Exam 3 Class Notes (koofers)

Exam 3 Class Notes (koofers) - Midterm 3 Class Notes April...

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Unformatted text preview: Midterm 3 Class Notes April 4, 2011 MGT 3304 ! ! ! ! Teams are like geese o Interdependent members o More efficient working together o Not always the same leader o Support each other o Support the leader Groups and Teams o Group‐ like a class o Team ! Complementary ! Common purpose ! Mutually accountable How do groups differ from individuals? o More “effort” resources o Potentially greater variety ! Knowledge, skillfulness, perspective o Communication and coordination‐ you have to talk to each other and figure out who is doing what o Time‐ more time consuming o Responsibility (sole vs. ambiguous) ! Sole‐ you have responsibility and you know it ! Ambiguous‐ hard to know what you are responsible for o Synergy and process losses ! Source of process losses (failure to participate fully) ! Status effects‐ early stages of group development people tend to infer status by what you see and it effects how you act in groups ! Groupthink‐ group gets together and you have the pressure to agree. The challenger that blew up is an example, there was a potential for a disaster but they were late and over budget; but they had pressure to agree to the launch ! Abilene paradox‐ paradox‐ statement that seems self‐contradictory. A situation where a group of people decide on a course of action that nobody wants to do o Driving to Abilene and no one wanted to go but they all decided to go because of the others Managing Team Conflict*** on test!! 1 | P a g e ! ! ! Both want to see a movie. He: fight club; Her: the notebook. o Avoidance‐ ignore the problem (Decide not to go to either) o Domination (well we are going to see fight club so suck it up) o Accommodation (yes darling wt can go to yours) o Compromise (let’s just go see the wedding crashers, you don’t get what you want but what you get is okay) o Collaboration (win win situation, wow, we both really want to see this other movie) Group Dynamics o Team norms‐ are they always positive? Group expectations, not always positive ! Only producing a certain amount o Team roles ! Good ! Initiator ! Encourager ! Harmonizer ! Gate keeper ! Bad ! Attention seeker ! Topic jumper ! Dominator ! Blocker ! Withdrawer “all happy families are alike; each unhappy family is unhappy in its own way.” Characteristics of successful teams 1. Commitment to a common purpose a. Commitment‐ doing what you don’t want to do when you don’t want to do it 2. Common understanding of two to achieve their purpose 3. Mutual trust 4. Cohesiveness‐ how you associate with the team, how much you like being a part of that team 5. Good communication ! The Manager’s Role *** o Get everyone involved o Ask the right questions o Find the right balance ! CHART ! Team Building Activities o Build cohesion o Improve communication o Video clip‐team building 2 | P a g e April 6, 2011 MGT 3304 Leadership ! ! ! ! ! ! ! How does leadership differ from management? o Manager‐ person whose influence on others is based on the appointed managerial authority of their position o Leader‐ person with personal power who can influence others beyond that associated with their formal authority alone Types of power Power of the Position (Managerial Authority Power of the Person (Leadership) Legitimate power Expert Power Reward power Referent Power Coercive power What traits/characteristics do leaders have? o Intelligence o Honesty o Ethical o Motivation o Confidence o Charismatic o Competent o Sociability o Technically proficient o EI o Encouraging o Vision Where do leaders learn to lead? o Experience, learning from others (their experience, or leaders of the past) What do people want in leaders? o *Integrity‐ telling the truth to yourself, doing the right thing even when no one is looking. Going beyond just telling the truth o Honesty‐ telling the truth to other people Research on leadership o Traits‐ historically focused on traits o Behaviors‐ task or people focus o Situation Behavior‐ people focus 3 | P a g e o o ! ! ! ! ! ! ! ! Make the other person feel important! Examples‐ ! Using a person’s name (Teddy Roosevelt, Franklin Roosevelt, Napoleon) ! “how to win friends and influence people” ! Showing sincere appreciation (Charles Schwab) ! Ask instead of order‐ you have the formal authority but it sounds better if you ask nicely (Abraham Lincoln) Making people feel important is necessary, but it’s not enough. Behavior‐ task focus o Deliver results! o Examples: ! Hold employees accountable ! Making difficult decisions ! Resolving uncertainties Successful Leadership Behavior o People focused‐ show people you care! o Task focused‐ Get the job