Mid-term Flashcards
(127 cards)
1
Q
What is an organisation?
A
common purpose, deliberate structure, people
2
Q
Why do we need organisation?
A
provide a way for people to achieve goals within, political, economic and social systems
3
Q
Mangers Responsibility Views
A
Omnipotent -
when profits are up = managers take credit and reward themselves
when profits are down = top management staff replaced, smaller businesses go out of business
Symbolic -
forces outside of managers control maybe be influenced by:
- economy
- market (customer) changes
- government policies
- competitor’s actions
- decisions made by previous managers
4
Q
What is Management?
A
Management is a goal orientated process that involves the allocation of resources and the co-ordination of the talents and efforts of a group of people
Develop, align, integrate purpose, people and process
- management is about success
- management is a process of achieving organisational goals through : Four functions of managerial process
5
Q
Four Functions of the Managerial Process
A
Planning - setting goals and determining how to accomplish them
Organising - implementation phase: assigning tasks and allocating resources and co-ordinating
Leading - influencing others to do their best work for the organisation
Controlling - measuring performance against desired result
6
Q
What do managers actually do?
A
- work long hours
- work at an intense pace
- work is fragmented and varied
- work with many communication media
- work largely through interpersonal relationships
7
Q
Levels of Managers
A
Top managers
Middle managers
Project managers
Team leaders or supervisors
8
Q
Managerial Roles
A
Interpersonal roles
Informational roles
Decisional Roles
9
Q
Managers Need Skills
A
Technical
Human
Conceptual
10
Q
Effectiveness vs Efficiency
A
effectiveness = “doing the right thing”
- measure of task or goal accomplishment
efficiency = “doing things right”
- measure of resource cost associated with goal accomplishment
11
Q
History Important?
A
ideas and practices developed many years ago have an influence in shaping our beliefs and practices today
- understanding the past, can develop for today
12
Q
Preclassical contributors
A
Robert Owen (1771-1858)
cotton mill owner that pioneered ideas about better treatments of workers
He proposed:
- limiting employment in factories to workers over 10
- reducing the workday to 10 an half hours
-prohibiting night for children
Henry R. Towne (1844-1924)
- establishment of science of management principles
13
Q
Approaches to Management
A
Classical Approach: - scientific management - administrative management - bureaucratic management Quantitative Approach Modern Approach: - systems theory -contingency theory
14
Q
Classical Approach: Scientific Management
A
Frederick Taylor (1856-1915) (the father of scientific management) - addressed the question of how to increase productivity given a shortage of labour
15
Q
Four Principles of Scientific Management
A
- Study task and work out best method
- Select workers with right abilities
- Carefully train workers and give the proper incentives
- Support workers through careful planning
16
Q
Classical Approach: Administrative Management
A
Focuses on the principles that can be used by managers to co-ordinate the internal activities of the organisation
- Henry Fayol (1841-1925) defined the four managerial functions
- Mary Parker Follet = employee ownership, profit sharing
17
Q
Classical Approach: Bureaucratic Management
A
Emphasis the need for organisations to operate in a rational manner rather than relying in the arbitrary whims of owners and managers
- Max Weber (1864-1920) coined the term ‘Bureaucracy’ to apply to the idea of large organisations operating on a rational basis
18
Q
Major Characteristics of Weber’s idea bureacracy
A
- clear division of labour
- well-defined hierarchy
- formal rules and procedures
- impersonality
- career advancement based on merit
19
Q
The Hawthorne Effect
A
The possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from researchers, rather than because of any specific factors being tested
20
Q
Human Relations Approach
A
- The key to productivity, at that point, appeared to be demonstrating greater concern for workers
- Emphasis on building more collaborative and co-operative relationships between supervisors and workers
- allowed for self-actualisation
21
Q
Example of theory
A
Douglas McGregor developed the ‘Theory X/Theory Y’ dichotomy
-Theory X managers tend to assume workers are:
lazy need to be coerced, little ambition
-Theory Y managers tend to assume workers are:
like work, capable of self-control, creative and innovative
22
Q
Behavioural Science
A
- job satisfaction
- motivation
- interpersonal behaviour
- group dynamics
- communication
- leadership
23
Q
Quantitative Approach
A
- this was a movement back to rational, scientific approach and was adopted because of the need to solve complex problems in business
- this approach focuses on the use of mathematics, statistics and information systems to assist and support managerial decisions making and enhancing organisations effectiveness
24
Q
Modern Approach
A
This viewpoint grew from recognising that no one model or universally theory fits all organisations
- people and situations are complex and variable and can change over time
- variances must be taken into account
25
Modern Approach: systems theory
1. Inputs
2. Transformations
3. Outputs
4. Feedback from environment
26
Modern Approach: Contingency theory
appropriate managerial action depends on the situation
27
What is operations management?
