Exam #3 Flashcards
(116 cards)
1
Q
Alignment
A
Getting all employees pulling in the same direction; Aligned from top to bottom; Important to center in on goal; Company and individual goals being linked
2
Q
Goals/Results Loop
A
Organization Goals –> Business Unit/Dept. Goals –> Individual Goals –> Individual Results –> Business Unit/Dept. Results –> Organization Results
3
Q
Vision
A
Where we want to be in the future; The “dream”
4
Q
Mission
A
The business we are in right now
5
Q
Values
A
The qualities that define “how” we do business and that drive our culture
6
Q
Strategy
A
How we will fulfill our vision– overarching approach
7
Q
Plans
A
Step-by-step outline of ow we get from point A to point B
8
Q
Goals
A
Steps and metrics within the plan
9
Q
Mission Statement
A
Serves to unite organization; Articulates how we differ from our competition; Provides a rationale for decision-making and allocation of resources
10
Q
Vision Statement
A
Our highest aspirations; Must be clear/compelling/inspiring; Paints picture of future state to which organization can aspire
11
Q
Values Statement
A
Underpinning of culture; Should form basis of performance management system; Critical that it reflects actual business practice
12
Q
Why is Planning Important?
A
People and organizations need plans to help attain dreams; If you don’t know where you are going, any path could get you there; Plans need to contain metrics so you’ll know where you are
13
Q
What do Plans Contain?
A
Vision, Goals, Who is responsible for what, Deadlines, Everything needed to keep a project on track
14
Q
Single-Use Plans
A
Developed to achieve a set of goals that are unlikely to be repeated in the future
15
Q
Standing Plans
A
On-going plans that guide tasks that are performed repeatedly within an organization
16
Q
Contingency Plans
A
Special plans to handle emergencies, setbacks, or other conditions outside of the norm
17
Q
Long Term Plan v. Short Term Plan
A
Long (1-5 years); Short (1 year or less)
18
Q
Plans Drive High Performance
A
Start with strong mission/vision; Set stretch goals for excellence; Create a culture that encourages learning; Understands that planning still begins and ends at the top of the organization
19
Q
SMART goals
A
Specific, Measurable, Attainable, Relevant, Time Based
20
Q
Ineffective v. SMART Personal Goal
A
SMART lays out the plan how you will get there; Most specific
21
Q
Purposes of Goals and Plans
A
Legitimacy/Mission Statement; Source of Motivation and Commitment; Rationale for decisions; Guides to Action; Resources Allocation; Standards of Performance
22
Q
What is Strategy?
A
“Big Picture” directional approach; Usually long-term; Helps org. achieve something major (new business, position, vision)
23
Q
Elements of Strategy Link Everything
A
Mission –> Vision –> Long-term Strategic Goals –> Short-Term Goals –> Tactics and Actions
24
Q
Corporate Strategy
A
Growth, Stability, Retrenchment, Diverstiture
25
Growth
Expansion into new markets; Increasing market share; Expanding business (merging or going ventures) Ex: Google, Ford
26
Stability
Maintaining current market position Ex: Coca-Cola
27
Retrenchment
Defensive posture to hold off threats while turning a company around Ex: Burger King
28
Divestiture
Selling off or folding a particular division Ex: Citigroup, AIG
29
Business Strategy
Differentiation, Cost Leadership, Niche, Vertical Intergration
30
Differentiation
Providing unique products, services, or features (Ex: Apple)
31
Cost Leadership
Being most competitive (lowest price) in terms of cost of product or service (Ex: Wal-Mart)
32
Niche
Catering to a particular segment of the market of a particular demand (Ex: IKEA)
33
Vertical Integration
Seeking cost savings and efficient through operating businesses along the supply chain
34
Strategic Planning
Process of defining strategy or direction and making decisions on the allocation of resources to pursue this strategy; Big picture view of org.; Providing honest assessment of where org is and how it is going to achieve vision
35
PESTLE Scan
Economic Environment, Sociocultural Environment, Legal/Regulatory Environment, Political Environment, Technological Environment, Natural Environment
36
Michael Porter's Five Forces
Bargaining Power of Suppliers, Bargaining Power of Customers, Threat of New Entrants; Threat of Substitute Products; Competitive Rivalry within an industry
37
Scenario Planning
Often used by business and the military; Imagine the "what ifs" in future situations
38
SWOT Analysis
Strengths, Opportunities, Weaknesses, Threats
39
Stakeholder
Any person, group, or organization that could be impacted by an organization's actions; Primary are directly affected; Secondary and indirectly affected
40
Stakeholder Analysis
Identify all stakeholders and analyze how each will be affected by an organization's decisions and/or actions
41
Corporate Social Responsibility (CSR)
Self-regulation built into an organization's business model whereby it monitors and ensures compliance with: spirit of law, ethical standards, International Norms
42
Some models of CSR go beyond compliance and engage in activities that are:
Beyond what is required by law; Beyond interests of the organization; Designed to further some societal good
43
CSR Benefits
Triple Bottom Line (people, profit, planet); helps recruit and retain talent; Helps limit risks; Differentiates Brand; Reduces scrutiny; Improves supplier relations
44
CSR Negatives
Distracts from cores missions to maximize profit for shareholders; Distracts from unethical business practices (Ex: Ronald McDonald); Can provide cover for controversial industries (tobacco, alcohol)
45
CSR Activities
Environmental, Philanthropic, Community Involvement; Ethics Training and Activities for Employees
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CSR In Action
Reputation Institute conducted global research; Who you are matters more than what you do; Your corporate reputation means more to people than what you make
47
Corporate Reputation
Beliefs, Impressions, Opinions about an organization; Formed and communicated by multiple stakeholder groups (employees, customers, partners, media)
48
Benefits of Good Reputation
Customers willing to buy products for higher prices; Best talent employees; Investors want to buy stock; Other companies want to be partners; Regulators/Press give benefit of doubt; Communities like you
49
Negatives of Good Reputation
NONE; Takes time and attention to build one; Once built, can be damaged quickly
50
Business Ethics
Principles, Values, and Beliefs that define what is right and wrong behavior
51
Why should companies care about ethics?
