There are several personality assessments that can place an individual’s reactions  to various common situations. By doing this you can arrive at a set of “types”. The Myers-Briggs assessment is one such tool, which compares opposing traits and one’s placements within the spectrum, along with variants like the Kiersey Temperment Sorter . Another commonly used model is known as the Big Five or the Five Factor Model (FFM), the five factors being: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism. It is based loosely on the 16 Personality Factors. A third model is the DISC model which measures levels in: Dominance, Influence, Steadiness, and Conscientiousness. An overview of each will be relayed below.

The Myers-Briggs is comprised of 16 basic types, they are composed of 8 types that are arranged in binomic form: Extroversion opposes Introversion, Sensor opposes iNtuitive, Thinking opposes Feeling and Judging opposes Perception. While the MBTI (Myers Briggs Type Indicator) is not a great tool for making assessments of capabilities, it does reveal what harmonizing preferences one is made up of. It also can inform the invididual of what is important to them, and is a great self-assessment tool, or a tool for self-reflection. The type does not reveal limitations nor put any limitations on anyone, they are all positive qualities.

The FFM, or Big Five model tends to show a different relationship, an outward relationship to the world that can be better used for performance measuring and predictability. For instance, more conscientious people, or those who plan well, are organized and persistent, tend to have higher on the job performance than those with low conscienctious scores. Likewise, those with higher scores for Openness tend to have a higher performance in leadership roles or in roles that deal with changing circumstances because of their ability to adapt to change. While all these qualities are not absolute determinants, they can be used to measure and predict likely outcomes.

Hereditary vs Nuture

There is evidence based on studies of twins, that much of the personality is determined by genes. Even twins who are completely separated exhibit very similar personality factors. In fact they tend to show more similarities to one another (without having spent any time together) than with their other siblings in their foster families. While there is evidence that suggests that genes play a large part, there is also evidence that shows that personalities do change over time, they are not fixed. Perhaps the personality then forms based on genes, like a starter kit, but then continually gets modified by life events. Even though there are personality changes over time, the ranking of one’s personality traits tends to remain intact. One example would be dependability, one person may have a high propensity for dependability, while another lower, in 10 or 15 years both may have become more dependable, however, evidence suggests that the first person will still be more dependable than the second after 15 years.

Milton Rokeach

The Rokeach value survey was created some 50 years ago as a system of terminal and instrumental values. By understanding a persons and organizations values it helps to match people and understand what kind of fit will be expected of them. In situations where values clash conflict can be created. It’s important to not just understand personality differences, but also value differences. For instance, a union may value Family Security, but Executives may value Social Recognition. These two different values lead to different goals and actions, particularly related to risk, and during a negotiation between the two parties, the value system needs to be factored into it as well.

OB has many influences itself, and stems from studies in Psychology (individual), Social Psychology (interpersonal relationships), Sociology (group culture and interactions), and Anthropology (societies). The goal of the field of OB is to develop methods and measures through which conclusions can be drawn. There are few, if any, absolutes in OB. The purpose then is to apply concepts to situations and glean information from them by looking at multiple perspectives within the situation, from the individual standpoints, interatctions, the group dynamics and other culture influences.

Some background and historical information: Organizational Behavior on Wiki

Starting negotiation in Distributive Bargaining involves thinking about your opening bid and your target points and reservation points. You’re walking away points, where you will bend, where will you break, etc.

Inventing Options

1. Expand the Pie — Increase the options or change the parameters or chunking (Increase vacation time to satisfy both mountains (a) and beach (b)  for the same period of time)
2. Bridging — Both interests are satisfied because both options are available somehow (Hawaii has both mountains(a) and beach (b))
3. Nonspecific Compensation — Offer some non-specific compromise, like (We can do more shopping while at the beach, or there’s better food in the mountains.)
4. Cost Cutting — “Maybe we can go to the mountains if there is a lake nearby.” Cost cutting is psychological, not money!
5. Logrolling — Tell me what your top few concerns are. It’s a sincere revealing of what’s really important to you.

