Mgc1 Study Guide

Strategic direction (Chapters 4 & 9) 1. light upon elements of the external environment and interior(a) resourcefulnesss of the stanch to analyze before formulating a strategy. a. External Environment attention and market analysis ( manufacture profile, growth, and puffs), Competitor analysis, Political and Regulatory analysis, Social analysis, Human Resources analysis, Macroeconomics analysis, and Technological analysis. Also foretell future trends b.Internal Resources Financial analysis, marketing audit, operations analysis, separate internal resources analysis (such as go acrossk and bring forthment, focal point information strategys, engineering and purchasing. ), human resources assessment. 2. typeset lens nucleus repugnncies and explain how they provide the foundation for stemma strategy. a. Core Competencies A unique skill and/ or knowl mete an arrangement takees that gives it an edge over competitors. A core competence is some matter a partnership does es peci every last(predicate)y easily relative to its competitors. b.Think of core competencies as the roots of emulousness and intersection points as the fruits. c. It privy provide a sustain fitted prefer if it is valuable, r atomic takings 18, difficult to imitate, and intumesce organized. 3. re-start the types of choices available for corporate strategy. a. C oncentric i. foc wonts on a hit descent competing in a single childbed. b. Vertical Integration i. postulates expanding the domain of the plaque into supply channels or to distri just nowors. Vertical desegregation generally is used to eliminate uncertain-ties and reduce bells associated with providers or distributors. . Concentric Diversification i. involves moving into unused businesses that ar related to the unions original core business. ii. Often companies such as Marriott chase after a strategy of concentric diversification to take advantage of their strengths in one business to impinge on advantage in a nonher. Because the businesses argon related, the products, markets, technologies, or capabilities used in one business arsehole be transferred to a nonher. Success in a concentric diversification strategy looks adequate carry on-ment and other resources for operate more than one business. d.Conglomerate Diversification i. a corporate strategy that involves expansion into unrelated businesses. For example, General galvanic Corporation has diversified from its original base in electrical and home appliance products to such wide- ranging industries as health, finance, insurance, truck and air transportation, and even media, with its ownership of NBC. Typically, companies pursue a conglomerate diversification strategy to background risks due to market fluctuations in one manufacturing. 4. Discuss how companies can achieve emulous advantage by business strategy. . Two contrary business strategies generally ternary to gaining a competitive advantage moo Cost Strateg ies and Differentiation Strategies b. Low Cost Strategy Businesses using a low- bell strategy strain to be efficient and offer a standard, no- frills product. (i. e. Walmart and Southwest Airlines). To succeed, an organic practice of law using this strategy generally mustinessiness be the cost reach outer in its industry or market segment. However, even a cost leader must offer a product that is acceptable to guests comp ared with competitors products. c.Differentiation Strategy With a preeminence strategy, a company attempts to be unique in its industry or market segment along some dimensions that customers apprise. This unique or differentiated position within the industry often is based on high product tone, pass bylent marketing and distribution, or superior service. (i. e. Nordstroms dedication to prime(prenominal) and customer service). The most competitive strategy is one that competitors are un instinctive or unable to imitate. 5. take up the keys to potent s trategy writ of execution. a. Step 1 Define strategical designates.Articulate in simple language what a particular business must do to create or sustain a competitive advantage. Define strategic tasks to help employees at a lower placestand how they contribute to the organization, including redefining kindreds among the parts of the organization. b. Step 2 Assess organization capabilities. judge the organizations faculty to implement the strategic tasks. A task force typically interviews employees and passenger vehicles to pick out specific issues that help or hinder effective implementation. Then the endpoints are summarized for covering fire prudence.In the movement of your career, you forget likely be asked to participate in a task force. c. Step 3 prepare an implementation agenda. Management decides how it will change its own activities and procedures how critical interdependencies will be managed what skills and man-to-mans are requisite in key roles and what structures, measures, information, and rewards index ultimately support the needed behavior. A philosophy contention, communicated in equipment casualty of cheer, is the outcome of this hurl. d. Step 4 Create an implementation architectural plan. The top trouble team, the employee task force, and others develop the implementation plan.The top direction team then monitors progress. The employee task force continues its work by providing feedback active how others in the organization are acting to the changes. e. *Strategy must be supported by structure, technology, human resources, rewards, information sys-tems, culture, lead, and so on. Ultimately, the success of a plan depends on how well employees at low levels are able and willing to implement it. Participative guidance is one of the more popular move upes executives use to gain employees input and ensure their commitment to strategy implementation. . The 6 Barriers to Strategy Implementation (or Silent Killers) a. Top- down or laissez-faire senior watchfulness style With the top team and lower levels, the CEO/ general manager creates a partnership construct around the development of a compelling business direction, the creation of an enabling organizational scene, and the delegation of ascendance to clearly accountable individuals and teams. b. Unclear strategy and conflicting priorities The top team, as a sort, develops a statement of strategy, and priorities that fellow members are willing to stand behind are developed. c.An ineffective senior management team The top team, as a group, is involved in all steps in the change process so that its effectiveness is mental tested and developed. d. Poor vertical communication An honest, fact- based dialogue is established with lower levels about the new strategy and the barriers to implementing it. e. Poor coordination across serve wells, businesses, or borders A set of businesswide initiatives and new organizational roles and responsibilit ies are defined that require the reclaim citizenry to work together on the right things in the right counsel to implement the strategy. f.Inadequate down- the-line leadership skills and development Lower- level managers develop skills through and through newly created opportunities to lead change and drive key business initiatives. They are supported with just- in-time coaching, training, 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 process? Why should companies take up in strategic planning? a. Step 1 Establishment of mission, view, and goals b. Step 2 abbreviation of external opportunities and threats 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 pull strings 8. What are the components of a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis? a. SWOT analys is 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 complicate skilled management, positive cash flow, and well- known and super regarded brands. Weaknesses might be lack of spare ware capacity and the absence of reliable suppliers. . Opportunities and threats rescind in the macroenvironment and competitive environment. i. Examples of opportunities are a new technology that could make the supply chain more efficient and a market niche that is presently underserved. Threats might include the possibility that competitors will enter the underserved niche once it has been shown to be pull aheadable. 9. What is the battle in the midst of strategic vision, strategic intent, strategic objectives, and strategic mission? a. Strategic vision The long- term direction and strategic intent of a company. b. Strategic Intent Th e direction a company intends to go c.Strategic Objectives d. Strategic Mission The mission is a clear and concise expression of the elemental purpose of the organization. It describes what the organization does, who it does it for, its elemental good or service, and its take to bes. 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 special value created at all(prenominal) step. b. A value chain describes the way in which value is added to versatile areas of an organization. porters value chain model categorizes an organization into five primary and four support activities. indigenous activities include inbound logistics, operations, outbound logistics, gross sales and marketing, and service. Support activities are company infrastructure, technology development, human resource management, and procurement. c. According to Porters model, you can achieve competitive advanta ge 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 knuckle undering close attention to their organizations value chain not still each step in it, but the way each step interacts with the others. 2. recognise Porters Five Forces model. a. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival unwaverings can use this model to better understand the industry context in which the firm hunt downs. i. Force 1 Rivalry 1. DEGREE OF RIVALRY a. -Exit barriers b. -Industry submersion c. -Fixed be/Value added d. -Industry growth e. -Intermittent overcapacity f. -Product differences g. -Switching costs h. - mark off identity i. -Diversity of rivals j. -Corporate stakes ii.Force 2 Threats of New Entrants & Barriers to Ent ry It is not only incumbent rivals that pose a threat to firms in an industry the possibility that new firms whitethorn enter the industry to a fault affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits al ways should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. These are barriers to entry. 1. controlling cost advantages 2. Proprietary learning curve 3. Access to inputs 4.Government policy 5. Economies of scale 6. Capital requirements 7. mark identity 8. Switching costs 9. Access to distribution 10. Expected retaliation 11. Proprietary products iii. Force 3 Buyer Power The index number of buyers is the impact that customers look at on a producing industry. In general, when buyer power is potent, the relationship to the producing industry is near to what an econom ist terms a monopsony a market in which in that respect are many suppliers and one buyer. 1. Bargaining leverage 2. Buyer volume 3. Buyer information 4. Brand identity 5. Price sensitivity 6. Threat of backward integration 7. Product specialisation 8.Buyer concentration vs. industry 9. deputes available 10. Buyers incentives iv. Force 4 Threat of Substitutes The competition engendered by a Threat of Substitute comes from products outside the industry. The price of aluminum beverage cans is constrained by the price of glass bottles, steel cans, and elastic containers. These containers are modestys, yet they are not rivals in the aluminum can industry. 1. -Switching costs 2. -Buyer inclination to 3. substitute 4. -Price-performance 5. trade-off of substitutes v. Force 5 Supplier Power 1. Supplier concentration 2. Importance of volume to supplier 3. Differentiation of inputs . Impact of inputs on cost or differentiation 5. Switching costs of firms in the industry 6. Presence of s ubstitute inputs 7. Threat of forward integration 8. Cost relative to total purchases in industry 13. How does Porters Five Forces model influence strategic planning? 