Coffee N More Business OVERVIEW OF THE BUSINESS Description of Business Coffee N’ More is an on-campus coffee and snack cart facility operate on the St. Christa campus of the University of the Vital Islands (UVI). This student-owned and managed business serves coffee, teas, sandwiches and snacks to the University community. Briefly, product offerings include: beverages, specialized coffee (e.g., espresso and latte), teas (e.g., local and nationally branded herbal teas), and a limited variety of sandwich and snack foods products. Coffee N’ More began in Spring 2015 as a student-owned but not profit 501(c)(3) business. All profits earned by this business are funneled into a Student-funded foundation out of which participating students can earn varying amounts of stipends to partially fund tuition, books and other student UVI fees. Students are not permitted to “work” the jobs serving Coffee N’ More customers or any other first line worker jobs. Coffee N’ More was created for students leading it to do so as Managers and Supervisors of those employees they would hire. Therefore, participating students in the of Coffee N’ More business manage the various parts of the business in approximate alignment with their academic areas of study: management, marketing, information systems, accounting and finance. Total School Of Business academic degree programs are integrated with this Coffee N’ More business enterprise. By design, this Coffee N More business serves as a continual “learning laboratory” for students. Students will “learn by doing” the core concepts in their chosen majors and in their general business education learning outcomes, as applied to this business. This arrangement must be seen as strength or a weakness or some combination of both mans this a possible competitive advantage or disadvantage. For example, it might be a competitive risk of a disadvantage too due to lack of sufficient real-world application of such knowledge and skills by those SOB students. Afterall, the students are “learning by doing”, aren’t they? Nevertheless, since Coffee N’ More is a real business. Like any other business, it must be managed and those business functions studied must be integrated and applied well in managing it. As Coffee N’ More, for example, the student led senior management team of Coffee N’ More performs all major decision making and strategic management of Coffee N’ More. Also, the student head of Operations Manager and the student head of Marketing, of Coffee N’ More together, with sufficient input from the student Supervisors of Coffee N’ More, hire all employees of Coffee N’ More. Participating UVI students will apply all facets of business management responsibilities that have to be carefully assigned and scheduled by the Coffee N’ More student leadership team: operations management [supply chain management, inventory management, job scheduling, equipment maintenance, quality management (of current job performance, process performance, and product/service performances)]. Also to be managed and decisions made about are: Coffee N’ More’s marketing, accounting, information systems and technology, and finance activities and responsibilities. All employees are hired from within the local non-student St. Christa community, with a special positive bias toward hiring senior citizens and retirees. The reason the original Coffee N’ More senior management team in 2015 chose this hiring strategy was based upon the Walmart Corporation’s successful use of this hiring approach. Operating hours for Coffee N’ More are between 7am to 4pm. Work Shifts: 6:00am to 5:30pm. Shift 1 (6:00am – 10:00am); Shift 2 (10:00am to 2:00pm) Shift 3 (2:00pm to 6:00pm). Shift 1 does 1 hour of set-up the business for opening and operating beginning at 7am and 3 hours of operating/serving. Shift 2 continues operating/serving until 2pm. Shift 3 continues serving until closing at 4pm and them spends 2 hour of closing the records, securing the funds, cleaning and shutting down. Each Shift require 2 paid employees (hired from the local community of residents) and two participating UVI student Managers/Supervisors, not directly paid salaries. Each of the two participating UVI student Manager/Supervisors in a given shift will have only a two-hour responsibility to oversee and manage the Coffee N’ More business—which is why two student managers are needed per shift. The New Students Owned Coffee N’ More Business Model While engaging in marketing research, the students identified and evaluating a current local business’s successful version of this model, a competitor. The students team agreed to mimic this idea as their off-campus business model, while attempting to successfully differentiate from this competitor’s version. Now, the location of the second Coffee N’ More unit, first such off-campus unit, has been identified. SOB Students plan, based upon substantial student led