Chapter 3 leadership 7. Be flexible and improvise 8.

Monitor
• Strategic management is management that bases and adjust as needed.
all actions, activities, and decisions on what is most Chapter 4
likely – within an ethical framework – to ensure
successful performance in the marketplace.
From the strategic manager’s perspective, resources • Ethics is about doing the right things within a
are wasted unless they contribute to the success in moral framework.
the marketplace, and the more direct the • Just because a choice made is legal does not mean
contribution, the better. it is ethical.
• A core competency is something an organization • One of the best ways managers can build trust is to
does so well that it can be viewed as a competitive protect the interests of those who are not present at
advantage. the moment as if they are.
• A competitive advantage is any aspect of the • Values that lead to ethical behavior include
organization that (1) contributes directly and fairness, dependability, integrity, honesty, and
significantly to increase customer demand by truthfulness.
achieving superior value (superior quality, cost, and • People with integrity can be counted on to do the
service) and (2) is difficult for competitors to right thing, do thing correctly, accomplish tasks
replicate. thoroughly and completely, finish work on time, and
• An organization’s internal situation is defined by keep promises.
its strengths and weaknesses. An organization’s • Managers have three main responsibilities:
external situation is defined by the opportunities 1. They are responsible for setting an example of
and threats that exist in a business environment. The ethical behavior.
strategic plan should be designed in such a way that 2. They are responsible for helping employees make
it exploits the organization’s strengths and ethical choices.
opportunities while simultaneously overcoming, 3. They are responsible for helping employees
accommodating, or circumventing weaknesses and follow through and exhibit ethical behavior after the
threats. appropriate choice has been made. • Three
• A vision is like a beacon in the distance towards approaches managers can use in carrying out their
which an organization is always moving. responsibilities related to ethics:
• The mission takes the next step and describes who 1. Best Ratio Approach - managers should make the
the organization is, what it does, and where it is choice that will do the most good for the most
going. people. This approach is sometimes called
• An organization’s guiding principles establish the situational ethics.
parameters within which it is free to pursue its 2. Black and White Approach - managers should
mission. make fair and impartial choices regardless of the
• Broad strategic objectives translate an outcome
organization’s vision and mission into measurable 3. Full Potential Approach. - Decisions are made
terms. based on how they will affect the ability of those
• Steps in executing strategic plan: 1. Communicate involved to achieve their full potential.
2. Build capabilities 3. Establish strategy supportive • Organizations that take the “Do as I say, not as I
stimuli 4. Eliminate administrative barriers 5. do” approach to ethics will not succeed.
Identify advocates and resisters 6. Exercise strategic
• Corporate social responsibility (CSR) is a • A quality culture is an organizational value system
balanced approach for organizations to address that results in an environment that is conducive to
economic, social and environmental issues in a way the establishment of continual improvement in
that aims to benefit people, communities, and quality. It consists of values, traditions, procedures,
society. and expectations that promote quality.
• Change cannot occur in a Hostile Environment:
Employees who are used to competing against their
fellow employees for promotions and wage
increases may not be open to mutually supportive
Chapter 5
internal partnerships and teamwork.
• Cultural change is one of the most difficult
• The simplest way to understand the concept of
challenges an organization will ever face. It is hard
partnering or the strategic alliance is to think of it as
to achieve even under the best of circumstances.
working together for mutual benefit.
Leadership from the top is essential. Consequently,
• Partnering can lead to continual improvements in
sometimes an organization’s culture simply cannot
such key areas as processes or products,
be changed without a change in leadership.
relationships between customers and suppliers, and
• Change is resisted in any organization. Resistance
customer satisfaction.
to change is normal organizational behavior.
• Supplier personnel should meet with buyer
Continual improvement means continual change.
personnel who actually use their products so that
• If change is to happen advocates must begin with a
needed improvements can be identified and made.
different paradigm: Who will be affected by this
• The rationale for partnering with customers is that
change and how? How will the changes be
it is the best way to ensure customer satisfaction
perceived by those it affects? How can he concerns
which in turn is the best way to being competitive.
of those affected be alleviated?
• A manufacturing network is a group of individuals
• People resist change for the following reasons:
(SMEs – small and midsized enterprises) that
Fear: People fear the unknown. Loss of Control:
cooperate to improve their quality, productivity, and
Change can threaten their sense of security.
resultant competitiveness to levels beyond what the
Uncertainty: People like to know where they stand.
individual member companies could achieve by
More Work: Change sometimes means more work.
themselves.
People may have to learn more information or
• Technology commercialization is the transfer of a
develop new skills.
new technology from a research lab to a production
• Involve Potential Resisters: This will help
setting.
potential resisters develop a sense of ownership in
• The need to continually improve employees’ work
the change that can turn them to advocates.
skills is a primary force driving the business and
• Maintain an awareness of quality as a key cultural
education partnerships.
issue: Regular dissemination of quality goals and
corresponding results relating to these goals.
• Keep employees involved: Make it easy for
employees to recommend improvements and
Chapter 6 involve them in product and process design review.
• Recognize and reward behaviors that tend to
nurture and maintain the quality culture: Rewards
are tangible benefits such as salary increases, service, billing), Relationship quality
bonuses, incentives, and promotions. (communication, availability, responsiveness),
Image, Price perceptions (initial purchase price, cost
of maintenance and repairs, cost of upgrades).
• The best companies involve customers in the
design, prototyping, and testing phases of product
development.

Chapter 7

• People who interact with the company prior to Chapter 8

these processes taking place have been considered
suppliers.
• Those who interact with the company after these • Involved employees are asked for their input, but
processes have produced the product have been are not given ownership of their jobs.
viewed as customers. • Empowered employees are given ownership of the
• From this traditional perspective customers and process they are responsible for and the products or
suppliers are both external entities. services generated by those processes.
• In a total quality setting, customers and suppliers • The rationale for empowerment is that it represents
exist inside and outside the organization. the best way to bring the creativity and initiative of
• The customer must be the organization’s top the best employees to bear on improving the
priority. The organization’s survival depends on the company’s competitiveness.
customer. • Workforce Readiness: Empowered employees who
• Customer satisfaction is ensured by producing are not prepared for the responsibilities involved can
high quality products. It must be renewed with be worse than not empowering them at all. Educate
every new purchase. This cannot be accomplished if the employees before empowering them.
quality, even though it is high, is static. Satisfaction • Everything management does to promote
implies continual improvement. Continual empowerment should have the goal of establishing a
improvement is the only way to keep customers creative, open, nonthreatening environment in
satisfied and loyal. which involved, motivated, dedicated employees
• The key to establishing customer focus is putting can flourish.
employees in touch with customers and empowering • A quality circle is a group of employees that meets
those employees to act as necessary to satisfy the regularly for the purpose of identifying,
customers. recommending, and making workplace
• When evaluating the performance of an improvements.
organization customers consider: Product quality • MBWA (Management by Walking Around):
(attributes, features, usability, compatibility, Simply walking around the workplace and talking
reliability), Service quality (sales, after sales with employees can be an effective way to solicit
input.
• Employee enlistment goes beyond empowerment
in that it not only allows employees to own their
jobs and to innovate but also expects them to do so.