Review for Management 301 Exam 1

Lecture Notes

2 Methods of Performance

- Efficiency = (Maximum Output)/(Minimum Input)- Effectiveness = obtaining appropriate goals

Leadership- a fine art; definition has 6 parts

1. Intentionally (on purpose, with a vision, mission, or plan)2. Influencing (setting an example for others)3. Followers (all followers are volunteers)4. Toward a change (Go against the status quo; see the other side, a better place)5. Through shared purpose (common mission; agreement, unity, vision, purpose. You have

to win the hearts of your followers.)6. And through personal responsibility (The leader and the follower’s personal

responsibility)

3 Levels of Management

1. Executives- highest level- focus is on long term strategies of the whole organizations2. Midlevel managers- pipeline between executives and supervisors3. Supervisors- responsible for daily activities and focus primarily on short-term and simple

tasks

Roles of Managers

1. Decision making rolesa. Entrepreneurs- someone who decides how to initiate a new projectb. Disturbance handler- handle unexpected eventsc. Resource allocator- get the right people with the right tools to the right place at

the right timed. Negotiator- to give and get resources to and from others

2. Information processing rolesa. Monitor- keep track of info and analyze it; “What does it mean?”b. Disseminator- “Who needs to know? When? How much?c. Spokesperson- represent the firm and promote the people

3. Interpersonal rolesa. Leader- takes people to new and better place. Lead toward changeb. Figurehead- symbolizes the company/division

c. Liaison- connect and coordinate different parts of the firm

6 Major Challenges for Managers/Leaders

1. Increasing efficiency- we have to do more and more with less and less2. Increasing quality(effectiveness)- we need to make work and products better and better3. Improve flexibility and innovations- oriented toward the customers4. Proper use of information technologies 5. Maintaining and living high ethical standards6. Managing diversity- not just physical but cognitive( thinking diversity)

a. Better ideas are able to compete more effectively in a globally diverse world

History of Management

The Agrarian Age

- Work was more of a craft- All commerce was local, built upon family and neighbors- Competition was practically non-existent- Nepotism- work/management was based on kinship and family ties- Low efficiency- Ability and talent was not a key factor until the industrial age

Adam Smith

- Wrote The Wealth of Nations - Why are some nations more advanced/wealthier than others?- Looked at a factory that made pins and concluded that

o Dividing labor among laborers lead to specialization; specialization leads to expertise; and expertise leads to efficiency

- WE MUST HARNISH EFFICIENCY1. Division of labor 2. Specialization3. Expertise4. Efficiency

Fredrick Taylor

- Founder/father of scientific management

- Looked at each task in detail in hopes to find “the one best way”- He went everywhere and observed laborers performing their work processes. He

noticed that if you study work and break it down into component motions, you could refine the motions to enhance efficiency, which is what industrialists of the time needed to do

4 Principles of Enhancing Efficiency (Taylorism)

1. Study the work2. Codify- write rules, codes, standard operating procedures

a. There is one ultimately correct way to do a job3. Select the worker to fit the task4. Pay the worker based on his or her production

a. Piece Rate to Pay- paid per piece of product you produce

Max Weber

- German Sociology professor - Father of bureaucracy- 5 principles for organization (efficient company)

1. Managers authority comes from the position they hold2. Position placement comes from expertise (knowledge, skills, and ability)3. Everybody must have a job description4. Because we have job description, we can put them into an organizational

chart5. Establish clear rules, policies, and procedures; well documented

Mary Parker Follett

- Let’s consider the human side of organization- Not all about efficiency but also human effectiveness- 4 principles for organization

1. Worker knows most about work2. Managers should coach and facilitate( remove obstacles, make easier)3. Workers to work in cross-functional teams( teams that span from different

departments)4. Leadership is not based on position but is based on knowledge and expertise

Douglas McGregor

- First day as a supervisor, you will have an assumption about your subordinates; assume they are:

o Theory X- people do not like to work and need to be closely supervised because they are foremost self-centered/take care of themselves before others. If you believe this theory then you are likely to be a strict manager

o Theory Y- people believe work to be satisfying, uplifting, gratifying. If you believe this theory then you are likely to be an easy-going manager

Other personality traits of Entrepreneurs and Intrapreneurs

- Locus of Control- 2 types; Example: student who doesn’t do well on a test and blames it on everyone else; student who doesn’t do well on a test acknowledges his own fault.