market research, to eventually locate an off-campus Coffee N’ More mobile units on their small Caribbean island next year. This business will be offering take-out service and not enable sit down service. The new off-campus Coffee N’ More business will be specially designed to operate out of a converted School Bus. This Coffee N’ More business will be located legally, with official Vital Islands government permits. This new Coffee N’ More business will be placed and positioned strategically throughout St. Christa Island. This business’s location must be in a high traffic area and enable customer access to sufficient parking. Competitive Situation For the past few years, global coffee competitive forces have affected local coffee serving and food serving competitors. Since 2009, the McDonald’s Corporation and Starbucks have aggressively penetrated markets worldwide, as they’ve both campaigned for the attention of coffee connoisseurs. St. Christa Islands is no exception. McDonalds offers lattes and mochas in its McCafés restaurants United States. McDonalds has also marketed more healthy food offerings to compete with Starbuck’s healthy food offerings. In an attempt to woo rival Starbucks’ more healthconscious and socially more “woke” customers, McDonalds promised to offer premium coffee and healthy food offerings but at bargain prices. Meanwhile, Starbucks has aggressively positioned itself to be located nearby McDonalds establishments. Starbucks markets and offers more healthy and nutritiously delicious snacks and food options aiming to attract more of McDonalds’ customers, especially those becoming increasingly more health conscious. So, the McDonalds versus Starbucks fight continues. Both global brands and food-beverage stores exist on St. Christa for local coffee serving and food serving businesses to contend with. More recently, large fast food brands on St. Christa—Burger King, Wendy’s and even Kentucky Fried Chicken—have joined the competition to offer better quality flavored coffee and latte beverages and some healthier-food options. All of these global brands have the benefit over local St. Christa food and beverage businesses in terms of having lower food and beverage costs than local businesses have due mainly to economies of scale and economies of experience effects (i.e., learned to operate most efficiently due to years of experience). In contrast, the UVI participating students only can have accumulated two to three years of experiences before they graduate and be replaced by new participating students. Hence, the participating UVI School of Business students won’t have accumulated much economies of experience benefits. Nor would it be possible for such a small sized business like Coffee N’ More could achieve any economies of scale cost reductions like a Starbucks, Wendy’s, McDonalds’ has achieved. So, while Coffee N’ More relies upon locally available suppliers and related costs, competitors like McDonalds, Starbucks, Wendy’s and Burger King have their own global suppliers, which disadvantages local St Christa competitors. Consequently, size does matter here. Brand recognition value matters too. Coffee N’ More, while well known and successful on campus for the past 4 years, does not logically mean that the Coffee N’ More brand is recognized much outside of UVI’s campus. Both local competitors and globally branded large competitors have an advantage over Coffee N’ More in this brand recognition regard. Perhaps, UVI School of Business students may market their student and non-profit status to appeal to local customers to “help your local students”. If this works, then that would provide some advantage over both local and global brand competitors. But only if such an appeal would work, which must be discovered once the off-campus business starts. Assignment: The focus of your thinking and application of Management concepts you’ve learned so far: The shifts of Coffee N’ More from only an on-campus and non-profit 501(c)(3) operation to the new off-campus and for-profit business model. This shift indicates and begs the need to anticipate a variety of “possible” management problems for the off-campus Coffee N’More for profit business. By your anticipating and properly planning for such possible management problems, you can avoid must of them. Therefore, your task is to answer the following questions that demand you to seriously think about and apply your management concepts you’ve learned so far. All answers below must make business and management sense for the specific facts given to you by this Coffee N’ More case study. If your answers make little sense, then you’ll not get many points, if any for such questions. Using all of the learning materials provided, apply these appropriately to answer the following questions. You are a business consultant that Coffee N’ More’s leadership team will receive free consulting advice from the Vital Islands Small Business Administration Office. You work for this organization and have lot’s of wise business counsel to give. 1. Given the narrative given in this Coffee N’ More business case, there are some significant external environmental factors indicated, which need further sensemaking and understanding in order to plan for responding to. Identify three such external environmental factors/forces indicated in this business case and discuss what additional analyses you realize is necessary in order for Coffee N’ More to plan to respond to. Finally, formulate a brief and succinct plan of action for each of these three environmental factor patterns, you understand. 