Introduction of Management : Review

CHAPTER 9 : ORGANIZATIONAL AGILITY

THE RESPONSIVE ORGANIZATION

The formal structure is put in place to control people, decisions, and actions. But in today’s fast-changing business environment, responsiveness-quickness, agility , the ability to adapt to changing demands-is more vital than ever to a firm’s survival. Mechanistic organization is a form of organization that seeks to maximize internal efficiently. Organic structure is an organizational form that emphasize flexibility.

STRATEGY AND ORGANIZATIONAL  AGILITY

Organizing around Core Capabilities

                A core competence gives value to customers, makes the company’s  products different from-and better than –those of competitors, and can be used in creating new products.

Strategic Alliances

                A strategic alliance is a formal relationship created with the purpose of joint pursuit of mutual goals.

The Learning Organization

                A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

The High-Involvement Organization

                In high-involvement organization, top management ensure that there is a consensus about the direction in which the business heading.

ORGANIZATIONAL SIZE AND AGILITY

The Case for Big

                Size creates scale economics,-that is,lower costs per unit of production. And size can offer specific advantages such as lower  operating costs, greater  purchasing power,and easier access to capital.

The Case for Small

                Small size may improve speed. A salesperson learns about a customer’s new challenge.

Being Big and Small

                Small is beautiful for unleashing energy and speed. But in buying and selling, size offers market power. The challenge, then,is to be both big and small to capitalize on the advantages of each.

CUSTOMERS AND THE RESPONSIVE ORGANIZATION

Customer Relationship Management

                Customer Relationship Management is a multifaceted process, typically mediated by a set information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns.

Total Quality and Six Sigma

                Total quality management is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends of having high-quality products. Six sigma quality is a method of systematically analyzing work processes to identify and eliminate virtually all causes defects, standardizing the processes to reach the lowest practicable level of any cause ofcustomer dissatisfaction.

ISO 9001

                ISO 9001 is a series of quality standards developed by a committee working under the International for Stadarization to improvefe total quality in all business for the benefit of the producers  and consumers.

Reengineering

                Organizations also have embrace the notion of reengineering,the principal idea of reengineering is to revolutionize key organizational systems and processes to answer this question,”if you were the customer, how would you like us to operate ?” the answer to this question forms a vision for how the organization should run, and then decisions are made and actions are taken to make the organization operate like the vision.

TECHNOLOGY AND ORGANIZATIONAL AGILITY

                Technology systematic application of scientific knowledge to a new product, process, or service.

Types of Technology Configuratios

                These three classifications are equally useful for describing either service or manufacturing technologies.

1.       Small Batch Technlogies

2.       Large Batch Technologies

3.       Continuous Process Technologies

Organizing for Flexible Manufacturing

                Mass costomization, the production the production of varied. Individually customized products at the low cost of standardized. Mass produced products.

o   Computer Integrated Manufacturing

The use of computer aided design and computer aided manufacturing a number of production processes.

o   Flexible Factories

Manufacturing plants that have shorts production runs, are organized around products, and use decentralized scheduling.

o   Lean manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Organizing for Speed : Time Based Competition

                Time Based Competition refers to strategies aimed at reducing the total time needed to deliver the good or service.

o   Logistics

The movement of the right goods in the right amount to the right place at the right time.

o   Just In Time Operation

Just In Time Operation calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage in the process precisely at the time needed, or “just in time”.

o   Concurrent Engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high quality products that meet costumer’s needs.

Introduction of Management : Review

CHAPTER 8 : ORGANIZATION STRUCTURE

 

Fundamentals of Organizing

        We often begin to describe a firm’s structure by looking at its organization chart . The organization chart depicts the positions in the firm and the way they are arranged or the reporting structure and division of labor in an organization. Although the organization chart presents some important structural features,other design issues related to structure-while not so obvious-are no less significant. Two fundamental concepts around which organizations structured are differentiation and integration. Differentiation means that the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods. Integration means that these differentiated units are put back together so that work is coordinated into all overall product.

The Vertical Structure

§  Authority in Organizations

Authority is the legitimate right to make decision and to tell other people what to do.

§  Hierarchical Levels

           Hierarchy is the authority levels of the organizational pyramid. Corporate governance is the role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders.

§  Span of Control

          The number of subordinates who report directly to an executive or supervisor is called the Span of Control.

§  Delegation

          Delegation is the assignment of authority and responsibility to a subordinate at lower level.

§  Decentralization

          Decentralized organization is an organization in which lower-level managers make important decision.

The Horizontal Structure

       Line departments isunis that deal directly with the organization’s primary goods and services. Staff departments is units that support line departments. Departmentalization is subdiving an organization into smaller subunits.

