Mgt 300 Exam 3 Study Guide.doc

Mgt 300 Exam 3 Study Guide Chapter 11 Human Resource Management- activities undertaken to attract, develop and maintain an effective workforce within an organization Attract an Effective Workplace: HRM planning Job analysis Forecasting Recruiting Selecting Develop and Effective Workplace: Training Development Appraisal Maintain: Wages and salary Benefits Labor relations Terminations HRM: Primary competitive advantage= PEOPLE Effect HRM has positive impact on strategic performance- (higher employee productivity and stronger financial results) All managers are HR managers Employees are assets HRM is a matching process Strategic HRM issues include: Globally competitive Improving quality, innovation, and customer service Managing mergers and acquisitions Applying new information technology Competitive Strategy: Building human capital (the economic value of the knowledge, experience, skills, and capabilities of employees) Strategies implemented to provide compensation and benefits to enhance the sharing of knowledge and appropriately reward people for their contributions to the organization Building social capital- quality of interactions among employees- relationships based on honesty, trust, and respect to so people are more willing to cooperate and achieve shared goals Globalization International HRM- culturally sensitive, hire employees willing to work across geographic / technical/ cultural borders Information Technology Human resource info system- an integrated computers system designed to provide data and information used in HR planning and decision-making (administrative duties like payroll, benefits, etc) This allows HR managers to free up more time to focus on effective appraisals and can dramatically improve the effectiveness of long-term planning (such as a skilled labor shortage) and other HR challenges Federal Legislation Equal Employment Opportunity (EEO)- aimed to rectify discrimination in workforce in which applicants are hired or promoted based on criteria that are not job relevant (enforced by EEO Commission) Affirmative action- employers are required to take positive steps toward leveling the playing field HR Issues in the new workplace Changing social contract- instead of progressing upward on a vertical hierarchy, employees are moving across jobs horizontally. Workers are continually working on new tasks with new people and are expected to be motivated, have excellent interpersonal skills, and constantly acquire new skills Redefining work Old vs new contract: Old- job security, knowing, traditional compensation package, routine jobs, limited information New- employability (manage your own career), personal responsibility, learning, lateral career movement, information and resources, challenging assignments, job insecurity Becoming an employer of choice- being highly attractive to potential employees because of human resource practices that focus on intangible and tangible benefits (employers have to be appealing to get people to work for them) (corporate culture!) Teams and projects- new strategies to improve together as a group, many employees handle multiple tasks and responsibilities Temporary employees- Contingent workers-people who work for an org but not on a permanent or full-time basis (includes temporary placements, contracted professionals, or leased employees) Make up 25% of the workforce Technology- Virtual teams-made up of members who are geographically or organizationally dispersed, rarely meet face-to-face, and do their work using advanced information technologies Telecommuting- using computers to do work without going to an office (more ppl working from their home or remote location) extreme telecommuting- people live and work in different, far away countries work/life balance telecommuting flexible scheduling Amenities- on site gym, daycares, etc. life doesn?t revolve around job solely downsizing- intentional, planned reduction in the size of a company?s workforce must be done in effective way- managers can help soothe the transition to avoid decreased morale and performance managers should provide as much information to the employees as possible Attracting an effective workplace 1st goal: attract individuals who show signs of becoming valued, productive, and satisfied employees. Steps: HR Planning- anticipation of needs Recruiting- the activities or practices that define the desired characteristics of applicants for specific jobs Internal- promotions, develop workforce (this provides incentives to employees External- recruit new comers into org Accessing organizational needs Job Analysis- systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job Job Description- concise summary of the tasks/ responsibilities of a particular job Job Specification- an outline of the knowledge, skills, education, and physical abilities necessary to excel at a job RJP (Realistic Job Preview)- gives applicant all pertinent information about a job Legal Considerations- EEO, Affirmative Action, protected groups- persons historically underrepresented in the workplace E-Cruiting- use of internet for recruiting- dramatically extends reach, wider pool of applicants, saves time and money, posting job openings on websites, resume posting sites Selecting- employers assess applicants? characteristics for best fit Validity- selection device and actual job performance Application form- (neg.