2. Form of Business Ownership. Even though the on campus Coffee N’ More business is a non-profit entity, have a brief introductory conversation with the Coffee N’ More’s student leadership team about the possible different types of for-profit legal business organization options they might consider for the off campus business entity. Discuss briefly the pros and cons of each type of business organization they should think about. You realize that you will need to brush up on this detail and must prepare your brief descriptions of each business ownership types. Go online, perhaps the SBA, and find brief descriptions of the major types of business organization. DO NOT PLAIGARIZE but write in your own words the type and brief description of business organization you’re going to tell the Coffee N’ More team. Only a brief paragraph will suffice. Write these accurately here. 3. Since this new Coffee N’ More will be located off campus and more in “the real world”, you consult with the student leadership team and recommend they consider hiring a fulltime manager from the non-student community and have UVI leadership team to oversee and manage this on-site full time Manager. Hence, a new full time Manager’s job description is required. You’ll assist the leadership team by preparing a job analysis for this Coffee N’ More Manager’s position. You will outline: a. Leadership characteristics, values and/or people management philosophy desired in the successful Coffee N’ More Manager. Provide at least seven such characteristics/values/people management philosophy traits; b. Documentable evidence the candidate must present for review supporting their claim to be such a leader described in question 1a. Because you’re consulting with the student leader team, you will help them by specifying what those types of documentable evidence that should be listed in the advertisement of this Coffee N’ More Manager position description. Provide at least three types of documentable evidence the Candidate must commit to share when submitting their application for the Manager’s job. 4. Assume three applicants have applied for this full time Manager position. Suggest and explain at least relevant five interview questions the Coffee N’ More’s student leadership team should ask of each candidate. Be sure to go online to learn the types of illegal or unethical interview questions you must never ask a candidate—this is important, since you might be sued for malpractice should you advise the leadership to ask illegal or unethical job interview questions. 5. Now the Coffee N’ More’s leadership team has interviewed the candidates. One candidate has really impressed them overall, while a couple more candidates have done well but not as impressive as Jai Kay. The Cofffee N’ More briefed you about their interview with Jai Kay. They mentioned that Jai Kay was recently laid off from a large coffee shop and snack food establishment on the other end of the island and was still collecting unemployment compensation. Towards the end of the interview, Jai Kay suggested that the Coffee N’ More consider paying him "under the table" for another six months because he wants to continue receiving his unemployment compensation for that time. Jai explains should the student leadership team accepts this suggestion, he’d would be willing to reduce his manager’s salary a bit. Jai continued this offer by saying that Coffee N’ More’s employer payroll taxes would not have to be paid from this under the table arrangement. As the Coffee N’ More’s consultant, what would you suggest to the student leadership team members regarding this ethics-related issue. Describe and explain clearly your response and reasons, especially the ethics. 