- Internal Locus of Control- I am responsible for what happens with me- External Locus of Control- I am a product of external forces (blaming others) - PEOPLE WHO SUCCEED HAVE INTERNAL LOCUS OF CONTROL

- Emotional Intelligence- ability to understand your own feelings, to understand the feelings of others, and the ability to manage your feelings.

- We have to be able to manage our feelings, moods, and emotions as well as realize where others’ emotions develop from

- Emotional maturity and strength

- It is NOT- Moods+Emotions determine Choices and Actions

-It is- Actions and Choices determine Moods+Emotions

- Correct Principle is: A + C => M + E

- Feelings, moods, and emotions should not lead to your actions and choices; leads to unpredictable, inconsistent, and unreliable

- Correct principles should lead to your actions and choices, which will in turn lead to your feelings, moods, and emotions

Informational interviews

- Talk with anyone and everyone who is a little older or more experienced than you:o Ask for 15 minutes of their timeo Let them know you are not looking for a job

o Leave your resume at home- Ask:

o Tell me about your career patho Activities and skills that are required in their type of worko What lessons have you learned along the wayo (If you know the person well) What do you see are my strengths and weaknesses

- Don’t Ask:o What do you think I should do?

Ethics- principle or belief about what is right or wrong, good or bad, prioritized or devalued

To begin to understand ethics it begins with you

-Stakeholder- those people who have a direct financial interest (or stake) in the company

Kinds of Stakeholders

1. Owners2. Lenders(creditors)3. Employees4. Management5. Partners6. Customers7. Community

ALL OF THEM WANT DIFFERENT THINGS

2 outside parties, who aren’t stakeholders, but apply pressure:

1. Competition2. Media

3 Main Reason why to behave ethically

1. To avoid harming others2. To maintain and enhance our reputation (trust is a valuable resource)3. Because it is right

3 Questions to think about when you’ve made a decision before you act on it

1. Does my decision fall within the usual and accepted standards of my profession? ( NOT FIRM OR ORGANIZATION)

2. Am I willing to personally and openly communicate my decision to all affected stakeholders? (Would you be okay with it being put on the front page of the paper?)

3. Will more than one party benefit?

John C. Maxwell- The 21 Indispensable Qualities of a Leader

Quotes and Notes for Exam

Ch. 12 Passion

A man comes to visit Socrates in hopes of attaining great knowledge. Socrates led him out into the water and asked him what he wanted. The man replied “knowledge”, Socrates dunked him under the water. Socrates asked him again what he wanted; the man again replied “knowledge.” This continued for a third time, when finally the man replied to Socrates question with, “air, I want air.”

- “Now, when you want knowledge as much as you wanted air, you shall have it.”

Maxwell- “A leader with great passion and a few skills always outperforms a leader with great skills and no passion”

Maxwell- If passion is not a quality in your life; you’re in trouble as a leader. The truth is that you can never lead something you don’t care passionately about.

- “You can’t start a fire in your organization or in others unless one is first burning in you”

Ch. 18 Self-Discipline

Maxwell-“Anyone who does what he must only when he is in the mood or when it’s convenient isn’t going to be successful. Nor will people respect and follow him.”

Maxwell-“To be successful, self-discipline can’t be a one-time event. It has to be a lifestyle.”

H. Jackson Brown Jr.- “Talent without discipline is like an octopus on roller skates. There’s plenty of movement, but you never know if it’s going to be forward, backwards, or sideways.” If you know you have talent, and you’ve seen a lot of motion- but little concrete results- you may lack self-discipline.

Ch. 5 Competence

Benjamin Franklin- he was curious, talented- “He took it upon himself to chart the Gulf Stream.”

Maxwell- They come ready to play every day – no matter how they feel” (Show Up Every Day)

Maxwell- “let’s just get through this the best we can.” (Accomplish More than Expected)

Maxwell- “Your only as good as your private standards.” When was the last time you gave a task your absolute best even though nobody but you would know about it?

