MANGMT 3000 1st Edition Exam 2 Study Guide Lectures 8 13 Lecture 8Stakeholders the people whose interests are affected by an organization s activities Internal stakeholders consist of employees owners and board of directors External stakeholders people or groups in the org s external environment that are affect by it Task environment Customers those who pay to use an org s goods or services Competitors people or org s that compete for customers or services Suppliers person or org that provides raw materials services equipment labor or energy to other orgs Distributor person or org that helps another org sell its goods and services to customers Strategic allies describes the relationship of two orgs who join forces to achieve advantages neither can perform as well alone Government regulators regulatory agencies that establish ground rules under which orgs may operate Special interest groups groups whose members try to influence specific issues Economic forces consist of the general economic conditions and trends unemployment inflation interest rates economic growth that may affect an org s performance Technological forces new developments in methods for transforming resources into goods and services Sociocultural forces influences and trends originating in a country s a society s or a culture s human relationships and values that may affect an org Demographic forces influences on an org arising from changes in the characteristics of a population such as age gender or ethnic origin Political legal forces changes in the way politics shape laws and laws shape the opportunities for and threats to an org Lecture 9Ethical dilemma situation in which you have to decide whether to pursue a course of action that my benefit you or your org but that is unethical or even illegal Ethics standards of right and wrong that influence behavior Values relatively permanent and deeply held underlying beliefs and attitudes that help determine a person s behavior Organizations may have two value systems that conflict 1 Value system stressing financial performance 2 Stressing cohesion and solidarity Four approaches to deciding ethical dilemmas 1 Utilitarian guided by what will result in the greatest good for the greatest number of people 2 Individual what will result in the individual s long term interest which ultimately are in everyone s self interest 3 Moral rights respect for the fundamental rights of human beings 4 Respect for impartial standards of fairness and equality Kohlberg s theory Level 1 preconventional follows rules Level 2 conventional follows expectations Level 3 postconventional guided by internal values Social responsibility manager s duty to take actions that will benefit the interests of society as well as of the org Corporate responsibility model notion that corporations are expected to go beyond following the law and making a profit Philanthropy making charitable donations to benefit humankind Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company Growth strategy involves expansion Stability no significant change Defensive reduction in org s efforts Strategy formulation implementation Competitive intelligence gaining info about one s competitor s activities so you can anticipate their moves react appropriately SWOT analysis org strengths org weaknesses org opportunities org threats Porter s five competitive forces 1 2 3 4 5 Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products or services Rivalry among competitors BCG matrix evaluating strategic business units on the basis of their business growth rates and their share of the market Lecture 10Organizational culture system of share beliefs and values that develops within an organization and guides the behavior of its members Also called corporate culture Clan culture internal focus values flexibility rather than stability encourages collaboration among employees Adhocracy culture attempts to create innovative products by being adaptable creative and quick to respond to changes in the marketplace Market culture focuses on the external environment driven by competitors and a strong desire to deliver results Hierarchy culture apt to have a formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms Levels of org culture 1 Observable artifacts physical manifestations such as manner of dress awards myths and stories about the company 2 Espoused values explicitly stated values and norms preferred by an org enacted values represent the values and norms actually exhibited in the org 3 Basic assumptions represent the core values of the org s culture those taken for granted and highly resistant to change How employees learn culture Symbol object act quality or event that conveys meaning to others Story narrative based on true events which is represented to emphasize a particular value Hero person whose accomplishments embody the values of the org Rites and rituals activities and ceremonies planned and unplanned that celebrate important occasions in the org s life Process of cultural change 1 2 3 4 5 6 Formal statements Slogans and sayings Stories legends and myths Leader reaction to crises Role modeling training and coaching Physical design Organization system of consciously coordinated activities or forces of two or more people Organization chart box and lines showing the formal lines of authority and the org s official positions or work specializations Lecture 11Common elements of an org 1 2 3 4 5 6 7 Common purpose Coordinated effort Division of labor Hierarchy of authority Span of control Authority responsibility and delegation Centralization vs decentralization of authority Simple structure authority is centralized in a single person with few rules and low work specialization Functional structure people with similar occupational specialties are put together in formal groups Divisional structure people with diverse occupational specialties are put together in formal groups by similar products customers or geographic regions Matrix structure org combines functional and divisional chains of command in a grid so that there are two command structures vertical and horizontal Horizontal design teams or workgroups either temporary or permanent are used to improve collaboration and work on shared tasks by breaking down internal boundaries Hollow structure org has a