BA 301 Week 3

Problems with Homework Writing – –Either careless mistakes or –Big problems –Need to edit and re-write, have others read your work, seek help 6 Steps –Confusing different steps – out of order –Problem not crisp or clear –Too few causes or alternative solutions

More Grading On papers, problems and cases 6 steps30% Good writing30% Solution40%

Homework Assignment – Read Bazerman article on Bias 2 page paper – Describe a decision you have made and a bias which influenced you. What would you do differently now to avoid that bias?

Homework Assignment – read pages 21 – 38 Read web pages on how to write a mission statement. Research Nike, Intel and PSU. What is their mission? Research their cultures. (Hint; you may have to find the 10K or annual report of the two corporations and read them) Two page paper – Give the mission statements and describe the culture of each of these three organizations. Which culture appeals to you, why, and what values does the mission project? How would your decisions be affected by the culture in your favorite organization?

Mission Statements 1. List the organization's core competencies; its unique strengths and weaknesses. 2. List the organization's primary customers, internal or external, by type, not by name. 3. Review how each customer relates to each of the organization's strengths. Ask them if possible. 4. Write a one-sentence description of each customer/strength pairing. 5. Combine any that are essentially the same. 6. List the sentences in order of importance to the organization's vision, if one exists.

Mission Statements 7. Combine the top three to five sentences into a paragraph. 8. Ask your customers if they would want to do business with an organization with that mission. 9. Ask your employees if they understand and support it and can act on it. 10. Ask your suppliers if it makes sense to them. 11. Incorporate the feedback from customers, employees and suppliers and repeat the process. 12. When you have refined the paragraph into statements that clearly articulates the way the company wants to relate to those it effects, publish it to everyone. Post it on the wall, it to everyone, etc.

Mission Statements Tips: A good mission statement provides strategic vision and direction for the organization and should not have to be revised every few years. Goals and objectives are the short-term measures used to get there. Revise the organization's mission statement when it is no longer appropriate or relevant.

Position or Situation What are these organizations Mission Statements? –Nike –Tektronix –PSU

Mission Statement Small Groups; Do Nike, Tektronix and PSU seem to conform with these suggestions on how to write a Mission Statement?

Position or Situation How can we learn about the culture or environment of an organization? –Listen to what they say –Observe what they do –Study their values

Position or Situation Small groups – If you were a decision maker, say an administrator such as a buyer, trainer/instructor or executive, how would decisions be made differently in each of these organizations? –Nike, Tektronix, PSU

Homework Assignment – Read Bazerman article on Bias 2 page paper – Describe a decision you have made and a bias which influenced you. What would you do differently now to avoid that bias?

Biases See pages of Bazerman Ease of Recall Retrievably Presumed Associations Insensitivity to base rates Insensitivity to Sample Size Misconceptions of Chance Regression to the Mean The Conjunction Fallacy Insufficient Anchor Adjustment Conjunctive and disjunctive event bias Overconfidence The confirmation trap Hindsight and the curse of Knowledge

Extra Credit Choose one Bias and give an example from your experience 10 points

Decisions Involving Multiple Objectives: SMART

Objectives and Attributes An objective = an indication of preferred direction of movement, i.e. ‘minimize’ or ‘maximize’ An attribute is used to measure performance in relation to an objective

Main stages of SMART 1Identify decision maker(s) 2Identify alternative courses of action 3 Identify the relevant attributes 4 Assess the performance of the alternatives on each attribute 5 Determine a weight for each attribute 6 For each alternative, take a weighted average of the values assigned to that alternative 7 Make a provisional decision 8 Perform sensitivity analysis

An office location problem Location of officeAnnual rent ($) Addison Square Bilton Village Carlisle Walk Denver Street Elton Street Filton Village Gorton Square10 000

Value tree Costs Benefits Turnover Working conditions Rent Electricity Cleaning Closeness Visibility Image to customers Size Comfort Car parking

Costs associated with the seven offices AnnualAnnual Annual Total cleaning electricity rent Office ($) costs ($)costs ($)costscosts Addison Square Bilton Village Carlisle Walk Denver Street Elton Street Filton Village Gorton Square

Direct rating for ‘Office Image’ -Ranking from most preferred to least preferred. 1.Addison Square 2.Elton Street 3.Filton Village 4.Denver Street 5.Gorton Square 6.Bilton Village 7.Carlisle Walk

Direct rating - Assigning values

Values for the office location problem

Closeness to customers VisibilityImageSizeComfortCar parking Best Worst Best Worst Best Worst Best Worst Best Worst 70 Determining swing weights

For example... A swing from the worst ‘image’ to the best ‘image’ is considered to be 70% as important as a swing from the worst to the best location for ‘closeness to customers’...so ‘image’ is assigned a weight of 70.

Normalizing weights Normalized weights AttributeOriginal weights (rounded) Closeness to customers10032 Visibility 8026 Image 7023 Size 3010 Comfort 20 6 Car-parking facilities

Calculating aggregate benefits for each location Addison Square AttributeValues Weight Value  weight Closeness to customers Visibility Image Size Comfort Car-parking facilities so aggregate benefits = 8080/100 = 80.8

Table Values and weights for the office location problem ____________________________________________________________________ Attribute WeightOffice ABCDEFG _____________________________________________________________________________________ Closeness Visibility Image Size Comfort Car parking Aggregate benefits _____________________________________________________________________________________

Trading benefits against costs

Sensitivity analysis

In Class In class - Student present problem – Solve problem three in groups –The manager allocates a weight of 30 to “environmental impact” and 70 to “reliability” –Plot and identify those designs on the efficient frontier – 10 points extra credit each In class - Student present problem – Solve problem three in groups –The manager allocates a weight of 30 to “environmental impact” and 70 to “reliability” –Plot and identify those designs on the efficient frontier

High Low HighLow Crises Pressing problems Deadline-driven projects Prevention Relationship building New opportunities Planning, recreation Interruptions Some calls Popular activities Trivia, busy work Some mail Some phone calls Time wasters Pleasant activities Urgent Important

Homework Assignment – Read pages 40 – 56 (Small book) List all your activities for the last week and time spent to the closest hour e.g. Study, TV, travel, eat, exercise, socialize etc. place your activities in each quadrant of the urgent/critical matrix with the % of your time spent.

Homework Assignment – Read SMART article in Reprint book Page “29” and solve problem 2 (a) on Page “59”

Extra Credit 100 points – A good grade will eliminate the two worse grades earned Read Bazerman on Motivation (page 93) and the Tony Robins handout on how to change anything in your life. 2 page paper – 1.Summarize each of the articles. 2.Develop a program for yourself to raise your grade in this class – this program needs to be very specific and have goals as well as time lines - trying harder is not a program and will not earn any credit. 3.Develop an implementation plan to set your scheme in motion and achieve your goal. 4.Due next class