Comprehensive exam prep. Deep content, flashcards, quizzes โ chapter by chapter.
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SPC to BPM. Pioneers. Three converging streams.
Design factors, vertical/horizontal, centralization, matrix.
Styles, change mgmt, motivation, conflict, empowerment.
8 types, Tuckman, KESAA, roles, facilitation, groupthink.
Detailed notes for every exam topic.
Quality evolved through distinct phases. SPC (1920s): Shewhart's control charts at Western Electric/Bell Labs โ distinguished assignable-cause from chance-cause variation. TQM (1980s): Organization-wide continuous improvement; customer focus, data-driven, all employees. BPR (late 1980s): Hammer & Champy's radical redesign โ discard old processes, start from scratch, often tied to major IT. Six Sigma (1990s): Motorola/GE, DMAIC methodology, targeting 3.4 DPMO. BPM (modern): Integrated process management crossing departmental lines.
Ford: Assembly line, mass production, interchangeable parts. TPS: Added continuous flow, pull systems, respect for workers. JIT: Produce only what's needed, when needed, in the amount needed โ eliminates inventory waste. Lean: Eliminates 7 wastes (overproduction, waiting, transport, over-processing, inventory, motion, defects). All driven by eliminating non-value-added activities.
MRP: Material Requirements Planning โ shop floor inventory. MRP II: Added capacity planning. ERP: Integrated all business functions (finance, HR, manufacturing, supply chain). CRM: Customer interactions and retention. BPM Systems: Enterprise-wide process optimization. Lean-Six Sigma: Merged waste + defect reduction. SBPA: Strategic Business Process Architecture โ systems engineering aligning strategy with CMO/CIO/COO. BPM processes: standardized, measurable, repeatable, reusable.
Strategic leadership includes defining structures to achieve the overall vision/mission. It is NOT solely top management's responsibility โ anyone can participate. Organization design is defined by three factors: Complexity (number of entities, reporting levels, departments, physical locations), Formalization (extent of rules, procedures, standardized guidelines), Centralization (where decision-making authority is located in the hierarchy).
Chain of command: Unbroken line of authority from top to bottom. Unity of command: Each person reports to only one supervisor โ avoids conflicting orders. Authority: Rights inherent in a managerial position, delegated from top down โ tied to the position, NOT the person. Span of control: Number of subordinates per manager. No universal ideal. 9 factors: task complexity, similarity of tasks, physical proximity, employee training level, standardized procedures, management info systems, manager's preferred style, organizational culture, financial/competitive pressures. Managers favor small spans; organizations favor wider for efficiency.
Division of labor: Breaking work into specialized tasks โ assembly line is classic example. Benefits: efficiency, expertise. Risk: monotony, narrow view. 5 Departmentalization types: (1) Functional โ by function (HR, Mfg, Acct, Eng); most common. (2) Product โ by product line. (3) Customer โ by segment (wholesale, retail, gov't). (4) Geographic โ by territory/region. (5) Process โ by production flow (casting, pressing, tubing, finishing, inspection, packaging). Key question: "How will work best be allocated?"
Developed in 1960s U.S. aerospace industry. Employees report to BOTH a functional manager AND a project/product manager. Advantages: Flexible resource allocation, cross-functional expertise integration, specialist knowledge on complex projects. Risks: Role conflict, competing demands from two bosses, power struggles. Bob Galvin used transformational leadership at Motorola with matrix principles.
Teams: Cross-functional, each member brings specialization. Cells: Self-contained manufacturing units, operators cross-trained. Boundaryless: Virtual/network, tech-enabled, breaks internal and external barriers. Coined by Jack Welch at GE. 6 External factors: (1) Strategy โ structure follows strategy. (2) Size โ larger = more specialized/formal. (3) Technology โ impacts structure. (4) Environment โ stable vs. dynamic. (5) Regulations/Laws/Unions. (6) Competition โ market pace drives flexibility needs.
A leader may not hold an official position โ leadership is earned through influence. One can be a leader without being a manager. A leader gathers followers voluntarily. A manager is officially designated, granted authority from above, and controls resources (people, material, money, time). Deming: "The job of management is not supervision, but leadership." Covey: "Leadership focuses on doing the right things; management focuses on doing things right." Gallup 2005-2008: Followers most value Trust, Compassion, Stability, and Hope in their leaders. Key leader roles: Enabler, Follower, Advocate, Appraiser, Facilitator.
