Principles of Managment
Principles of Management 1.32
Principles of Management 1.32
Set of flashcards Details
| Flashcards | 74 |
|---|---|
| Students | 17 |
| Language | English |
| Category | English |
| Level | University |
| Created / Updated | 10.12.2019 / 14.01.2025 |
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What is the time horizon for plans?
Define Standing plans
Define Single-use plans
a.) short term < 1 year b.) intermediate-term = 1-5 years c.) long term > 5 years
- standing plans: programmed decision making with standard operating procedures (SOP)
- single-use plans: non-programmed decision making in unusual situations (specific action plans)
What are the Elements of Porters five Forces Model
Threat of new entrants
Bargaining Power of Supplier
Threat of Substitute Products or Services
Bargaining Power of Buyer
Rivalry among existing competitors
What are the different Strategies on Business-level
- Low-cost: driving total costs down below total cost of rivals
- Differentiation: distinguishing own products from rivals
- “Stuck in the middle”/Hybrid: Attempting low cost and differentiation strategy at once--> difficult to achieve low cost without added cost of differentiation
- Focused low-cost: only one segment and trying to be lowest cost org. in that segment (low-cost airline targeting price sensitive segment
- Focused differentiation: only one segment and most differentiated org in that segment (premium car brand with cars exclusively for top-end segment)
What are the different strategies on Corporate level?
- Concentration on a single industry: reinvesting companies’ profits to strengthen competitive position in current industry (MC Donalds)
- Vertical integration: (Subtype of Diversification) backward into industry producing inputs (raw materials) for products; forward into industry using, distributing or selling products (closer to customer, physical retail location)
- International expansion: expanding companies business operations into new market
- Diversification: Expanding company’s’ operations into new industry
What are two strategies to expand internationally
What are four ways to expand internationally
1.) Global strategy: sell same product in each national market with same strategy
2.) Multi-domestic strategy: customizing products and strategy to specific national conditions
-Importing and exporting ( low foreign involvement and risk)
-Licensing and franchising --> license for someone to operate stores
-Strategic alliances, joint ventures (e.g. 50/50% venture, minortiy stake common in some countries)
-Wholly owned foreign subsidiary (high involvement and risk)
What are the two ways of Diversification
1.) Related Diversification: entering new industry or business to create competitive advantage in one or more existing divisions or businesses
2.) Unrelated Diversification: entering new industry or buying a company in new industry that isn’t related to org. current business or industry
What are the five components of HR Management
Recruitment and selection, training and development, performance appraisal and feedback, pay and benefit, labor relations
What are the advantages of External and Internal Recruitment
external: large pool of people, gain fresh perspectives from new people
internal: quick, less costly, experience in organisation, boosts otivation inside company
What is the difference between Training and Development
Training: knowledge and skills necessary to be effective performers
Development: building up on skills, what can you do in future
What is Performance Appraisal and Feedback
Performance Appraisal: Evaluation of job and performance and contributions, can be informal (unscheduled), formal (time and dimension specified in advance)
-->Supervisors, Peers, Self, Subordinates, Customers and clients
Feedback: Process where managers share performance information with subordinates
What is a pay structure and what are benefits
Pay structure: arranging jobs into categories based on importance: age, experience, rank
usually top range is defined, raise CEOs salary = raise lowest salary
Benefits:
Legally required: Social Security, compensation, unemployment insurance
Voluntary: Health insurance, retirement, day care
Cafeteria style: employee can choose best mix of benefits, can be hard to manage
What are two labour relation forms
Labor Union: represent workers interests to management in organizations
Collective bargaining: negotiation between labor and management to resolve conflicts and disputes
What is Organizational Culture?
Describe the Cultural Iceberg
shared beliefs, expectations, values, norms influence members in organization to achieve organizational goals
Cultural Iceberg:
- Formal (visual/Overt): Goals, Technology, Structure, service etc.(the way we get things done
- Informal (not visual/Covert): beliefs, Assumptions, Attitudes, Feelings etc. (The way we REALLY get things done)
Name the different levels of organizational culture
1. visible level: (Innovation, Architecture, Technology, rituals etc.) easily observable
2. Beliefs and values: less observable (how does team work, quality, teamwork, separation work/life)
3. Basic underlying assumption: hidden but affect the company / beliefs and values imbedded as assumptions (satisfy customers, mistakes are tolerated)
What is the difference between adaptive culture and inert culture
adaptive culture: values, norms help to build momentum and to grow/change to achieve goals
inert culture: values and norms that fail to motivate or inspire employees
What are four possible hierarchy structures and what are their advantages/disadvantages
Funtional Structure: specialization in department, easy to monitor /difficult for departments to communicate with others, loose sight of organizational goal
Divisional Structure: composed of seperate business units ( product, market, geographic structure), closeness to customer is possible
Matrix Structure: groups people and resources by function and product, very flexible, more market responsive/reporting to two bosses that maybe have different perspectives, working together is difficult
Product Team Structure: people permanently assigned to cross-functional team, report only to product manager or to managers direct subordinates, communication can be difficult, very flexible
Define these terms:
Authority
Hierarchy of Authority
Span of control
Authority: power to hold people accountable for actions and make decisions concerning use of resources
Hierarchy of Authority: chain of command
Span of control: number of subordinates who report directly to manager
Name the steps of control process
- Establish standards of performance (1000 CHF)
- Measure actual performance (750 CHF)
- Compare actual and target performance (-250 CHF)
- Evaluate results and correct actual savings (25% below target --> less nights out, take away coffee etc.)