Ch. 1 Character

You chose your character; character is your choices and actions; actions reflect who are and build who you will become

Maxwell-“Anyone can say that he has integrity, but action is the real indicator of character. You never separate a leader’s character from his actions.”

Maxwell- “Unaddressed cracks in character only get deeper and more destructive with time.”

Maxwell-“A leader not only stays above the line between right and wrong, he stays clear of the “gray areas”

-don’t go near the edge

Ch. 6 Courage

Maxwell- “Whenever you see significant progress in an organization, you know that the leader made courageous decisions.”

Sheldon Kopp- “All the significant battles are waged within self.”

Billy Graham- “Courage is Contagious”

Roman historian Tacitus- “Fear limits a leader”

John Henry Newman- “Fear not that your life will come to an end but that it will never have a beginning.”

Maxwell- How do you tend to handle fear? Do you embrace it? Are stretching experiences a regular part of your daily life? Or have you retreated so far into your comfort zone that you don’t ever even feel fear? How must you change to develop a spirit of courage in your life?

Ch. 9 Generosity

Calvin Coolidge- “No person was ever honored for what he received. Honor has been the reward for what he gave.”

John D. Rockefeller- “I have made millions, but they have brought me no happiness. If you’re not content with little, you won’t be content with a lot”

Maxwell- “Do you continually look for ways to add value to others? Are you giving money to something greater than yourself? And to whom are you giving your time? Are you pouring your life into others?”

Effective leaders, the kind that people want to follow, don’t gather things just for themselves; they do it in order to give to others

Ch. 19 Servanthood

Maxwell- “The real heart of sevanthood is security. Show me someone who thinks he is too important to serve, and I’ll show you someone who is basically insecure. How we treat others is really a reflection of how we think about ourselves”

Maxwell- “Begin serving with your body, and your heart will eventually catch up” – Emotional Maturity and Strength

Wall Street Journal Articles for Exam 1

Jan 5 article- “The New Job is in the Details.”

-Job hunters need to “sweat the small stuff”

-6 things to remember for job interview

1. Appearance- don’t wear v-neck shirts

2. Meal etiquette- pace yourself when eating your meal (don’t finish 1st or last; avoid spaghetti, salads, etc.. be aware of the price)

3. Tactfulness- be ready to work- don’t say you cant work for another 2 weeks

4. Plan ahead- do research on the company for which you are applying and don’t be late

- learn how to distress yourself, no sweaty hands

5. Deportment- be sure to maintain eye contact and don’t slouch

6. Don’t be long winded

Jan 14 article- “Business Owners Try to Motivate Employees.”

- Managers must take extra steps to make employees feel valued and secure; they want to know that they’re important to the company

- How to do this without increase in wages/salarieso Upgrade employee titleso Allow employees to self regulate( work remotely)o Create bonuses if money does come ino Private meetings with employeeso Fix breakfast for employees

Book Review- “Checklist Manifesto”

-The author wrote this book because he wrote an essay on how stupid mistakes in surgery costs lives and simply by having a checklist, stupid mistakes can be drastically avoided

-He said that everybody needs checklists because they can catch mental flaws

-Balance with human improvements

Jan 23 article- “The Minds Behind the Meltdown”

-Lack of faith in numbers “Crisis of Faith”

- The Quants

- 2001 hired a lot of engineers- PDT made rapid fire trade with comp models, plucked billions of dollars out of

the market; market moves the PDT to defied logic. Fine tuned models the bell curves all the math and science couldn’t capture what was happening in the real world. Real world was acting different than logic said

- no analyzing of business- Used math formulas which lead to breakthroughs mathematical- Nobel Prize- Math science and tech have limits- human insight, mind and spirit, logic and

math only go so far

- The lesson: math, science, and technology have limits and the limits lie in humanity. Logic can only go so far. Human understanding must go the rest of the way.

