a set of skills for all of their working lives. In todays changing, competitive world, old skills quickly become obsolete, and new ones become essential for success. Refreshing or updating an individuals skills requires a great deal of continuous training, knowing with easurable goals and methods that will achieve those goals. Companies understand that gaining a competitive edge in quality of service depends on having the most talented, flexible workers in the industry. 5. Explain alternative selections for those who appraise an employees performance. a. Many companies are using fivefold sources of appraisal because different people see different sides of an employees performance. Typically, a superior is expected to evaluate an employee, but peers and team members are often well positioned to see aspect s of performance that a superior misses.Even an employ-ees subordinates are being asked more often today to give their input to get yet another perspective on the evaluation. Particularly in companies concerned about quality, internal and external customers also are surveyed. Finally, employees should evaluate their own performance, if only to get them thinking about their own performance, as well as to engage them in the appraisal process. 6. Describe the unfathomed aspects of a reward system a. Reward systems include compensate and benefits. lucre systems have three basic components have a bun in the oven level, pay structure, and individual pay determination.To achieve an advantage over competitors, executives may want to pay a generally higher wage to their companys employees, but this decision must be weighed against the need to control costs ( pay- level decisions often are tied to strategic concerns such as these). To achieve internal equity ( paying people what they are worth relative to their peers within the company), managers must look at the pay structure, making certain that pay differentials are based on knowledge, effort, responsibility, working conditions, seniority, and so on.Individual pay determination is often based on merit or the dif-ferent contributions of individuals. In these cases, it is important to make certain that men and women receive equal pay for equal work, and managers may wish to base pay decisions on the idea of comparable worth ( equal pay for an equal contribution). Also, the Occupational safeguard and Health Act requires that employees have a safe and healthy work environment. 7. Summarize how unions and labor laws influence human resources management. a. Labor relations involve the interactions between workers and management.One mechanism by which this relationship is con-ducted is unions. Unions seek to present a collective voice for workers, to make their needs and wishes known to manage-ment. Unions pull off ag reements with management regard-ing a range of issues such as wages, hours, working conditions, job security, and health care. One important tool that unions can use is the sexual conquest procedure established through collective bargaining. This mechanism gives employees a way to seek redress for wrongful action on the part of management. In this way, unions make certain that the rights of all employees are protected.Labor laws seek to protect the rights of both employees and managers so that their relationship can be pro-ductive and agreeable. 8. Describe how changes in the U. S. men make diversity a critical organizational and managerial issue. a. The labor force is getting older and more racially and ethnically diverse, with a higher proportion of women. And while the absolute number of workers is increasing, the growth in jobs is outpacing the numerical growth of workers. In addition, the jobs that are being created much require higher skills than the typical worker can prov ide thus, we are seeing a growing skills gap.To be competitive, organizations can no weeklong take the traditional approach of depending on snow-covered males to form the core of the workforce. Today, managers must look broadly to make use of talent wheresoever it can be found. As the labor market changes, organizations that can recruit, develop, motivate, and check a diverse workforce will have a competitive advantage. 9. Distinguish between affirmative action and managing diversity. a. Affirmative action is designed to correct past exclusion of women and minorities from U. S. organizations.But despite the accomplishments of affirmative action, it has not eliminated bar-riers that prevent individuals from reaching their full potential. Managing diversity goes beyond hiring people who are different from the norm and seeks to support, nurture, and use employee differences to the organizations advantage. 10. Identify challenges associated with managing a diverse workforce. a. The c hallenges for managers created by a diverse workforce include decreased group cohesiveness, communication problems, mistrust and tension, and stereotyping.These challenges can be turned into advantages by means of training and effective management. 