WGU C483 - Principles of Management Ch 9

WGU C483 - Principles of Management Ch 9 Leave the first rating Students also studied Terms in this set (37) Social SciencesBusinessBusiness management Save chapter 20 Delegation 25 terms Nursing_Student_8 Preview C483 WGU pretest with right answer...51 terms rc626184Preview MGMT3000 Exam 2 Practice Questi...46 terms John_Coleman35 Preview Princip 25 terms Esm strategic alliance definition:a formal relationship created with the purpose of joint pursuit of mutual goals In a strategic alliance, individual organizations share administrative authority, form social links, and accept joint ownership.learning organization definition:an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights Google, Toyota, and IDEO are good examples of learning organizations high-involvement organization definition:top management ensures that there is a consensus about the direction in which the business is heading.The leader seeks input from his or her top management team and from lower levels of the company. Task forces, study groups, and other techniques are used to foster participation in decisions that affect the entire organization. Also fundamental to the high-involvement organization is continual feedback to participants regarding how they are doing compared with the competition and how effectively they are meeting the strategic agenda Large organizations are typically...less organic and more bureaucratic.Large size often leads to scale economies Thus with size comes greater complexity, and complexity brings a need for increased control. In response, organizations adopt bureaucratic strategies of control. The conventional wisdom is that bureaucratization increases efficiency but decreases a company's ability to innovate.

economies of scope definition:Economies in which materials and processes employed in one product can be used to make other related products

downsizing definition:the planned elimination of positions or jobs

Common approaches include eliminating functions, hierarchical levels, or even whole units.Customer relationship management (CRM) definition: A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns value chain definition:the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

or each step in the chain adds value to the product or service:

When the total value created—that is, what customers are willing to pay—exceeds the cost of providing the good or service, the result is the...organization's profit margin Total quality management (TQM) definition:a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.it is a comprehensive approach to improving product quality and thereby customer satisfaction.It is characterized by a strong orientation toward customers (external and internal) and has become an umbrella theme for -organizing work.It reorients managers toward involving people across departments in improving all aspects of the business.Deming's "14 points" of quality:1. Create constancy of purpose—strive for long-term improvement rather than short-term profit.

• Adopt the new philosophy—don't tolerate delays and mistakes.
• Cease dependence on mass inspection—build quality into the process on the

front end.

• End the practice of awarding business on price tag alone—build long-term

relationships.

• Improve constantly and forever the system of production and service—at each

stage.

• Institute training and retraining—continually update methods and thinking.
• Institute leadership—provide the resources needed for effectiveness.
• Drive out fear—people must believe it is safe to report problems or ask for help.
• Break down barriers among departments—promote teamwork.
• Eliminate slogans, exhortations, and arbitrary targets—supply methods, not

buzzwords.

• Eliminate numerical quotas—they are contrary to the idea of continuous

improvement.

• Remove barriers to pride in workmanship—allow autonomy and spontaneity.
• Institute a vigorous program of education and retraining—people are assets,

not commodities.

• Take action to accomplish the transformation—provide a structure that enables

quality.

six sigma quality definition:A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction ISO 9001 definition:A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers

• standards

Re-engineering definition:The principal idea is to revolutionize key organizational systems and processes to

answer this question: "If you were the customer, how would you like us to

operate?" small batch technologies definition:When goods or services are provided in very low volume *aka job shop, structure = organic large batch technologies definition:Technologies that produce goods and services in high volume *GM, ford, mcdonalds structure tends to be more mechanistic. There tend to be more rules and formal procedures, and decision making tends to be centralized with higher spans of control. Communication tends to be more formal in companies where hierarchical authority is more prominent.Continuous process technologies definition: A process that is highly automated and has a continuous production flow structure can return to a more organic form because less monitoring and supervision are needed. Communication tends to be more informal in companies where fewer rules and regulations are established.One technological advance that has helped make mass customization possible is...computer-integrated manufacturing (CIM) computer-integrated manufacturing (CIM)...The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes For the lean approach to result in more effective

operations, the following conditions must be met:

People are broadly trained rather than specialized.Communication is informal and horizontal among line workers.Equipment is general-purpose.Work is organized in teams, or cells, that produce a group of similar products.Supplier relationships are long-term and cooperative.Product development is concurrent, not sequential, and is done by cross- functional teams.Time-based competition (TBC) definition:Strategies aimed at reducing the total time needed to deliver a good or service TBC has several key organizational elements:logistics, just-in-time (JIT), and concurrent engineering.JIT production systems reduce the time to manufacture products.Logistics speed the delivery of products to customers.

Concurrent engineering definition:all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers' needs Describe the qualities of an organic organization

structure:

The organic form emphasizes flexibility. Organic organizations are decentralized, informal, and dependent on the judgment and expertise of people with broad responsibilities. The organic form is not a single formal structure but a concept that underlies all the new forms discussed in this chapter.Identify strategies and dynamic organizational concepts that can improve an organization's responsiveness New and emerging organizational concepts and forms include core capabilities, strategic alliances, learning organizations, and high-involvement organizations.Identify ways that firms organize around different types of technology Organizations tend to move from organic structures to mechanistic structures and back to organic structures as they transition from small batch to large batch and continuous process technologies. To organize for flexible manufacturing, organizations pursue mass customization via computer-integrated manufacturing and lean manufacturing. To organize for time-based competition, firms emphasize their logistics operations, just-in-time operations, and concurrent engineering.Summarize how firms organize to meet customer requirements Firms have embraced principles of continuous improvement, total quality management, and six sigma quality (often combined with lean manufacturing) to respond to customer needs. Baldrige criteria and ISO 9001 standards help firms organize to meet better quality specifications. Extending these, reengineering efforts are directed at completely overhauling processes to provide world-class customer service.Explain how a firm can be both big and smallHistorically, large organizations have had important advantages over small organizations. Today small size has advantages, including the ability to act quickly, respond to customer demands, and serve small niches. The ideal firm today combines the advantages of both. It creates many small, flexible units, while the corporate levels add value by taking advantage of its size and power.

The support activities in the generic value chain include: firm infrastructure.

procurement Deming's 14 points of quality emphasized a(n) _____ approach to management.holistic Which of the following tags help boost logistics efficiency and speed?

RFID A mechanistic organization is best described as: a form of organization that seeks to maximize internal efficiency.The _____ structure is an organizational form that emphasizes flexibility organic A _____ is the knowledge, expertise, or skill that underlies a company's ability to be a leader in providing a range of specific goods or services.core capability