MGT 300 1st Edition Exam 2 Chapters 5 8 Organizational culture o system of shared beliefs and values that develops within an organization and guides the behavior of its members o Also called corporate culture Clan culture Internal focused values flexibility rather than stability encourages collaboration among employees Zappos shoes Southwest Airlines Adhocracy culture creates innovative products by being adaptable creative and quick to respond to the marketplace Market culture focused on the external environment driven by competition and a strong desire to deliver results Kia financial firms Hierarchy culture Formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms very regimented GM UPS Three levels of organizational culture Observable artifacts Espoused values o Enacted values Basic assumptions Learning culture Symbol story hero rites and rituals Organization non profit for profit and mutual benefit Types of structures simple authority is centralized in a single person with few rules and low work specialization functional people with similar occupational specialties are put together in formal groups divisional people with diverse occupational specialties are put together in formal groups by similar products customers or geographic regions Matrix an organization combines functional and divisional chains of command in a grid so that there are two command structures vertical and horizontal Horizontal design improve collaboration and work on shared tasks Hollow central core of key functions and outsources Modular product chunks by outside contractors News Little Caesars new bacon pizza 450 calories slice Video about bacon Federal reserve s p 500 set record economy is getting better Policy on short term interest rates Balances growth with inflation Interest rates have not rose since 2008 Central high school football on espn Mcdonalds worldwide decrease 18 asia 12 6 US up 5 reported serving expired food new ceo steve easterbrock in food development Greece bailout default Default on bonds not making payments new prime minister wont work on the buyout PIGS Portugal Italy spain and Greece which are the weaker countries Google video about their company culture and how it is different from everyone else very laid back Nonrational models of decision making assume that decision making is nearly always uncertain and risky making it difficult for managers to make optimal decisions Bounded Rationality suggests that the ability of decision makers to be rational is limited by numerous constraints complexity time and money cognitive capacity intuition decision based off of feelings Value orientation reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions Tolerance for ambiguity extent to which a person has a high need for structure or control in his life different types of decision making styles Importance credibility and urgency on decisions Biases Availability Representiveness Confirmation SUNK COST Anchoring and adjusting Overconfidence Hindsight Framing Escalation of commitment STRATEGYSustainable competitive advantage example is ford transforming the car into a powerful smartphone SMART GOALS specific measurable attainable results oriented target dates Specific Goals should be stated in specific rather than vague terms The goal that As many planes as possible should arrive on time is too general The goal that Ninety percent of planes should arrive within 15 minutes of the scheduled arrival time is specific Measurable Whenever possible goals should be measurable or quantifiable as in 90 of planes should arrive within 15 minutes That is there should be some way to measure the degree to which a goal has been reached Of course some goals such as those concerned with improving quality are not precisely quantifiable In that case something on the order of Improve the quality of customer relations by instituting 10 follow up telephone calls every week will do You can certainly quantify how many follow up phone calls were made Attainable Goals should be challenging of course but above all they should be realistic and attainable It may be best to set goals that are quite ambitious so as to challenge people to meet high standards Always however the goals should be achievable within the scope of the time equipment and financial support available See Figure 5 4 If too easy as in half the flights should arrive on time goals won t impel people to make much effort If impossible all flights must arrive on time regardless of weather employees won t even bother trying Or they will try and continually fail which will end up hurting morale Results oriented Only a few goals should be chosen say five for any work unit And they should be results oriented they should support the organization s vision In writing out the goals start with the word To and follow it with action oriented verbs complete acquire increase to decrease by 10 the time to get passengers settled in their seats before departure Some verbs should not be used in your goal statement because they imply activities the tactics used to accomplish goals such as having baggage handlers waiting For example you should not use to develop to conduct to implement Target dates Goals should specify the target dates or deadline dates when they are to be attained For example it s unrealistic to expect an airline to improve its on time arrivals by 10 overnight However you could set a target date 3 to 6 months away say by which this goal is to be achieved That allows enough time for lower level managers and employees to revamp their systems and work habits and gives them a clear time frame in which they know what they are expected to do creation of a unique and valuable position requires trade offs and involves creating a fit synergy if effective Few needs many customers Broad needs few customers Broad needs many customers Main topics on testSWOT Culture Strategies MBO management by objective Bias Unity of command Groupthink Sunk cost SMART Centralized and decentralized Delegation Organizational structure SWOT strengths weaknesses opportunities threats careful monitoring of an organization s internal and external environments to detect early signs of opportunities and threats that may influence the firm s plans THIS IS IMPORTANT Porters 5 competitive forces Threat of new entrants Bargaining power of suppliers o easy supplier