“Lifting the Curtain on the Hiring Process”

-almost no companies tell the applicants why they didn’t get hired

Things to Know:

- -human resource department’s job is to weed out as many applicants as possible- -keywords are vital- -be referred by an employee of the company you are applying for if at all possible- -Phone interview- do you understand the job? Want to know your salary expectations

and if you have good communication skills- -2 tests- competent test and personality test- -looking for well-rounded individuals with life experiences that suggest that you adapt

well to your surrounding- do you fit in the position or if your enthusiastic

Ford Company in Louisville- paid highest wages, but hurt company heavily- $59 an hour

-Opening plant in Chicago- 1200 new jobs at $14 an hour

“Turning Point: Say Goodbye”

How to resign from a job on good terms

- be sure to have your job offer in writing before you resign from other company- have good timing, don’t come back from vacation and then quit. Give at least 2 weeks’

notice- be careful with the way you talk be simple- professional- scrub your digital footprint- delete personal files and internet history for computer- stay close to former co-workers (networking)

Jan 28 article- “Toyota Recall”

- recall is announced due to gas pedals that have been sticking- giving up quality for quantity

US widens Toyota Probe

- Japan feels it could undermined other Japanese cars

- Image is very delicate and technology is unpredictable

Jan 23 article- “The Kids Will Be All Right”

- US high immigration rate and US fertility rate- these 2 combined means our population will grow and grow

- This will create an economic vitality as well as a demographic vitality. This will add to work force, increase consumer spending, and will drive creativity.

- Optimism and opportunity are what drive immigrants to the US

Feb 1 article- “As Sales Drop, Burger Kind Draws Critics”

- For 5 years Burger King was on a roll courting its “super fans” which consists of 18-34 year old males and this group consisted of at least 50% of sales.

- Lesson: timing and focus are the key points in management- Balance advertising focus- Healthier diets

Feb 2 article- “Black Mark Can Derail in Job Search”

- Lesson: don’t put racy content on your facebook or myspace- Be careful with what you put on internet- Do not spam your resume it shows a lack of focus on your job search- Don’t apply for something you clearly are unable to do- Don’t say that you’ve graduated without an actual diploma- If you receive an offer don’t accept it unless you are for sure about taking the job, be

gracious- Beware: background checks are done often – drug tests, criminal tests-- Recruiters share information

Exam 2 Review

- Decision making- process by which ppl respond to opportunities and threats by: o 1. choosing goals, o 2. analyzing options o 3. selecting courses of action

2 Kinds of Decision Making-- Program Decision- routine, virtually automatic decision making that follows established

rules and guidelines where we have made similar decisions before

Non- program decision- non routine that responds to unusual, unpredictable, unique opportunities and threats when there are no rules to follow and when we have uncertain and ambiguous info

2 Methods for Making Decisions:

- Classical- assumes we can evaluate all possible alternative and we can see the consequences and outcomes of each alternative, and will therefore rationally chose the best course, most things don’t fit this model

- Administrative- opposite of the classical model, says we have limits to our rationale, says you will never have all the info, but ppl interpret info differently and we are limited as managers by limited info

Bounded Rationality- idea that we have limits/ boundaries to how much info we can process, the amt of time we can devote to analysis, we acquire imperfect info

Satisfies- search for satisfactory or first good enough alternative, ie choosing where to eat every day

Groupthink- biased way of decision making when the group is striving for a unified decision, blind commitment to a single course of action, worse than performing the task on your own

4 Conditions for Groupthink:1. Presence of high emotions2. Pressure toward an agreement3. Culture of organization isn’t tolerant of diversity, criticism, and innovation4. One person is dominant

Devil’s Advocacy- 1. Appoint someone to be devil’s advocate2. Appointed person points out problems with the alternatives3. Must stand up for the unpopular solution and critique the final solution process

5 Layered Process to be creative and innovative:1. Security 2. Teachability- ability to listen; true humility3. Creativity- the ability to discover new and novel ideas in the course of action4. Innovation- implementation and commercialization of those ideas, comes from

creativity 5. Research (Creativity); Development (innovation)

- Creativity is when we say wow look at that, innovation is when we take that creativity and create a service or product

