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Ability The relatively stable capabilities people have to perform a particular range of different but related activities In contrast to skills, which are more trainable and improvable As with personality, about half of the variation in ability levels is due to genetics

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Personality The structures and propensities inside a person that explain his or her characteristic patterns of thought, emotion, and behavior Where does your personality come from?

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Strategic Control Strategic control involves monitoring performance toward strategic goals and taking corrective action when needed via effective systems: Informational control systems Behavioral control systems Corporate governance

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Learning Defined Permanent changes in an employee’s knowledge or skill that result from experience Employees learn two types of knowledge: Explicit - easy to communicate and teach Tacit - more difficult to communicate; gained with experience

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International Strategy Globalization has to do with the rise of market capitalization around the world: International exchanges have increased Trade in goods & services Exchange of money, information, & ideas Laws, rules, norms, values, and ideas are growing more similar across countries Challenges include balancing between emerging markets ...

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Trust Defined The willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions Trust = willing to be vulnerable Risk = actually becoming vulnerable

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Making Diversification Work Diversification initiatives must create value for shareholders through Mergers and acquisitions Strategic alliances Joint ventures Internal development Diversification should create synergy

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Motivation Defined A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity, and persistence What do you do? How hard do you do it? How long do you do it?

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Stress Definition A psychological response to demands where there is something at stake and where coping with the demands taxes or exceeds a person’s capacity or resources Do you want a stress-free job?

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Three Generic Strategies Overall cost leadership is based on: Creating a low-cost position relative to a firm’s peers: see the experience curve & competitive parity Managing relationships throughout the entire value chain to lower costs Differentiation implies: Products and/or services that are unique & valued Emphasis on nonprice attributes ...

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