Term
| Corporate Social Responsibility definition |
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Definition
| The notion that corporations have an obligation to constitute groups in society other than stockholders and beyond that prescribed by lay or union contract |
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Term
Corporate Social Responsibility
Philanthropic Responsibility |
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Definition
Be a good global corporate citizen
Do what is DESIRED by stakeholders |
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Term
Corporate Social Responsibility
Ethical Resposibility |
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Definition
Be ethical
Do what is EXPECTED by stakeholders |
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Term
Corporate Social Responsibility
Legal Responsibility |
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Definition
Obey the law
Do what is REQUIRED by stakeholders |
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Term
Corporate Social Responsibility
Economic Responsibility |
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Definition
Be profitable
Do what is REQUIRED by CAPITALISM |
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Term
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Definition
| Adam Smith; Invisible hand promoted public welfare; public interest was served by pursuing own economic self interests; Short-run profits by providing society with needed goods and services |
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Term
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Definition
Many groups in society besides stockholders, have stake in corporate affairs
employees, customers, gov, community |
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Term
Arguments for Corporate Social Responsibility
1/2 |
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Definition
1. Business is involved in social issues
2. Business has ample resources to help out |
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Term
Arguments for Corporate Social Responsibility
2/2 |
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Definition
3. Better society = better environment
4. Less government intervention |
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Term
Arguments against Corporate Social Responsibility
1/2 |
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Definition
1. Profit maximization ensures efficient use of society's resources
2. Business lacks ability to pursue social goals |
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Term
Arguments against Corporate Social Responsibility
2/2 |
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Definition
3. Business already has enough power
4. Managers are not elected and not accountable to the people |
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Term
Social Responsibility Strategies
Reaction and Defense |
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Definition
Deny and maintain status quo
Use legal maneuvering to avoid additional responsibilities |
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Term
Social Responsibility Strategies
Accommodation and Proaction |
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Definition
Pressure to assume additional responsibility
Aggressively taking the initiative |
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Term
Degree of Social Responsibility
Low to High |
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Definition
Reaction -> Defense -> Accommodation -> Proaction
RDAP |
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Term
| Enlightened Self Interest |
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Definition
| Business helps itself by helping solve societal problems |
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Term
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Definition
| Study of moral obligation involving the distinction between right and wrong |
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Term
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Definition
| Belief that a certain way of behaving is appropriate in all situations |
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Term
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Definition
| Belief that a certain end-state of existence is worth striving for and attaining |
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Term
| Difference between Instrumental and Terminal Values |
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Definition
| Instrumental is behaving in a certain way and terminal is end state belief |
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Term
General Ethical Principles
Self interests and Personal Virtues |
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Definition
1. Never take an action that is not good for you or organization
2. Never take an action that is NOT HONEST |
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Term
General Ethical Principles
Religious injunctions and Gov. Requirements |
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Definition
3. Never take an action that is NOT KIND
4. Never take an action that VIOLATES LAW |
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Term
General Ethical Principles
Utilitarian Benefits and Universal Rules |
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Definition
5. Never take actions that result in greater harm for society
6. Never take an action you would not be willing to see others take |
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Term
General Ethical Principles
Individual Rights and Economic Efficiency |
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Definition
7. Never take an action that abridges rights of others
8. Always act to maximize profits |
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Term
General Ethical Principles
Distributive Justice and Contributive Liberty |
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Definition
9. Never take an action where least fortunate are harmed
10. Never take an action that will interfere with society's growth |
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Term
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Definition
| Managers that are neither moral or immoral, but ethically lazy |
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Term
| Key features of effective ethics programs |
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Definition
Support of top management
Rewarding of ethical conduct |
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Term
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Definition
| Ethics specialist who plays a role in top managements decision making |
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Term
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Definition
| Reporting of perceived unethical matters |
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Term
| What can management do to improve business ethics? |
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Definition
| Ethics training, what is ethical and what is not |
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Term
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Definition
| Process of coping with uncertainty formulating future courses of action to achieve a specified result |
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Term
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Definition
| The environment, or a portion of it, is unpredictable |
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Term
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Definition
| Inability to predict effects of specific environmental changes or events |
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Term
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Definition
| Unable to predict the consequences of a particular decision or organizational response |
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Term
Organizational Responses to Uncertainty
Defenders and Prospectors |