How to enhance creativity in individual employees:1. Provide them with the opportunity and ability to take risks2. Tell yourself that if ppl take risks they will occasionally fail3. The right kind of periodic failure must be rewarded

a. No ethical violationsb. Employee can explain why they failed

c. Employee must have learned from the experience and take a new approachd. Employee must not repeat the mistake

How to enhance creativity in team building activities- 1. Brainstorming

a. Ppl must be together face to faceb. Encourage everyone to share crazy ideasc. No immediate judgment or evaluationd. Write on a board so everyone can see each idea visuallye. Must say something good and bad about each idea

To move from a vision to a mission statement you must answer 5 questions:1. Who are my customers?2. Why are we in business? (what needs and wants are we satisfying)3. What types of services and products will we offer?4. Where will we operate?5. How will we position ourselves relative to the competition?

4 Benefits from having a clear good mission statement:1. Defines the business for investors, lenders, employees, suppliers, stakeholders, etc…2. Will take us to the third level of setting goals: vision, mission, goals, 3. Provides us with a sense of direction4. Stretches everyone towards superior performance

Corporate Strategies:

1. Concentration/ Focus Strategy:o pick one product/ service for one market and go at it relentlessly, become

specialized till you are the besto gives you power over resources, money, technology, cash flow, finances, natural

and human resources, and distribution channelso all about surviving, growing, drivingo ie Microsoft, Nike, McDonalds, Wal-Mart

2. Diversification- Branch out

2a. Related Diversification- i. New lines of business, but all relates to what we are doing as a wholeii. Ie- mcdonalds adding the fish sandwich or P&G makes household stuff

but also has Duracell, Iams etc…2b. Unrelated Diversification-

i. New lines that aren’t related or connected, when one area is weaker than another, can be out of cycle with another

ii. Ie ITT started with phones then owns hotels and insurance

3. Vertical Integrationo The more activities you can perform the more profitable you can becomeo Value chain

i. Raw material> Value Added Products>Finished Productso Activities (ways to make a profit margin)

i. Procuring- getting stuffii. Transform- ie oil into gasolineiii. Holding- inventory function- having the product ready for the

customeriv. Promoting- really know how to sell and connectv. Distributing- where the customer wants it and whenvi. Servicing- service plans are 98% profitable to management

3a. Backward Vertical Integration-a. Starting in the middle and going towards the procuring stage

3b. Forward Vertical Integration- a. Starting in the middle and working towards the service stage

4. International Expansiono To what extent do we customize our product for different cultures versus

standardizing the product for global efficiency o Are people the same worldwide or are they different, they are both

4a. Global Strategy- Efficient:o when we sell the same thing everywhere we are efficient, use this for

commodities and industrial products like coal4b. Multi-Domestic Strategy:

o customize our products for different culture, not efficient but effective, for products with smell, taste, or appearance

5. Low Cost/ Cost Leader Strategy:o budget model, you compete with priceo starter cheaper model, efficiencyo customers win bc you have the lowest priceo risk: if technology disrupts you, you could go out of business

6. Differentiation Strategy:o Luxury approach, handmade, premiumo Risk:

1. Image and reputation, cant have a blemished rep2. Depending on your skills or the current economic condition, 3. Over time both strategies float towards the middle

Corporate Pyramid1. CEO2. Executives

3. Managers4. Supervisors5. Workers

Span of Control- - Horizontal dimension, the number of subordinates that report directly to a manager- The more professional your people are the less you have to supervise- How uniform is the work? If everyone does the same thing then you can manage more

people- The higher up you are the fewer ppl work for you

Chain of Command-- Vertical Dimension- the number of layers of management between the CEO and the

bottom worker- The higher the complexity the more levels you have

Functional Structure: - for small companies of 500 or less, new companies, or single product companies- CEO=>VP of marketing, finance, production, HR, IT, =>Managers of hiring, training, pay…

Product Structure:- Related diversified companies, - CEO=> VP of each different product line, then managers of each product lines’ specific

product

Divisional Structure:- Unrelated diversified companies- CEO=> VP of each SBU (the unrelated products and their individual functions)- Each SBU can be sold off w/o selling the whole company

