Final Test

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CHAPTER 8

Controlling: the process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals.

A good control system should:

Be flexible so managers can respond as needed

Provide accurate information about the organization

Provide information in a timely manner

Three types of control:

Input stage:

Raw materials

Feedforward control (preliminary control): anticipate problems before they occur.

Planning and organizing

Preventive maintenance (quality improvement)

Conversion stage:

Inputs being transformed into outputs

Concurrent control (transformation process): manage problems as they occur.

Checking along the way

Quality assurance

Output stage:

Directly going to the customer and is measured by stakeholder satisfaction

Feedback control: managing problems after they have arisen.

Rework → take action to fix output before the customer gets it

Damage → action taken to minimize negative impacts to customers/ stakeholders due to faulty outputs.

Refund

Fix

Replacing

Control System Process:

Step 1: Establish the standards of performance goals or targets against which performance is to be evaluated.

Step 2: Measure actual performance.

Step 3: Compare actual performance against chosen standards of performance.

Step 4: Evaluate the result and initiate corrective action if the standard is not being achieved.

Profit ratios: measures of how efficiently managers convert resources into profits. (ROI)

Liquidity ratios: measures of how well managers protect resources to meet short-term debt - current and quick ratios

Leverage ratios: measures of how much debt or equity is used to finance operations - debt to asset and times-covered ratios.

Activity ratios: measures of how efficiently managers create value from an asset - inventory, turnover, days sales outstanding ratios.

*Goals should be specific and difficult

Stretch goals: goals that challenge and stretch managers’ ability but are not out of reach and do not require an impossibly high expenditure of managerial time and energy.

Coaching: provide motivational feedback.

Management by Walking Around (MBWA): listening, teaching, facilitating.

Counseling: provides feedback regarding problems affecting job performance.

Disciplining: corrective action to get performance compliance.

Progressive discipline:

Verbal warning

Written warming

Suspension

Dismissal

Discipline Model:

Refer back to past feedback

Ask why the undesired behavior was used

Give the discipline

Get a commitment to change and develop a plan

Summarize and state the follow-up

CHAPTER 10

Leadership: the process by which a person exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals.

Power in Organizations:

Expert: power that is based on special knowledge, skills, and expertise that a leader possesses.

Referent: power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty.

Legitimate: the authority that a manager has by virtue of his or her position in an organization hierarchy.

Coercive: the ability of a manager to punish others.

Reward: the ability of a manager to give or withhold tangible and intangible rewards.

* Leaders get their power from followers

Contemporary leadership theories:

Leader-member exchange

Charismatic leaders - clearly communicate vision

Transformational leadership

Transactional leadership

Servant leadership - “humility and service”

Authentic leadership

Spiritual leadership

Major Leadership Theories:

Trait theory: personal characteristics

Great man - “my hero”

Common traits

Intelligence

Self-confidence

Determination

Integrity

Sociability

Behavioral theory (Blake and Mouton): skills, traits, and behavior

Contingency theory: “it depends”

CHAPTER 11

Synergy: performance gains that result when individuals and departments coordinate their actions.

Cross-functional teams: bringing people together from different departments to solve problems.

Group: two or more people who interact with each other to accomplish certain goals or meet certain needs.

Team: a group whose members work intensively with each other to achieve a specific, common goal or objective.

5 stages of Tuckman's team formation:

Forming: This stage is characterized by team members getting to know each other, establishing roles and responsibilities, and trying to understand the goals and objectives of the team.

Storming: This stage is marked by conflicts and disagreements as team members try to assert their positions and jockey for power and influence within the team.

Norming: In this stage, the team begins to work together more effectively, with members resolving their differences and establishing a sense of unity and shared purpose.

Performing: At this stage, the team is functioning at its highest level, with members working together smoothly and effectively to achieve their goals and objectives.

Adjourning: This final stage occurs when the team disbands after completing its objectives, with members reflecting on their accomplishments and experiences before moving on to other projects or teams.

What causes team dysfunction?

Fear of conflict

Lack of commitment

Avoid accountability

Lack of trust

Inattention to results

Types of conflict

Relationship

Task

process

CHAPTER 14

Operations Management: the management of any aspect of the production system that transforms inputs into finished goods and services.

Goal → produce a good or service efficiently and cost-effectively

Providing to the customer → highest quality at the lowest price → motive = value

Luxury items → highest quality at the highest price → motive = status

Production System: the system that an organization uses to acquire inputs, convert inputs into outputs, and dispose of the outputs.

Input stage

Conversion stage

Output stage

Product → a good or service or a combination

Classifying Operating Systems:

Tangibility

Manufacturing: processes are used to transform inputs into tangible (physical) output products.

Service: operations use inputs to provide intangible (nonphysical) product services.

Mixed products

Customer Involvement

Make-to-stock operations: to produce products with a common design and price in anticipation of demand.

Assemble-to-order operations: produce a standard product with some customized features.

Make-to-order operations: carried out only after an order has been received from a specific customer.

Operations flexibility: the amount of variety in the products an operation produces, which determines whether the products are produced continuously, repetitively, in batches, or individually.

Continuous process operations

Repetitive process operations

Batch process operations

Individual and project process operations

Resources and technology management

Capital-intensive operations

Labor-intensive operations

Facilities layout: the operations management technique’s whole goal is to design the machine-worker interface to increase production system efficiency.

Product layout

Process layout

Fixed position layout

Flexible manufacturing: aims to reduce the time required to set up production equipment.

Redesigning the manufacturing process so that production equipment geared for manufacturing one product can be quickly replaced with equipment geared to make another product can dramatically reduce setup times and costs.

Inventory: the stock of raw materials, inputs, and component parts that an organization has on hand at a particular time.

Just-in-time inventory: a system in which parts or supplies arrive at an organization when they are needed, not before.

Quality : conformance to the requirements, meeting customer expectations

World-class quality : exceeding customer expectations, delighting the customer

The book definition of quality : goals/services that are reliable (over time), dependable, or psychologically satisfying.

Quality → perception

Organizational change: the movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness.

The five tenets of quality improvement in management are:

1. Customer Focus: Focus on understanding and meeting the needs of customers, both internal and external.

2. Continuous Improvement: Continuously improve processes and systems to enhance quality and efficiency.

3. Employee Empowerment: Empower employees to make decisions and take ownership of their work to improve quality.

4. Leadership Involvement: Leaders must be involved and committed to quality improvement efforts.

5. Data-Driven Decision Making: Use data and evidence to identify areas for improvement and measure the success of improvement efforts.

Lewin’s Change Model

Unfreeze: Prepare the organization and its members for change by recognizing the need for change and creating a sense of urgency.

Change: Implement the desired change and provide support, communication, and training to employees to ensure they are on board with the change.

Refreeze: Anchor the change by ensuring it becomes part of the organization's culture and is sustained over the long term.