Strategic Management | 3 Levels of Strategy That a Large Organization Must Develop

List and discuss the three levels of strategy that a large organization must develop. 

Answer: 

a.     Corporate strategy—this strategy seeks to determine what businesses a company should be in or wants to be in. Corporate strategy determines the direction that the organization is going and the roles that each business unit in the organization will plan in pursuing that direction.

b.     Business strategy—this strategy seeks to determine how an organization should compete in each of its businesses. For a small organization in only one line of business or the large organization that has not diversified into different products or markets, the business strategy typically overlaps with the organization’s corporate strategy. For organizations with multiple businesses, however, each division will have its own strategy that defines the products or services it will offer and the customers it wants to reach.

c.      Functional strategy—this strategy seeks to determine how to support the business strategy. For organizations that have traditional functional departments such as manufacturing, marketing, human resources, research and development, and finance, these strategies need to support the business strategy.

Source: Management, 11e (Robbins/Coulter)

Strategic Management | Explain Strategic Management & Why It Is Important

Explain strategic management and why it is important. 

Answer: 

Strategic management is what managers do to develop the organization's strategies. It is an important task involving all the basic management functions—planning, organizing, leading, and controlling.

There are three reasons as to why strategic management is important.

The most significant one is that it can make a difference in how well an organization performs. Generally, there is a positive relationship between strategic planning and performance. Generally, organizations that use strategic management have higher levels of performance.

Another reason it is important has to do with the fact that managers in organizations of all types and sizes face continually changing situations. They cope with this uncertainty by using the strategic management process to examine relevant factors and decide what actions to take.

Finally, strategic management is important because organizations are complex and diverse. Each part needs to work together toward achieving the organization's goals; strategic management helps do this.

Today, strategic management has become so important that both business organizations and not-for-profit organizations use it. 

Source: Management, 11e (Robbins/Coulter)

Change | Why Do People Resist Change

Why do people resist change? 

Answer: 

An individual is likely to resist change for the following reasons: uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization's best interest.

Change replaces the known with uncertainty. For example, when quality control methods based on sophisticated statistical models are introduced into manufacturing plants, many quality control inspectors have to learn the new methods. Some inspectors may fear that they will be unable to do so and may, therefore, develop a negative attitude toward the change or behave poorly if required to use them.

Another cause of resistance is that people do things out of habit. Every day, when going to work, people probably go the same way, whether walking, driving, or using mass transit. Usually, they find a single approach and use it regularly. People do not want to have to consider the full range of options for the hundreds of decisions they make every day. To cope with this complexity, they rely on habits or programmed responses. But when confronted with change, their tendency to respond in their accustomed ways becomes a source of resistance.

The third cause of resistance is the fear of losing something already possessed. Change threatens the investment people have already made in the status quo. The more that people have invested in the current system, the more they resist change. They fear the loss of status, money, authority, friendships, personal convenience, or other economic benefits that they value. This is why older workers tend to resist change more than younger workers. Older employees have generally invested more in the current system and thus have more to lose by changing.

A final cause of resistance is a person's belief that the change is incompatible with the goals and interests of the organization. For instance, an employee who believes that a proposed new job procedure will reduce product quality or productivity can be expected to resist the change. If the employee expresses his or her resistance positively, this actually can be beneficial to the organization.

Source: Management, 11e (Robbins/Coulter)

Change | "Calm Waters" & “White-Water Rapids” View of Organizational Change

Describe the "calm waters" and “white-water rapids” view of organizational change. 

Answer: 

The calm waters view of organizational change envisions the organization as a large ship crossing a calm sea. The ship's captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of an occasional storm, a brief distraction in an otherwise calm and predictable trip. In the calm waters metaphor, change is seen as an occasional disruption in the normal flow of events.

It is best illustrated by Kurt Lewin's 3-step description of the change process.

