Monday, May 16, 2005

End of the semester

Hello everyone The end of the semester has come. I really enjoyed this class and learned a lot ! I was never interested in business, and since I've taken this class - I have developed an interest for business and economics. I found myself reading the money section on the Boston Globe - something I've never done in my life !! All of a sudden I know what a merger is, what makes a manager a good one, what are the advantages and disadvantages of teamwork...I feel- not-so-old but certainly wise(r). I want to thank my professor, Mr Guy Lochiatto, who has been great ! He was funny, interesting, enthusiastic and passionate about business. He supported me the whole way and it's been a pleasure being on his class. I want to say a few words about my team members, or as "Granny" calls them : MY BOYS ! (Yes, you guessed right, I am Granny, and they are my boys....The age difference between us is "only" 10-12 years, thus my nickname forever will be Granny, Grans, Grandma). - Stan Grinberg - Stan the Man ! He was my righthand assistant, my cooperator, my executor, the most responsible & trust worthy 20 year old I have ever known ! Could not have done the project without him on my side. - Joe Colell - the Brains, what would I have done without him ? Our business'- financial plan was probably doomed to fail if it was not for Joe, who's last name I kept mispelling (it's Colell and not Collel). - And last but deffinitely not least - John-Pretty Boy - Filleti, who was the spice , the cherry on the icing, the guy I could not flirt enough with, and the marketing pro who's b*** I loved kicking! I will miss you all !!!! hope to see you on E-commerce in the fall. Grandma.

Saturday, May 14, 2005

Technical problems on this blog

Hi and thank you for taking the time to browse through my business-blog. I apologize that some of my postings came out with no spacing and are abit hard to follow. The reason for that is technical and beyond my control. If you have any suggestions, comments or ideas you would like to share with me please feel free to email me at s_friedman@massbay.edu I would like to share something with you as well : I got an A for this project and for my work on the Principles of Management class. I am very proud of my work and happy that this class opened a whole new world for me : the world of business and management. Thanks for sharing this with me, Shirley.