Personal competence: (1) Self-awareness โ knowing your emotions, strengths, weaknesses. (2) Self-regulation โ managing disruptive impulses, thinking before acting. (3) Motivation โ drive to achieve beyond expectations. Social competence: (4) Empathy โ understanding others' feelings and perspectives. (5) Social skills โ managing relationships, building networks, finding common ground. Leaders with high EI create better team dynamics and organizational results.
Edgar Schein defined culture as shared basic assumptions learned by a group, considered valid, taught to new members as the correct way to perceive, think, and feel. 3 levels: (1) Artifacts โ visible structures, processes, symbols, stories, myths (surface). (2) Espoused values โ strategies, goals, philosophies. (3) Underlying assumptions โ unconscious beliefs taken for granted (deepest). Must understand culture BEFORE attempting change. Different regions prioritize differently (N. America: strategic planning; Europe: benchmarking; S. America: strategic planning + outsourcing).
Competing: Assertive + uncooperative (win-lose). Collaborating: Assertive + cooperative โ BEST for quality (win-win). Compromising: Middle ground, partial satisfaction. Accommodating: Unassertive + cooperative (yield to others). Avoiding: Unassertive + uncooperative (withdraw). Key principles: Separate people from problem. Focus on interests, not positions. Invent options for mutual gain. Use objective criteria. Negotiations should be principled and aim for win-win.
Definition: Conferring the right to make decisions AND take action. Not just delegation โ a fundamental culture shift. Traditional org: Manager at top, employees at bottom, customers outside. Empowered org: Customers at top, employees next, manager supports from bottom (Figure 2.7). Requirements: Clear boundaries, appropriate training, mutual trust, accountability, aligned rewards. Drucker's 4 tasks: Economic performance, making work productive, managing social impacts, managing within time. Common failures: Managers unwilling to relinquish control; unclear boundaries; inadequate training.
Teams differ by number of members, frequency of meetings, leadership type, range/complexity of skills, and total working time together. Why teams fail in the U.S.: Cultural emphasis on individual achievement. Reward systems reinforcing individual performance. Lack of organizational systems to support teams. Failure to prepare managers for changing roles. Inadequate recognition/compensation. Incomplete understanding of group dynamics. Impatience of top management with maturation time. Benefits: Synergistic process design, objective problem analysis, greater innovation, reduced costs and turnover, enhanced problem-solving, increased ownership and commitment, broader knowledge of business processes, new leadership skills, more flexible response to organizational change.
Knowledge: Formal education, degrees, certifications, professional credentials. Experience: Years spent applying skills in relevant organizations/industries. Skills: Demonstrated proficiency with pertinent tools and equipment. Aptitude: Natural talent, capability, adaptability to change, hand-eye coordination, fine motor skills. Attitude: Manner of showing one's feelings โ disposition, mood, bias, openness to change. The KESAA analysis tool (Figure 3.2) can be used by team leaders to evaluate each potential member's suitability for the team's task, role, and dynamics.
Sponsor: Backer/risk-taker, approves resources, believes in concept, has business acumen. Champion: Advocate promoting change, has absolute belief, needs perseverance. Facilitator: Process coach โ observes interactions, suggests process changes, defuses conflict. Deals with process NOT content. Will NOT report proprietary info. Team Leader: Change agent, staffs team, directs efforts, coaches, communicates with management. Must be fair, firm, factual. Timekeeper: Monitors time, assertively intervenes when schedule threatened. Scribe: Records minutes/decisions, must be accurate and assertive. Members (SMEs): Commit to purpose, express ideas, listen attentively, handle stress.
Task-type: Keep team focused and moving toward goals. Maintenance-type: Build relationships and preserve effectiveness. Key components: Review agenda, prepare meetings, define action items, use decision-making techniques, assign roles/timing. Consensus: All listen, express views, agree decision is acceptable (not majority vote). Time-consuming but thorough. Facilitator responsibilities: Cultivate unbiased environment, ensure focus on mission, encourage diverse viewpoints, regulate interruptions, defuse destructive behavior, track ideas visually, help discussions reach closure. Training in facilitation, conflict resolution, and group dynamics is essential.
Groupthink: Members coalesce around an idea without fully exploring alternatives โ may secretly disagree but stay silent to maintain harmony. Prevention: Appoint devil's advocate. Brainstorm alternatives before selecting. Encourage open dissent. Ensure all ideas are examined. Performance metrics: Process yield, first-time quality, person-hours invested, customer satisfaction, attendance. Recognition: Monetary (bonuses, gain-sharing, pay-for-skills) AND non-monetary (certificates, plaques, newsletters, public praise). Teams should choose their own standards within a value range. Apply principles regularly and repetitively. Covey: Reinforce, Request info, Responsibility, Role model, Repeat.
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