= inclusion of questions irrelevant to job success) Interview Not always valid because based on judgments Face validity- employers would rather have face to face contact before hiring Panel interviews- applicant meets with series of interviewers that take turns asking questions Employment tests- written computer based test designed to measure a particular attribute such as intelligence or aptitude Assessment center- simulated tasks Developing an effective Workforce OJT- when done correctly is considered the fastest most effective means of facilitating learning in the workforce Cross training- moving people to various jobs within the organization enabling employee to develop new skills and giving organization greater flexibility Mentoring- more experienced employee paired with a new comer Orientation training Classroom training- makes up 70% of corporate training Self-directed learning Computer-based training Corporate Universities- in-house training and education facility that offers broad-based learning opportunities for employees Promotion from within- helps company retain valuable employees- can expand capabilities Workforce optimization- putting the right person in the right job at the right time Performance appraisal- observes and assesses employee performance and provide feedback to the employee 360-degree feedback- process that uses multiple raters, including self-rating, to appraise employee performance and guide development (a variety of perspectives is included) Performance evaluation errors Stereotyping Halo effect- occurs when an employee receives the same rating on all dimensions regardless of his or her performance on individual ones BARS- Behaviorally Anchored Rating Scale- relates an employee?s performance to specific job-related incidents Maintaining an effective workforce Compensation Job-based- linked to specific tasks Skill-based- encourage employees to develop their skills Compensation Equity Job evaluation- demine the value or worth of jobs through examination of job content Wage and salary surveys- compare pay of same jobs in other companies Pay-for-Performance- tying atleast part of compensation to effort and performance Benefits Termination- employees resent disruptive, low-performing employees who are allowed to stay in the workforce and receive compensation and benefits Exit interview Chapter 12: Meeting the Challenge of Diversity Top managers value diversity: Broader range of opinions/ viewpoints, More creativity, Better corporate culture, enhance company image, improve customer satisfaction Dimensions of diversity Primary (traditional): Gender Age Physical ability Race Sexual orientation Ethnicity Secondary (inclusive): Education Religious beliefs Military experience Geographic location Income Work background Parental status Marital status Aging Population Stats: 1990-2000 > 65 + 6% 12.6% US pop. > 65 (12.9 in TN) 2000 = Avg. age 35.4 2006 = Avg. age 36.4 Ethnicity foreign born: 1990: 7.9% 2000: 11.1% 2006: 12.5% (3.9% in TN) Non English speaking 1990: 13.8% 2000: 21% Race ethnicity: % of white is declining % of black is stagnant % of asian is slightly growing % of Hispanic is growing quickly TN is whiter and blacker than rest of US Working women: 1990: 57% 2000: 59% 2006: 67% Women pay falls: 1993: 86 cents 1998: 73 cents 2006: 68 cents Disabled employment 1990: 39% 2000: 48.7% Education : from 1990 ? 2006 has risen from 75.2% - 84.1% (TN is undereducated) Industry Shifts: -39% agriculture -9% manufacturing + 19% Trans, info, comm. -21% retail +13% Financial, insurance, real estate +43% SERVICE Workforce diversity- hiring people with different human qualities or who belong to various cultural groups Ethnocentrism- belief that one?s own group of subculture is inherently superior to other groups or cultures Monoculture- a culture that accepts only one way of doing things and oen set of values and beliefs Ethnorelativism- the belief that groups and subcultures are inherently equal Pluralism- an environment in which the organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored *goal for organizations Diversity is a business imperative- companies wanting to be globally competitive adopting new ways of doing business changing composition of the workforce and customer base- demographics of US are dramatically changing Challenges facing minorities: blatant discrimination bias double standard- giving better performance ratings to blacks/whites in their stereotypical positions biculturalism- the sociocultural skills and attitudes used by racial minorities as the move back and forth between the dominant culture and their own ethnic or racial culture (affects access to information, respect, etc) Management Challenges: Growing number of working women- work/family conflicts, sexual harassment, dual-career couples Growing number of disabled population- ppl are doing little to accommodate Immigrant population- aside from prejudices, have to deal with educational issues like language skills Current Debate about Affirmative Action Def: government-mandated programs that focus on providing opportunities to women an members of minority groups who previously experienced discrimination Still nearly decade away from leveling the playing field completely But has facilitated greater: recruitment, retention, and promotion of minorities Reverse discrimination? Stigma of incompetence- people rate affirmative action hires as incompetent Glass Ceiling- invisible barrier that separates women and minorities from top management positions Glass walls- prevents lateral movement BUT women have made the biggest strides Homosexuals also fall victim to this Opt-Out trend-more women are leaving workforce. Reasons? Family life, stress/health effects, glass ceiling The Female advantage: might be better managers because of relationship oriented, collaborative skills, higher participation rates than men Current Responses to Diversity Changing the corporate culture- using symbols, ceremonies, etc Changing structures and policies Career Advancement: Mentor- higher ranking senior individual dedicated to helping upward mobility of another Cultural Competence ? the ability to interact effectively with people of different cultures Steps: 1) uncover diversity problems in organization 2) Strengthen top management commitment 3) choose solutions to fit a balanced strategy 4) demand results an revisit goals 5) Maintain momentum to change the culture New Relationships in Orgs: Emotional intimacy- non-romantic relationships- trust, respect, constructive feedback sexual relations can be problematic Sexual Harassment Generalized- comment reflecting entire group Inappropriate/ offensive- causes discomfort that may limit freedom Solicitation with promise of reward Coercion with the threat of punishment Sexual crimes and misdemeanors Global Diversity- the rest of the world matters today to a degree that it never did in the past Selecting and training Expatriates- employees who live and work in a country other than their own Communication differences High context culture- sensitive to circumstances surrounding social exchanges Low context culture- use communication to exchange facts and information