According to Lewin, successful change can be planned and requires unfreezing the status quo, changing to a new state, and refreezing to make the change permanent. The status quo can be considered an equilibrium state. To move from this equilibrium, unfreezing is necessary. Unfreezing can be thought of as preparing for the needed change. It can be achieved by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change and push behavior toward the status quo; or by combining the two approaches.

Once unfreezing is done, the change itself can be implemented. However, merely introducing change does not ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is done, there is a strong chance that employees will revert back to the old ways of doing things. The objective of refreezing, then, is to stabilize the new situation by reinforcing the new behaviors.

Lewin's 3-step process treats change as a move away from the organization's current equilibrium state. It is a calm waters scenario where an occasional disruption means changing to deal with the disruption. Once the disruption has been dealt with, however, things can continue on under the new changed situation. 

Source: Management, 11e (Robbins/Coulter)

Social Responsibility | 4 Approaches That Organizations Can Take With Respect to Environmental Issues & Going Green

Explain the four approaches that organizations can take with respect to environmental issues and going green.  

Answer: 

a. Legal approach - This approach is also known as the light green approach. Under this approach, organizations simply do what is required legally. They exhibit little environmental sensitivity. They obey laws, rules, and regulations without legal challenge. This approach illustrates social obligation.

b. Market approach - As an organization becomes more sensitive to environmental issues, it may adopt this approach. Here, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally-friendly products is what the organization provides. This approach illustrates social responsiveness.

c. Stakeholder approach - Here, the organization works to meet the environmental demands of multiple stakeholders such as employees, suppliers, or community. This approach also illustrates social responsiveness.

d. Activist approach - If an organization pursues this approach, it looks for ways to protect the earth's natural resources. It is also known as the dark green approach. This approach reflects the highest degree of environmental sensitivity and illustrates social responsibility.

Source: Management, 11e (Robbins/Coulter)

Social Responsibility | Compare & Contrast - Social Obligation, Social Responsiveness, & Social Responsibility

Compare and contrast the ideas of social obligation, social responsiveness, and social responsibility. 

Answer: 

Social obligation occurs when a firm engages in social actions because of its obligation to meet its economic and legal responsibilities. The organization does only what it is obligated to do and nothing more. This idea reflects the classical view of social responsibility that says that management's only social responsibility is to maximize profits.

In contrast to social obligation, however, both social responsiveness and social responsibility reflect the socioeconomic view. According to this view a manager's social responsibilities go beyond making profits to include protecting and improving society's welfare. This view is based on the belief that corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society.

Social responsiveness occurs when a company engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions. A socially responsible organization views things differently. It goes beyond what it is obligated to do or chooses to do because of some popular social need and does what it can to help improve society because it is the right thing to do.

Social responsibility is defined as a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A socially responsible organization does what is right because it feels it has an ethical responsibility to do so.

Source: Management, 11e (Robbins/Coulter)

Control | Major Reasons Why The Control Function is Important to Managers?

What are the major reasons why the control function is important to managers?

Answer: 
Control is important because it's the only way managers know whether organizational goals are being met and if not, the reasons why. 

The value of the control function can be seen in three specific areas: planning, empowering employees, and protecting the workplace. 

As the final step in the management process, controlling provides the critical link back to planning. 

If managers didn't control, they'd have no way of knowing whether their goals and plans were being achieved and what future actions to take. 
The second reason controlling is important is because of employee empowerment. Many managers are reluctant to empower their employees because they fear employees will do something wrong for which they would be held responsible. Many managers are tempted to do things themselves and avoid empowering. But an effective control system can provide information and feedback on employee performance, thus reducing potential problems. The final reason that managers control is to protect the organization and its assets. Today's environment brings heightened threats from natural disasters, financial scandals, workplace violence, supply chain disruptions, security breaches, and even possible terrorist attacks. Managers must have plans in place to protect the organization's employees, facilities, data, and infrastructure. Having comprehensive controls and backup plans will help assure minimal work disruptions.