§  The Functional Organization

            In a functional organization,jobs are specialized and grouped according to business function and the skills they require : production, marketing, human resources, research and development, finance, accounting, and so forth.

§  The Division Organization

     The discussion of a functional structure’s weakness leads us to the divisional organization. Divisional organization is departmentalization that groups units around products, customers,or geographic regions.

§  The Matrix Organization

     A matrix organization is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff personnel report two bosses-a functional manager and a divisional manager.

§  The Network Organization

     The network organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service. A very flexible version of the network organization is the dinamic network-also called the modular or virtual corporation. It is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.

Organizational Integration

     A variety of approaches are available to managers to help them make certain that interdependent units and individuals will work together to achieve a common purpose.

§  Coordination by Standarization

Standarization contrains actions and intergrates various units by regulating what people to do. To improve coordination, organizations may also rely on formalization-the presence of rules and regulations governing how people in the organization interact .

§  Coordination by Plan

Coordination by plan does not require the same high degree of stability and routinization required for coordination for standarization. Interdependent units are free to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.

§  Coordination by Mutual Adjustment

Coordination by mutual adjustment involves feedback and discussion to joinly figure out how to approach problems and devise solutions that are agreeable to everyone.

§  Coordination and Communication

    To cope with high uncertainty and heavy information demands, managers can use two general strategie:

Option 1 : Reducing the Need for Information

    Managers can use the need information in two ways (a) creating slack resources and (b) creating self-contained tasks.

Option 2 : Increasing Information-Processing Capability

    Instead of reducing the need for information, an organization may take approach of increasing its information-processing capability.

Chapter 6 : Management International

Concluding Case – Travel Wise Spans The Globe

Chapter 6 : International  Management

            Travel Wise is a small firm with 25 employees based outside Denver, Colorado. "We take travel to new heights" is the firm's slogan, referring to Denver's mile-high elevation above sea level For more than a decade, Travel Wise has manufactured and sold travel accessories wallets, passport holders, travel purses money belts, and the like. Most of the goods are outsourced to overseas manufacturers, where labor and materials are less expensive than they would be in the United States. However, Travel Wise founder Cindy Kirsch works closely with her suppliers in India and China, visiting them frequently to ensure that workers are paid well and treated fairly, earning an income that affords them a comfortable living.

            Kirsch wants Travel Wise to expand, and she has discussed her plans with her design. production. marketing, and financial managers. Although each person has an area of expertise. the size of the company dictates that everyone must know the inner workings of the firm. And Kirsch welcomes ideas from all corners. and First, Kirsch wants to increase the number of products offered, adding a line of travel clothing. Second, she wants to investigate the possibility of producing the firm's own guidebooks to exotic destinations. Third, she wants to expand the firm's website to include blogs, travel information services and the like. Each of these initiatives requires a strategy that must take into consideration the global business environment  , Adding a line of clothing would mean evaluating design and manufacturing alternatives, both in the United States and abroad. Creating a series of travel guides would mean hiring travel writers; establishing relationships with travel bureaus, agencies, and governments; and learning the publishing business. Expanding the website would mean deter-mining in which regions of the world most of her customers live and where they want to travel and investigating what types of services consumers might want from the site.

            Kirsch and her management staff have several lively discussions before coming up with a plan for the growth of Travel wise. Then she gathers the entire staff together to discuss the new goals and plans. She solicits ideas from them and later incorporates those that appear to be viable. Ultimately Travel Wise has a strategy for its next level of growth. Kirsch is excited but nervous, knowing that her employees are counting on the firm's success. But she knows that they will work around the clock if necessary to make Travel wise the brand that travelers turn to for more than just accessories-now it will be clothing, guide- books, and online support. In the next few years. Travel Wise will be taking travel to even greater heights.

QUESTIONS

1. What type of entry mode would you recommend that Travel Wise use for its new line of clothing in U.S. markets? In foreign markets? Should the clothing be outsourced to suppliers overseas, or should Travel Wise consider building its own manufacturing facility here in the United States?
2. What features and services might Travel Wise offer on its expanded website that would appeal to travelers from Europe, Asia, and other parts of the world?
3. What types of relationships must Travel Wise forge in other countries to produce accurate, up-to-date, insightful travel guides?

ANSWER

1. According to us , we will suggest a travel wise to use global sourcing method of processing and purchase of components from different corners of the world. Then assembles them into a final product. In other words, this is a truly internasonal division of labor, which means that certain activities will be carried out in countries that can doing production at lower costs. And we suggest a travel wise to consider manufactured production outside the country, because the cost of production outside the contry will cheaper.
2. Features and services that may be offered by travel –wise in order to attract the attention of tourists Asia,europe,and other countries are :

-Indroduce colorado culture through image and videos.

-The instruction  facilitate

-. The introduction facilitate of place.