Is the set of activities that creates value in the form of goods and services by transforming the inputs into the outputs
- in manufacturing
- in services
productivity = outputs/inputs
- competitive advantage: allows an organisation to deal with market and environmental forces better than competitors
28
Product and Service Design
The product design affects:
- the appeal to the customers
- its costs and usability
Today customers often think how a product looks is just as important as how it works
29
Product Strategy Options
Differentiate
Low price
Rapid Response
30
Product Development Decisions
An effective product strategy links product decisions with:
- producibility
- cost
- quality
- reliability
31
Location Strategy
Location ultimately has the power to make (or break) a company's business strategy
32
Service Location Strategy
Manufacturing sector location ( minimising cost), service sector location (maximising revenue)
33
Types of Layouts
```
An effective layout facilitates the flow of materials, people and information within and between areas
Approaches include:
- process-orientated layout
-product-orientated layout
-fixed-position layout
-office layout
-retail layout
-warehouse layout
```
34
Process-Oriented Layout
Can simultaneously handle a wide variety of products or services
- Best for low-volume, high variety production
- operations managers must organise resources (employees & equipment) around the process (NOT the products)
- small-batched production
35
Product-Oriented Layout
seeks the best personal and machine utilisation in repetitive or continuous production
makes assumptions such as:
- high volume
- product demand in high (continuous)
- standardised enough
36
Fixed- Position Layout
Project remains in the same place and works and equipment come to that one work area
Complicated by three factors:
- limited space at virtually all sites
- different materials need at different stages
- volume of materials needed is dynamic
37
Office Layout
-Main difference between office and factory layout is the importance places on information
-Some layout considerations are universal:
working conditions, teamwork, authority and status
38
Retail Layout
Based on the idea that sales and profitability vary directly with customer exposure to products
-Oms can alter both:
the overall arrangement of the store
the allocation of space to various products within an arrangement
-main objective is to maximise profitability per square metre of floor space
39
Warehouse and Storage Layouts
- Find optimum trade-off between handling cost and costs associated with warehouse space
- an important component is the relationship between receiving/unloading areas and shipping/loading areas
40
What is a Process?
- A process is any activity or group of activities that takes one or more inputs, transformation and adds value to them
- And provides one or more outputs for its customers
41
Designing Process
Questions to ask when analysing and designing processes:
- is the process designed to achieve competitive advantage in terms of differentiation, response, or low cost?
- does the process eliminate steps that do not add value?
- does the process maximise customer value as perceived by the customer?
42
Cradle to Cradle
The ultimate goal of this approach is to eliminate waste and design everything from the very beginning from constant reuse by choosing wholly restorative materials
43
Value Chain
Shows elements/ sequence of activities of an organisation
44
Value Creation
is important as it means that then end result of a task or activity or work process is worth more than the effort and resources invested to accomplish it
- this should be a targeted effectiveness measure
45
Supply Chain Management
Most firms spend the largest proportion of sales dollars on purchases
- hence relationships with suppliers are increasingly integrated and long term
Joint effort that improves innovation, speed design and reduce costs are common
46
Supply Chain Economics
- The value chain provides a major opportunity to reduce costs
- For both goods and services, supply chain costs as a percentage of sales are often substantial
47
Logistics Management
- The efficient integration of material acquisition, movement and storage activities
- Potential competitive advantage can be gained from reduced costs and improved customer service
- Distributions systems include: trucking, railroad, airfreight, waterways and pipelines
48
Supply Chain Strategies
For goods and services to be obtained from outside sources the firm must decide on a supply chain strategy:
- negotiate with many suppliers
- long term 'partnering'
- vertical integration
- keiretsu
49
Many Suppliers
Suppliers respond to the demands and specifications of a 'request for quotation' with order usually going to the lowest bidder
50
Few Suppliers
Implies that buyer is better off forming a long term relationship with a few dedicated suppliers
51
Vertical Integration
Developing the ability to produce goods or services previously purchased or actually buying a supplier or distributor
- can forward or backward integrate
- can yield cost reduction, quality adherence and timely delivery
52
Keiretsu Networks
Middle ground between purchasing from few suppliers and vertical integration
53
Inventory (often called stock)
```
Inventory: is an amount of materials or products kept in storage
Firms maintain four types of inventory:
1. Raw materials
2. Work-in-progress
3. Maintenance/repair/operating
4. Finished goods
```
54
How much inventory is enough?