1. Helps to revise the strategy
2. Values membership, more people feel involved
3. Helps to make decisions when enough data is not available

Class Supplied Con’s

1. Opportunities and threats hard to distinguish, sometimes they are the same?
2. Who is the reader? the audience?
3. Sometimes subjective and results can be prone to bias
4. Limited as a tool, not very evolutionary/revolutionary

Some Changes to the SWOT to increase effectiveness

1. In order to distinguish between strengths, weaknesses, opportunities and threats, use internal vs. external to understand it deeper
2. Create a matrix of Strengths/Weaknesses vs Opportunities/Threats
   1. Use +’s and -’s to say how a strength or weakness relate to the opportunity and threat
   2. By using a competitor and your own company and putting them side by side
3. Focus in on the dependencies, the relationships

The test was intended to be a preference indicator. We all have to wear masks, against our preferences usually, to function in the world and be effective. However, that’s not our underlying preference for how we want to be. Our preference is closer to our true nature. When the mask overtakes the inner core type, and becomes the person, there is a problem. This problem is effectiveness, personal power, and what one can contribute.

Self mastery is the removal of the masks.

Overview of Systems Thinking (the 5th Discipline [book])

1. Self Mastery (Self Awareness)
2. Mental Models
   1. Innovation is key to growth
   2. Analyze models, how things are done, how they should be done
3. Team Learning
   1. It’s important to share key information, for instance a near miss or dangerous situation is shared!
   2. What about a business mistake? It’s hidden, swept under the rug.
   3. All Best Practices are status quo today
   4. High performance organizations are sharing team learning across the organization
4. Shared Vision
   1. Day to day decisions need to be made based on a shared vision
   2. Are you on the path? Is your decision congruent with the vision
   3. The thought of sucking on a lemon and actually sucking on a lemon are no different in the brain
5. When all the above is done, you can start Systems Thinking.

Communication

You encode a message using a protocol, the receiver must decode the message. If they don’t decode it properly then communication breaks down.

It’s not that a particular type is “better” than another, it is a non-judgemental evaluation, a self-reporting instrument as he puts it. It’s just that each has it’s strengths and it’s weaknesses.

ENFP, but my results before was… ENTP.

ENFP? INFP? Seems more like me based on his descriptions.

Assignment: The Battle of Hastings.

Leaders:

1. Speak the Vision
2. Live the Values
3. Remove Obstacles

Spend 90% of your day doing that and you will succeed.

Instead of just a dry lecture, with almost no interaction, the Case oriented approach which is an analysis of a company from many perspectives, such as Financials, Marketing Strategy or Repositioning, followed by discussion, both within small groups and the whole class, allows for much more retention of material, and the discovery of new perspectives on (through group contributions).

The Case Approach for Statistics (Prof. Soumen Ghosh)

• The engaged, practical approach with real world work, practice, discussion and interactivity
• Put numbers into a context, a decision context
  • What does a series of numbers represent, what do they shed light upon?
  • Instead of just numbers, we will be going through actual use cases

The Case Approach for Marketing  (Prof. Gautam Challagalla)

• Use cases to survey Best Practices
• Traditional Harvard Business School Cases
  • Companies using Full Cycle Marketing Spectrum (Comprehensive)
  • Issue related Case (Narrow)
• Wall Street Journal Articles
  • Amazon Kindle (example)
    • How should Amazon segment the market?
    • How will they be successful?
  • Microsoft to open Retail Stores (example)
    • What Microsoft really thinking?
    • What would they need to do in order to be successful?

