Business Management: Theories, Models, and Strategies

CSR: Classical vs. Socioeconomic Views

Arguments Against CSR (Classical)

• Reduced profits
• Higher costs
• Dilution of business purpose
• Too much social power

Arguments For CSR (Socioeconomic)

• Better public image
• Businesses have resources and ethical obligation
• Better environment
• Public wants it

Group and Team Dynamics

Group Types

• FORMAL: Command, task, functional
• INFORMAL: Interest, friendship, reference

Team Types

• Cross-functional
• Self-managed
• Virtual
• Problem-solving
• Quality circle

Stages of Team Development

1. Forming: Team gets acquainted and establishes ground rules.
2. Storming: Members begin to communicate their feelings.
3. Norming: Members feel a part of the team and begin to accept other views.
4. Performing: Team works in an open and trusting atmosphere where flexibility is key.
5. Adjourning: Team conducts an assessment.

Cohesiveness

Increase Cohesiveness

• Intergroup competition
• Attraction
• Favorable evaluation from outsiders
• Agreement on goals
• Frequent interaction

Decrease Cohesiveness

• Increase in size
• Disagreement on goals
• Intragroup competition
• Domination by members
• Unpleasant experiences within the group

Leadership and Motivation

Leadership Styles

Process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.

• Goleman's Leadership Styles:
  • Coercive (dictator)
  • Authoritative (visionary)
  • Affiliative (people person)
  • Pacesetting (do as I do)
  • Democratic (listener)
  • Coaching (nurturer)

Managerial Power

MP = Position Power (reward, coercive, legitimate) + Personal Power (expert, referent)

Barriers to Communication

Individual Barriers

• Conflicting or consistent cues
• Credibility about the subject
• Reluctance to communicate
• Poor listening skills
• Predispositions about the subject

Organizational Barriers

• Semantics
• Status or power differences
• Different perceptions
• Noise
• Overload

Motivation Theories

Alderfer's ERG Theory

• Growth: Intrinsic desire for personal development
• Relatedness: Desire to maintain interpersonal relationships
• Existence: Concern with basic material

Two-Factor Theory (Herzberg's)

Improving motivation increases job satisfaction; improving hygiene factors decreases job dissatisfaction.

Expectancy Theory

Manager must understand what employees want in order to begin to motivate them. MOTIVATION (environment-effort-ability) --> performance --> outcomes

Equity Theory

Suggests people are motivated to seek social equity in the rewards they receive for performance.

Reinforcement Theory

• Strengthen:
  • Positive reinforcement (+ behavior followed by + consequences)
  • Negative reinforcement (+ behavior caused by removal of negative consequences)
• Weaken:
  • Punishment (- behavior followed by - consequences)
  • Extinction (- behavior caused by removal of + consequences)

Business Strategies and Planning

Miles and Snow Topology

• PROSPECTOR: Highly innovative firm that is constantly seeking out new markets and new opportunities.
• DEFENDER: Concentrates on lowering costs and improving performance of current products.
• ANALYZER: Firm attempts to maintain its current business and be somewhat innovative in its new business.
• REACTOR: Firm has no consistent approach.

Product Life Cycle

• INTRODUCTION: Focus on getting products out the door, hiring workers.
• GROWTH: Begin to differentiate from competitors.
• MATURITY: Continue differentiation, keep costs low.
• DECLINE: Demand decreases.

Strategic Planning

• Strategic Plans: (5 or more years)
• Tactical: (1-5 years)
• Operational: (less than 1 year)

Organizational Structure and Ethics

Conceptual/human/technical - collection of people/working together/division of labor/common purpose - factors affecting unethical behavior: person/organization/environment - ways to maintain: ethics training/whistleblowers/ethical role models/code of ethics