done! Leadership Managerial Grid o Impoverished‐ not people or production oriented o Produce or perish‐ you have little regard for people and you are focused on production o Country club‐ you are focused on the people but you don’t really care about production o Team leader‐ you are production AND people oriented Charisma (Princess Diana) o A special quality of personality that inspires allegiance and devotion o [personal magnetism or charm that inspires fascination o Ex. John F. Kennedy, Martin Luther King, Barrack Obama Nixon vs. Kennedy‐ the first televised presidential debate (1960) Vince Lombardy‐ green bay packers coach‐ he cared, worked hard and knew people Charismatic leadership (not always good people like Oprah and Princess Diana, but bad people like Hitler and Jim Jones) o Compelling vision‐ mental picture of the future (where we want to go), person in charge has a plan o Inspire in their followers trust, admiration, affection and even obedience ! Jim Jones‐ 900 followers committed suicide ! Hitler‐ tons of people April 11, 2011 MGT 3304 Leadership (continued) 4 | P a g e ! ! ! ! ! ! Transformational Leadership (charismatic leaders) o Enthusiastically and effectively communicate their vision to others o Transform employees to pursue organizational goals over self‐interests o Ex. Bill Gates, Kelleher‐ Southwest Airlines Leadership at every level 1. Servant leadership 2. Followership 3. Self‐leadership Servant Leadership o The servant leader is a servant first o Humility is a leadership quality ! “invert your pyramid” ! Servant‐ I am here to support and serve the organization. Support not to preside ! “if you’re too big for a small job, then you’re too small for a big job” Followership o Leading through a willingness to help those in leadership positions o The importance of the first follower (dancing video, the best way to help start a movement is to be the first follower, because without a follower you aren’t a leader) o Understanding the importance of speaking out…and doing it! o Ex. Joseph Stalin: 700 million people were killed if they opposed him, 6 million died because of a famine that happened because of grain being exported; next was Nikita Kruschev: denounced Stalin but never said anything to stop him (he was a close advisor); Bernie Madoff‐ Ponzi Scheme “They had to know. The attitude was sort of, ‘if you’re doing something wrong, we don’t want to know.’” Self‐leadership o Before you can effectively lead others, you must lead yourself Becoming an effective leader (Appendix pg. 540) o Attitude ! Positive, Humility, and Work ethic ! “Attitude reflects leadership “(remember the titans) o Behavior ! Show you care‐ be available ! Deliver results‐ you have to be able to overcome obstacles o Character ! Integrity and courage April 13, 2011 MGT 3304 Communication 5 | P a g e ! ! ! ! ! ! ! Communication‐ the transfer of information and understanding form one person to another. Why is communication important? o Because the result of miscommunication is important ! Something funny can occur ! Something could seriously go wrong The Communication Process o Sender‐ teacher o Encoding‐ talking, video clips o Channel‐ face‐to‐face, unless you are taking notes for someone else then it is written o Decoding‐ interpretation o Receiver‐ me o Feedback‐ how effectively you are receiving and decoding the message; test results o Noise‐ everything else that is going on Web clip‐ The Terminal: barriers to communication; noise: talking fast, not looking, emotional noise Barriers to Communication o Intentional filtering‐ deliberate manipulation of what you are saying so they hear what you want them to hear (there is a parent at the party, but in reality it is just an 18 year old friend) o Perceptual filtering‐ unintentional, individual personalities pick up on different things and different things stay with them. (notice in a break room about softball, one person never even notices it because they don’t like sports; another person sees it the first day it is put up) o Selective perception‐ screening out what you don’t want to hear or inconsistent with needs or wants; only hear what makes sense in your mind (play‐date) o Information overload‐ when you just have so much information you cannot process it (a 3 hour class or when you turn down the radio when you are driving in a new place) o Language‐ not only speaking a different language; but the types of words you use, and the different uses of words Managers should actually try to minimize encoding errors. Effective Presentations (encoding) o Know your audience ! Class activity o Focus on content. Answer likely questions o Give conclusions first, then data o Short and Simple (S&S) o Use visual communication o Non‐verbal speaks the most ! Presidential debate on tv ! Visually‐ how you say it Non verbal is 65‐90% ! Vocally‐ how you say it of communication 6 | P a g e ! ! ! ! ! Verbally‐ what you say o Don’t let your emotions take over Decoding o Hearing is not listening o The key to being a good communicator Feedback o Most communication mistakes can be avoided simply by seeking (sender) or giving (receiver) feedback o Communication is the transfer of information and understanding form one person to another Who’s responsibility? o In business, it is always the manager’s fault if communication fails. Think about it…what is at stake if the communication fails? Quiz Time o o o o o What type of communication barrier? Perceptual Richest‐ face‐to‐face Leanest‐written Perceptual happens during the decoding process Intentional filtering‐ encoding April 18, 2011 MGT 3304 Management Functions ! ! ! ! ! Planning Organizing Leading Controlling An effective control system helps an organization achieve its goals. The more a system helps goals get achieved the more effective the control system is. The Control Process (a continuous process) ! ! ! ! Identify the standard Measure actual performance Compare actual against the standard Evaluate and correct if necessary 4. Corrective Action 7 | P a g e ! ! Change the behavior o Effort‐ I want to grab a coffee on my route o Skillfulness‐ I don’t know how to read the order o Tactics‐ maybe our delivery route is bad Revise the standard‐ change the goal because it is unrealistic Simple control system example (thermostat): ! ! ! Establish desired temperature Measure actual Corrective action‐ fans/heat Transformation process ! ! ! ! Inputs o People o Technology o Capital o Equipment o Materials o Information Transformation process Outputs o Goods o Services The process through which an organization creates value by turning inputs into outputs *Types of control* ! ! ! Feedforward control‐ anticipates problem; prevents defects from occurring; most desirable control Concurrent control‐ corrects problems as they happen; something has to be measured and deemed wrong (so its not immediate) ex. When you are typing and you make a spelling mistake, you type it and then it almost immediately fixes it as soon as it sees it is wrong. Feedback control‐ corrects problems after they occur; most common type of control; least effective; ex f/s Things companies control for ! Employee behavior‐ they do audit to make sure things are turning out okay. o Approaches to control ! Bureaucratic‐ the use of rules, standards and legitimate authority to guide performance ! Clan‐ regulates employee behavior based on the organization’s culture 8 | P a g e ! Quality‐ concurrent controls o Statistical process control‐ measure something for a specific standard How much to control? ! ! ! ! Is “the more the better” a good business approach to managerial control? Cost is high when you are making junk As quality improves the costs due to nonconformance drops Cost of quality increases as you go from making junk to all quality products Taking it too far? ! Officials in Frankfurt, Germany considered fitting dogs with id plates so passerby could notify police of the identity of pets that fouled the pavement What to control? ! ! ! “what gets measured gets done.” Measure the right things Measure enough things April 20, 2011 MGT 3304 The Control Function ! ! Customer satisfaction survey? Feedback control Did you find everything alright? Concurrent control Financial Statement Basics ! ! Income statement‐ profit or loss over a period of time (profit loss statement; P&l; statement of income; statement of operations) o Revenue‐expenses= Profit (loss) o Revenue = Price * Quantity o COGS‐ direct costs o SG&A‐ selling general and administrative expenses Balance Sheet o Reports the assets, liabilities and owner’s equity at a specific point in time o Assets= Liabilities + stockholders equity Transactions and their impact on financial statements 1. Selling a product or services‐ revenue increase, COGS increases, Cash or A/R increases, Supplies decrease, wages payable increases (labor) 9 | P a g e 2. Producing goods in one month that are not sold until the next‐ inventory increases, wages payable increases and supplies decrease. 