Business articles - Links list

- Starbucks publishes 31 percent increase in first-quarter net income - all you Starbucks fans (will they finally open a store in Ashland Mass ?!) http://www.msnbc.msn.com/id/6872393/ - Is this the perfect time to refinance your mortgage ?! http://www.msnbc.msn.com/id/6865971/ - Procter & Gamble to buy Gillette in $57B deal http://www.msnbc.msn.com/id/6878219/ - Is agriculture the new startup ? http://www.msnbc.msn.com/id/6408023/ - Apple, Ikea, Al Jazeera among top global brands Interesting to read what makes specific brands considered as "top" ... www.msnbc.msn.com/id/6887075/ - Will Jet Blue have to descend just before they ascend ?? hoping for the best... http://www.msnbc.msn.com/id/6876464/ - B.S.R Engineering - My uncle, who is an entrepreneur, an engineer and owns a big civil engineering company in Israel - started a huge project in Philly, high rise appartment complexes on the Delaware river shore. The project sold from itself as high rise appartment buildings in Philly are pretty rare and have a great demand , not to mention the fact their location is fantastic ... http://www.waterfrontsquare.com/ http://new.globes.co.il/serveen/globes/docview.asp?did=734114&fid=1124 http://www.themarker.com/eng/archive/arc_article.jhtml?ElementId=hl20050112_04e&origin=ibo - Medical bills make up half of bankruptcies - I think this is just so sad .... http://www.msnbc.msn.com/id/6895896/ - Despite the *not so great* report mentioned above - productivity in the last three years climbed in the fastest pase in a half century - perhaps this is the reason for the jump in personal income reported on economic indicators report this week(salary raises, incentive payments etc' ) http://www.msnbc.msn.com/id/6906639/ - Ex-Boeing exec gets 4 months in prison.This is another example of top-management not being able to escape responsibility for misconduct. http://www.msnbc.msn.com/id/6993477/ - Times flys when you're having fun and Martha is coming out of jail next week :- ) what's going to happen to the company ? read here : http://www.msnbc.msn.com/id/7018946/ - Good news for Dell -I thought this article is just relevant to the stuff we read at the beginning of chapter 7 - did Kreitner predict the future ? ;-) http://www.msnbc.msn.com/id/7013008/ - Should Wal Mart start worrying ? I wonder if this merger will succeed. http://www.msnbc.msn.com/id/7042048/ - Chrysler gives bonuses for profitable 2004 Nearly 10,000 managers to be awarded, I thought this article is relevant to what we learned about the changes in workplaces, and how management motivates employees by rewarding them. http://www.msnbc.msn.com/id/7130520/ -Dell workers walk off job over prayer dispute I thought this article was interesting because it concerns some cultural diversities which we have discussed several weeks ago. This issue may come up in the future again and more often that we think, as according to the article "The question of how to integrate Islamic prayers into the American workplace is becoming more common" ... http://www.msnbc.msn.com/id/7160832/ - New Sony CEO may signal strategy change http://www.msnbc.msn.com/id/7109049/ This article is relevant to what we discussed a couple of weeks a go - management strategies and open systems. This is the first time that Sony nominates a foreign CEO, hoping to change the company's strategy and increase sales. With great competition from low-cost Asian electronic companies - Sony is looking for a way to be more innovative, and bringing a foreign CEO into the company may do the job ... - Another issue of Ethics ... CEOs cash in despite results . Poor performance doesn’t stop lucrative payouts. There's heavy criticism on the subject but also some explanations - read it here : www.msnbc.msn.com/id/7261422/ - Oracle buys Retek http://www.msnbc.msn.com/id/7264407/ - Several AIG executives ousted from the board of directors Due to conflict of interests http://www.msnbc.msn.com/id/7379324/ - Traders with intense emotions tend to perform the worst This is an interesting article about the impact of emotions on business performance. Not all of us manage to develop an "elephant skin" when it comes to work under stress... but those of us who do - certainly have an advantage... read it here :http://www.msnbc.msn.com/id/7432209/ - In the Internet's High-Speed Lane. Interesting article about the widespreading adoption of broadband access among 25 year olds. http://www.businessweek.com/technology/content/apr2005/tc2005045_7077_tc206.htm - Nike enters the world of deep discount chains This article brings some news about Nike, now selling their products at WalMart discount stores. Nike takes a piece of the value-market, yet maintains its classy profile as a high-end sneaker maker. Their shoes are sold at almost $40 a pair which is almost twice as much as a standard sneaker shoes sold at discount stores. (I especially liked the expression " The BMW in the Target parking lot" ... ) http://www.msnbc.msn.com/id/7475091/ - Amex CEO - very refreshing ! I found this article on the money section of USA Today . Apparently not all nice guys finish last, and the story of Amex CEO is the proof for that. I thought it was very refreshing to read about such an executive. It makes me feel there's still hope... http://www.usatoday.com/money/companies/management/2005-04-24-chenault-usat_x.htm - "I heard it through the grapevine..." Watercooler stories from the small biz section of http://www.businessweek.com/ http://www.businessweek.com/ap/financialnews/D89NMPNG0.htm?campaign_id=apn_sbiz_up Do nice workers finish last, too ? Further to my article about Amex CEO. http://msn.careerbuilder.com/Custom/MSN/CareerAdvice/517.htm?siteid=cbmsnhp4502&sc_extcmp=JS_wi1_april05_home1&GT1=6505&cbRecursionCnt=1&cbsid=026e4632033f419c971f29e7f5a9d1bc-168259134-xm-2 Study: Stay-at-home moms deserve high pay Mothers' work seen valued at over $130,000 a year http://www.msnbc.msn.com/id/7709166/

Monday, May 09, 2005

Principles of Management - Week # 15

Chapter 17 - Organizational Control and Quality Improvement.
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On this chapter we have discussed:
- Types of control and the components common to all control systems.
- Organizational control from a strategic perspective.
- Four key elements of a crisis management program.
- Five types of product quality.
- The difference between providing a service and manufacturing a product.
- TQM - Total Quality Management principles.
- PDCA cycle and how it can improve the overall management process.

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Some personal thoughts.......

I want to talk a little bit about Service Providers and TQM.

