An organization’s mission statement is to declare the organization’s basic purpose and scope of operations, while a strategic vision is a long term direction and strategic intent of a company.
The level of planning involving the longest time frames and the largest portion of an organization is strategic planning.
Tactical planning translates broad strategic goals and plans to specific goals and plans that are relevant to a definite portion of the organization.
Operational planning is the level that focuses on routine tasks and a relatively limited timeframe.
A set of skills or expertise that a company utilizes better than the competition is referred to as core competencies.
SWOT analysis includes a comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
Ethics is the system of rules that governs the ordering or principle of conduct.
Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
Because individuals have differing personal ethical codes, organization’s must be explicit regarding their corporate ethical standards and expectations.
Establishing a written code of ethics within an organization will not ensure ethical behavior by employees.
Efforts to influence legislators in considered legal.
Honesty, caring, loyalty, fairness, and integrity are all examples of values.
Advise for constructing an ethics code is to keep it short, involve everyone in writing it, being sure top executive’s live up to it, and tailor some statements for varied organizational units.
Lobbying strategy involves communicating with legislators and their staff in order to inform them of corporate concerns regarding the political environment.
Political Action Committees are groups that make conations made to candidates for political office.
Pressures for local responsiveness emerges when there are differences in traditional practices among countries.
The global organizational structure probably realizes the lowest manufacturing costs.
The goal of the European Union is to eliminate trade barriers with the E.C., create a more competitive Europe, and become an economic superpower.
Pressure for global integration includes pressures to reduce costs and the presence of competitors engaged in global strategic coordination.
Pressure for local responsiveness includes varying consumer preferences, varying sales and distributions patterns, varying traditions, and varying political demands.
The choice of whether to follow a global model or a multinational model is decided by comparing the pressures for global integration to the pressures for local responsiveness.
Global integration views the world as a single market. Operations are controlled centrally from the corporate office. This model consist of a company’s overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations. Typically adopted by organizations that base their global competitive strategy on low cost.
International integration uses existing capabilities to expand into foreign markets. This model is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model.
Transnational integration is a model characterized by centralization of certain functions in locations that best achieve cost economies; basing of other functions in the company’s national subsidiaries to facilitate greater local responsiveness; and fostering of communication among subsidiaries to permit transfer of technological expertise and skills.
Multinational model consist of the subsidiaries in each country in which a company does business, with ultimate control exercised by the parent company. They have higher manufacturing costs, and duplication of effort, They cannot realize scale economies and it is difficult to launch coordinated global attacks against competitors.
Individuals sent fro company’s parent country to work in overseas operations are referred to as expatriates.
Managers do not like to engage in high risk and high paced situations where entrepreneurs like the slow paced, low risk
Entrepreneurship is the pursuit of lucrative opportunities by enterprising individuals. It upsets the status quo and changes ways of doing things. It is not predictable and it will not predict traditional patterns.
Successful entrepreneur build organizations through leadership. They are goal oriented and motivated to excel. They are creative and highly adaptive. And They are committed to the enterprise and willing to sacrifice for its behalf.
A novel product idea that involves a large financial investment would be described as high innovation/ high risk.
Essential to pursuing an entrepreneurial opportunity is to do some planning. This first of all involves conducting an opportunity analysis.
Components of a business plan: Description of the product/service. Strategies the business will pursue. Description of the market served by the firm. Functional plans for financing, production, marketing, etc.
A business plan helps determine the potential for success, helps secure financing, and provides a guide for planning and organizing.
Many entrepreneurs choose to open their own business because they want to “call their own shots” this trait is also common cause of business failure in that many small business owners. They fail to delegate.
Differentiation is high when there are many subunits and many kinds of specialists who think differently.
Authority resides in people and not in positions.
The functional structure would be most appropriate in complex and changing environments.
An organizational chart depicts an organization’s division of labor, an organization’s reporting structure, the arrangement of positions in an organization, and the type of departmentalization used in an organization.
Differentiation is created through division of labor and job specialization.
Integration is the degree to which differentiated work units work together and coordinate their efforts.