Pressures to reduce the inventory held by an organisation:
- interest or opportunity cost
- storage and handling cost
Pressures to increase the inventory held by an organisation:
- customer service
- administration cost
55
Economic Order Quantity
Inventory control by economic order quantity orders replacements whenever inventory level falls to a predetermined point
= right size to meet performance needs, thus minimising costs
56
Culture
Languages, attitudes, beliefs and customs of societies
57
Organisational Culture
Is the system of shared beliefs and values that develops within an organisation and guides the behaviour of its memebers
58
Levels of Organisational Culture
1. Observable culture
- what one sees and hears when walking around an organisation
2. Core culture
- core values that influence behaviour and give rise to observable culture
59
Criteria for values
1. Relevance
- core values should support key performance objectives
2. Pervasiveness
- core values should be known by all members of the organisation/group
3. Strength
- core values should be accepted by everyone involved
60
Strong Cultures
- clear and explicit set of principles, values and norms
- commit members to do things that are in the best interests of the organisation and reinforce these habits
- leadership is vital for developing and maintaining culture
61
Norms
standards of conduct and guide people's behaviour
62
Leadership and Organisational Culture
- Leaders should establish and maintain appropriate core values
- employees note what leaders pay attention to, monitor, reward and reinforce
- symbolic leaders use symbols to establish and maintain desired culture e.g telling stories
63
Stories
Oral histories and tales, told and retold among members, about dramatic sagas and incidents in the life of the organisations
64
Heroes
The people singled out for special attention and whose accomplishments are recognized with praise and admiration among members; they include founders and role models
65
Symbols
The special use of the language and other non-verbal expressions to communicate important themes of organisational life
66
Rites and Rituals
The ceremonies and meetings - planned and spontaneous -that celebrate important occasions and performance accomplishments
67
Four ways for leaders to influence and maintain culture
Stories
Heroes
Symbols
Rites and Rituals
68
Entrepreneurship
- Is the ability to create value and build vision from practically nothing: fundamentally it is a human, creative act
- is the knack for sensing an opportunity where others may see chaos, contradiction, and confusion
- is possessing the know-how to find, marshal and control resources (often owned by others)
69
Entrepreneurship Theory
Trait Paradigm
Context Paradigm
Process Paradigm
70
The Trait Paradigm (certain characteristics)
1. Risk-taking
2. Need for high achievement
3. A desire for independence
4. Internal locus of control
5. Networker
6. High level of integrity
71
The Entrepreneurial Process
- much of the current emphasis of researchers studying entrepreneurs is on behavioural issues rather than personality characteristics
- they suggest that understanding the entrepreneurial process would define the entrepreneur far more effectively than would an understanding of the individual
72
Bygraves Process Model
Innovation
Tigger Event(s)
Implementation
Growth
73
The unique nature of maori entrepreneurs
reports suggest that measuring entrepreneurship should emphasise the impact of:
- communalism rather than individuality
- reciprocity (giving in return for receiving)
- social gain rather than financial profit
74
What is a team?
A small group of people with complementary skills, who work together to achieve a shared purpose and hold themselves mutually accountable for its accomplishment.
- 2 or more people
- regular interaction
- shared goal
75
Teamwork
the process of people actively working together to accomplish common goals
76
Open systems model of team effectiveness
```
Inputs:
- nature of task
- organisational setting
- team size
- membership characteristics
Throughputs (group process):
- synergy
- cohesiveness
- social loafing
Outputs (team effectiveness):
-accomplishment of desired outcomes
```
77
Team size
- Small teams (2-4) tend to show more agreement, ask more questions and exchange more opinions
- Large teams (12+) tend to have more disagreements and differences in opinion
- Teams with 5-12 members tend to work best
78
Synergy
- The creation of a whole that is greater than the sum of its parts
- A team uses its membership resources to the fullest and thereby achieves through collective action far more than could be achieved otherwise
79
Cohesiveness
- the degree to which members are attracted to a team and motivated to remain part of a team
- members of highly cohesive teams are often committed to team activities, attend meetings and are happy when the team succeeds
- beneficial when paired with positive performance norms
80
How to increase team cohesion?