The Case Approach for IT (Prof. Saby Mitra)

• To understand an industry, to illustrate an industry
• Contextual approach to learning about how to think
• Best Practices in an industry or Industry Analysis

The Case Approach for Finance (Dr. J)

• Helps with practical skills, hands on exposure for tools (like Excel Spreadsheets)
• Strategy Research/Analysis (Valuations, Competitive Analysis, etc.)
• Fun

Assets include the total of cash & inventory, which also includes property and other material assets.

Liabilities includes Bank Loans, Notes Payable

Owners Equity includes common stock, contributed capital, revenues, retained earnings (profit), and expenses

Basic Outline of Balance Sheet structure…
http://memphis.zoologic.com/lms-courses/accounting_essentials/sco4/popup_AE0203f.swf

T-Account Method for Balance Sheet structure…
http://memphis.zoologic.com/lms-courses/accounting_essentials/sco4/popup_AE0205f.swf

The Future Value (FV) of money or Cash Flows is then converted into a Present Value (PV) by applying a rate (called a Discount Rate) by the length of time by using the formula:

PV = FV / (1 + d)^n,  where n is the number of years, and where d is the discount rate. In equity stocks and bonds, this is usually determined by weighing debts, captial, and equity to their Market Values (MV) culminating in a WACC (Weighted Average Cost of Capital).

Great References for further reading:

http://en.wikipedia.org/wiki/Discounted_cash_flow

http://en.wikipedia.org/wiki/Time_value_of_money

http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital

http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Par_value

http://en.wikipedia.org/wiki/Yield_to_maturity

Fixed Costs are costs that don’t vary with the level of serivce or production. For instance, establishing/leasing a new carrier signal in a wireless network, a customer folder of pertinent information regarding a new checking account, or paying a consultant to handle a portion of a project that stays the same for every project. Rent and space rental, equipment rental, etc are other good examples of fixed costs.

Variable Costs are costs that vary with the level of service or production. For instance, making 10 cars versus 100 cars, the costs of metals, rubber, labor, delivery, etc. all vary with the level of production. The more cars you make, the lower the cost per unit of raw materials, but an increase in the number of delivery trucks, labor, etc.

Semi-Fixed Costs are costs that have levels or steps, so they vary at certain points or ranges in production levels. For instance, a factory can make 10 cars per day using the equipment on hand. If they need to make 15 per day, additional equipment needs to be rented. With that equipment, the factory can make 11-20 cars. If they make 11 or if they make 20, it’s the same additional fixed cost for the equipment. Many types of costs follow this pattern.

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Revenue is simply all the money taken in for a service, or price per unit * number of units sold for products.

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Profit is the Revenue – Costs.

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Unit Cost of Production is Fixed Costs + Semi-Fixed Costs + Variable Costs per unit. For a business to “stay in business” the revenue per unit should be higher than the unit costs!

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A firm’s break-even point and its ability to earn profits beyond the break-even point are impacted by its operating leverage. Operating leverage describes the sensitivity of profits to changes in revenue. Firms with high operating leverage tend to have higher fixed costs and lower variable costs, while firms with lower operating leverage have lower fixed costs and higher variable costs.

A firm with high operating leverage has to generate more revenue to cover its fixed expenses than a company with low leverage. However, once break-even is achieved, each incremental dollar of revenue will contribute significantly to profits. For such a firm, a significant increase in demand leads to a large rise in profits. However, if demand falls unexpectedly, the impact to profits can be catastrophic.

For the firm with lower operating leverage, the opposite is true. Due to lower fixed costs, break-even is achieved more quickly. But beyond break-even, each dollar of revenue must cover a higher variable cost — leaving less for profits.

The Mean, Median and Mode values (especially calculated through probabilities) are a useful tool for determining risk. The Variance is the range of values and is determined by summing up of the difference between the values and the mean times the probability of that value.

The Variance formula is:

Variance Formula

P(x) is the Probability of x. E(x) is the mean.

The Standard Deviation, also called Volatility, is the square root of the variance, which is in dollars squared. This is useful since it’s in the same units as the original values, instead of squared units.