Since I have worked for 8 years as a service provider - I know what it's like to work with customers. I have worked in the tourism business, mainly with American and Canadian markets. My clients were NOT easy to deal with. I appreciated the great awareness of Americans to quality of service. When they paid for a service - they expected to get a hundred percent out of their money, and I can understand that. My job as a service provider was to make sure they get a hundred percent of what they paid for. However, my service depended on others to do their job well too. Sometimes it just didn't work. My lesson was to predict such possible "crisis" in the future and make sure it does not happen again. The awareness of quality of service is very important if a business manager wants his business to survive in this highly competitive world. If you do not provide excellent service - your clients will choose someone else to purchase services from. And competition is high and agressive.

Total quality management - TQM - is something that was carefully implemented in the last place I worked for in Israel. "Eshet Incoming" management did its best to reassure clients will get the BEST service, they even guarentee it on their web site. http://www.eshetincoming.com/

The company was very customer oriented and encouraged the tour operators to be ones too. It motivated employees to create team work and help eachother. It encouraged excellency as a way of living.

Principles of Management - Week # 14

Chapter 16 - Change, Conflict and Negociation
On this chapter we have discussed the following issues: - Four types of organizational change. - How people respond differently to changes they like and dislike. - Six reasons why employees resist change and what management can do about resistance to change. - Conflicts and conflict resolution techniques. - The elements of effective negociation. - The advantage of added value negociation. Some personal thoughts ....... How do employees tend to respond (differently) to changes they like versus changes they dislike and fear ? When employees have to deal with changes they LIKE - they might express unrealistic optimism, and face a reality shock later on, that might cause they to give up. When employees have to deal with changes they DISLIKE - they might reject the change assuming it does not make sense . they might laugh it off and not take it seriously. They might develop self doubt or they might agree to give it a try, while adopting a constructive approach. So how would you create a climate of change that employees will like? There are several ways for a manager to create a climate of change that employees will like and they all involve implementation of contingency approach : - Encourage enthusiasm and direct attention to potential problems and ways to deal with them. - Listen to negative feelings and be supportive while neutralizing unreasonable fears. - Set long term goals and encourage involvement, provide positive feedbacks for acheivements. - Set an example, a role model, for employees. - Encourage looking forward to a better future and letting go of the past.
"participation is the only way to get people to accept workplace changes"
I agree with above statement. I think that an employee learns best when thrown to deep water. I know it worked on me, I know it worked on others. Most people (employees) fear of the unknown, and getting involved allows them to familiarize themselves with the changes, thus providing a feel on "being in control". It eliminates fears and increases confidence. Recommended books on this subject : Who moved my cheese ? - by author Spencer Johnson. A Story about characters dealing with change. Who Moved My Cheese? provides inspirational guidance to those suffering job loss, downsizing, divorce, or altered life situations. It's message, to seek out new opportunities, makes the reader, faced with change, want to quit the "It's-not-fair" hand-wringing and seek opportunity. Who Moved My Cheese? provides a simple, powerful message to the person confronted with unwelcome change