Geographic Structure: - Multi-domestic internationalization strategy:

a. Products customized for each culture- VP of each continent=> managers of each country in each continent

Customer Structure:- Each VP gets a certain customer, good for highly competitive industries

Matrix Structure:- New technology fields or any company that needs to share info- Has VP’s for each dept like mkt, finance etc but has dif managers for each product under

each dept

Team Structure:- Firms that work on projects, like law firms etc

- Team last as long as the project, dissolves when it is over, - Each dot is a highly skilled professional, each collection of dots is a team

Management 301 Exam 3

Motivation: personal individual psychological state that influences the:1. Direction of your work; on task2. Effort in your work; how much energy3. Persistence in your work; whether a person keeps trying in the face of obstacles

2 types of Motivation:1. Intrinsic- leads to behavior that is performed for its own sake, comes from engaging in

the behavior, gives a sense of accomplishment 2. Extrinsic- leads to behavior that is performed to acquire something or to avoid

something, source isn’t the task but the consequences

Tools of Motivation1) EIV

a. E- Expectations- if you try hard you will succeedb. I- Instrumentation- success is rewardedc. V- Valence- the reward is valuable

2) Knowing Needs and Wants (Maslow’s 5 Needs for the Business World)1. Physical- Living wage for employees2. Safety- aka job security and insurance3. Social- befriend others (facilitate social aspect)4. Esteem- promoted or recognized5. Self-actualization- stretch, learn, and grow

- do you know each person on your staff?

3) Herzberg- 1. Hygiene Factors- Physical and Safety2. Motivational Factors- Social, Esteem, Self-actualization

i. These all play a part in motivating but don’t in fact motivate

4) McClelland 1. Highly skilled white collar workers need:

a. Achievement b. Affiliation- w/ other high achieversc. Power- over decision making

5) Equity- Fairness- Justice

- Employees must feel that they get as much or more out of their work than their coworkers for every bit of effort they put in

6) Goal Setting:1. Set a goal w/ a higher or better purpose2. Must be specific not vague (use exact numbers)3. Difficult but not impossible

a. And 1 method- make it one step better each year or term4. Set goals together with the employees5. Set an action plan (what to do)6. Give clear and timely feedback

7) BF Skinner 1. Positive Reinforcement- workers get a desired outcome for performing a correct

behavior2. Negative Reinforcement- eliminating an undesired outcome once the desired

behavior occurs “if you do well I will remove something negative”3. Punishment- administering a negative outcome in consequence for an undesired

behavior4. Extinction- eliminating the performance of a dysfunctional behavior be removing

what causes it

8) Merit Pay1. Bonus2. Price rate pay- pay for each individual thing you do3. Commissions4. Profit sharing5. Employee stock ownership

Holbein’s 3 Alternative Views on Motivation:1. Worker’s motivation cannot be manipulated like a tool bc:

a. Practical Reason: I can’t make you want to learnb. Ethical Reason: can’t manipulate someone against own will bc it is immoral

2. It is better to recruit and hire people who are already motivated than to hire people and try to motivate them

3. Motivation is not the end goal, it is a means to the enda. Motivation, capabilities, and circumstances drive performance ; it takes all 3

Group- 2 or more ppl who interact with each other

Team- type of group whose members work intensely w/ each other in order to achieve a common shared purpose; the shared purpose is what makes it different from a group

4 Developmental Stages-1. Forming- build bonds of trust2. Storming- constructive conflict3. Norming- establish common values4. Performing- get to work and do the task

- If you aren’t performing well then go back thru the steps

3 Ways to Combat the Free rider (Loafer) Problem1. Make sure you can see who does what part2. Emphasize the value of individual members3. Keep team size small

Equal Employment Opportunity (8 Ways of Discrimination)1. Race or color2. Gender or sex3. Age (must be 40 or older to claim)4. Religion5. Nationality6. Disability 7. Pregnancy8. Genetic info

Jack Welsh- “nothing else matters if we don’t get the people thing right”

Recruitment and Selection 1. Job analysis- you must identify the tasks, duties, and responsibilities as well as the

knowledge, skills and abilities needed for the joba. As the manager what the job isb. Observe the job

