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.

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 steps 30%

Good writing 30%

Solution 40%

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, email 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?

BiasesSee pages 39 - 40 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

1 Identify decision maker(s) 2 Identify 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 decision8 Perform sensitivity analysis

An office location problem

Location of office Annual rent ($)

Addison Square 30 000

Bilton Village 15 000

Carlisle Walk  5 000

Denver Street 12 000

Elton Street 30 000

Filton Village 15 000

Gorton Square 10 000

Value tree

CostsBenefits

Turnover Working conditions

Rent Electricity CleaningCloseness Visibility Imageto customers

Size Comfort Car parking

Costs associated with the seven offices

Annual Annual Annual Total cleaning electricity rent Office

($) costs ($)costs ($)costs costs

Addison Square30 000 3000 2000 35 000

Bilton Village 15 000 2000 800 17 800

Carlisle Walk 5 000 1000 700 6 700

Denver Street 12 000 1000 1100 14 100

Elton Street 30 000 2500 2300 34 800

Filton Village 15 000 1000 2600 18 600

Gorton Square 10 000 1100 900 12 000

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

Attribute Office

A B C D E F G

Closeness 100 20 80 70 40 0 60

Visibility 60 80 70 50 60 0 100

Image 100 10 0 30 90 70 20

Size 75 30 0 55 100 0 50

Comfort 0 100 10 30 60 80 50

Car parking 90 30 100 90 70 0 80

Closeness to customers

Visibility Image Size Comfort Car parking

Best100

80

0 Worst

Best

Worst Worst

Best

Worst

Best

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

Attribute Original weights (rounded)Closeness to customers 100 32

Visibility 80 26

Image 70 23

Size 30 10

Comfort 20 6

Car-parking facilities 10 3

310 100

Calculating aggregate benefits for each location

Addison Square

Attribute Values Weight Value weight

Closeness to customers 100 32 3200

Visibility 60 26 1560

Image 100 23 2300

Size 75 10 750

Comfort 0 6 0

Car-parking facilities 90 3 270

8080

so aggregate benefits = 8080/100 = 80.8

Table 3.2 - Values and weights for the office location problem

____________________________________________________________________

Attribute Weight Office

A B C D E F G

_____________________________________________________________________________________

Closeness 32 100 20 80 70 40 0 60

Visibility 26 60 80 70 50 60 0 100

Image 23 100 10 0 30 90 70 20

Size 10 75 30 0 55 100 0 50

Comfort 6 0 100 10 30 60 80 50

Car parking 3 90 30 100 90 70 0 80

Aggregatebenefits 80.8 39.4 47.4 52.3 64.8 20.9 60.2

_____________________________________________________________________________________

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 High Low

Crises Pressing problems

Deadline-driven projects

PreventionRelationship building

New opportunitiesPlanning, recreation

InterruptionsSome calls

Popular activities

Trivia, busy workSome mail

Some phone callsTime 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