14. Discuss why it is critical for organizations to be antiphonary. a. reactivity is the quickness, agility, and force to set to changing demands. b. Businesses at present must be responsive because of the fast-changing business environment. 15. Describe the qualities of an complete organization structure. . The organic structure stands in stark contrast to the mechanistic organization. It is much less cockeyed and, in fact, emphasizes flexibility. The organic structure can be described as follows 1. supposeholders endure broader responsibilities that change as the need arises. 2. Communication occurs through advice and information rather than through orders and instructions. 3. Decision making and influence are more decentralised and informal. 4. Expertise is highly valued. 5. Jobholders rely more heavily on j udgment than on rules. 6. Obedience to authority is less principal(prenominal) than commitment to the organizations goals. 7.Employees depend more on one another and relate more informally and personally. b. People in organic organizations work more as teammates than as subordinates who take orders from the boss, thus breaking away from the traditional bureaucratic form. The more responsive a firm is, the more responsive it will be to changing competitive demands and market realities. 16. pick out strategies and dynamic organizational concepts that can rectify 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 dire ction 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, area groups, and other techniques are used to foster participation in decisivenesss that affect the entire organization. 17. Explain how a firm can be both big and clarified. a. Historically, large organizations have had important advantages over small organizations.Today, small size has advantages, including the ability to act chop-chop, respond to customer demands, and serve small niches. The ideal firm today combines the advantages of both. It creates many small, flexible units, while the corporate levels add value by taking advantage of its size and power. 18. Summarize how firms organize to learn customer requirements. a. By using Customer Relationship Management (A multifaceted process focusing on creating two- way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns. ) b.By continu ally changing in order to connect with customers, even without waiting for customers to make the first move. c. question and development focus on substructure and new products. Inbound logistics receive and store raw materials and spread 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 accompaniment has been bought. d. Utilizing Total Quality Management e.Firms have embraced principles of continuous improvement and total shade management to respond to customer needs. Baldrige criteria and ISO 9001 standards help firms organize to conform to better quality specifications. Extending these, reengineering efforts are directed at in all overhauling processes to provide world-class customer service. Total Quality Management (Chap ters 5 & 9) 1. Define total quality management. a. An integrative approach to management that supports the attainment of customer satisf consummation through a wide descriptor of workcocks and techniques that result in high- quality goods and go. 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 process the delicate interaction of materials, machines, and muckle that deter-mines productivity, quality, and competitive advantage 1. Create constancy of purpose strive for long- term improvement rather than short- term profit. 2. shoot the new philosophy dont tolerate delays and mistakes. 3. Cease dependence on mass review build quality into the process on the front 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 r etraining continually update methods and opinion. 7. Institute leadership provide the resources needed for effectiveness. 8. Drive out fear people must believe it is safe to score problems or ask for help. 9. Break down barriers among departments promote teamwork. 10. excrete slogans, exhortations, and arbitrary targets supply methods, not buzzwords. 11. Eliminate numerical quotas they are contrary to the idea of continuous improvement. 12. Remove barriers to pride in workmanship free autonomy and spontaneity. 3. Institute a vigorous weapons platform of education and retraining people are assets, not commodities. 14. Take action to accomplish the transformation provide a structure that enables quality. 3. Discuss cardinal Sigma. a. whiz of the most important 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 anythi ng that results in customer dissatisfaction for example, late delivery, injure 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 lowest 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. Reaching that goal almost always requires managers to restructure their internal processes and relationships with suppliers and customers in positive ways. 4. Identify ways that firms organize around different types of technology. . Small batch Technologies that produce goods and services in low volume. b. man-sized 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 reenginee ring important to an organizations success? a. The principal idea of reengineering is to overturn 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 revolutionary ways, to achieve the sterling(prenominal) 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 aright implemented, this style of management can lead to decreased costs related to corrective or preventative 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 esteem 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 people establishing an environment in which employees understand their contribution, engage in problem solving, and acquire and office knowledge. 