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Definition
1. Primary technical and narrow production line remain competitive; "Be very good at a few things
2. Aggressively make things happen instead of waiting; Stay a step ahead of the competition |
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Term
Organizational Responses to Uncertainty
Analyzers and Reactors |
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Definition
3. "Me too" response to environment uncertainty; "Follow the leader"
4. Wait for adversity; "If it ain't broke, don't fix it" |
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Term
Balanced Planning
Command and Control Model |
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Definition
| Tight control of operations through exact planning which creates organizational inflexibility to deal with unanticipated events |
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Term
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Definition
Specific, documented intention consisting of an objective and an action statement
Tells what, when, and how something is to be done |
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Term
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Definition
| Commitment to achieve a measurable result within a specified period |
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Term
| Why are objectives important? |
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Definition
| Serve as targets, provide measuring sticks to see how well, generate individual commitment to collective results, motivate employees |
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Term
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Definition
| The time that elapses between the formulation and the execution of a planned activity |
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Term
Strategic Planning
Top Management: 1-10 years |
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Definition
| Process of determining how to pursue long-term goals with available resources |
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Term
Intermediate Planning
Mid Management: 6 months - 2 years |
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Definition
| Process of determining the contribution subunits can make with allocated resources |
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Term
Operational Planning
Lower Management: 1 week - 1 year |
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Definition
| Process of determining how specific tasks can best be accomplished on time with available resources |
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Term
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Definition
A priorities: MUST DO
B priorities: Should do
C priorities: Would be nice to do |
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Term
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Definition
1. Formulating plans
2. Carry out plans |
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Term
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Definition
3. Compare with plans
4. Take corrective action; if correct go to step 2, if wrong step 1 |
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Term
| Management by Objectives definiton |
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Definition
| A management system based on measurable and participatively set objectives |
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Term
Management by Objectives Cycle
Setting Objectives and Develop Action Plans |
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Definition
1. Emphasize participation and involvement of people
2. Complement one another |
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Term
Management by Objectives Cycle
Periodic Review and Performance Appraisal |
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Definition
3. Monitoring performance
4. Emphasize results not personalities or excuses |
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Term
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Definition
| Cross-functional teams of people with different technical skills form temporary teams to compete projects |
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Term
Project Life Cycle
Conceptualization and Planning |
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Definition
1. Develop overall project goals, budget, and schedule
2. Acquire needed facilities, equipment, and personnel |
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Term
Project Life Cycle
Execution and Termination |
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Definition
3. Implementation of plan
4. Turn project over to client and identify new opportunities |
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Term
Project Life Cycle
Where are majority of financial, human and material resources are used? |
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Definition
Execution Stage
Implementation of plan |
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Term
| Project Planning Guidelines |
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Definition
Projects are schedule-driven and results-oriented
Project planning is a necessity, not a luxury
Project managers know the motivational power of a deadline |
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Term
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Definition
Arranges events in the order of actual/desired occurrence
Identifies task components
Eliminates wasted steps and activities
Forces people to consider all relevant links as well as proper sequence |
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Term
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Definition
Graphic scheduling technique historically used in production operations
Filling in time lines will help see actual progress |
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Term
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Definition
Program Evaluation Review Technique
Sequencing and scheduling tool for complex projects |
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Term
PERT Terminology
Event, Activity, and Times |
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Definition
1. Performance milestone representing the start or finish
2. Work in progress
3. Estimated times for completion of PERT activities |
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Term
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Definition
Good for scheduling large, non routine projects
Helpful planning b/c it forces managers to envision projects in entirety |
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Term
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Definition
Bad tool for repetitive assembly-line operations
Only as good as its underlying assumptions |
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Term
PERT Terminology
Difference between event and activity |
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Definition
Event is start or finish of an activity
Activity is the work in progress |
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Term
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Definition
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Term
PERT Formula
What does Te mean? |
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Definition
The break even point
Time estimate (average) |
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Term
PERT Formula
What does To mean? |
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Definition
| Time estimate (optimistic) |
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Term
PERT Formula
What does Tm mean? |
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Definition
| Time estimate (most likely) |
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Term
PERT Formula
What does Tp mean? |
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Definition
| Time estimate (pessimistic) |
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Term
| Break-Even Point definition |