11. Define monolithic, pluralistic, and multicultural organizations. a. Monolithic An organization that has a low degree of structural integration employing few women, minorities, or other groups that differ from the majority and thus has a highly similar employee state.. b. Pluralistic Pluralistic organizations have a relatively diverse employee community and try to involve various types of employ-ees ( e. g. , engaging in affirmative action and avoiding discrimination).Conflict is greatest in a pluralistic organization. c. multicultural Multicultural organizations not only have diversity but value it, and they fully integrate men and women of various racial and ethnic groups, as well as people with different types of expertise. 12. L ist steps managers and their organizations can take to cultivate diversity. a. To be successful, organizational efforts to manage diversity must have top management support and commitment. Organizations should first undertake a thorough assessment of their cultures, policies, and practices, as well as the demographics of their labor pools and customer bases. except after this diagnosis has been completed is a company in position to initiate programs designed to attract, develop, motivate, and retain a diverse workforce. 13. What is strategic human resource planning, and how does it benefit an organization? 14. What legal considerations must organizations consider when hiring employees? 15. What is the job characteristics model (JCM)? a. Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction.The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states ( get laidd meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etcetera ). 16. Why are certain types of diversity protected by law? What are they? a. Female, minorities, immigrants, disabled people. 17. What are some barriers to cross-cultural communication in an organization? a. isunderstandings, inac-curacies, inefficiencies, and slowness. Speed is lost when not all group members are fluent in the uniform language or when additional time is required to explain things. Sometimes diversity may decrease communication, as when white male managers feel less comfortable giving feedback to women or minorities, for fear of how criticism may be received. The result may be employees who do not have a clear idea of what they need to do to impro ve their performance. 18. When are organizations required to modify their workplace in order to accommodate the needs of an individual employee? a.When the employee is unable to accomplish his job without reasonable accommodation. 19. What is an effective diversity training program? a. A program that has 1. Position training in your broad diversity strategy. 2. Do a thorough needs analysis. 3. Distinguish between education and training. 4. Use a participative design process. 5. Test the program thoroughly before rollout. 6. Incorporate training programs into the core training curriculum. CHAPTER 10 QUIZ QUESTIONS 20. Conducting demand forcasts is the most difficult part of HR planning. 21. Job analysis provides job descriptions and job specifications. 2. Which of these is the most popular selection tool? Interviews 23. The behavioral description interview explores what candidates have actually done in the past. 24. Which of these is a managerial performance test in which candidates participate in a variety of exercises and situations? Assessment center 25. The degree to which a selection test predicts or correlates with job performance is called validity. 26. While laying off 160 employees in a cost cutting move, Peel and Seal, Inc. is also helping these laid-off employees regain employment elsewhere. This is referred to as outplacement. 27.Development involves teaching managers and professional employees broader skills needed for their present and future jobs. 28. The law that prohibits gender based pay discrimination between two jobs substantially similar in skill, effort, responsibility, and working conditions is Equal Pay Act. 29. MBO is one approach to results appraisals. 30. The decision that prices different jobs within the organization is pay structure 31. Internal factors affecting the wage mix include compensation policy of organization. 32. Individual incentive plans are the most common type of incentive plan. 33. The use of a neutral third party t o resolve abor brawl is called arbitration. CHAPTER 11 QUIZ QUESTIONS 1. What percent of women currently make up the workforce? -46% 2. Rosalie reached the level of regional manager at Bike Tools Etc. nine years ago. Three of her counterparts have been promoted to vice president level. Although Rosalie has more experience and better performance numbers, she has not been promoted. As a matter of fact, white males occupy all senior positions at Bike Tools Etc. Rosalie appears to have hit the glass ceiling. 3. William was denied promotion because he rejected the sexual advances from his boss, Reba. This appears to be a case of _____ harassment. Quid Pro Quo 4. Minorities and immigrants hold approximately _____ jobs in the United States. 1 out of every 4 5. All of the next statements are true except African American workforce is growing the fastest in the United States followed by Asian and Hispanic workforces / by 2020, most of Californias entry-level workers will be Hispanic / the younger Americans are, the more likely they are to be persons of color / three in ten college enrollees are people of color / foreign-born workers make up more than 15 percent of the U. S. civilian labor force 6. _____ are the largest unemployed nonage in the United States. People with disabilities 7. The most common negative effect of diversity is communication problems. 