2 Ways of Recruiting1. External- go outside the firm to find someone

a. Pros- new perspective and talentsb. Cons- more expensive, steep learning curve, difficult to assess suitability

2. Internal- promote from w/ ina. Pros- easier to see if they’re qualified, know firm, motivating for employeesb. Cons- groupthink

7 Tools to Make the Right Choice 1. Background info- resume and cover letter2. Interview-

a. Structured- laid out questions to ask, good bc it is fair and clear but it isn’t flexibleb. Unstructured- relaxed and flexible but can be biased and unclear

3. Paper and Pencil tests- (now computerized)a. Ability test- can you do the workb. Personality test- does your personality fit the work

4. Physical ability test- may be open to discrimination suits5. Performance test- give them job and see if they can do it, typing6. Assessment test- best indicator of future performance, see if they can do the work w/ in

the environment7. Reference- least valid bc references are too perfect

Validity- quality of indicating future performance, test must be relevant to the work

Training- short term technical methods we teach so employees know how to do their work today

Development- long term and holistic so that employees can take on new duties and meet new challenges in the future

Performance Appraisal- evaluation of employee job performance and contribution to the firm

Performance Feedback- process by which manager share performance appraisal info3 Ways to Appraise

1. Trait appraisal- assess ppl based on their personal characteristics, voice, dress etc. (Useless)

2. Behavior appraisal- look and judge actions, are they doing what I told them to? (better than trait

3. Results appraisal- most objective, 360 Degree Appraisal- being judges by everyone around you at work

Kinds of Feedback:1. Formal- set procedure at a set time on a regular basis2. Informal- no set time or format

6 Steps for an Effective Performance Feedback Meeting1. Begin with something positive/ praise2. Be specific and avoid saying things like “I don’t think you’re doing very well”3. Focus on behaviors that can be corrected4. Give suggestions on how to improve5. Give them a timetable for when they should improve by6. Express your confidence in them at the end of the meeting

3 Indicators for How Much to Pay Your Ppl1. Look at the job market2. Look at their performance

3. Look at futurea. Future of company, dept, branchb. Future of the individual

6 Major Issues Brought Up w/ Unions and Mgt.1. Hours2. Wages3. Benefits4. Working conditions5. Job security6. Grievance procedure

WSJ

VOLVO/ FORD/GEELY1. Ford is getting rid of Volvo, Jag, Land Rover, Aston Martin bc they aren’t making money

(changing strategy in difficult times)2. Geely a Chinese company is buying Volvo their plan will fail bc

a. Cost cutting doesn’t lead to greatnessb. They want to make too many more cars per yrc. Hopes Volvo’s reputation will help Geely’s sales bc they have a bad oned. Chinese aren’t good at foreign acquisitionse. Geely has no experience selling cars out of China much less making them in Sweden

3. Don’t make big decisions during hard times

eBay1. Adding “flash” fashion sales to boost sales and revive the website2. This is FORWARD VERTCAL INTEGRATION

Nestle’ 1. Under fire for using palm oil from somewhere that is destroying rain forest but only

1.12% comes from that supplier2. They could buy the supplier and that would be BACKWARD VERTICAL INTEGRATION3. They are trying to connect to ppl over social networking sites

Oil Prices1. Oil prices are up and it is bc the dollar is weak 2. The dollar is week bc of low interest rates, job market

People Who Were Rejected1. Lots of successful ppl didn’t get into the schools they wanted2. Rejection can work out for the better3. Only you can determine what your talents are (internal locus of control)

CEO’s Welcome Recovery1. CEO’s are being seen more and more often bs

a. Boost moraleb. Solicit ideasc. Better understand employee concernsd. Stave off deflections (ppl don’t quit)

2. Related to what Maxwell said “walk slowly thru the crowd”

Spare the Office the Details1. You can blame reality tv and social networking for creating a culture that tells everyone

everything that you are doing2. Technology exacerbates the perception of a relationship3. Loose lips sink ships

Search for Serendipity1. Technology allows us to only read and see our view points as stated by others2. How do you discover what you don’t want to know3. Never underestimate the unexpected

