Exam 3 Flashcards
5 Super trends shaping the future of business
1) the marketplace is more segmented and moving towards more niche products (demassification)
2) more competitors are offering targeted products, which require faster speed to market
3) some companies are unable to survive disruptive innovation
4) offshore suppliers such as china India Mexico and The Philippines are changing the way we work
5) knowledge, not information, is becoming the new competitive advantage
Disruptive innovation
- a process by which a product or service takes root initially in simple applications at the bottom of the market and then relentlessly moves up market, eventually displacing established competitors
Two types of change
1) reactive change
2) proactive change
Reactive change
- making changes in response to unanticipated problems or opportunities as they arise
- when managers talk about “putting out fires”
Proactive change
- planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities
4 Forces originating outside the organization
- external forces that cue need for change
1) demographic characteristics
2) technological advances
3) shareholder, customer and market changes
4) social and political pressures
Technology
- is not just computer technology
- it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished products
Demographic characteristics
- age
- education
- skill level
- gender
- immigration
Technological advancements
- manufacturing automation
- information technology
Shareholder, customer and market changes
- changing customer preferences
- domestic and international competition
- mergers and acquisitions
Social and political pressures
- war
- values
- leadership
Forces originating inside the organization
- internal forces affecting organizations
Two types:
1) human resources concerns
2) managers behavior
Human resources concerns
- job dissatisfaction
- expressed through high absenteeism and turnover
- unmet needs
- productivity
- participation and suggestions
organizations can respond by:
- addressing job design
- reducing employees role conflicts
- dealing with work overload
Managers behavior
- excessive conflict between managers and employees
- leadership
- reward systems
- structural reorganization
Invention
- creating or making up something new
Creativity
- the act of developing new and imaginative ideas into reality
Innovation
- the activity of creating new ideas and converting them into useful applications specifically new goods and services
- more likely to occur when organizations have the proper culture, resources and reward systems to support it
Demassification
- customer groups becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercials
Two myths about Innovation
1) Innovation happens in a Eureka moment
- product of hard work and dedication
2) innovation can be systematized
The 6 seeds of innovation
- the starting point for organizational innovation
1) hard work in a specific direction
- diligently working to solve a problem
2) hard work with direction change
- change approach to problem solving
3) curiosity
- curious about something or interest them
4) wealth and money
- organization wants to make money
5) necessity
- achieve a task to accomplish a broader goal
6) combination of seeds
- result of multiple factors/seeds
Types of Innovation
1) Product innovations
OR
2) process innovations
3) core innovations
OR
4) transformational innovations
Product innovation
- a change in the appearance or the performance of a product or service or the creation of a new one
Process innovation
- a change in the way a product or service is conceived, manufactured or disseminated
Core Innovations
- the optimizing of products or services for existing customers
Transformational innovations
- the invention of breakthrough products or services that don’t exist yet and that are aimed at creating brand new markets and customers
- produce faster growth and higher valuations than core innovations
Four ways to encourage innovation to occur
1) the right organizational culture
- so risk taking it is viewed as a benefit instead of a Boondoggle
2) the right people, or human capital
- economic or productive potential of a company’s employees knowledge, experience and actions
3) the appropriate resources aka money
- managers need to sacrifice the money for it
4) the correct reward system
- and people should not be punished when innovation doesn’t work only when people are acting halfheartedly and blatantly sloppy should they be
4 ways to foster innovation
- how to make it happen
1) recognizing problems or opportunities and devising a solution -> “find a better way”
2) gain allies by communicating your vision
3) overcome employee resistance and empower and reward them to achieve progress
4) execute well by effectively managing people, groups and organizational processes and systems in the pursuit of innovation
- execution: the process of discussing how’s and what’s, of using questioning analysis and follow through to achieve results and ensure accountability
Resistance to change
- an emotional/behavioral response to real or imagined threats to an established work routine
Resistance can be considered to be the interaction of these causes
1) employee characteristics
- adaptability is key
2) the change agent characteristics
- the individual who is the catalyst in helping the organization change occur
3) the change agent-employee relationship
- want trusting relationship, faith in eachothers intentions
Ten reasons employees resist change
1) individuals predisposition towards change
2) surprise and fear of the unknown
3) climate of mistrust
4) fear of failure
5) loss of status or job security
6) peer pressure
7) disruption of cultural traditions or group relationships
8) personality conflicts
9) lack of tact or poor timing
10) no reinforcing reward systems
Personality
- consists of the stable psychological traits and behavioral attributes that give a person his or her identity
The big five personality dimensions
1) extroversion
2) agreeableness
3) conscientiousness
4) emotional stability
5) openness to experience
Extroversion
- how outgoing, talkative, sociable and assertive a person is
- outgoing personality
- associated with success for managers and sales people
Agreeableness
- how trusting, good natured, cooperative, and soft hearted one is
Conscientiousness
- how dependable, responsible, achievement orientated, and persistent one is
- strong work ethic
- success in job performance and training performance
Emotional stability
- how relaxed, secure and unworried one is
Openness to experience
- how intellectual, imaginative, curious, and broad minded one is
Proactive personality
- someone who is more apt to take initiative and preservers influence the environment
- may associate with a conscientiousness
Core self evaluation
- represents a broad personality trait comprising four positive individual traits
1) self efficacy
2) self esteem
3) locus of control
4) emotional stability
Self efficacy
- the belief in ones personal ability to do a task
- low self efficacy is associated with learned helplessness, or the debilitating lack of faith in ones ability to control ones environment
Self esteem
- the extent to which people lie or dislike themselves, their overall self evaluation
Locus of control
- indicates how much people believe they control their fate through their own efforts
1) internal locus of control
- you believe you control your own destiny
2) external locus of control
- you believe external forces control you
Emotional stability
- the extent to which people feel secure and unworried and how likely they are to experience negative emotions under pressure
Among the implications for managers
1) assign jobs accordingly
2) develop self efficacy
Emotional intelligence
- the ability to monitor your and others feelings and to use this information to guide your thinking and actions
Developing a higher emotional intelligence is important because
1) better social relations for children and adults
2) better family and intimate relationships
3) being perceived more positively by others
4) better academic achievement
5) better psychological well being
Daniel Golemans emotional intelligence key 4 components
1) self awareness
- read your own emotions and gauge your moods accurately
2) self management
- control your emotions and act with honesty and integrity in reliable and adaptable ways
3) social awareness
- empathy show others you care and organizational intuition
4) relationship management
- communicate clearly and convincingly, disarm conflicts, build strong personal bonds
Perception
- the process of interpreting and understanding ones environment
The four steps in the perceptual process
1) selective attention
- did I notice something
2) interpretation and evaluation
- what was it I noticed and what does it mean
3) storing in memory
- remember it as an event, concept, person or all three
4) retrieving from memory to make judgements and decisions
- what do I recall about that
Four distortions in perception
1) stereotyping
2) the halo effect
3) the recency effect
4) casual attribution
Stereotyping
- the tendency to attribute to an individual the characteristics one believes are typical of the group they belong to
3 types:
1) sex role stereotypes
- differing traits and abilities make men and women well suited for different roles
2) age stereotypes
- older workers as less involved, motivated, committed, satisfied than young workers
- higher absenteeism (doesn’t show up for work)
3) race/ethnicity stereotypes
The halo effect
- we form an impression of an individual based on a single trait
Recency effect
- the tendency to remember recent information better than earlier information