-Search features Facilitate

-Communication Facilitate 

-Facilities translator

-Improve the disseminator of travel information via social media

3.   Relationship conducted by the wise travel in the production of an accurate up to date vision of travel guides by increasing the managing across borders, here we must would enhance skills of the global managers to be able to make the company the better and develop in the production, then necessary understanding cultural issues in order to the easier in promoting a travel by understanding the issue of cultural well, and also ethically issues international management in addressing issues ethical in the world international be in the face by the wise travel. With all the travel wise able to produce with accurate, up to date, vision of a travel.

REVIEW CHAPTER 4

CHAPTER 4 : PLANNING AND STRATEGIC MANAGEMENT

An Overview of Planning Fundamental

            Planning provides individuals and work units with a clear man to follow their future activities.

The Basic Planning Process

            Specific formal planning steps divided by sixth steps,these are :

            Step 1 : Situational Analysis. Situational analysis is a process planners use, within time and resource constraints,to gather,interpret, and summarize all information relevant to the planning issue under consideration.

Step 2 :Alternative Goals and Plans. The planning process should generate alternative goals that may be pursued in the future and the alternative plans that may be used to achieve those goals.

Step 3 : Goal and Plan Evaluation. Next managers will evaluate the advantages,disadvantages, and potential effects of each alternative goal and plan.

Step 4 : Goal and Plan Selection. Once managers have assessed the various goals and plans, they will select the one that is most appropriate and feasible.

Step 5 : Implementation. Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals.

Step 6 : Monitor and Control. Although it is sometimes ignored,the sixth step in the formal planning process-monitoring and controlling-is essential.

Levels of Planning

Strategic Planning

            A strategy is a patern of actions and resource allocations designed to achieve the goals of the organization. Strategic planning is a set of procedures for making decisions about the organization’s long-term goals and strategies. Strategic goals are major targets or end results relating to the organization’s long-term survival,value,and growth.

Tactical and Operational Planning

            Tactical planning is a set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization,such as a functional area like marketing. Operational planning is the process of identifying the specific procedures and processes required at lower levels of the organization.

Aligning Tactical,Operational, and Strategic Planning

            To be fully effective, the organization’s strategic, tactical, and operational goals and plans must be aligned-that is, they must be consistent,mutually supportive, and focused on achieving the common purpose and direction.

Strategic Planning

The strategic management process has six major components :

1.      Establishment of mission, vision, and goals.

Mission is an organization’s basic purpose and scope of operations. Vision is the reason of companies want to have a clear . Goals are a targets or end that management desires to reach.

2.      Analysis of external opportunities and threats.

The mission and vision drive the second components of the strategic management process analysis of the external environment.

3.      Analysis of internal strengths and weaknesses.

As managers conduct an external analysis,they will also asses strengths and weaknesses of major functional areas inside their organization.

·           Resources and core competencies. Resources are inputs to production (recall systems theory) that can be accumulated overtime to enhance the performance of a firm. Core competencies is something a company does especially well relative to its competitors.

·           Benchmarking. To assess and improve performance, some companies use benchmarking, the process of assessing how well one company’s basic function and skills compare with those of another company or set of companies.

4.      SWOT analysis and strategy formulation.

SWOT analysis is a comparison of strengths,weaknesses,opportunities, and threats that helps executives formulate strategy.

·           Corporate strategy , is the set of businesses,markets,or industries in which an organization comperes and the distribution of resources among those entities.

·           Business strategy , is the major actions by which a business competes in a particular industry or market.

·           Functional Strategy , is strategies implemented by each functional area of the organization to support the organization’s business strategy.

5.      Strategy implementation.

Strategic managers also must ensure that the new strategies are implemented effectively and afficiently. In general, strategy implementation involves four related steps :

1)             Define strategic task

2)             Assess organization capabilities

3)             Develop an implementation agenda

4)             Create an implementation plan

6.      Strategy control.

Strategic control system is a system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist,taking correcting action.

REVIEW CHAPTER 1 : MANAGING AND PERFORMING

CHAPTER 1 : MANAGING AND PERFORMINGa

Managing In the New Competitive Landscape

Management is a challenge requiring constant adaptation to new circumstances.

Globalization

            globalization has changed the face of the workforce. management in this new competitive landscape will need to attract and effectively manage a talent pool from all over the globe.

Technological Change

            The Internet’s impact on globalization is only one of the ways that technology is vitally important in the business world. Technology both complicates things and creates new opportunities. The challenges come from the rapid rate at which communication,transportation,information,and other technology change.

Knowledge Management

            Companies and managers need good new ideas. Because companies advanced economie have become so efficient at producing physical goods,most workers have been freed up to provide services or “abstract goods” such software,entertainment,data,and advertising. Knowledge management is the set of practices aimed at discovering and harnessing an organization’s intellectual resources.