Multicultural teams Employee network groups- groups based on social identity such as gender or race and organized by employees to focus on concerns of employees form that group Voluntary membership Created informally Help retain employees Chapter 18: Managerial and Quality Control Organizational control- the systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance Feedback Control Model Est. Performance standards Measure Actual performance Compare Performance to Standards Take corrective action Feedforward control- control that focuses on human, material, and financial resources flowing into the organization Anticipate problems Purpose= input quality is high enough to prevent problems Examples: employee drug testing, inspect raw materials, hire only college graduates Forecasting trends in the environment and managing risk Concurrent Control- consists of monitoring ongoing activities to ensure that they are consistent with the standards Solves problems as they happen Ex: monitoring employees, total quality management, employee self-adjustment Includes maintaining good corporate culture Feedback Control- control that focuses on the organizations outputs, quality of the end product Ex: analyze sales per employee, final quality inspection, survey customers Solve problems after they occur Budgeting- have they operated within their budget? Top-down budget- high level of managers determine number Bottom-up budgeting- lower level managers anticipate resource needs and pass them up Steps for feedback control: Establish standards of performance- strategic plan in which managers define goals Measure actual performance Compare to performance standards Take corrective action- can be positive reinforcement or changing original standards if they find they aren?t realistic Budgets: Budgetary control- set targets for org?s expenditures, monitor results and compare them to the budget and make changes as needed Responsibility center- department or unit under the supervision of a single person who is responsible for one person Expense Budget- outlines anticipated and actual expenses for a responsibility center Revenue Budget- identifies the forecasted and actual revenues of the organization Cash budget- estimates and reports cash flows on a daily or weekly basis to ensure that the company has sufficient cash to meet its obligations Capital budget- a budget that plans and reports investments in major assets to be depreciated over several years Financial Statements: Balance sheet- shows financial position with respect to assets and liabilities at a specific point in time Current assets- converted to cash quickly Fixed assets- buildings, equipment, long term in nature Current debt- will be paid in near future Long term debt- payable of long period of time Income statement- summarizes financial performance for a given time interval Bottom line- indicates net income Evaluate financial statements Liquidity ratio- indicates ability to meet its current debt obligations (assets/ liabilities= number of times it can sufficiently funds to pay off debt) Activity ratio- measure the internal performance iwht respect to key activities defined by management Inventory turnover- total sales/ total inventory Profitability ratio- describes profits in terms of a source of profits (sales or total assets) ROA Return on Assets Gross margin Profit margin on sales Leverage ratio- funding activities with borrowed money Debt ratio- debt/ assets Bureaucratic Control- monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, etc Employees have little control Very efficient Decentralized Control- use of org culture, group norms, and a focus on goals rather than rules and procedures, to focus on compliance with organizational goals Trend toward this Power more dispersed Power based on knowledge and experience as much as position Total Quality Management (TQM)- commitment to infusing quality into every activity through continuous improvement TQM Techniques: Quality Circles- group of volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work Benchmarking- continuous process of measuring products, services, and practices against major competitors Six Sigma- quality standard that emphasizes a relentless pursuit of higher quality and lower cost Reduced Cycle time- steps taken to complete a company process Continuous improvement- small incremental improvements in all areas of org continually TQM Success Factors Doesn?t always work, some not appropriate for all companies Trends in Quality of Financial Control ISO Certification- based on a set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements Economic Value Added- control system that measures performance in terms of after- tax profits minus the cost of capital invested in tangible assets Market Value Added- measures the stock market?s estimate of the value of a company?s past and expected capital investment projects Activity based costing- identifies the various activities needed to provide a product and allocates its costs accordingly Open book management- sharing financial info and results with all employees of the company Balanced Scorecard- comprehensive control system that balances traditional financial measures with measures of customer service, internal business processes, and the organizations capacity for learning and growth Financial performance Learning and growth Customer service Internal business processes New Workplace Concerns Corporate Governance- governing an org so the interests of corporate owners are protected Undercontrol- too much to manage a global company Sarbanes- Oxley act implemented- requires several types of reforms to prevent internal fraud, external auditing, etc Chapter 19: Operations and Value Chain Management Technical core- heart of production process Manufacturing- physical good, can be stored in inventory, standardized output, easy to measure performance VS Service- customer involved in production process, intangible good, customized output, difficult to measure performance 4 major outcomes to build highly effective operations system: Achieve superior- Customer responsiveness Innovation with speed and flexibility Quality Efficiency Supply chain management- manage sequence of suppliers and purchasers covering all stages of processing from obtaining raw materials to