Right thing to do; Expensive to ignore; Creates culture; Attracts good employees, better decisions/reputation, more engagement
52
Ethical Culture Overview
Leadership, Infrastructure, Communication, Training
53
Leadership
Role Models, Communicators, Discipline/Reward, Keepers of the Culture
54
Communication
Open culture, Manager training, Values everywhere, Robust communication up, down, and across
55
Infrastructure
Formal compliance systems, Background checks, Whistle-blowing systems, Policy, Performance management system
56
Training
Manager training, Identifying risk, Training around risks, Multiple venues
57
US Sentencing Commission Guidelines
Must self-report; Must have an effective ethics program (training, whistle-blowing, discipline, etc.)
58
US Sentencing Guidelines
Apply to all companies; Can be triggered by activities of one employee; Don't apply to EEOC violations; Death Penalty also option (divest business and liquidate company)
59
Mitigating Factors
Having an effective program to prevent and detect violations of the law; Self-reporting, cooperating, accepting responsibility for criminal conduct
60
Aggravating Factors
Size of org. + degree of participation/tolerance/disregard for criminal conduct by "high-level personnel"; Prior civil and criminal history; Obstructing or impeding during the investigation or prosecution
61
J&J's Credo
States responsibility to customers, employees, communities, and stockholders
62
Tylenol: October 1982
7 Chicago consumers died after ingesting Tylenol laced w/ cyanide; No one charged with the crime; FBI investigated several leads; J&J hopped on issue right away
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How did J&J recover from the Tylenol issue?
Hotline, Coupons, Letters, Presentations; Videos, Tamper-resistant packaging, Media; Discounts, advertising, full refunds; Letters; Reports to stockholders
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Analysis of J&J Success
Kept communication channels open; Took quick corrective action; Keep faith in the product; Protected the public image at all costs; Aggressively brought back the brand
65
Most Important Factors
Strong management; Sound strategy; Ethical Practices; Competitive edge; Shareholder orientation; Consistent profitability
66
What is trust?
Degree to which behavior/experience/reputation give us confidence in a person/institution/organization; Reputation + Trust go together
67
How does behavior positively affect trust? (J&J)
Showed how to do it right; Reintroduced products w/ new products; Press gave company benefit of the doubt
68
How does behavior negatively affect trust? (Exxon)
Mishandled problem from beginning; Leadership did not take responsibility; Still paying back; Limited trust because of past behavior
69
Trust Builds Ethical Culture
Trust in an ethical company leader to employee engagement
70
How did real estate in the 1990s crash the economy?
The bank that gave you the mortgage kept it until you paid it off; Substantial downpayment, steady job, 25% of income, excellent credit rating
71
How did real estate from 2000-2008 crash the economy?
The bank that gave you the mortgage, sold it to Wall Street investors; 100% financing w/ 0% down payment, no job needed, didn't check if you had good credit score, job, or mortgage compared to salary
72
How else did real estate crash the economy?