UPS Thinks outside of the Box1. 30% of drivers fail the tests, 20 year old men do the best, 74000/ yr2. 340 rules/ methods for being a driver made up by industrial engineers (TAYLORISM)

Criminals Prey on Unemployed1. Ppl are becoming “mules” someone who does someone elses dirty work2. These scams make up 50000 websites a yr

Greenwood1. Sustainable Northwest is a company that sells lumber from not threatened forest, they

aren’t making money2. Sustainable ideas typically make no money

Germany and Russia HP1. HP allegedly gave 11 billion in bribes in Russia2. Spokesperson in Germany said they are being investigated for “breach in the

transparency of trust”

Goldman Director1. Sachs being investigated for insider trading2. Theme from last 2 articles: trust is imperative for capitalism, if we try to outsmart the

system we will bring it down

Maxwell Quotes and Information

Ch.10 Initiative “Success seems to be connected with action. Successful people keep moving. They

make mistakes, but they don’t quit (Conrad Hilton). “There is nothing brilliant or outstanding in my record, except perhaps this one thing: I

do the things that I believe ought to be done… And when I make up my mind to do a thing, I act” (Theodore Roosevelt).

“There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction” (President John F. Kennedy).

“Only those who dare to fail greatly can ever achieve greatly” (Sen. Robert Kennedy). Lester Wunderman got fired from his advertising job by his boss Max Sackheim (Sack

Him), he knew he could learn a lot from his boss so he came back the next day, “The next morning, Wunderman went back to his office and worked just as he had before- but without pay.” His boss ignored him for a month, but finally walked up to him and said, “Okay, you win. I never saw a man who wanted a job more than he wanted money.”

Ch.3 Commitment Michelangelo was “born to sculpt” Call from pope to sculpt popes tomb but pope changes his mind and wants him to paint

on the ceiling of the Sistine Chapel He did not want to paint because that was not his passion (Hierarchy against the

mantra) He said he’ll do something greater than what he desires “Undoubtedly Michelangelo’s talent created the potential for greatness, but without

commitment, his influence would have been minimal” (Maxwell). “Just remember that if you’re not working at your game at the utmost of your ability,

there will be someone out there somewhere with equal ability. And one day you’ll play each other, and he’ll have the advantage. “ How do you measure up against that standard?- Bill Bradley

Ch. 13 Positive Attitude “Genius, he declared, “is ninety-nine percent perspiration and one percent inspiration”

(Thomas Edison). “The last of our human freedoms is to choose our attitude in any given circumstances”

(Psychologist Victor Frankl). “Because you choose your attitude, you can change it” (Maxwell).

Ch.2 Charisma

“Most people think of charisma as something mystical, almost indefinable. Charisma is the ability to draw people to you” (Maxwell).

“The greatest good you can do for another is not just to share your riches but to reveal to him his own” (Benjamin Disraeli).

5 Charisma Killers1. Pride2. Insecurity3. Moodiness4. Perfectionism5. Cynicism

“Think about how you can add value to five people in your life this year” (Maxwell).

Ch.15 Relationships “People don’t care how much you know, until they know how much you care”

(Maxwell).o Holbein totally disagrees

“If your focus is on what you can put into people rather than what you can get out of them, they’ll love and respect you- and these create a great foundation for building relationships” (Maxwell).

Ch.11 Listening “Before a leader can touch a person’s heart, he has to know what’s in it. He learns that

by listening” (Maxwell). “Peter Drucker believes that 60 percent of all management problems are the result of

faulty communications. I would say that the overwhelming majority of communication problems come from poor listening” (Maxwell).

“You have two purposes for listening: to connect with people and to learn” (Maxwell). “Many a man would just as soon have you hear his story as grant his request” (Philip

Stanhope).

Ch.4 Communication “If you want to connect with people, keep it simple” (Maxwell). “Who is my audience? Become audience oriented” (Maxwell). “Credibility precedes great communication. First, believe in what you say. Second, live

what you say” (Maxwell). “Every time you speak to people, give them something to feel, something to remember,

and something to do” (Maxwell).