MGMT 301 Exam 2 Study Guide Chapter 4 Chilean Mine o Sebastion Pinera President Decision making problem solving Computer literacy Interpersonal skills Information competency o Problem Avoider Centre Rock Pa Provided the drill for getting to the Miners Luis Urzua foreman below ground They ignore information that would otherwise signal the presence of a performance threat or opportunity They are not active in gathering information and prefer not to make decisions or deal with problems Costa Concordia Captain Shatino problem avoider o Hits rocks with Cruise ship o Jump ship and got away avoided decisions o Problem solver Make decisions and try to solve problems but only when required They are reactive gathering information and responding to problems when they occur but not before These managers may deal reasonably well with performance threats but they are likely to miss many performance opportunities o Problem Seeker most important role for manager They are always looking for problems to solve or opportunities to explore True problem seekers are proactive as information gatherers and they are forward thinking They anticipate threats and opportunities and they are eager to take action to gain the advantage in dealing with them PSU Ice Hockey Joe Pogula Sought the problem with the Sandusky scandal Cognitive Decision Making Styles Systemic Intuitive o Cognitive Style is the way an individual deals with information while making decisions o Know the Scale What are we measuring o Info evaluation and gathering Flight 1549 Video Captain Sulenburger landing plan in Hudson Sensing Intuition and Thinking Feeling Risk Certain to uncertain program and Non program A programmed decision applies a solution from past experience to a routine problem A nonprogrammed decision applies a specific solution that has been crafted to address a unique problem Type of Decision Performance Threat Opportunity Coke and Honest Tea o Opportunity makes us better o Threat can hurt us o Honest Tea Threatens Coke with healthier products o Coke Buys Honest Tea Could threaten Honest Tea with similar products or has the opportunity to buy them Issues o What are the threats and opportunities of Coke and Honest Tea Forming a Partnership o Heuristics The reason of ten traces to simplifying strategies we use when making decisions with limited information time and even energy These strategies known as heuristics can cause decision making errors o A crisis is an unexpected problem that can lead to disaster if not resolved quickly and appropriately o Group Decision Making Pros Greater amounts of information knowledge and expertise to bear on a problem Expand the number and even the creativity of action alternatives examined Helps group members gain a better understanding of any decisions reached Cons More people involved the longer it can take to reach a group decision and the more likely It is sometimes difficult and time consuming for people to make group decisions that problems will arise Social pressure to conform that leads to premature consensus and agreement in group situations Feel intimidated or compelled to go along with the apparent wishes of others who have authority or who act aggressive and uncompromising Minority domination might cause some members to feel forced or railroaded Traditional Decision Making Model o Identify Problems o Develop Alternatives o Decide on Actions o Implement Decision o Evaluate results o Define o Measure o Analyze o Improve o Control Know Amazon and Super Soaker Stories Lonnie Johnson Advanced Decision Making Model DMAIC CISCO Video Example New owner of News Stations uses DMAIC Classic Vs Behavioral Model Chapter 5 Planning o The process of setting performance objectives and determining how to accomplish them Personal Planning o Judging Formal structure planning approach o Perceiving unstructured informal planning approach Process of Planning 5 Steps o Define objectives o Compare current to objectives o Compare future alternatives o Analyze Alternatives make plan o Implement and Evaluate 4 Components of good planning o Actions o Priority o Advantage o Change Priorities Big Rocks 2 Key issues o Empty jar big rocks firsts grave sand then water o Point is that priorities are key in planning o Must start with most important stuff first o Complacency avoidance o Effective time management Amusement Park Planning Shanghai Disney o Supply chain Building infrastructure cost of shipping merchandise logistics selection and bringing in goods o Marketing research markets advertising leveraging other products press communication o MGMT productivity efficiency structure organize pricing cultural HR o Finance location capital and investments investors partnerships o Risk Management safety liabilities legal term insurance forecasting issues pensions benefits o Accounting budgeting auditing taxes Planning Hierarchy 5 Components o Workers Supervisory MGMT Middle MGMT Senior MGMT Top MGMT obj Alignment follow through good communication Long and Short Range Planning o Long range plans 3 years o Short range plans 3 12 months o Strategic Plan Strategic and operational and Functional Nordstrom know this case watch the video Operational Financial Marketing Production Facilities Human Res Tactical o Nordstrom Looked throughout the entire store for woman s ring Tactics behind customer service Policies and procedures o Company policy Broad guidelines no smoking in PSU building o Company procedures specific action what do I do if I see someone smoking Ex Jim and Pam from the office Company has romance policy or dating policy in workplace Budget o Budget connect plans with resources Where I put my money is where my planning should be o A plan that commits resources to activities programs or projects Allocates scarce resources among multiple and often competing uses o Financial budgets project cash flows and expenditures o Operating budgets plot anticipated sales or revenues against expenses o Nonmonetary budgets allocate resources such as labor equipment and space o Fixed budget allocates a fixed amount of resources for a specific purpose o Flexible budget allows resources to vary in proportion with various levels of activity such as monies to hire temporary workers when workloads exceed certain levels Big Six Planning tools definitions and example o Forecasting using statistical tools and intuition based on experience to predict a future state Market research customer research o Contingency identifying action to
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