6. Since you’re hiring a full-time non-student Manager for the for-profit off-campus Coffee N’ More business, your UVI student leadership team has to adjust how you manage a non-student and full time manager who is not on campus but in the community location. Your full time Manager will likely be older than your student leadership team members and probably has achieved lots of real-world management experiences, one of the reasons why you would have hired him or her. Identify at least 10 management concepts you’ve learned in the Model of Management and other learning materials you’ve been taught. For each of these 10 specifically named management concepts, demonstrate how that concept could be the basis for a possible conflict which may occur between the Manager and your Coffee N’ More student leader team members, who are his or her “boss”. Try to write only a few sentences to describe each of the 10 management concepts you’ve selected but be sure to explain why you selected each as a potential area of conflict. Name each concept before answering and be sure that concept is part of the learning materials given to you. For example, and you can’t use this one: the possibility that the Manager you hired is actually more a Theory X manager, when he or she interviewed and claimed to be more descriptive of a Theory Y manager 7. Given the meaning of commitment-oriented controls, specify exactly which such controls you’ll establish for this for-profit Coffee N’ More business operation and how you’ll install these into the Manager’s responsibilities to manage. Identify and explain your deployment of at least three such commitment-oriented controls to deploy in Coffee N’ More. Management Concepts Concepts: Definitions: • • Gives The Whole and the Parts of Management • Your conscious recognition and remembering specific experiences enables you to discover specific text book concepts; Therefore, real learning is an active mental engagement in your life experiences that you map to your textbook concepts; PAY ATTENTION - TO YOUR LIFE SITUATIONS! Learning = Awakening CONSCIOUSLY RE-COGNIZE - LIFE REVEALING AND BROADCASTING TO YOU YOUR CLASSROOM LEARNING CONCEPTS; RE-COGNIZE = “KNOWING AGAIN” one’s belief in their ability to accomplish what he or she seeks to do (in any situation) These 4 variables together lead to self-efficacy; • Course Overview – turbulent envir., factors/forces of change; challenges to managers and management theory principles: leading, etc. Your Life Experience Encodes Every Text Book Concept • • Learning happens mostly OUTSIDE OF THE CLASSROOM • • • • • Self-Efficacy – • • Self-Knowledge; Self-Confidence; Self-Competence; Self-Love; • MANAGEMENT KEYS: 1. “The Relationship Is More Important Than Your Point” 2. “Follow The Golden Rule” 3. Communicate, Communicate, Communicate; 4. If all your Employment Development attempts fail, terminate the employee Week(s) Discussed: Weeks 1, 2 and 3 Weeks 1, 2 and 3 • Universal Relationships: • Part-to-Whole • • Cause-Effect Systems – Inputs, Processes, Outputs, Feedback. • Connectedness of Everything • X – Principle of Crossing Model of Management – (Level 0) • Level 0 Model Reveals Each Universal Relationship Above Model of Management – MOM (Level 1) • Part-to-Whole - Anything or person comprises parts related properly to function as a whole • Cause- is a force or action causing result, the Effect • Anything or person functions (as a whole-of-parts) by receiving proper inputs from the environment it needs, that internal parts processes properly, to produces outputs with which to sustain its existence and form. Feedback enables after-thefact detection of whether or not proper inputs, processes or outputs are proper and sufficient. • Anything and person has a distinguishable and recognizable relationship to anything and any other person; • X symbolizes RELATIONSHIP, CROSSING, CREATING A NEW “ONE” THING BY RELATING TWO SEPARATE THINGS/PEOPLE Environment, Leading, Planning, Organizing, Doing, Controlling Weeks 1, 2 and 3 Week 1, 2 and 3 Week 2 MOM Definitions below: • Environment • Leading • Planning • Organizing • Doing • Controlling • Organization • Management • • Taylorism – Scientific Mgt “You” – Manager of “You” Entities: Economy, Regulations, Customers, Competitors, Technology, Society, Global Resources, Stakeholders, Population, Legal, Governments, Suppliers, Strategic Alliances. Educational Institutions, Media, Industries, Markets Influencing other people to get the job done, maintaining morale, molding company culture, and managing conflicts and communication. Setting goals, deciding on courses of action, developing rules/procedures, developing plans and forecasting Identifying jobs to be done, hiring people to do them, establishing departments, delegating authority, establishing a chain of command, coordinating work of subordinates. Implementing actions planned, identifying emerging opportunities and obstacles, changing and adjusting actions and plans to exploit opportunities and overcome obstacles, Setting standards, comparing actual performance, taking corrective action as required. group of people working together in defined roles to achieve common goals and objectives Management: coordinating and overseeing the work of others so that their activities are completed efficiently and effectively. Belief that there’s “One Best Way” to perform any job. Self-management leads to