4.Process approach defining the tasks needed to successfully carry ou t each process and assign responsibility for them. 5. System approach to management putting processes together into efficient systems that work together effectively. 6. ceaseless improvement teaching people how to identify areas for improvement and rewarding them for making improvements. 7. Factual approach to last making gathering accurate performance data, sharing the data with employees, and using the data to make decisions. 8. mutually beneficial supplier relationships functional in a cooperative way with suppliers. . What is the difference between quality assurance and quality control? a. Quality control is the set of activities performed to ensure that the products or services meet the requirements as defined during the earlier process for assurance of quality. These activities are done during the manufacturing process and once the product is manufactured. b. Quality guarantee or assurance is the set of procedures developed and activities done before the product or s ervice 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 opportunity. Franchising offers an interesting opportunity, and the effectiveness of the Internet is being tapped (after entrepreneurs learned some tough lessons from the dot- bomb era). Trial and error and preparation wager important roles.Assessing the business concept on the basis of how innovative and risky it is, combined with your personal interests and tendencies, will also help you make good choices. Ideas should be carefully assessed via opportunity analysis and a utter(a) business plan. 2. Identify common causes of success and failure. a. New reckons are inherently risky. The economic environme nt plays an important role in the success or failure of the business, and the entrepreneur should anticipate and be prepared to reconcile in the face of changing economic conditions.How you handle a variety of common management challenges also 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 often can be traced to some common challenges that entrepreneurs face and must manage well. You might not enjoy the entrepreneurial process. Survival including getting started and fending off competitors is difficult.Growth creates new challenges, including reluctance to arrogate work to others. Funds are put to improper use, and financial controls may be inadequate. Many entrepreneurs fail to plan well for succession. When needing or wanting new funds, initial public offerings p rovide 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 sodding(a)ly 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 (including 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 network of others including customers, talented people, partners, and boards. 5. How does an organization cultivate entrepreneurship within the organization (intrapreneurship)? a. Intrapreneurs work within established companies to develop new goods or services that allow the corporation to take in the benefits of innovation. To facilitate intrapraneurship, organizations use skunkworks special project teams instaurationated to develop a new product and allow bootleg informal efforts beyond formal job assignments in which employees pursue their own pet projects.Organizations should select projects carefully, have an ongoing portfolio of projects, and fund them appropriately. Ultimately, a true entrepreneurial orientation in a company comes from back up 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 spirit 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 essential component of leadership that youll learn more about in Chapter 12 has a direct impact on venture growth. 7 3. Opportunity obsession They have an intimate knowledge of customers needs, are market driven, and are obsessed with value creation and enhancement. 4. Tolerance of risk, ambiguity, and suspense 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 have 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 conflict. a. Managing lateral relationships well can prevent some conflict.But conflict arises because of the sheer number of contacts, ambiguities, goal differences, competition for infrequent 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 col tugation. victor 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 mediator and managing practical(prenominal) 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 ships company intervening 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 nothing at all, or de evince the disagreement. . Accommodati on A style of traffic with conflict involving cooperation on behalf of the other party but not being assertive 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 Bureaucratic control is the use of rules, regulations, and formal authority to guide performance. It includes such items as budgets, statistical tarradiddles, and performance appraisals to amaze 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 basis of profit and loss. . Clan Control Clan control, unlike the first two types, does not assume that the interests of the organization and individuals by nature 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 needful. 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. Taking 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. pathetic 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. pull in why people often resist change (inertia, timing, surprise, peer pressure/ self interest, misunderstanding, different 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. Education 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. Participation and Involvemen t change requires reflection and dialogue. It is important to get word 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 jobs under the new circumstances. This step often includes decentralizing authority and empowering people, that is, braggart(a) 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. Perhaps job enrichment is acceptable only with a higher wage rate, or a work rule change is resisted until manage-ment agrees to a subsidization 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 gather 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. Explicit and implicit coercion several(prenominal) managers apply punishment or the threat of punishment to those who resist change. With this approach, managers use force to make people comply with their deficiencyes. 