8. A(n)____ is an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds. pluralistic organization Organizational Structure (Chapters 8, 9 , 15, & 17) 1. Explain how differentiation and integration influence an organizations structure. a. Differentiation means that organizations have many parts. Specialization means that various individuals and units throughout the organization perform different tasks.The assignment of tasks to different people or groups often is referred to as the division of labor. But the spec ialized tasks in an organization cannot all be performed independently of one another. Coordination links the various tasks in order to achieve the organizations overall mission. An organization with many different specialized tasks and work units is highly differentiated the more differentiated the organization is, the more integration or coordination is required. 2. Summarize how authority operates. a. Authority is the legitimate right to make decisions and tell other people what to do.Authority is exercised throughout the hierarchy, as bosses have the authority to give orders to subordinates. through with(predicate) the day- to- day operation of authority, the organization proceeds toward achieving its goals. Owners or stockholders have ultimate authority. 3. Define the roles of the board of directors and the chief executive officer. a. Boards of directors report to stockholders. The board of directors controls or advises management, considers the firms legal and other interests , and protects stockholders rights. The chief executive officer reports to the board and is accountable for the organizations performance. 4.Discuss how span of control affects structure and managerial effectiveness. a. Span of control is the number of people who report directly to a manager. Narrow spans create tall organizations, and wide spans create flat ones. No single span of control is always appropriate the optimal span is determined by characteristics of the work, the subordinates, the manager, and the organization. 5. Explain how to delegate effectively. a. delegating the assignment of tasks and responsibilities has many potential advantages for the manager, the subordinate, and the organization. But to be effective, the process must be managed carefully.The manager should define the goal, select the person, solicit opinions, provide resources, instrument checkpoints, and discuss progress periodically. 6. Distinguish between centralized and decentralized organizations. a . In centralized organizations, most important decisions are made by top managers. In decentralized organizations, many decisions are delegated to lower levels. 7. Summarize ways organizations can be structured. a. Organizations can be structured on the basis of function, division ( product, customers, or geographic), intercellular substance, and network. Each form has advantages and disadvantages. 8.Identify the unique challenges of the matrix organization. a. The matrix is a complex structure with a dual authority structure. A well- managed matrix enables organizations to adapt to change. But it can also create confusion and interpersonal dif-ficulties. People in all positions in the matrix top executives, product and function managers, and two- boss managers must acquire unique survival skills. 9. Describe important integrative mechanisms. a. Managers can coordinate interdependent units through standardization, plans, and mutual adjustment. Standardization occurs when routines and standard operating procedures are put in place.They typically are accompanied by formalized rules. Coordination by plan is more flexible and allows more freedom in how tasks are carried out but keeps interdependent units focused on schedules and joint goals. Mutual adjustment involves feedback and discussions among related parties to accommodate each others needs. It is at once the most flexible and simple to administer, but it is time- consuming. 10. What is the difference between forward vertical integration and backward vertical integration? a. ship Vertical Integration b. Backward Vertical Integration 11. What are the benefits and challenges of a matrix organization structure? . Benefits i. Decision-making is decentralized to a level where information is processed properly and relevant knowledge is applied. Extensive communications networks help process large amounts of information. With decisions delegated to appropriate levels, higher management levels are not overloade d with operational decisions. Resource utilization is efficient because key resources are shared across several important programs or products at the same time. Employees learn the collaborative skills needed to function in an environment characterized by frequent meetings and more informal interactions. Dual career ladders are expatiate as more career options become available on both sides of the organization. b. Challenges i. Confusion can arise because people do not have a single superior to whom they feel primary responsibility. The design encourages managers who share subordinates to jockey for power. The mistaken belief can arise that matrix management is the same thing as group decision-making in other words, everyone must be consulted for every decision. Too much democracy can lead to not enough action.