Exam 1 outline

Exam 1 outline - BMGT364 EXAM 1 OUTLINE 1 Management and...

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BMGT364 EXAM 1 OUTLINE 1. Management and Organization Theory Believing that management is common sense produces some dangerous half truths o Financial incentives drive company performance Get the rewards right and everything else will follow Financial incentives are very important for driving company performance Reward systems signal what is important, and therefore, focus attention Money motivates and directs behavior Incentives matter but… Sometimes you get what you pay for, but don’t want it Surveys show that people at work are motivated by many factors that they rate as more important than money Extrinsic incentives can undermine intrinsic motivation Monetary rewards are expensive and lose their effectiveness – a raise is only a raise for 30 days, then it is your salary o Strategy is #1 Companies spend most of their emphasis on consulting dollars on strategy. Strategy consulting is more expensive and higher end than HR or IT implementation The logic is that doing the wrong thing well is a recipe for failure. Success comes from knowing what to do to compete effectively Strategy is #1 but… What is difficult to imitate is the ability to execute, which comes from culture and processes that are harder to ascertain and more difficult to copy Richard Kovacevich- CEO of Wells Fargo Bank- “I could leave our strategic plan on a plane, and it wouldn’t matter. No one could execute it. Our success has nothing to do with planning. It has to do with execution.” o The company with the best people wins Hiring talent is the path to success, and the best organizations have the smartest people Research shows that in many tasks such as computer programming, the most productive out-produce the least productive by many times, and therefore, selection matters The people make the place, in that even an organization’s culture and climate come from the types of people who are recruited Selection does matter but… Talent is neither fixed nor necessarily easily assessed The quality movement maintains that it is the SYSTEM that determines performance, not individual ability or motivation Numm i: New United Motor Manufacturing, Inc. o Pontiac Vibe, Toyota Corolla, Toyota Tacoma o Plant size: 5.3 million square feet o Provided a comparison- productivity and quality of the same people, different system- GE and Nummi Overall Production GE: 43.1 hours per car… NUMMI: 20.8 hours per car Adjusted Production GE: 30.8 hours per car… NUMMI: 19.6 hours per car Quality index GE: 2.6-3.0… NUMMI: 3.6-3.8 Evidence-Based management o A way of thinking The attitude of wisdom-knowing what you know and knowing what you don’t know
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Being committed to “fact based” and “evidence based” action o Running experiments and learning from the data Video: Las Vegas, Inc Harrah’s competitive advantage= computer system called Decision Total rewards = Loyalty program
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This note was uploaded on 11/14/2010 for the course BMGT 364 taught by Professor Wellman during the Fall '08 term at Maryland.

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Exam 1 outline - BMGT364 EXAM 1 OUTLINE 1 Management and...

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