Collaborating across “Boundaries”

            Collaborating across “boundaries” occurs even beyond the boundaries of organization itself. Companies today must motivate and capitalize on the ideas of people outside the organization.

                                              

Managing for Competitive Advantage

Good managers know that they are in a competitive struggle to survive and win.

Innovation

            Innovation is the introduction of new goods and services. Your firm must adapt to changes in consumer demands and to new competitors. The need for innovation is driven in part of globalization.

Quality

            Quality is the excellence of your product. The importance of quality and standards for acceptable quality have increased dramatically in recent years. Customers now demand high-quality goods and services,and often they will accept nothing less.

Service

            Service means giving customers what they want or need,when they want it. So service is focused on continually meeting the needs of customers to establish mutually beneficial long-term relatoships.

Speed

            Speed isn’t everything-you can’t get sloppy in your quest to be first. But other things being equl, faster companies are more  likely to be winners ,slow ones the losers.Speed is no longer just a goals of some companies; it is a strategic imperative.

Cost Competitiveness

            Cost competitiveness means keeping costs low enough so that the company cn realize profits and price its product (goods and sevices) at levels that are attractive to consumers.

Sustainability

            Sustainability is the effort to minimize the use of resources, especially those that are polluting and nonrenewable.

Delivering All Types of Performance

            Don’t assume that you can settle for delivering just one of six competitive advantages. The best managers and companies perform on all of these criteria.

The Functions of Management

            Management is the process of working with people and resources to accomplish organizational goals. Good managers do those things both effectively and efficiently. In the business world today, great executives not only adapt changing conditions but also apply-fanatically,rigorously,consistently,and with discipline-the fundamental management principle (planning,organizing,leading, and controlling).

Planning: Delivering Strategic Value

Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals. Planning is the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue.Value is a complex concept,it describes the monetary amount associated with how well a job, task, good, or serice meets users needs.

Organizing: Building a Dynamic Organization

Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Effective managers will be using new forms of organizing and viewing their people as perhaps their most valuable resources.

Leading: Mobilizing People

Leading is stimulating people to behigh performers. It includes motivating and communicating with employees, individually and in groups.

Controlling: Learning and Changing

Performing All Four Management Functions

Management Levels and Skills

Organizations-particularly large organizations-have many levels. The types of managers found at three different organizational levels:

1)      Top-Level Managers

Top-level managers are the senior executives of an organization and are responsible for its overall management. Top-level managers,often referred to as strategic managers,are supposed to focus on long-term issues and emphasize the survival,growth,and overall effectiveness of the organization.

2)      Middle-Level Mangers

Middle-level managers are located in the organization’s hierarchy below top-level management and above the frontline managers. Sometimes called tactical managers,they are responsible for translating the general goals and plans developed by strategic managers into more specific objectives and activities.

3)      Frontline Managers

Frontline managers or operational managers, are lower-level managers who supervise the operations of the organization. They are directly involved with nonmanagement employess, implementing the specific plans developed with middle managers.

Working Leaders with Broad Responsibilities

            In small firms-and in those large companies that hve adapted to the times-managers hve strategic,tactical,and operational responsibilities. Best managers can do it all; they are “working leaders”. They focus on relationship with other people and on achieving results.

Management Skills

            Pefrorming management functions and roles,and achieving competitive advantage,are the cornerstones of a manager’s job. Managers need a variety of skills to do these things well. Skills are specific that result from knowledge ,information,practice, and aptitude.A technical is the ability to peform a specialized task that involves a certain method or process. Conceptual and decision skills involve the ability to identify and resolve problems for the benefit of the organization and everyone concerned. Interpersonal and communication skills is people skills means the ability to lead, motivate, and communicate effectively with others.

You and Your Career

             Emotional intelligence is the skills of understanding yourself, managing yourself, and dealing effectively with others.

Be Both a Specialist and a Generalist

If you think your career will be as specialist,hink again. Chances are, you will not want to stay forever in strictly technical jobs with no managerial responsibilities.

Be Self-Reliant

            To be self-reliant means to take full responsibility for yourself,your action, and your career. To be self-reliant,find new ways to make your overall performance better.

Be Connected

            Being connected means having many good working relationships and interpersonal contacts and being a team player with strong interpersonal skills. Social capital is the goodwill stemming from your social relationship,and it can mobilized on your behalf.

Actively Manage Your Relationship with Your Organization

            Relationship is one which you view yourself as an employee and passively expect your employer to tell you what to do and give you pay and benefits. Relationship is a two-way relationship in which you and your organization both benefit from one another.

Survive and Thrive

            Career succsess is most likely if you are flexible, creative, and ambitious. You will need to learn  how to think strategically, discern and convey your business vision, make decisions,and work in teams.