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Definition
| Level of sales at which there is no loss or profit |
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Term
Break-Even Point labels
FC, P, and VC |
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Definition
Total Fixed Costs
Price/unit
Variable Costs/unit |
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Term
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Definition
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Term
PERT Practice Problem
To = 2 days; Tm = 4 days; Tp = 10 days |
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Definition
| 2+4(4)+10 / 6 = 28/6 = 4.66 days |
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Term
Break-Even Point Practice Problem
You want to make profit of $5000
FC = $50,000; P = $10; VC = $4 |
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Definition
| 50,000+5,000 / $10 - $4 = 9166.67 = 9167 units |
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Term
| Strategic Management definition |
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Definition
Seeking a competitively superior organization-environment fit
Cutting edge for entire management process |
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Term
Strategic Management
relationship to strategic planning, implementation, and control |
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Definition
| Strategic Management = Strategic Planning + Implementation + Control |
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Term
Key Dimensions of Strategic Farsightedness
Organizational Strategy and Competitive Advantage |
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Definition
1. Written and communicated long-term
2. Be the leader |
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Term
Key Dimensions of Strategic Farsightedness
Organizational Structure & Research and Development |
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Definition
3. Flexible, change, upward & lateral communication, adaptability, & speed
4. new, innovative |
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Term
Key Dimensions of Strategic Farsightedness
Return and Personnel Administration |
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Definition
5. Emphasis on short-term profits
6. long-term, asset |
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Term
Key Dimensions of Strategic Farsightedness
Problem Solving and Management Style |
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Definition
7. Finding Solutions
8. Multilevel, long-term implications |
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Term
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Definition
When 2+ variables interact to produce an effect greater than the sum of the effects of the variables acting independently
1+1=3 effect |
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Term
Synergy Types
Market and Cost |
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Definition
1. When 1 product or service fortifies sales of one or more products/services
2. Using same overhead costs to produce other products |
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Term
Synergy Types
Technological |
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Definition
| Transferring technology from one application to another |
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Term
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Definition
| When a management team is more productive because its members have *complementary skills* rather than identical skills |
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Term
Porter's Model
Cost Leadership (Cost Focus, Broad Target) |
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Definition
Concern for keeping costs lower than competitions
Focus on economies of scale and productivity improvement |
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Term
Porter's Model
Differentiation (Differentiation, Broad Target) |
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Definition
Unique product
Cost reduction is not highest priority |
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Term
Porter's Model
Cost Focus (Cost Focus, Narrow Target) |
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Definition
| Gaining competitive edge in a narrow or regional market by exerting strict cost control |
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Term
Porter's Model
Focused Differentiation (Differentiation, Narrow Target) |
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Definition
| Delivering a superior product/service to a limited audience |
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Term
Porter's Model
Difference between Cost Focus and Differentiation |
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Definition
| Cost focus exploits differences in cost behavior in some segments, while differentiation focus exploits the special needs of buyers in certain segments |
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Term
Business Ecosystems
Key Theme |
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Definition
| Organizations need to be as good at cooperating as they are at competing if they are able to succeed |
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Term
Strategy-Making Modes
Traditional
Command, Symbolic, and Rational |
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Definition
1. Commanders and Soldiers
2. Coaches and Players
3. Bosses and Subordinates |
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Term
Strategy-Making Modes
Modern
Transactive and Generative |
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Definition
1. Facilitators and Participants
2. Sponsors and Entrepreneurs |
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Term
Strategic Management Process
1. Formulation of a Grand Strategy |
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Definition
| General explanation of how the organizations mission is to be accomplished |
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Term
Strategic Management Process
2. Formulation of Strategic Plans |
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Definition
Turning ideas into concrete and measurable strategic plans, policies, and budget allocations
Who, what when and how things are to get done and for how much |
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Term
Strategic Management Process
3. Strategic Implementation |
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Definition
| Systematic filtering-down process where strategic plans require further translation into successive lower-level plans |
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Term
Strategic Management Process
4. Strategic Control |
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Definition
| Helps keep plans on track; should be designed ahead of time; tests channels for information on progress; detect and correct downstream problems |
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Term
| What is the main reason for perception? |
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Definition
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Term
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Definition
| Can kill any excellent strategic management program |
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Term
| What can help foster commitment? |
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Definition
| Participative management and influence tactics |
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Term
| Situational (SWOT) Analysis |
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Definition
| Technique for matching organizational strengths and weaknesses with environmental opportunities and threats to determine the organizations niche. |
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Term
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Definition
| Predictions, projections, or estimates of future events or conditions in the environment in which the organization operates |
