5/29/2016 LECTURE 10 - 18A:Planning and Control Techniques Module 19-1. In what ways is managing a project different from managing a department or other structured work area? In what ways are they the same? 19-2. Which in your opinion is more critical to success in organizations: continuous improvement or quality control? Support your position. COPYRIGHT 2016 PEARSON EDUCATION, INC. PLANNING AND CONTROL TECHNIQUES MODULE COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 2 1 5/29/2016 TECHNIQUES FOR ASSESSING THE ENVIRONMENT Environment scanning - the screening of large amounts of information to anticipate and interpret changes in the environment. Competitor intelligence - an environmental scanning activity by which organizations gather information about competitors. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 3 FORECASTING Forecasts - predictions of outcomes. Quantitative forecasting - forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. Qualitative forecasting - forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 4 2 5/29/2016 EXHIBIT PC-1 FORECASTING TECHNIQUES COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 5 BENCHMARKING Benchmarking - the search for the best practices among competitors or noncompetitors that lead to their superior performance. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 6 3 5/29/2016 EXHIBIT PC-2 STEPS IN BENCHMARKING COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 7 TECHNIQUES FOR ALLOCATING RESOURCES Resources - the assets of the organization including financial, physical, human, intangible, and structural/cultural. Budget - a numerical plan for allocating resources to specific activities. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a- 8 4 5/29/2016 EXHIBIT PC-3 TYPES OF BUDGETS COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a- 9 EXHIBIT PC-4 HOW TO IMPROVE BUDGETING COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a 10 5 5/29/2016 SCHEDULING Scheduling - detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed. Gantt chart - a scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a- 11 EXHIBIT PC-5 A GANTT CHART COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a- 12 6 5/29/2016 SCHEDULING (CONT.) Load chart - a modified Gantt chart that schedules capacity by entire departments or specific resources. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 13 EXHIBIT PC-6 A LOAD CHART COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 14 7 5/29/2016 SCHEDULING (CONT.) PERT network - a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each. Events - end points that represent the completion of major activities in a PERT network. Activities - the time or resources needed to progress from one event to another in a PERT network. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a- 15 SCHEDULING (CONT.) Slack time - the amount of time an individual activity can be delayed without delaying the whole project. Critical path - the longest sequence of activities in a PERT network. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 16 8 5/29/2016 EXHIBIT PC-7 STEPS IN DEVELOPING A PERT NETWORK COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 17 EXHIBIT PC-7 STEPS IN DEVELOPING A PERT NETWORK (CONT.) COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 18 9 5/29/2016 EXHIBIT PC-8 EVENTS AND ACTIVITIES IN CONSTRUCTING AN OFFICE BUILDING COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 19 EXHIBIT PC-9 PERT NETWORK FOR CONSTRUCTING AN OFFICE BUILDING COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 20 10 5/29/2016 BREAKEVEN ANALYSIS Breakeven analysis - a technique for identifying the point at which total revenue is just sufficient to cover total costs. Breakeven point can be computed graphically or by using the following formula: COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 21 EXHIBIT PC-10 BREAKEVEN ANALYSIS COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 22 11 5/29/2016 LINEAR PROGRAMMING Linear programming - a mathematical technique that solves resource allocation problems. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 23 EXHIBIT PC-11 PRODUCTION DATA FOR CINNAMONSCENTED PRODUCTS COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 24 12 5/29/2016 EXHIBIT PC-12 GRAPHICAL SOLUTION TO LINEAR PROGRAMMING PROBLEM COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 25 PROJECT PLANNING Project - A project is a onetime only set of activities that has a definite beginning and ending point in time. Projects vary in size and scopefrom Brussels downtown traffic tunnel to a sorority's holiday formal Project management - the task of getting a project's activities done on time, within budget, and according to specifications. Scenario - a consistent view of what the future is likely to be. Developing scenarios also can be described as contingency planning; that is, if this event happens, then we need to take these actions COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 26 13 5/29/2016 EXHIBIT PC-13 PROJECT PLANNING PROCESS COPYRIGHT 2016 PEARSON EDUCATION, INC. 18a - 27 LECTURE 10 - 18B: Managing Operations Module 20-1. Discuss your understanding of Value Chain Management, outlining the requirements for it to be implemented, possible obstacles to its effectiveness and why it is considered important to managers. 20-2. \"Which in your opinion is more critical to success in organizations: continuous improvement or quality control? Support your position. COPYRIGHT 2016 PEARSON EDUCATION, INC. 14 5/29/2016 MANAGING OPERATIONS MODULE COPYRIGHT 2016 PEARSON EDUCATION, INC. THE ROLE OF OPERATIONS MANAGEMENT Operations Management - the transformation process that converts resources into finished goods and services. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 30 15 5/29/2016 EXHIBIT MO-1 THE OPERATIONS SYSTEM COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 31 SERVICES AND MANUFACTURING Manufacturing organizations - organizations that produce physical goods. Service organizations - organizations that produce nonphysical products in the form of services. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 32 16 5/29/2016 WHAT IS VALUE CHAIN MANAGEMENT AND WHY IS IT IMPORTANT? Value - the performance characteristics, features, attributes, and any other aspects of goods and services for which customers are willing to give up resources. Value chain - the entire series of organizational work activities that add value at each step from raw materials to finished product. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 33 WHAT IS VALUE CHAIN MANAGEMENT AND WHY IS IT IMPORTANT? (CONT.) Value chain management - the process of managing the sequence of activities and information along the entire value chain. Organizational processes - the ways that organizational work is done. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 34 17 5/29/2016 VALUE CHAIN MANAGEMENT Requirements for Value Chain Management - A new business model incorporating: Coordination and collaboration Investment in information technology Changes in organizational processes Committed leadership Flexible jobs and adaptable, capable employees A supportive organizational culture and attitudes COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 35 EXHIBIT MO-2 VALUE CHAIN STRATEGY REQUIREMENT COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 36 18 5/29/2016 OBSTACLES TO VALUE CHAIN MANAGEMENT - Organizational barriers Reluctance to shake up the status quo Security issues - Cultural attitudes Lack of trust and too much trust Fear of loss of decision-making power - Required capabilities Lacking or failing to develop the requisite value chain management skills COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b 37 OBSTACLES TO VALUE CHAIN MANAGEMENT (CONT.) People: Lacking commitment to do whatever it takes Refusing to be flexible in meeting the demands of a changing situation Not being motivated to perform at a high level Lack of trained managers to lead value chain initiatives COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 38 19 5/29/2016 EXHIBIT MO-3 OBSTACLES TO VALUE CHAIN MANAGEMENT COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 39 OBSTACLES TO VALUE CHAIN MANAGEMENT (CONT.) Intellectual property - proprietary information that's critical to an organization's efficient and effective functioning and competitiveness. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 40 20 5/29/2016 CURRENT ISSUES IN MANAGING OPERATIONS Technology's Role in Manufacturing - Increased automation and integration of production facilities with business systems to control costs. Predictive maintenance, remote diagnostics, and utility cost savings Quality - the ability of a product or service to reliably do what it's supposed to do and to satisfy customer expectations. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 41 CURRENT ISSUES IN MANAGING OPERATIONS Quality Initiatives - Planning for quality - Organizing and leading for quality - Controlling for quality COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 42 21 5/29/2016 QUALITY GOALS ISO 9000 - a series of international quality management standards that set uniform guidelines for processes to ensure that products conform to customer requirements. Six Sigma - a quality program designed to reduce defects, help lower costs, save time, and improve customer satisfaction. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 43 MASS CUSTOMIZATION AND LEAN ORGANIZATION Mass customization - providing customers with a product when, where, and how they want it. Lean organization - an organization that understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer's perspective. COPYRIGHT 2016 PEARSON EDUCATION, INC. 18b - 44 22 5/29/2016 SUMMARY COPYRIGHT 2016 PEARSON EDUCATION, INC. 15 - 1 INTENDED LEARNING OUTCOMES Upon successful completion of the course, students should be able to: 1. Describe the nature of management and managers, and identify management and managers' function and role in contemporary organizations 2. Define decision making and discuss types of decisions and decision-making conditions, including the elements of individual behavior influencing the process 3. Discuss the nature of the organizational environment and identify and examine the environments of interest to most organizations 4. Clarify the steps in the control process and the managerial challenges inherent in managing operations, quality, and information 5. Illustrate the basic forms of organizational design and discuss the rational for applying the different types COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 46 23 5/29/2016 THE MANAGEMENT FUNCTIONS According to the functions approach, managers perform certain activities or functions as they efficiently and effectively coordinate the work of others. Henri Fayol, a French businessman, first proposed in the early part of the twentieth century that all managers perform five functions: planning, organizing, commanding, coordinating, and controlling. Today, these functions have been condensed to four: planning, organizing, leading, and controlling (see Exhibit 1-4). COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 12 THE FOUR MANAGEMENT FUNCTIONS - Defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate activities. Organizing - Arranging and structuring work to accomplish organizational goals. Leading - Working with and through people to accomplish goals. Controlling - Monitoring, comparing, and correcting work. Planning COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 12 24 5/29/2016 EXHIBIT 1-4 FOUR FUNCTIONS OF MANAGEMENT COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 13 MANAGEMENT ROLES Roles are specific actions or behaviors expected of a manager. Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decisionmaking. COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1- 14 25 5/29/2016 THREE TYPES OF ROLES Interpersonal roles - Figurehead, leader, liaison Informational roles - Monitor, disseminator, spokesperson Decisional roles - Entrepreneur, disturbance handler, resource allocator, negotiator COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 15 EXHIBIT 1-5 MINTZBERG'S MANAGERIAL ROLES COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 16 26 5/29/2016 SKILLS MANAGERS NEED Technical skills - Knowledge and proficiency in a specific field Human skills - The ability to work well with other people Conceptual skills - The ability to think and conceptualize about abstract and complex situations concerning the organization COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 17 SKILLS MANAGERS NEED What types of skills do managers need? Robert L. Katz proposed that managers need three critical skills in managing: technical, human, and conceptual. COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 17 27 5/29/2016 SKILLS MANAGERS NEED Technical skills are the job-specific knowledge and techniques needed to proficiently perform work tasks. These skills tend to be more important for first-line managers because they typically manage employees who use tools and techniques to produce the organization's products or service the organization's customers. COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 17 SKILLS MANAGERS NEED Human skills involve the ability to work well with other people both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management. COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 17 28 5/29/2016 SKILLS MANAGERS NEED Finally, conceptual skills are the skills managers use to think and to conceptualize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important to top managers. COPYRIGHT 2016 BY PEARSON EDUCATION, INC. 1 - 17 LECTURE 6 - CHAPTER 11 11-1 How does each of the different types of collaboration (both internal and external) contribute to more coordinated and integrated work efforts? 11-2 What structural issues might arise in managing employees' flexible work arrangements? Think about what you have learned about organizational design. How might that information help a manager address those issues? 11-3 What are the Benefits and Drawbacks of Open Innovation? COPYRIGHT 2016 PEARSON EDUCATION, INC. 29 5/29/2016 LECTURE 6 - CHAPTER 12 12-1. Some critics claim that corporate HR departments have outlived their usefulness and are not there to help employees, but to keep the organization from legal problems. What do you think? What benefits are there to having a formal HRM process? What drawbacks? 12-2. Describe the different performance appraisal methods. COPYRIGHT 2016 PEARSON EDUCATION, INC. LECTURE 7- CHAPTER 13 13-1. Discuss the different types of groups and the five stages of group development? 13-2. Describe the four most common types of teams. List the characteristics of effective teams. COPYRIGHT 2016 PEARSON EDUCATION, INC. 30 5/29/2016 LECTURE 8- CHAPTER 15 15-1. Contrast the MBTI and the Big Five model. Describe five other personality traits that help explain individual behavior in organizations. 15-2. Describe the key elements of attribution theory. Discuss the fundamental attribution error and self-serving bias. COPYRIGHT 2016 PEARSON EDUCATION, INC. LECTURE 8- CHAPTER 16 16-1. Describe each of the four early theories of motivation. 16-2. What are the different job design approaches to motivation? COPYRIGHT 2016 PEARSON EDUCATION, INC. 31 5/29/2016 LECTURE 9- CHAPTER 17 17-1. Differentiate between transactional and transformational leaders and between charismatic and visionary leaders. 17-2. Do you think that most managers in real life use a contingency approach to increase their leadership effectiveness? Explain. COPYRIGHT 2016 PEARSON EDUCATION, INC. LECTURE 9- CHAPTER 18 18-1. Discuss the various types of tools used to monitor and measure organizational performance. 18-2. \"Every individual employee in an organization plays a role in controlling work activities.\" Do you agree with this statement, or do you think control is something that only managers are responsible for? Explain COPYRIGHT 2016 PEARSON EDUCATION, INC. 32 5/29/2016 LECTURE 10 - 18A:Planning and Control Techniques Module 19-1. In what ways is managing a project different from managing a department or other structured work area? In what ways are they the same? 19-2. Which in your opinion is more critical to success in organizations: continuous improvement or quality control? Support your position. COPYRIGHT 2016 PEARSON EDUCATION, INC. LECTURE 10 - 18B: Managing Operations Module 20-1. Discuss your understanding of Value Chain Management, outlining the requirements for it to be implemented, possible obstacles to its effectiveness and why it is considered important to managers. 20-2. \"Which in your opinion is more critical to success in organizations: continuous improvement or quality control? Support your position. COPYRIGHT 2016 PEARSON EDUCATION, INC. 33