Real estate values rose rapidly, home is appraised, you spend more money, real estate values plummet
73
Direct Causes of the Financial Causes
Regulatory Climate, Shadow Financial Market, Sub-Prime Mortgage, Incentives
74
Regulatory Climate
Glass-Steagall Act 1933 repealed in 1998 (separating commercial and investment banking); Debt regulations for banks eased; Markets self-regulating; revolving door between regulators and companies; Government is the problem
75
Shadow Financial Market
Credit Default Swaps; Securitized Mortgages (slice and dice); Derivatives; Hedge Funds
76
Sub-Prime Mortgages
Liar Loans; No $ down, no income verification; Consumers bought more than they could afford; Big hedge funds saw the problem w/ market and bet that these would fail
77
Incentives
Big rewards for short-term thinking among companies and individuals
78
Contributing Factors to Financial Crisis
Herd Mentality; Investment Banks; Rating Agencies; Lots of Cheap $; Innovation
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Herd Mentality
Wall Street; Consumers; Real Estate is safe
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Investment Banks
Go public; No skin in the game
81
Rating Agencies
Conflicts of interest; Rating financial products
82
Lots of Cheap $
Fed (low interest rates); Demand from China and Middle East
83
Innovation
Math whiz kids created complex products; No one really understood what these products were
84
Overview of how the Economy crashed
Rotten mortgages sold to investment banks --> Investment banks package them in securities --> Credit agencies say "they are AAA-- perfectly safe" --> Banks sell rotten mortgage packages to investors --> AIG sells credit default swaps --> Hedge funds and bankers bet against what they have sold
85
Why is communication important to organizations and individuals
Share info; Influence others; Communicate our values; Inspire others and create a culture that promotes excellence; Create resonant workplaces and relationships
86
Characteristics of Resonance
Respect; Inclusion; Open and honest dialogue; Ability to effectively deal with conflict`
87
What do leaders use to shape emotional intelligence?
What they communicate; How they share information and build relationships
88
How is human communication complex?
Words (spoken and written); Nonverbal (facial expressions, posture, gestures); Content (our thoughts and emotions)
89
How does communication work?
Sender encodes message and decides how to send it --> Channel (face to face, email, letter, phone) --> Receiver gets message, decodes/decides how to interpret
90
Feedback
Receiver lets sender know that the message has been received, or that more communication is desired
91
Feedback Loop
Sender and receiver share information back and forth until both feel that the message has been fully and accurately conveyed and interpreted
92
Identify Your Stories
Most important skill for a job; Think about your background and what the culture/job description is
93
STAR Method
Situation, Task, Action, Results
94
Why does communication matter to organizations?
Establishes culture, values, goals, strategic direction
95
Identifying Audience
Critical to communicate to stakeholders, employees, shareholders, customers, public, government
96
Downwards Communication
Flows down from the top of the organization
97
Upward Communication
Flows up from the bottom of the organization
98
Horizontal Communication
Flows between individuals at the same or similar levels in the organization
99
Formal v. Informal v. Filtering
Formal-- planned communication such as newsletters, town-hall meetings; Informal-- spontaneous communications in the hallways, offices, cafeterias; Filtering-- deliberate miscommunication
100
Typical Communication Tools
Face-to-Face (individual, groups, town-halls, cascades); Technology (email, Skype, linked, etc.); Print Communication (articles, posters, letters, printed flyers); Videos or loops on TVs
101
Channel Richness Order (Most to Least)
Face to Face, Phone, Email, Letter, Bulletin Board
102
Most Rich
Most clues (body language, tone); Two way (feedback); Personal (one on one); Highly effective
103
Least Rich
Least personal; Few clues; Little or no feedback; Highly efficient
104
Effective v. Efficient Communication
Effective-- receiver understands the message and knows what to do; Efficient-- communicating using the fewest resources (time, money, space)
105
How Important is Communication?
Survey conducted of CEOs by Mercer HR Consulting in 2000; Said changes worked best when people communicated well
106
9/11
Rick Rescorla (head of security at Morgan Stanley); Planned for disaster, specifically an attack by plane on WTC; He was the only Morgan Stanley employee to die in attacks
107
Crisis Management
Crises are common (scandals, natural disasters, 9/11, downsizings)
108
Management Competencies
Stay calm, Be visible, Put people before business, Tell the truth, Know when to get back to business
109
Crisis Planning
Prevention (build relationships, detect signals from environment); Preparation (crisis management team, spokesperson, plan, communication system); Containment (rapid response, get truth out, meet safety/emotional needs, return to business)
110
Three Categories of Crisis
Customer Service Issues; Failures of Competence; Events that are not connected to core competence
111
Customer Service Issues
Dell's inability to fulfill some orders; Apple's insult to new iPhone customers
112
Failure of Competence
Mattel and lead paint; Jet Blue and the delayed/cancelled flights
113
Events that are not connected to core competence
Martha Stewart and the stock trading scandal; McDonal'd losing two CEOs in less than 6 months (death)
114
Elements of a Response
Believable Apology (truth and admit mistakes); Must be delivered by CEO; Solution outlines; Remuneration should be in place; Consider how it will play globally
115
What will happen if the company has a good reputation?
Given benefit of doubt; Ex: General Re (Berkshire Hathaway/Warren Buffet CEO) survived reinsurance crisis; J&J survived Tylenol; Toyota survived sudden acceleration problem
116
What will happen if the company has repetitional issues?
Serves as a reminder that something is wrong with the company (BP)