Coordination is the procedures that link the various parts or the organization for the purspose of achieving the organization’s overall mission.
Span of control is the number of subordinates who report directly to an executive or supervisor.
Departments that are titled marketing, operations, accounting and finance are departmentalized by function.
Matrix. Organization composed of dual reporting relationships in which some managers report to two superior, a functional and a divisional manager.
Critical to effective human resources planning is the accuracy of demand forecasts.
Recruitment does not refer exclusively to external applicants.
An internal mechanism for promoting open job positions is job posting.
Selection decisions concern which applicant to hire.
Employee referrals is the most effective recruitment source.
Structured interviews are when questions are the same for all applicants.
In a performance test, the test taker performs some part of the job applied for.
Validity refers to whether a test truly predicts job performance.
Organizations can minimize the negative effects of a layoff by doing the following: Thoughtfully planning the dismissal process, having a good performance evaluation process in p[lace, providing outplacement services to affected employees.
Training should consist of consists of three stages or decisions: needs assessment, method determination, and evaluation of results.
Behavioral appraisals provide useful feedback and trait appraisals do not
Managing diversity does not mean that all individuals are to be treated the same.
The first affirmative aqction programs were initiated in part to correct the past exclusion of women and minorities from the busines world.
When employees believe their differences are valued and not merely tolerated, they are ikely to become local, productive, and committed.
Advantages to managing a diverse workforce fulfills social responsibility, helps attract retain, and motivate employees, gains greater knowledge of diversified marketplace; and promotes creativity innovation and problem solving.
Work team diversity promotes creativity and innovation because people with different backgrounds hold different perspectives on issues.
Advantages associated with a diverse workforce are a greater knowledge of consumer preference is gained. Creativity, innovation, and problem solving is enhanced. The organization becomes more flexible, and fulfills social responsibility.
Stereotyping is believe that all people from the same race are equal.
Identifying and reducing hidden biases toward minority groups is the basic goal behind diversity training.
Awareness building is designed to make managers aware of the importance of valuing diversity.
Power is central to effective leadership
In order for the vision of the organization to be meaningful, managers and employees need to have a clear understanding of turning it into reality.
Transformational leaders translate a vision into reality.
Coercive power is used when a leader utilizes her ability to control punishments.
Expert power is used when a leader is respected for his knowledge.
Referent power is when coworkers like the way you are.
Task performance behaviors are a concern for the accomplishment of the work.
Group Maintenance behavior are a focus on the satisfaction of the workgroup.
Autocratic leaders make decision on their own.
Individualized goals cannot create cooperation and reduce competition.
Expectancy theory states that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome. Effort, performance, outcomes.
Instrumentally is the perceived likelihood that performance will be followed by a particular outcome.
Maslow’s need hierarchy: Self-actualization, ego, social, safety and most important larger at the bottom physiological.
Team is a small number or people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable.
Team effectiveness can be defined by productive output, satisfaction, and commitment.
Teams should have high performance norms. A real team achieves a significant performance improvement in difference from a working group.
A project and development team is when they work on long-term projects.
As group develop they go through forming, storming, norming, and performing.
Forming: Group members attempt to lay the ground rules for what types of behavior are acceptable.
Storming: Hostilities and conflict arise, and people jockey for positions of power and status.
Norming: Group members agree on their shared goals, and norms and closer relationships developed.
Performing: Group channels its energies into performing its tasks.
Cause for failure of a group are inadequate training, not trusted to make important decisions, failure of the manager to give up control.
Building effective teams need three criteria: Productive output, Satisfaction: freedom to innovate, and commitment to work together again.
Social loafing occurs when individuals are working less hard and being less productive when in a group.
Norms: shared beliefs about how people should think and behave.
Roles: Different sets of expectations for how different individuals should behave.
Cohesiveness is the degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.
A group that is highly cohesive is likely to perform well when it encourages disagreement and they have norms of high performance. A group that is highly cohesive is not likely to perform well when it discourages disagreement and they have norms of low performance. The highest group performance occurs when a highly cohesive group has high performance norms.