Thursday, May 05, 2005

Principles of Management - week # 13

Chapter 15 - Influence Processes and Leadership
On this chapter we have discussed the following issues:
- Eight generic influence tactics used in modern organizations.
- Five bases of power and what does it take to make empowerment work
- The concept of Emotional intelligence / Goleman's four leadership traits
- What is the Leadership Grid
- Path - Goal theory of leadership
- Servant leaders
- Management of Antecedents and consequences in behavior modification
Some personal thoughts......
I've always wondered if I have what it takes in order to be a leader. Am I tough enough? Can I delegtae properly? (sometimes I ask : can I at all delegate ? ) , Will my employees take my advice? Do I have what it takes ? Alot of questions, answering them is not at all easy. What I can say is that if you've got what it takes - practice will make perfect. The school of hard knocks
is one way to learn. Here's an example:
We've been working for several months now on a group project for this ckass. Our goal is to write a business plan for an "imaginary" business. I started off with one other person who was very cooperative from the beginning but It was pretty clear that I was expected to lead the project, being the "oldest" student in the group and taking into consideration my experience, and my personal involvement in the class activities, etc'. So I took it upon myself to do it. Why not ? I trust myself to stand on schedule and get the job done. and I did. I am not saying there were no "bumps" along the road because there were. Lucky for me - most of my team did not need too much pressure to do the work, except one person who required more attention from me , as he defined it "butt kicking in order to get into gear..." (which he eventually appreciated ! ). There was one incident that made me upset but we managed to work it out . During the time of that incident I kept thinking - what would a real manager do when one of his employees shows disatisfaction from the way things are being handeled by management? I decided to offer an open (open as in honest and frank) but private discussion between myself and the person who was unhappy. It helped. I think he felt his opinion mattered to me (which is true !) . I don't like covering up things and sweeping them under the rug, this is not my style. I believe leaders should be honest and frank. Now that this project is done I can say I was lucky to have to experience of leading a group, especially this group ! I felt appreciated, I felt I did my job properly and that my actions as a leader made a difference !
My experience with other leaders ....
Well, there were plenty of them in previous workplaces. They each had their own way of leading the organization, some used pressure and intimidation tactics, some used consultation tactics. Some used rational persuasion. I did not particularly like the intimidation and pressure tactics of one of my former managers but sometimes pressure is needed in order to get things done. I understand it now, after our group project is complete. But it all depends on HOW you present the intimidation because I believe there should be a more gentle way to do it.
If you want to be a leader - Act like one !
What kind of leaders do I prefer ?
What kind of a leader do I want to become ? I prefer relationship motivated leaders because it seems to me like they have better human relations skills and are more capable of developing a good raport with employees. They will probably be more attentive to employees problems or suggestions. It makes a workplace more pleasant to be in because you know you will at least have someone HEAR you. This is also the reason I prefer people with Emotional Intelligence as they have more polished social skills and greater emotional maturity.
A few words about the Leadership Grid :
Developed by Robert R. Blake and Jane S. Mouton , it is a trademarked and widley recognized typology of leadership styles. Accoding to the Grid there are Five styles of leadership :
1,9 - Country Club Management (thoughtful attention to needs of people in order to maintain good relationships).
1,1 - Improvised management ( Minimum effort to get the work done).
9,1 - Authority compliance (Efficiency in operations and minimum importance to human elements)
5,5 - Middle of the road Management (Balance between work being done and good morale of employees being maintained).
9,9 - Team Management - (relationships of trust and respect as a result of committed people working together to get the work accomplished).
I am bringing here the case of David Neelman, JetBlue airways' CEO.
This article and the questions that follow it will explain why I have placed Neelman's leadership style at 9,9 on the Leadership Grid.
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Closing case # 7 Can David Neelman pilot JetBlue airways to success?
Summary:
Closing case # 7 brings the story of David Neelman, who is the CEO of JetBlue airways. The article observes Neelman's leadership and analyses the reasons for Neelman's success as a leader and CEO. It also talks about the things about Neelman and his tactics that make him a good leader, different than conventional managers.
Questions and answers:
1. Which of the eight generic influence tactics are evident in this case ? Explain.
- The Influence tactic that is evident in this case is Rational Persuasion . By definition, Rational Persuasion involves trying to convince someone by relying on a detailed plan, supporting information, reasoning, or logic. According to the article, Neelman's brilliant insight was to base his airline at J.F.K - which is something that low-cost airlines avoided doing. His tactic was to pursue partners who could make his plans happen, convincing them his plan made sense, and he also managed to convince New York senator to help him get slots at JFk ( for this portion he also used a tactic called Exchange Tactics as he promised to provide Jet Service to major cities in New York state.).
2. What are Neelman's primary and secondary power bases ? Explain.
- Neelman's primary and secondary power bases are Referent power and Expert Power. According to the article and people's testimonies - Neelman has a charismatic personality that assist him in persuading people to cooperate with him. This charisma can be interpreted as Referent power. His expert power base is actually his ability of knowing when an opportunity is right, and the sheer force of his personality and dedication that can inspire employees and customers to turn a business into a money making machine.
3. How would you rate Neelman's Emotional Intelligence in terms of Goleman's four leadership traits? Explain.
- I would rate Neelman's EQ as Relationship management. Neelman's personality and management style fits Goleman's theory of Relationship management - which defines such leaders as clear, enthusiastic, and convincing communicators who can defuse conflicts. They rely on kindness and humor to build strong relationships (evidence for that is brought in the article).
4. Where would you plot Neelman's leadership style on the Leadership Grid ?
I would plot Neelman's leadership style at 9,9 on the Leadership Grid, as it shows great concern for both production and people as evidenced by personal commitment, mutual trust and teamwork. According to the article Neelman's leadership style seems to combine both concern for people and for profits, and therefore fits this spot on the grid.
5. Is Neelman more of a transformational leader, a servant leader, or some combination of the two ? Explain.
- I think that Neelman is more of a transformational leader than a servant leader, even though he does have some qualities (like clear goals, foresight ) that can fit the description of a servant leader. However, I think his dominant leadership characteristics are more of a transformational leader because he is visionary, charismatic, dedicated to change and can envision a better future for his organization, effectively communicate this vision to others and get others to willingly make it a reality - which is the complete definition of a transformational leader. You could sum it up by saying he is a transformational leader with some qualities of a servant leader.
6. How would you rate Neelman's chances for success at JetBlue ? Explain.
- I think Neelman's chances for success at JetBlue are very good. Since he fits the description of "master of change" - he would most likely be able to make the organization change and adapt to future changes in the aviation/tourism world (and this world changes rapidly ...). His charismatic personality and vision will probably assist him in getting what he needs to reach his goals. He makes an impression of a trustworthy person, with whom employees and investors will be glad to cooperate, and he's got what it takes to make things work as he planned - a quality that some managers lack, thus giving Neelman an advantage over others.
My conclusion from this case:
Same as technology changes and develops, same as organizations grow and change, change in the world of business is inevitable as well, and Neelman embraces it with open arms. I think that as a transformational leader, Neelman has what it takes to succeed and so would any other leader who has a "vision" and who adapts easily to changes. A good balanced combination of vision, charisma, flexibility and trustworthiness - is the key for becoming a successful leader.