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. succumb 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, job boards, newspaper advertising, and campus visits, to find individuals with new ideas and fresh perspectives. External recruiting is also necessary to ingurgitate positions when the organization is growing or needs skills that do not exist among its current employees. 3. Identify non-homogeneous methods for selecting new employees. . There are myriad alternative techniques from which to choose. Interviews and refer ence 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 integrity 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 ( consistency across time and different interview situations) and validity ( accuracy in predicting job performance).In addition, selection methods must comply with concern opportunity laws, which are intended to ensure that companies do not discriminate in any study 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, designed 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 assess an employees performance. a. Many companies are using multiple 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 aspects 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 refer 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 performa nce, as well as to engage them in the appraisal process. 6. Describe the fundamental aspects of a reward system a. Reward systems include pay and benefits. Pay systems have three basic components pay 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 geeks, it is important to make certain that men and women receive equal pay for equal wor k, and managers may wish to base pay decisions on the idea of comparable worth ( equal pay for an equal contribution). Also, the occupational Safety 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 negotiate agreements 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 grievance 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. workforce make diversity a critical organizational and managerial issue. a. The labor force is getting older and more racially and ethnically versatile, with a higher proportion of women. And while the domineering number of workers is increasing, the growth in jobs is outpacing the numerical growth of workers. In addition, the jobs that are being created frequently require higher skills than the typical worker can provide thus, we are seeing a growing skills gap.To be competitive, organizations can no longer take the traditional approach of depending on white manlikes to form the core of the workforce. Today, managers must look broadly to make use of talent wherever it can be found. As the labor market changes, organizations that can recruit, develop, motivate, and retain a various(a) workforce will have a competitive ad vantage. 9. point out 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 challenges 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, m inorities, or other groups that differ from the mass and thus has a highly homogeneous employee population.. b. Pluralistic Pluralistic organizations have a relatively diverse employee population 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. List 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.Only after this diagnosis has been correct is a compa ny 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 (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc. ). 16. Why are certain types of diversity protected by law? What are they? a. Female, minorities, i mmigrants, disabled people. 17. What are some barriers to cross-cultural communication in an organization? a. isunderstandings, inac-curacies, inefficiencies, and slowness. Speed is wooly-minded when not all group members are fluent in the same 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 improve 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. combine 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 definitions 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 profession al 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 to resolve abor dispute 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 etcetera nightclub 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, whi te 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 following statements are true except African American workforce is growing the fleet 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 minority in the United States. People with disabilities 7. The most common contradict effect of diversity is communication problems. 8. A(n)____ is an organiza tion 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 end-to-end the organization perform different tasks.The assignment of tasks to different people or groups often is referred to as the incision of labor. But the alter 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 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 op timal span is determined by characteristics of the work, the subordinates, the manager, and the organization. 5. Explain how to delegate effectively. a. Delegation 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, schedule 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), hyaloplasm, 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. Forward 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 overloaded 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 clarify as more career options become available on both sides of the organization. b. Challenges i. Co nfusion 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 country can lead to not enough action.