learning, growth and success. Concepts: Definitions: • Economic Eras Transitions and The Wars Causing Them 2 Main Levers to Control: • Agricultural . land, slaves • Industrial . machine capital, financial capital • Information – data info., computer tech • Psych-Soc-Tech – minds, social relationships • Forces of Change • • • • • Disruptive Technology Week 2 Weeks 2-3 Weeks 2-3 Weeks 2-3 Weeks 2-3 Weeks 2-3 Weeks 2-3 Weeks 2-3 Weeks 3-4-4 Week 2 changing customer wants; innovative technologies – new technology; disruptive technologies; converging technologies – combinations of 2 or more technologies; • globalization – forces towards “one-world govt” • legal and regulatory dynamics; • political instabilities; • cultural diversity; • economic uncertainties; • Internet/e-commerce revolutions. A radical technology that changes how businesses and other organizations must compete; if not adopted, it will cause the business or organization to fail. In time, disruptive technologies become the standard technology used by most. Week(s) Discussed: Weeks 4-5 Weeks 4-5 Weeks 4-5 • Theory X • Theory Y • Emerging Business Psych-Soc-Tech Environmental Changes, Threats and implications on management, human, society and relationships. Leading Concepts • Autocratic Versus Theory X: A set of assumptions managers have about human nature believing that people: • dislike work; • are not motivated to do a good job; • are motivated only by financial incentives; • dislike responsibility; • prefer to be directed; • need to be closely monitored; • can’t be trusted. Theory y: A set of assumptions managers have about human nature believing that people: • enjoy work; • are motivated to do a good job; • are motivated by more than financial incentives; • like responsibility; • are self-directed; • don’t need to be closely monitored; • can be trusted. Critical Question: How will you be able to Manage Others in such a new world emerging? • Tech Giants’ Addicting Users – challenges profitability, productivity and workplace relationships; • Mass Media Control – ‘divide-and conquer’ mind manipulation of masses about ‘reality’ and ‘truth’; • Social Credit System – Mass real-time 24/7 surveillance and systemic modifying human behaviors through social reward/punishments (a mass ‘Control’ function) Old vs New Environment • Autocratic – ‘auto’ means self and – ‘cracy’ means govern or rule. Autocratic leaders manage others as their single authority and power over them. Autocratic leaders use ‘top-down’ decisionmaking and ‘command and control’ authority over the work and workers’ responsibilities. • Democratic/Participatory - ‘demo’ means the people’ and – ‘cracy’ means govern or rule. Democratic leaders use ‘bottom-up’ approach towards the work and workers’ responsibilities by seeking their participation in decision-making processes. Weeks 3-4 Weeks 5-6 • Democratic • Transactional • Versus • • Transformational Transactional - an exchange-based relationship between the manager/leader and the employees being led. Transformational – an emotion-based relationship wherein the manager motives, inspires and positively changes the workers. Weeks 3-4 Weeks 4-5 Weeks 5-6 • Programmed • Versus • • Non-programmed Decisions • Problem-solving Steps 1-5 • Leadership Orientations • Leadership Styles Planning Concepts • Workers Do & Managers Think/Plan versus • • Workers Do/Think/Plan & Managers Think/Plan Rational Decisionmaking - Versus • 1.Define the Problem; 2.Clarify Objectives; 4.Analyze Consequences; 5.Make Choice. Telling; Delegating; Participating; Selling Versus Weeks 5-6 Weeks 5-6 Weeks 5-6 Weeks 5-6 Weeks 5-6 Weeks 5-6 Workers Do/Think/Plan & Managers Think/Plan – A manager’s belief and practice that workers’ value lies in doing the work and participating in some of thinking and planning. • • • • • Analytical, Creative & Intuitive Decisionmaking Organizing Concepts • Tall 3.Identify Alternatives; Thinking vs Feeling and Intuiting vs Sensing Old vs New Environment Workers Do & Managers Think/Plan – A manager’s belief and practice that workers’ only function in the workplace is to do the work and the manager’s functions are thinking and planning. Satisficing Decision-making • Analytical Decision-making Programmed decisions (problematic situations on the job) – These are for ‘familiar’ problematic situations on the job for which a ‘routine’ solution should be applied to resolve situation. Examples of programmed decisions: a procedure, a policy, a company rule, a rule of thumb (called a heuristic). Note: also ‘familiar’ problem situation called ‘structured’ problem. Non-programmed decisions (problematic situations on the job) – These are for ‘unfamiliar’ problematic situations on the job for which a ‘unique’ solution should be used. Note: ‘unfamiliar’ problem situation also called an ‘unstructured’ problem, which requires the standard 5 problem-solving steps to solve it: • Rational