```
- induce agreement on team goals
Increase membership homogeneity:
- increase interaction among members
- decrease team size
- introduce competition with other teams
- reward team rather than individual results
```
81
Team diversity
- different values, personalities, experiences = can create challenges
- but with complexity come greater variety of ideas, perspectives and experiences that add value to problem-solving and task performance
- solving initial process challenges can take a bit of time
82
What can go wrong in teams?
Common problems:
- Personality conflicts
- Differences in work style
- Task ambiguity
83
Social Loafing
" a reduction in individual effort when working on a collective task compared to when working either alone or coactively"
- a group size increases, new members have decreasingly significant impact
- free- rider effect
84
Team effectiveness may be summarised by
= quality of inputs + (process gains - process losses)
85
Managers' roles in teams
- supervisor: serving as the appointed head of a work unit
- network facilitator: serving as a peer leader
- helpful participant: serving as a helpful contributing member of the team
- external coach: serving a mentor or sponsor for the team members
86
What are the foundations of strategic competitiveness?
- Competitive advantage: means operating in a successful way that is difficult for competitors to imitate
- Sustainable competitive advantage: is consistently dealing with market and environmental forces better than competitors
87
Sustainability results from activities that
- extend an organisation's productive life
- maintain decent society's ability to solve problems
- enhance the planet's ability to protect all living species
88
Basic concepts of strategy
Strategy: a comprehensive action plan
- providing long term direction and guiding resource utilisation to accomplish organisational goals, with sustainable competitive advantage
- 'a pattern in a stream of decisions' (mintzberg)
Strategic intent: focusing all organisational energies on a unifying and compelling goal
89
Strategy formulation
The process of creating strategy:
- involves assessing: existing strategies, the organisation and its environment
- then developing new strategies and strategic plans capable of delivering future competitive advantage
90
International Business and Globalisation
- Global economy: resources, markets and competition are worldwide in scope
- Globalisation: the worldwide interdependence of resource flows, product markets and business competition
- International management: managing operations in more than one country
- Global manager: is culturally aware and well informed on international affairs
91
World Trade Organisation
- consists of over 162 member nations who jointly account for 97% of all world trade and aims to increase international trade among members.
- acts as a means of developing and enforcing rules and policies on trade
- it's goal is to reduce protectionism i.e tariff and quota policy and restrictive trading practices
92
G8
- the group of eight was the name of a forum for the governments of a group of eight leading industrialised countries
- has now become the focus of many protestors
93
Trading Cooperation
Asia-Pacific Economic Cooperation
European Union (EU)
North American Free Trade Agreement
Southern Africa Development Community
94
Multinational Corporations
MNCs: are business firms with extensive international operations in more than one foreign country
e.g toyota, wal-mart
MNOs: multinational organisations in general have non-profit mission
e.g. red cross, world vision
95
Ethical Issues for Multinational Corporations (MNCS)
- Corruption: engaging in illegal and unethical practices
- Sweatshops: employing workers at low wages, long hours and poor working conditions
- Sustainability: development with compromising future generation
- Child labour: full time employment of children for work otherwise done by adults
96
Culture and global diversity
- Cultural shock: confusion and discomfort a person experiences when in an unfamiliar culture
- Ethnocentrism: the tendency to view your own culture as superior to others
- Dimensions of culture include:
language
interpersonal space e.g. value of personal space
time orientation e.g. polite or impolite to be punctual
religion
97
Multicultural Organisations
Refers to organisations who have respect for diversity in the workplace
- inclusivity is the degree to which an organisation is open to anyone who can perform the job
- multicultural characteristics:
pluralism
structural integration
informal network integration
absence of prejudice and discrimination
98
Types of Managers
```
Line managers
Staff managers
Functional managers
General managers
Administrators
```
99
Ethnocentrism
is the tendency to consider one's culture superior to others
100
The general environment
comprises economic, sociocultural, political-legal, technological and nature environment conditions
101
Major elements of organisations general environment
```
economic conditions
sociocultural conditions
political-legal conditions
technological conditions
natural environment conditions
```
102
The specific environment
```
includes the people and groups with whom an organisation interacts
often described in terms of stakeholders
important stakeholders:
-customers
-suppliers
-competitors
-regulators
```
103
stakeholder
the individuals, groups and institutions who are affected in one way or another by the organisation's performance
104
Maslow's five levels of human needs (highest to lowest)
- self actualisation
- esteem
- social
- safety
- physiological
105
Maslow's theory based on two underlying principles
deficit principle - a satisfied need is not a motivator of behaviour. people act to satisfy 'deprived' needs, those which a satisfaction 'deficit' exists
progression principle - the five needs exist in a hierarchy of' 'prepotency'. a need at any level only becomes activated once the next lower level has been satisfied
106
Two major responsibilities of strategic management process
strategy formulation
| strategy implementation
107
Strategic management process
1. analysis of mission, values and objectives
2. analysis of organisational resources and capabilities (SWOT)
3. analysis of industry and environment (SWOT)
