Wednesday, December 9, 2009

A Final Look on the Economic Indicators

INTERNATIONAL TRADE

The U.S. international trade gap in September widened to $36.5 billion from $30.7 billion worth of red ink in August. Exports rose 2.9 percent while imports jumped 5.8 percent. The worsening of the trade deficit was led by a wider petroleum shortfall which came in at $20.5 billion compared to $16.6 billion the previous month. The nonpetroleum gap increased to $25.9 billion from $24.3 billion in August. Looking ahead, the sneak peak indicators are mixed. First, there could be a drop in auto imports from Canada as not as many are needed with cash for clunkers having concluded. But a drop in shipments of nondefense capital goods in October could show up in lower capital goods exports. Also, higher oil prices will cut into any potential improvement in the trade gap.

RETAIL SALES

Retail sales in October rebounded 1.4 percent after a revised 2.3 percent fall in September. The October jump in overall sales was led by a 7.4 percent rebound in auto sales after a 14.3 percent plunge in September. Excluding motor vehicles, retail sales improved 0.2 percent, following a 0.4 percent rise in September. Excluding motor vehicles and gasoline, retail sales increased 0.3 percent, matching September's gain. Looking ahead indicators are mixed. Motor vehicle sales were up again for November but department store sales were soft for the month as a whole. Net, there likely will be a sizeable rise in retail sales for November, led by autos.

TREASURY BUDGET

The U.S. Treasury monthly budget report showed a massive $176.4 billion deficit in October, the first month of the government's fiscal year. The year-ago October deficit was $155.5 billion. Latest receipts were down a year-on-year 18 percent with outlays up 6 percent. Looking ahead, the month of November typically shows a deficit for the month. Over the past 10 years, the average deficit for the month of November has been $68.4 billion and $95.3 billion over the past 5 years. The November 2008 deficit came in at $165.4 billion.

JOBLESS CLAIMS

Initial jobless claims fell 5,000 in the November 28 week to 457,000, extending a run of impressive improvement. Continuing claims for the November 21 week rose slightly to 5.465 million with the insured-workers unemployment rate steady at 4.1 percent, well down from a summer peak of 5.2 percent.

Week 14

"Organizational Control and Quality Improvement" (Final Chapter)

Here goes a few key points we discussed from this chapter.
The three basic components of organizational control systems are objectives, strandards, and an evaluation-reward system.
According to the performance pyramid, strategic control involves the downward translation of objective and the upward translation of performance measures. Both external effectiveness ans internal efficiency criteria need to be achieved.
Product quality involves much more than the basic idea of conformance and requirements. Five types of product quality are transcedent, product-based, user-based, manufactoring-based, and value-based.
Total quality management (TQM) involves creating a culture dedicated to customer-centered, employee-driven continuous improvement. The four principles are: Do it right the first time, be customer-centered, make continuous improvement a way of life, and build teamwork and empowerment.
Seven Basic TQM process improvement tools are flow charts, fishbone diagrams, pareto analysis, control charts, histograms, scatter diagrams, and run charts.

Week 13

"Change Conflict, and Negotiation"

The way that businesses run today, managers need to do a much better job of managing the process of change. In the book we saw that the Nadler and Tushman's model identifies four types of organizational change by cross-referencing anticipatory and reactive change with incremental and strategic change. Four resulting types of change are tuning, adaptation, re-orientation, and re-creation.
People who like change tend to go through three stages: unrealistic optimism, reality shock, and constructive direction. When someone fears or dislikes change, a more complex process involving five stages tend to occur: getting off on the wrong track, laughing it off, experiencing growing self-doubt, buying in, and moving in a constructive direction. Managers are challenged to help employees deal efectively with reality shock and self-doubt.
Inevitable resistance to change must be overcome if the organization is to suceed.
Three basic elements of effective negotiations are a win-win attitude, a best alternative to a negotiated agreement to serve as a negotiating standard, and the calculation of a bargaining zone to identify overlapping interests.

Week 12

"Influence, Power, and Leadership"

Some things that we saw in this chapter was that influence is fundametanl to management because individuals must be influenced to pursue collective objectives. Researchers have identified eight generic influence tactics used fon the job: consultation, rational persuasion, inspirational appeals, ingratiating tactics, coallition tactics, pressure tactics, upward appeals, and exchange tactics.
We discussed the the five basic types of power which are reward , coercive, legitimate, referent, and expert power.
In addition we also learned that formal leadership consints ofminfluencing relevant others to voluntarily pursue organizational objectives.
Leadership theory has evolved through four major stages: trait theory, behavioral styles theory, situational theory, and transformational theory.