Part two: Planning
1.Decision-making:
Steps:
1.Identify the problem: (1) Scanning stage (2) Categorization stage (3) Diagnosis stage
2.Generate alternative solutions
3.Evaluate and choose among alternative solutions: (1) Feasibility (2) Quality (3) Acceptability (4) Costs (5) Reversibility (6) Ethics
4.Implement and monitor the chosen solution: (1) Implementing the solution (2) Monitoring the solution
Tapes of problems decision makers face: 1.Crisis 2.Non-crisis 3.Opportunity
Differences in decision-making situations: 1.Programmed decisions 2.Non-programmed decisions
Managers as decision makers: 1.The rational model 2. Non-rational models: (1) Satisfying model (2) Incremental model (3) Rubbish-bin model
Overcoming barriers to effective decision-making: 1.Accepting the problem challenge: (1) Complacency (2) Defensive avoidance (3) Panic (4) Deciding to decide 2. Searching for sufficient alternatives: 3. Recognizing common decision-making biases 4.Avoiding the decision-escalation phenomenon
Managing diversity: group decision-making
Promoting innovation: The creativity factor in decision-making
Basic ingredients: 1.Domain-relevant skills 2.Creativit-relevent skills 3.Task motivation
Stages of creativity: 1.Preparation 2.Incubation 3.Illumination 4.Verification
Techniques for enhancing group creativity: 1.Brainstorming 2.Nominal group technique
2.Organizational goals and plans
Components:
1.Mission
2.Goals:
Levels of goals: (1) Strategic goals (2) Tactical goals (3) Operational goals
How goals facilitate performance: (1) Goal content (2) Goal commitment (3) Work behavior (4) Other process components (5) potential problems with goals
3. Plans
Levels of plans: (1) Strategic plans (2) Tactical plans (3) Operational plans
Plans according to extent of recurring use: (1) single-use plans (2) standing plans
4. Goal attainment
Management by objectives:
Steps:
1.Develop overall organizational goals
2.Establish specific goals for various department, subunits and individuals
3.Formulate action plans
4.Implement plans and maintain self-control
5.Review progress periodically
6.Appraise performance
3.Strategic management:
Process:
1.Strategy formulation: (1) Identify current mission and strategic goals (2) Conduct competitive analysis: SWOT (3) Develop specific strategies
Environmental assessment: (1) Poter’s five competitive forces model: A. Rivalry B. Bargaining power of customers C. Bargaining power of suppliers D. Threat of new entrants E. Threat of substitute products or services (2) Hyper competition
Organizational assessment: (1) Value (2) Rareness (3) Imitability (4) Organization
2.Strategy implementation: (5) carry out strategic plans (6) Maintain strategic control
Levels:
1.Corporate-level strategy
(1) Growth: A. Concentration B. Vertical integration C. Diversification
(2) Stability
(3) Defensive: A. Harvest B. Turnaround C. Divestiture D. Bankruptcy E. Liquidation
2.Business-level strategy
Porter’s competitive strategies: (1) Overall cost leadership (2) Differentiation (3) Focus
3.Functional-level strategy
4.Change and innovative
Forces: 1.External forces 2.Internal forces
Four life-cycle stages: 1.Entrepreneurial stage 2.Collectiveity stage 3. Formalization and control stage 4.Elaboration of structure stage
Organizational termination: 1.Bankruptcy 2.Liquidation 3.Merger 4.Acquisition 5. Take-over
An eight-step model:
1.Gain recognition of an opportunity or a problem
2.line up powerful sponsor
3.Develop and communicate a vision
4.Empowr others to act out the vision
5.Prepare to overcome resistance
6. Plan for and reward visible progress
7.Consolidate improvements and facilitate further change
8.Monitor and institutionalize changes
Organizational development: 1.Diagnosis 2.Intervention: (1) Process consultation (2) Team building (3) Third-party intervention (4) Techno structural activities 3. Evaluation
Product development principles: 1.Establish a stage-gate development funnel 2.Establish cross-functional teams 3.Use concurrent engineering
Change components: 1.Structural 2.Technology 3.Human resources 4.Human resources