4. How are strategies formulated?
(Porter's generic strategies model)
(Product of life cycle)
5. strategy implementation
108
Analysis of mission
- the reason for an organisations existence
- good missions statements identify
1. customers
2. products and/or services
3. location
4. underlying philosophy
- an important test of the mission is how well it serves the organisations stakeholders
109
Objectives
- a mission statement sets the purpose, the core values and describes the appropriate standards of behaviour for its accomplishment
whilst
- operating objectives direct activities towards key and specific performance results
110
Analysis of organisational resources and capabilites
-assessing organisational strengths and weaknesses within a SWOT analysis
-identifying core competencies
technology
human resources
manufacturing approaches
management talent
financial strength
111
Analysis of industry and environment
-assessing opportunities and threats within SWOT analysis
- assessment of actual and future environment conditions:
macroenvironment
industry environment
112
Porter's generic strategies
generic strategies for gaining competitive advantage:
- differentiation = distinguishing products from others
- cost leadership strategy = minimising cost
- focused differentiation strategy = special market, unique product
- focused cost leadership strategy = special market, lowest cost
113
Product life cycle
- a series of stages that a product or service goes through during the life of its marketability
-stages of life cycle:
introduction
growth
maturity
decline
114
Strategy implementation
- no strategy no matter how well formulated, can achieve longer term success if it is not properly implemented
emphasis on:
- excellence in management systems and practices
- responsible corporate governance
- strategic leadership
115
Noise
is anything that interferes with communication effectiveness (barrier)
- semantic problems
- absence of feedback
- improper channels
- physical distractions
- status effects
- cultural differences
116
Channel richness
```
is the capacity of a communication channel to effectively carry information
- low richness
impersonal
one way
fast
e.g. postings, letters
- high richness
personal
two way
slow
e.g. face to face
```
117
perception
is the process through which people receive, organise and interpret information from the environment
118
perceptual distortions
- stereotypes
- halo effects
- selective perception
- projection
119
communication can be improved by..
- active listening
- feedback
- effective and efficient communication
120
Effective and efficient communication
effective:
- intended meaning of the sender is identical to the interpreted meaning of the receiver
efficient:
- occurs at a minimum resource cost
121
active listening
- the process of taking action to help the source of a message say what he or she really means
-rules for active listening:
listen to message content
listen to feelings
repsond to feelings
not all cues, verbal and non-verbal
paraphrase and restate
122
feeedback
- the process of telling someone else how you feel about something that person did or said
-proxemics and space design
= interpersonal space is an important non-verbal cue
123
Conflict
a disagreement between people on:
- substantive issues regarding e.g. goals
- emotional issues arising from feelings e.g. distrust and personal clashes
conflict that is well managed can help promote high performance, creativity and innovation
124
Functional conflict
- moderately intense conflict
| - constructive; stimulates people towards greater work efforts, cooperation and creativity
125
Dysfunctional conflict
- low-intensity and very high-intensity conflict
| - destructive; hurts task performance
126
what can complicate communication process
- noise
| - perceptual distortions
127
Conflict management styles
- accommodation or smoothing
- avoidance
- collaboration or problem solving
- competition or authoritative command
- compromise