Define these three different ways of control
-Feedforward control
-Concurrent control
-Feedback control
- control that allows managers to anticipate problems before they appear
- control gives feedback immediately on efficiency of inputs to outputs so managers can correct problems when they appear
- control gives managers info about customer reactions to g&s so corrections can be made if necessary
What are the 3 main ways of control
1. Output control
2. Behavior control
3. Clan control
What is output control
Disadvantages
- financial measures (quantitative, numbers, assessment)
- Organizational goals
- Operating budgets: how to use resources to achieve organizational goals efficiently
Disadvantage: difficult to create output standards that motivate at all levels
What is Behavior control
Disadvantages
direct supervision: monitor/observe actively, teach behavior f.eg. repair teams at airport
--> Micromanagement element, leads to red tape bureaucratic, less risk taking and innovation
management by objectives: Performance appraisal, feedback, evaluation, define goals (output), monitoring > people learn and behave better
Bureaucratic control: standard operating procedures, regulates behavior of divisions, functions, individuals
Risk assessment
Problems: expensive, managers can only manage small number of subordinates, can demotivate
What is clan control
norms, law, policy, peer pressure: “the way we do things around here”, create positive culture
To reasons why organizations need change
4 steps in change process
1.) Need to improve operations 2.) Need to respond to new events
- Assess the need for change: recognize problem and identify its source
- Decide on change to make: what org. ideal future state, identify obstacles to change
- Implement the change: will change occur top down, bottom up, introduce/manage change
- Evaluate change: compare prechange with postchange performance, use benchmarking (comparing performance with other high performing companies
What is Top down change
What is Bottom up change
Top-down change: after identifying change, managers quickly implement changes in org.
Bottom-up change: gradual, evolutionary approach to change, all levels work together to develop detailed plan
Difference between Data, Information, Knowledge
Data: raw, number, measure, meaningless (5 degrees)
Information: meaningful, processed, decision (cold)
Knowledge: complex; helps decision making (wear jacket, hat)
What are the 4 factors to determin usefulness of information
Quality: accuracy, reliability of information > affects quality of decision
Timeliness: availability of real-time information reflecting current conditions
Completeness: complete information > managers can control, achieve coordination, make decisions
Relevance: information suiting manager’s needs, circumstances to help make decisions
Define the term Information technology and Management information system
Information technology: sets of methods or techniques for acquiring, organizing, storing, manipulating, transmitting info
Effects of IT: helps create new product opportunities
Management information system (sub form of IT): specific form of IT managers utilize to generate specific, detailed info needed to perform roles effectively
Why do managers need to collect Information
- to decide
- to control
- to coordinate
where do they stand--> controlling; increase responsiveness to customers--> who are the customers-->define target group
What are two recent technology developments
- Artificial Intelligence: algorithms: search, customized advertisement, speech siri etc., sound data
- Blockchains: Bitcoins etc.; medicine
What are different systems to process information
Transaction process: cash register f.eg. (programmed decision making); routine
Operations Information system
Decision support systems: shows processed data
Expert system: e-medicine --> gives person knowledge, data, information etc. (decision tree)
Enterprise resource planning system: SAP, Oracle
e-commerce system: zalando etc. (nonprogrammed decision making)
Define these terms:
- B2B network
- Boundaryless organization
- Virtual organization
- Knowledge management system
- Global strategic alliances org. creates with suppliers, manufacturers, distributors to produce new product
- linked by computers, mobile tech, video teleconferencing, rarely face-to-face
- employees linked to orgs. Centralized info system and rarely face-to-face
- company-specific virtual information system--> knowledge of employees, sharing and integrating of expertise (wiki)
Disadvantage: you can be replaced easily
What are the four stages of the product life cycle
Embryonic stage: introductory, launching
Growth stage
Maturity stage
Decline stage: launching of new product --> Innovation
What are different types of Innovation
According to Object (Product, Process)
According to Sector (Organizational, Technological)
According to Intensity (Incremental, Radical)
