Chapter 4

• Business


  A way for people to make money. It can be a company/organization that people make money from (CEO/Principal). It can also be a way for people to make money under the CEO by working under that business (Employees/Teachers)
• Competitive edge


  A business’s advantage over its competitors. For example, Samsung is not as pricey as Apple, while Apple offers more secure devices. Businesses can have a competitive advantage by having something that makes them stand out from others.
• Internal vs external customers


  Internal customers are the customers that depend on a company’s products. Examples include shareholders, employees, and colleagues.

  External customers are customers who pay for those same products. Examples include people coming to purchase a company’s product or service.
• Competitive advantage


  A unique attribute or strategy that allows a company to outperform its competitors and achieve superior business performance. They can do this in a variety of ways like pricing, customer service, efficiency and quality.
• What are the 5 conditions that affect the general environment of any organization?

  Social-cultural (norms, customs, social values)

  Economic (health of an economy)

  Legal-political (philosophy and objectives of political parties)

  Technological (The development and availability of technology)

  Natural Environment (natural condition of environment)
• What is environmental uncertainty?


  The lack of complete information in the workplace. It has 2 dimensions: complexity and rate of change.
• What do customers of a business want?

  High quality

  Reasonable price

  On-time delivery

  Excellent Service

  
  

  How?

  By protecting the reputation for quality products and treating customers right
• 4 criteria of TQM

  1. Q = conform to standards

  2. Q = defect prevention, not correction

  3. Q = defect-free work

  4. Q = saves money – do things right
• Cycle time


  Cycle time is the amount of time it takes for something to complete from start to finish. For example, it takes a teacher 110 hours to complete a course and for the student(s) in that course to earn a credit.
• Quality Circle


  A quality circle is a small group of workers from different levels of the company who get together and discuss how to solve problems in the production of something. For example, a small group of teachers and parents could get together and solve how to make their students work harder.
• Lean Production


  Focuses on minimizing waste and maximizing efficiency. Uses fewer workers and smaller inventories to achieve this.

  Example: A car factory that uses just-in-time parts delivery to reduce inventory costs.
• Flexible Manufacturing


  Allows for quick changes in production lines to create different products or modify existing ones.

  Example: A clothing company that can easily switch between making t-shirts and sweaters on the same equipment.
• Agile Manufacturing


  Rapidly adapts to changes in customer demand and market conditions. Focuses on individualizing products to meet specific customer needs.

  Example: A shoe company that allows customers to choose the color, material, and style of their shoes online.
• Organizational Culture


  System of shared beliefs & values that develops within an organization & guides the behaviour of its members.
• Strong culture


  A workplace with a clear set of shared values, beliefs, and behaviors that are deeply ingrained in its employees.

  Example: A company known for its innovation where employees readily share ideas and collaborate on new projects.
• Core Culture


  The fundamental principles and values that define an organization's identity. It's the core from which everything else grows.

  Example: A company with a core value of "customer obsession" will prioritize excellent customer service throughout all its operations.
• Observable culture


  The outward-facing aspects of an organization's culture that are visible to everyone. It reflects the core culture through behaviors, actions, symbols, stories, legends and artifacts.

  Example: A company with a casual dress code and open office layout might be reflecting a core value of collaboration and creativity.
• Value-Based Management

  A strategic management approach that focuses on maximizing shareholder value through long-term decision-making.

  Key Points:

  • Relevance (support performance objectives)
  • Integrity (clear, consistent ethical anchors)
  • Pervasiveness (known to all members)
  • Strength (accepted by all involved)

  Example: A company might reject a short-term, high-profit project if it doesn't contribute to long-term shareholder value.
• Symbolic leadership


  A leadership style that uses symbols, stories, rituals, and actions to shape the culture, values, and vision of an organization. It focuses on inspiring and motivating followers through meaning rather than just direct commands.
• Characteristics of symbolic leadership


  • Uses symbols and stories to communicate a clear vision and values
  • Leads by example, embodying the desired behaviors
  • Creates a sense of purpose and belonging for followers
  • Focuses on meaning-making and interpretation
• Example of symbolic leadership:

  
  

  A CEO who regularly visits different departments and talks to employees, demonstrating a commitment to open communication and valuing all team members
• Diversity


  Refers to the variety of human experiences, backgrounds, and characteristics present within a workforce. It encompasses visible aspects like race and gender, as well as invisible ones like personality and cognitive style.

  Example: A marketing team with members from different age groups can gain insights into preferences across various demographics, leading to more effective marketing campaigns.
• Multicultural Organization


  A workplace that values and leverages the diverse backgrounds, experiences, and perspectives of its employees. It fosters an inclusive environment where everyone feels respected and has the opportunity to contribute.
• Example of Multicultural Organization:

  
  

  A company with a global presence that actively recruits talent from different countries and backgrounds, forming a team with a wide range of cultural perspectives
• Characteristics of Multicultural Organizations



  • Pluralism – members of both minority and majority cultures are influential in setting key values & policies
  • Structural integration – minority culture members are represented at various job levels
  • Informal network integration – mentoring & support to assist in career development of minority-culture members
  • Absence of prejudice & discrimination - variety of training activities to eliminate culture group biases
  • Minimum intergroup conflict - diversity does not lead to destructive conflicts between members of majority and minority cultures
• Organizational Subculture


  A mini-culture within a larger organization that shares a set of values, beliefs, and behaviors distinct from the overall company culture. These subcultures often form around commonalities like department, location, or professional background. These can be positive and negative.

  Example: The sales team in a tech company might have a subculture that emphasizes aggressiveness and exceeding quotas, while the engineering team prioritizes meticulous code and innovation. This could lead to tension if not managed effectively.
• What is design for manufacturing vs. design for disassembly?

  Design for manufacturing: Simplifying the manufacturing process.

  Design for disassembly: Simplifying the disassembly process for recycling or maintenance.