distributing the final goods to customers Arms length approach Partnership approach Designing operations mgt systems Product and service design Design for manufacturability and assembly DRMA Productability Cost Quality reliability Procurement- purchasing supplies, services, and raw materials for use in the production process Facilities layout Process layout- machines that perform the same functions are grouped together in one location Product layout- machines and tasks are arranged by each single product Cellular layout- machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles Fixed position layout- product remains in one location, tasks and equipment are brought to it Technology automation Service technology- ATMs, RFID radio frequency identification (barcode inside trucks) Flexible manufacturing systems- machines integrated and coordinated to adapt to produce more than one product line CAD- computer aided design- new product designs CAM- uses comps to direct mfg processes as in flexible mfg systems PLM- product life cycle mgt- manages a product through creation, development, mfg, testing, and maintenance Facility location Capacity planning- determination and adjustment of ability to produce products or services to match demand Inventory Mgt Inventory- goods kept in hand for use in production process up to point of sale Finshed goods inventory- completed products that have not been sold WIP- (work in progress) middle of production process Raw materials Inventory- (RMI) basic inputs (cheapest because no invested labor) Impt of inventory- costs money! Materials requirement planning MRP- dependent demand inventory planning and control system that schedules the precise amount of all materials required to support the production of desired end products Dependent demand inventory- inventory in which demand is related to the demand for other inventory items JIT inventory- materials arrive precisely when they are needed on a production line (enhances flexibility) Stockless systems Zero inventory syst. Kanban syst. Logistics- activities required to physically move materials into the company?s operations facility and to move finished products to customers Distribution- moving finished products to customers Lean Manufacturing- uses highly trained employees at every stage of production process to cut waste and improve quality Productivity- output of products and services divided by its inputs Improving: Employee productivity Managerial productivity Chapter 19 (part 2): Information Technology and E-Business IT- hardware, software, telecomm, database management, and other technologies used to store, process, and distribute information Has changed everything: Boundaries dissolve Enhanced collaboration People do better work Greater efficiency Possible information overload New Generation of IT Blog- allows individual posts of opinions and ideas Social networking- online community Within Org: Wiki- web site that allows people within or outside an organization to share ideas, edit content, create ideas Peer-to-peer file sharing- PCs talk/ share files Types of info systems- Operations information system- info-processing computer that supports day-to-day needs Data- raw facts and unanalyzed figures VS Information- data converted into meaningful and useful context for the receiver Useful info: Time Content (Free of error) Form Types of Info Systems Operations systems Transaction Processing Systems (TPS)- records and processes data resulting from daily business transactions- track sales, inventory, purchases, payroll Process Control Systems- monitors physical processes- temperature, pressure changes Office automation systems- publish and distribute information Management Information Systems (MIS)- helps effective managerial decision-making Information reporting systems- organizing info in the form of pre-specified reports that mangers use in day to day decision making Decision support system (DSS)- interactive comp-based system that uses decision models to aid decision making Executive information system (EIS)- facilitates strategic decision making at the highest levels of management by providing executives with easy access to timely and relevant information Business performance dashboard- pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers it to managers in a graphical and easy to interpret Groupware- facilitates info sharing, collaborative work, group decision making The internet and E-business Internet- global collection of networks linked together for the exchange of data and information WWW- collection of central servers for accessing info E business- any business that takes place over digital processes of a computer network rather than physical workspace E commerce- business exchanges or transactions that occur electronically Intranet- inter communications system associated only within an organization Electronic data exchange- links buyers and sellers to allow ordering, distribution, and payables, and receivables Extranet- shared by two or more organizations E business strategies Market expansion Revenue growth Increased productivity Cost efficiency Benefits Add new markets Increase market size Immediate short term effects Measureable productivity impact Driven by internal processes Implementation In house division or partnership (joint venture, alliance- join with another co to handle computer services like online orders, site maintenance) E Market place B2b marketplace- buyers and sellers meet over electronic marketplace Enterprise resource planning (ERP)- integrate various business procedures across the entire firm Customer relationship management- helps companies track potential customers interactions with the firm and allow employees to call up information on past transactions Knowledge management- process of gathering knowledge and making it widely available throughout org and fostering a culture of learning Data warehousing- use of a huge database that combines all a company?s data and allows users to access data directly Business intelligence software- high-tech analysis of data from multiple sources to identify patterns and relationships that might be significant Competitive Advantage Increase in customer loyalty Superior service Superior info gathering and knowledge sharing Organizational learning