Decision-making - The rational approach to planning ASSUMES an nearly infinite amount of 1. information; 2. time; and 3. brain-power will be needed and available to managers (which is unrealistic) to make the decisions. So managers seek to make ‘optimal’ (meaning ‘the best’) decisions. Satisficing Decision-making - The satisficing approach to planning, ASSUMES only a limited amount of 1. information; 2. time; and 3. brain-power available to make any decisions (which is the reality). Managers settle with making ‘good enough’ decisions, given these limits. Weeks 5-6 Analytical Decision-making – Uses rational, fact-based, and logical reasoning to formulate decisions, figure out and solve problems. Analytical, Creative & Intuitive Decision-making – These approaches combines the analytical processes with creative and intuitive inputs and processes to formulate decisions, figure out and solve problems. Weeks 5-6 ‘Tall’ structures (shown as a tall pyramid) has many, many levels in the chain command between the top and bottom. Tall organizations require lots more time for decision-making and acting upon by top managers, through middle management levels, Weeks 5-6 Weeks 5-6 • Versus • • Flat Mechanistic • Versus • • Organic • Centralized • • Versus • • De-centralized • Lewin’s Change Process • • • • • Maslow’s Need Hierarchy • down to the bottom levels of the organization. Tall organizations tend to fail in turbulent environments because they’re sluggish and slow when they need to act quickly and timely. ‘Flat’ structures (shown as a wider, shorter pyramid) contain only a few levels in the chain command between the top and bottom. Flat organizations require less time for a decision-making and acting upon by top managers, through middle management levels, down to the bottom levels of the organizations. As such in a rapidly changing business environment (turbulent), Flat organizations tend to succeed more in turbulent environments because they are nimble, adaptable, and fast and can act quickly and timely. ‘Mechanistic’ – organizations, like a machine, have many, many parts that need to fit together rigidly and precisely for the organization to function properly. Mechanistic organizations tend to be inflexible and rigid and fail in turbulent environments. ‘Organic’ – organizations, like your body, also have many, many parts but those parts are flexible and adaptable like your body’s organs. Organic organizations tend to be more successful than Mechanistic in a turbulent environment because they can better adapt and respond to turbulent environments. Weeks 5-6 ‘Centralized’ – This concept is not about structure but decisionmaking authority. A certain degree and amount of decisionmaking power and authority can be concentrated at the top of the hierarchy of the organization (e.g., the President, Chief Executive Officer, and Board of Directors). So, centralized authority and decision-making comes from this level. Typical example is authority over large dollar value decisions by the organization. For example, financial decisions over $1 million, would only be allowed to be made by the centralized authority of the President, Chief Executive Officer, and Board of Directors. ‘Decentralized’ – Continuing this example. Any financial decisions less than $1 million could be decentralized to authority levels below such as the Executive Vice-Presidents(EVPs) (between $1 million to $500,000); Senior Vice-Presidents (under the EVPs), (between $500,000 to 100,000 - ); Vice-Presidents (under the SVPs); (under $100,000) Pre-Change - Frozen dysfunctional/problem conditions – leaders identifies need to change these; Unfreeze dysfunctional/problem conditions – leaders makes the case for change; halt dysfunctional/problem conditions; involve willing employees’ input, participation in decision-making and change implementation plan; Change - institute the changes – leaders assures proper levels of training, resources, practice at change, employee involvement, and other support are provided to implement change effectively; Refreeze – Establish the change as the ‘new normal’ – leaders assure that the change is ‘routinized’, celebrating small successes, producing reports that show effectiveness. ‘Maslow’s Need Hierarchy’ – physiological – food, water, clothing, etc.; safety/security – shelter, other protection; social – people interaction, social acceptance, and belonging; esteem – self Weeks 5-6 Weeks 5-6 Weeks 5-6 worth, self acceptance, and self appreciation; self-actualization – becoming the best you can be, realizing your potential. Doing Concepts • Telling and Delegating Versus Participative and Selling • Formal Communications Versus Informal Communications • • • Top-Down or Bottom-Up (e.g., Unions) Versus Relational, TopDown and Bottom-Up Communications Model Controlling Concepts CONTROL-ORIENTED CONTROLS • Previously explained; • Formal Communications – follows the written