3. Purchasing new plant or equipment‐ cash decreases or notes payable increases, plant/equipment asset increase. Depreciation occurs on I/S it is a non‐cash expense; you are spreading the expense over the life of the product 4. Undertaking a companywide training initiative‐ under an “other” expense on I/S. Financial Ratios ! ! ! ! ! netMBA.com‐ reading assignment Liquidity Ratio‐ how fast you can turn assets into paying off liabilities Asset turnover‐ how efficiently the firm utilizes assets Financial leverage ratio‐ long‐term financial situation; debt compared to assets Profitability ratios‐ measures success of the firm at generating profit Financial Basics ! ! Financial ratios‐ compare organizations of different sizes Income statements and balance sheet‐ reviewing both and review changes over time can provide an understanding of an organizations financial position. Operations Management ! Transformation process‐ taking inputs and making them outputs (goods) Key Measures of Success ! Priority o Safety ! Occupational safety and health administration (OSHA) ! Poor safety is costly o Quality ! What does “quality” mean? ! Defect‐free ! Satisfies customer needs ! Total quality management (TQM) ! Quality management systems ! Example: ISO9000 ! Purpose: standardization and efficiency ! What vs. How: a list of things that you must have (what) but there is now how because every company has their own way of figuring it out. 10 | P a g e o o o o ! Productivity ! Productivity = outputs/inputs ! Lean manufacturing‐ Toyota production system ! Lean enterprise‐ beyond manufacturing ! Lean philosophy (developed due to Japanese economy) ! Waste elimination is the heart of lean enterprise ! Waste‐ anything other than the minimum amount of equipment, materials, space and worker’s time which is essential ! Lean‐ getting more done with less o Just‐in‐time production (JIT) o Built‐in quality ! Scrap‐ making defective products that have to be thrown always ! Labor and raw materials‐ re‐making defective parts that were thrown away or shipped to the customer o Just in time manufacturing‐ producing the right item at the right time in the right amount “pull system” vs. push system o Set‐up reduction‐ the process of eliminating waste and reducing set‐up time; reduced extra steps, corrections and motion by establishing standard operating procedures (“who’s” one best way?) eliminated re‐do’s, eliminated steps taken during the set‐ up that could wait until the process had started again Operations management o Customer focus: what do customers want? ! A lower price ! High‐quality ! Quick service April 25, 2011 MGT 3304 Bryan Stinefield ! Product identification and traceability‐ peanut salmonella, they had to figure out how to trace where all the bad peanuts went Process control‐ health care, you have to make sure certain things happen like labeling the babies with id tags as soon as they are born Control of non‐conformance‐ making sure that you were always within a specific threshold Team Work 11 | P a g e ! ! ! ! ! o Trust o Respect o Caring o Communication o Responsibility Conquer adversity o Prepare o React Attitude o Focus o Reality o Stay positive o Set goals Hard work o Annual schedule o Weekly schedule o Have a plan Maintain priorities Additional o Thermostat vs. thermometer o Chess and checkers o Barn building o Cathedral building Exam 3 ! ! ! ! ! ! ! Groups and teams‐ 13 Leadership‐ 14 Communication‐ 15 Managerial control‐16 Financial basics‐ lecture and financial ratio (www.netbma.com) Operations management lecture Coach Bryan Stinespring’s presentation The stage of group development at which power politics are most likely to result in open rebellion is the storming stage. The question the group is asking during the forming stage of group development is: why are we here? Which of the following is a disadvantage of smaller groups? Less knowledge Self‐managed teams are groups of workers who have been given administrative oversight for their task domains. 12 | P a g e A newly married couple each wants the couple to spend the holiday with their own family, as they have always done. Ended up thanksgiving with dad and christmase with mom. Compromising Power deriving form one’s personal attraction is called referent power. Reward power, giving a bonus. The model that suggests that an effective leader makes available desirable rewards and then clarifies how subordinates can achieve personal and organization objectives is: house’s path‐goal model Make sure to read: gender studies p. 433 Chipping golf balls in the back yard, my husband told our 4 year old son to “turn the clucb blah blah golfblah” “daddy the golf club doesn’t have a face.” Jargon The process of interpreting and trying to make sense of what someone has said is called decoding Now concurrent control, feedforward, and feedback controls!!!!!!! Financial Ratios Liquidity ratios Asset turnover ratio Financial leverage ratios Profitability ratios Focus on what they tell you and why you would use ratios 13 | P a g e ...
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This note was uploaded on 12/14/2011 for the course MGT 3304 taught by Professor Cpneck during the Fall '07 term at Virginia Tech.

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