Principles of Management - Week # 12

Chapter 14 - Group Dynamics and Teamwork
On this chapter we have discussed the following issues: -The definition of a group - The significance of cohesiveness, roles, norms and Ostracism in regards to the behavior of group members. - The Six stages of group development - Organizational politics - Groupthink and blind conformity - Management of virtual teams - Team effectiveness - Teamwork and trust Some personal thoughts.......... Past experience as a group leader I used to work as a shift-leader (you can call it a team leader) in a tourist services company at the airport in Israel. we used to meet & assist v.i.p clients and also escort groups around the airport upon arrival and departure. My experience as a team leader was a good one, mainly because my co-workers had high motivation and good working ethics. We had to cooperate and put our outmost into our work, especially during summer times when tourism was at its best in Israel and the airport was too small and too crowded...As a team leader I used to run around the airport like everyone else, doing my share of the work equally as everyone else. I think it motivated my team members to put in their outmost as well. Team leading experiences from the present... I am currently leading a project for this class, which is NOT EASY! we had a bumpy start but it's getting better and better as we get closer to the end of the project. Some people do their share properly, stand in schedule etc', and other people need to be chased around. I discovered that creating an "element of fear" (as my professor calls it) helps a little ... (LOL). Do I like doing that ? not in particular. Do I enjoy leading a team ? definitely. This project really makes me think if I have what it takes to be a team leader or a project manager. I think I have to work on my ability to delegate. Sometimes I feel like : if I don't do everything by myself - I must be dropping too much stuff to do on others" - this is totally incorrect, and even if I do - that's my job as a team leader. I am pretty good at setting an example and building trust among my co-workers. I am not so good confronting people- how can you manage a team effectively without becoming a total B**** !?! ;-) (Let's call it "the wicked witch of the west" ... ) And virtual groups, like the one I am managing now, are the hardest. How can a manager create an effective virtual team? Virtual team's success depends on trust, communication and team building. Managers can build an effective virtual team by developing trust between management and employee and among employees - by having a proper orientation and periodic face to face meetings. Communication should be developed effectively and it includes clear definition of role expectations, performance norms, goals and deadlines. In addition : all members of the team should be clearly identified. the purpose of the team, its mission and goals should be identified. and last : a team process should be developed by defining how will the work be done, who will do what and so on.