policies and procedures for communications and discourages informal communications. Versus Informal Communications – allows for more non-written, naturally human, and fluid communications, while acting within culturally and socially appropriate, moral and ethical boundaries and policies. Self-explanatory; • Weeks 5-6 • TASK-ORIENTED: BUDGETS, BALANCED SCORECARDS, COMPANYWIDE SYSTEMS, TIMESHEETS, CHECKLISTS, ACCOUNTING SYSTEMS, REPORTS • PEOPLE ORIENTED: BELIEF SYSTEMS, VALUES, COMMITMENT FOSTERING SYSTEMS, REWARDS AND INCENTIVES, EMPLOYEE DEVELOPMENT VERSUS COMMITMENTORIENTED CONTROLS Weeks 5-6 Weeks 5-6 Management Concepts Discussed APPROXIMATELY WEEK S 1, through Exam #1 Week 8 Concepts: Definitions: • Leadership Power: a. Legitimate; b. Coercive; c. Reward; d. Expert; e. Referent • Hygiene – Dissatisfaction to No Dissatisfaction. Leadership Power: • Legitimate- formal authority in the organization; • Coercive- ability to force one to do something they otherwise wouldn’t do; • Reward- use a coveted reward as leverage over one who wants it; • Expert- use of expertise as leverage over one who needs it; • Referent- use of widespread credibility, charisma and respect as leverage of influence; • Hygiene – Dissatisfaction to No Dissatisfaction. Moving a worker’s attitude about their job from dissatisfaction to no dissatisfaction. Progress but not sufficient, right? Think about it. • Motivational – No Satisfaction to Satisfaction. A worker isn’t dissatisfied but is still NOT SATISFIED • Leaders must motivate such persons to become SATISFIED with their jobs. Make sense? • Extrinsic Motivation: Extrinsic motivation: when an activity is done to obtain a separate outcome.; • Intrinsic Motivation : doing an activity for the pleasure of doing it • Hawthorne Studies – group influences individual behavior; $ less significant factor; • Heuristic: rule of thumb - an informal solution practice for a specific situation that works most of the time but not always. • Decision-Making Bases: 1. Rational; 2. Bounded Rationality; 3. Intuition • Group – a set of individuals assembled together who are not necessarily working together; • Team - individuals who are committed to work together cooperatively and effectively as a whole; • Effective Teams: clear goals, skills, trust; commitment; communications, negotiating; leadership and support • Team Stages: forming, storming, norming, performing, adjourning 1 Traditional goal setting – top-down; 2 Means-End chain; 3 Management by Objectives; 4 Planning in Dynamic Environments; Organizing Approaches: • Traditional – Organizing By: Function; Product; Customer; Process; or Geographic Location; • Modern - Organizing By: : Matrix; Network; Teambased; Virtual (e.g., internet-based) Max Weber’s Bureaucracy – division of labor, defined hierarchy, rules and regulations, impersonal relationships Fayol’s principles - Division of work; Authority; Discipline; Unity of command; Unity direction; versus • Motivational – No Satisfaction to Satisfaction. • • Extrinsic Motivation versus Intrinsic Motivation • Hawthorne Studies • Heuristic - rule of thumb • Decision-Making Bases • Group vs Team • Effective Teams: • Team Stages: • Planning Approaches • Organizing Approaches – Traditional Versus Modern • Max Weber’s Bureaucracy • Fayol’s principles Week(s) Discussed: Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 • Current Trends/Issues in Management • Organizational Culture (OC) • Organizational Culture (OC) Dimensions • Organizational Culture (OC) Trends Suppress individual; Centralization; Chain of command; Current Trends/Issues in Management: Globalization; Ethics; Diversity; Entrepreneurship; EWorld; Knowledge Management/Learning Organization; Quality Management Organizational Culture (OC): Shared assumptions of a group of people working in an organization: beliefs, values, expectations, perceptions, norms; expected behaviors; role models, symbols, rituals; OC Dimensions: innovation & risk-taking; attention to detail; outcome orientation; people orientation; team orientation; aggressiveness; stability Current Trends: • Ethical OC; • Innovative OC; • Customer-Responsive OC; • Spiritual OC Weeks 6-7 Weeks 6-7 Weeks 6-7 Weeks 6-7 McGregor’s Theory X and Theory Y Theory = A set of assumptions Theory X: A set of assumptions managers have about human nature believing that people: 1. dislike work; 2. are not motivated to do a good job; 3. are motivated only by financial incentives; 4. dislike responsibility; 5. prefer to be directed; 6. need to be closely monitored; 7. can’t be trusted. Theory y: A set of assumptions managers have about human nature believing that people: 1. enjoy work; 2. are motivated to do a good job; 3. are motivated by more than financial incentives; 4. like responsibility; 5. are self-directed; 6. don’t need to be closely monitored; 7. can be trusted. 
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