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Term
| Event Outcome Forecasting |
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Definition
| Predictions of the outcome of highly probable future events |
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Term
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Definition
| Predictions of when, if ever, a given even will occur |
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Term
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Definition
| Estimates of future values in a sequence of periodically recorded statistics |
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Term
| Scenario Analysis Definition |
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Definition
| Written description of alternative but equally likely future conditions |
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Term
Scenario Analysis
"No Surprise" |
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Definition
| 2-4 scenarios and develop alternative strategies |
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Term
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Definition
| Hypothetical extension of a past pattern of events or times series into the future |
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Term
| **Reason why managers at all levels need a general understanding of strategic management |
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Definition
| Greater *teamwork* and *cooperation* throughout the planning/control cycle are eroding the traditional distinction between those who plan and those who implement plans |
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Term
| Decision Making Definition |
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Definition
| The process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation |
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Term
Sources of Complexity for Today's Decision Makers
Multiple Criteria, Intangibles, and Risk and Uncertainty |
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Definition
1. Conflicting Interests
2. Goodwill, morale
3. Costs of poor decisions |
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Term
Sources of Complexity for Today's Decision Makers
Long-Tern Implications and Interdisciplinary Input |
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Definition
1. Unintended impact
2. Complex and Technical |
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Term
Sources of Complexity for Today's Decision Makers
Pooled Decision Making and Value Judgements |
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Definition
1. Multifunctional
2. Different backgrounds |
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Term
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Definition
| Exists when there is NO DOUBT about the factual basis of a particular decision and its outcome can be predicted accurately |
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Term
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Definition
| When a decision is must be made on the basis of incomplete but reliable factual information |
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Term
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Definition
| Derived mathematically from reliable historical data |
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Term
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Definition
| Estimated from past experience or judgement |
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Term
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Definition
| Exists when little or no reliable factual information is available |
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Term
Information Processing Styles
The Thinking Style |
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Definition
| Managers who rely predominantly on the thinking style tend to be logical, precise, and objective |
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Term
Information Processing Styles
The Intuitive Style |
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Definition
| Managers see things in complex patterns rather than in logically ordered bits and pieces |
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Term
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Definition
| Solid factual basis allows accurate prediction of decision's outcome |
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Term
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Definition
| Decision made on basis of incomplete but reliable information |
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Term
| Conditions of Uncertainty |
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Definition
| No reliable factual information is available |
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Term
| When is decision confidence highest? |
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Definition
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Term
| When is decision confidence lowest? |
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Definition
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Term
Decision Traps
Framing Error |
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Definition
| Tendency to evaluate positively presented information favorably and negatively presented information unfavorably |
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Term
Decision Traps
Escalation of Commitment |
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Definition
| Tendency to get locked into losing courses of action because quitting is personally and socially difficult |
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Term
Decision Traps
Overconfidence |
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Definition
| Researchers found that the more difficult the task, the greater the tendency for people to be overconfident |
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Term
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Definition
Decisions that are repetitive, routine, and common in day-to-day operations
Ex: Hiring, Billing, Supply reorder |
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Term
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Definition
Decisions that are made in complex, important, and nonroutine situations, often under new and largely unfamiliar circumstances
Calls for *creative problem solving* |
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Term
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Definition
| Tells when and how programmed decisions should be made |
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Term
| How do you generate a nonprogrammed decision? |
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Definition
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Term
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Definition
| Developing a system to improve the creation and sharing of knowledge critical for decision making |
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Term
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Definition
Personal, intuitive, and undocumented private information
Generally only learned through experience |
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Term
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Definition
| Readily sharable public information in verbal, textual, visual, or numerical form |
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Term
Ways Groups Can Be Involved in Decision Making
1/2 |
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Definition
1. Analyzing the problem
2. Identifying components of the decision situation
3. Estimating components of the decision situation (Ex: calculating probabilities) |
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Term
Ways Groups Can Be Involved in Decision Making
2/2 |
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Definition
4. Designing alternatives
5. Choosing an alternative |
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Term
When Should The Group Not Make a Decision?
1/3 |
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Definition
| When the decision will have significant impact on organizational success or failure |
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Term
When Should The Group Not Make a Decision?
2/3 |
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Definition
| When the decision has legal ramifications |
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Term
When Should The Group Not Make a Decision?
3/3 |
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Definition
| When a competitive reward is tied to a successful decision |
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Term
When Should The Group Not Make a Decision?
What do all three situations have in common? |
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Definition
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Term
Advantages of Group-Aided Decision Making
1/2 |
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Definition
1. Greater pool of knowledge
2. Different perspectives
3. Greater comprehension |
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Term
Advantages of Group-Aided Decision Making
2/2 |
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Definition
4. Increased acceptance
5. Training ground |
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Term
Disadvantages of Group-Aided Decision Making
1/2 |
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Definition
1. Social pressure
2. Domination by a vocal few
3. Logrolling (political wheeling and dealing) |
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Term
Disadvantages of Group-Aided Decision Making
2/2 |
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Definition
4. Global displacement
5. Groupthink (desire for unanimity over sound judgement when evaluating alternatives) |
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Term
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Definition
| The reorganization of experience into new configurations |
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Term
Mental Locks on Creativity
1-3/10 |
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Definition
1. Looking for the "right" answer
2. Always trying to be logical
3. Strictly following the rules |
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Term
Mental Locks on Creativity
4-6/10 |
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Definition
4. Insisting on being practical
5. Avoiding ambiguity
6. Fearing and avoiding failure |
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Term
Mental Locks on Creativity
7,8/10 |
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Definition
7. Forgetting how to play
8. Becoming too specialized |
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Term
Mental Locks on Creativity
9,10/10 |
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Definition
9. Not wanting to look foolish
10. Saying "I'm not creative" |
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Term
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Definition
| The conscious process of bring the actual situation closer to the desired situation |
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Term
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Definition
| The difference between an actual state of affairs and a desired state of affairs |
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Term
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Definition
| Variables that, because of their presence or absence from the situation, are primarily responsible for the difference between the actual and desired conditions |
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Term
Problem Solving Process
1 & 2 |
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Definition
1. Identifying the problem
2. Generating alternative solutions |
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Term
Problem Solving Process
3 & 4 |
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Definition
3. Selecting a solution
4. Implementing and evaluating the solution |
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Term
| Stumbling Blocks for Problem Finders |
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Definition
1. Defining the problem according to a possible solution
2. Focusing on narrow, low-priority areas
3. Diagnosing problems in terms of their symptoms |
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Term
Generating Alternative Solutions
1-3/6 |
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Definition
1. Brainstorming - group technique
2. Free Association - analogies and symbols
3. Edisonian - Trail and error |
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Term
Generating Alternative Solutions
4-6/6 |
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Definition
4. Attribute listing
5. Scientific method - hypothesis testing, manipulation of variables
6. Creative leap - working back to a feasible solution |
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Term
How to Handle Problems
1/3 |
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Definition
Resolving the problem
*Satisfice: settle for a solution that is good enough rather than the best possible |
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Term
How to Handle Problems
2/3 |
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Definition
Solving the problem
*Optimize: systematically identify the solution with the combination of the best benefits |
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Term
How to Handle Problems
3/3 |
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Definition
Dissolving the problem
*Idealize: change the situation so that the problem no longer exists |
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