Organizational Management Final Exam

four functions of management
planning, organizing, leading, controlling
planning
defining goals for future performance and how to attain them
organizing
assigning tasks, grouping tasks into departments, allocating resources
leading
using influence to motivate employees to achieve the organization’s goals
controlling
monitoring employees’ activities, keeping the organization on track toward meeting its goals and making corrections as necessary
management
the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
spokesperson and entrepreneur
most important roles in small businesses/nonprofits
generating social impact
nonprofit organizations direct their efforts toward
making money
for profit organizations direct their efforts toward
conventional bottom line
the absence of this causes nonprofit managers to struggle with defining effectiveness
scientific management
subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity
Frederick Winslow Taylor
the father of scientific management
scientific management is considered
one of the most significant innovations influencing modern management
human resources perspective
jobs should be designed to meet people’s higher-level needs by allowing employees to use their full potential
human resources perspective combines
prescriptions for design of job tasks with theories of motivation
Abraham Maslow and Douglas McGregor
contributors to the human resources perspective
Douglas McGregor
formulated Theory X and Theory Y
Theory X
the average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all
Theory Y
the average human does not inherently dislike work, and a person will be self-directed and self-controlled to for things they’re committed, and seeks responsibility
supply chain management
managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers
supply chain
network of multiple businesses and individuals that are connected through the flow of products or services
Gantt chart
bar graph that measures planned and completed work along each stage of production by time elapsed
types of environment
organizational, general, task, internal
organizational environment
consists of both general and task environments; includes all elements existing outside the boundary of the organization that have the potential to affect the organization
general environment
indirectly influences all organizations within an industry and includes five dimensions
task environment
includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance
internal environment
includes elements within the organization’s boundaries such as employees, management, and corporate culture
organizational ecosystem
includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive
globalization
refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries
market entry strategies
various tactics that managers use to enter foreign markets; exporting, licensing, franchising, direct investing,
exporting
a company maintains production facilities within its home country and transfers products for sale in foreign countries
licensing
a company in one country makes certain resources available to companies in other countries to participate in the production and sale of its products abroad
franchising
form of licensing in which a company provides its foreign franchisees with a complete package of materials and services
direct investing
the organization is directly involved in managing its production facilities in a foreign country
alternatives for direct investing
joint venture, wholly owned foreign affiliate, greenfield venture
joint venture
an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up sales distribution network
wholly owned foreign affiliate
foreign subsidiary over which an organization has complete control
greenfield venture
a company builds a subsidiary from scratch in a foreign country
ethnocentrism
natural tendency among people to regard their own culture as superior to others
power distance
the degree tow which people accept inequality in power among institutions, organizations, and people
uncertainty avoidance
people’s intolerance for uncertainty and ambiguity and resulting in support for beliefs that promise certainty and conformity
individualism
preference for a loosely knit social framework in which individuals are expected to take care of themselves
collectivism
preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests
masculinity
cultural preference for achievement, heroism, assertiveness, work centrality, and material success
femininity
cultural preference for relationships, cooperation, group decision making, and quality of life
culture
shared knowledge, beliefs, and values as well as the common modes of behavior and ways of thinking among members of a society
ethical approaches
utilitarian, individualism, moral-rights, justice, practical
utilitarian approach
the ethical choice is one that produces the greatest good for the greatest number
individualism approach
actions are ethical when they promote the individual’s best long-term interests, because with everyone pursuing self-interest, the greater good is ultimately served
moral-rights approach
ethical decisions are those that best maintain the fundamental rights of the people affected by them
justice approach
ethical decisions must be based on standards of equity, fairness, and impartiality
stages of personal development
preconventional, conventional, postconventional
preconventional moral development
concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences; autocratic/coercive leadership style; dependable employees – task accomplishment
conventional moral development
conform to expectations of good behavior; meet social and interpersonal obligations; prefer workgroup collaboration to accomplish organizational goals; mangers encourage interpersonal relationship and cooperation
postconventional moral development
guided by an internal set of values based on universal principles of justice and right and will disobey rules that violate the principles; internal values are most important; transformative/servant leadership; empowered employees
corporate social responsibility
the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization
stakeholder
group or person within or outside the organization that has some type of investment or interest in the organization’s performance
ethical domain
has no specific laws, but has standards of conduct based on shared principles and values about moral conduct that guide an individual or company
entrepreneurship and small business
represents 98% of all firms and employ about half of all private sector employees
stages of growth
start-up, survival, success, takeoff, resource maturity
start-up
funding, adjusting product; pivot – change strategic direction
survival
produces product, sufficient customers; sustain their early momentum and chart a course for long-term success
success
solidly based and profitable
takeoff
owner delegates, company must find sufficient capital to invest in major growth
resource maturity
substantial financial gains may come at the cost of losing its advantages of small size
business plan
prepared prior to opening; document specifying the details of the business
legal forms of business
sole proprietorship, partnership, corporation
sole proprietorship
unincorporated for-profit owned by an individual
partnership
formed when two or more people choose to own an unincorporated business
corporation
artificial entity created by the state and existing apart from its owners
criteria for effective goals
specific and measurable, defined time period, cover key result areas, challenging but realistic, linked to rewards
contingency planning
identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions
strategic goals
broad statements describing where the organization wants to be in the future; pertain to the organization as a whole rather than to specific divisions or departments
strategic plans
define the action steps by which the company intends to attain strategic goals; blueprint that defines the organizational activities and resource allocations required for meeting targets; long term – turns organization goals into realities
tactical goals
results that major divisions and departments within the organization intend to achieve; apply to middle management and describe what major subunits must do for the organization to achieve its overall goals
tactical plans
designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy; shorter timeline;
operational goals
results expected from departments, work groups, and individuals; precise and measurable
operational plans
developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans
single-use plans
developed to achieve a set of goals that are not likely to be repeated in the future; programs and projects
standing plans
ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization; policies, rules, procedures
levels of strategy
corporate, business, functional
corporate-level strategy
pertains to the organization as a whole and the combination of business units and product lines that make up the corporate entity (What business are we in?)
business-level strategy
pertains to each business unit or product line (How do we compete?)
functional-level strategy
pertains to the major functional departments within the business unit (How do we support the business-level strategy?)
strategic management process
evaluate current mission, goals, and strategies; scan external environment; identify strategic factors; define new mission, goals, and strategies; formulate strategy; execute strategy via changes in leadership/culture, structure, human resources, and communication systems
BCG matrix
organizes business along two dimensions – business growth rate and market share
business growth rate
how rapidly the entire industry is increasing
market share
defines whether a business unit has a larger or smaller share than competitors
stars
high market share and high business growth rate; rapid growth and expansion
question marks
low market share and high business growth rate; new ventures – risky, a few become stars, others are divested
cash cows
high market share and low business growth rate; milk to finance question marks and stars
dogs
low market share and low business growth rate; no investment, keep if some profit, consider divestment
decision making
process of identifying problems and opportunities and then resolving them
classical model of decision making
based on rational economic assumptions and manager beliefs about what ideal decision making should be; normative – defines how much a decision maker should make decisions
decision-making process
recognition of decision requirement, diagnosis and analysis of causes, development of alternatives, selection of desired alternative, implementation of chosen alternative, evaluation and feedback
administrative model
describes how managers make decisions in situations that are characterized by uncertainty and ambiguity
descriptive
describes how managers actually make decisions, rather than how they should make decisions according to a theoretical model
bounded rationality
people have the time and cognitive ability to process only a limited amount of information on which to base decisions
satisficing
choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist
intuition
quick comprehension of a decision situation based on past experience but without conscious thought
authority
formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes: positions not people, flows down vertically, accepted by subordinates
responsibility
duty to perform the task or activity as assigned
delegation
process managers use to transfer authority and responsibility to positions below them in the hierarchy
span of management
(span of control) number of employees reporting to a supervisor; determines how closely a supervisor can monitor subordinates
horizontal structure
breaking barriers between departments
discrimination
occurs when someone acts out their negative attitudes toward people who are the targets of their prejudice
diversity in corporate America
unprecedented generational diversity, aging workers, increased diversity, growth in woman workers
diversity
all ways in which people differ
Title VII of the Civil Rights Act
sexual harassment in the classroom; generalized, inappropriate/offensive, solicitation with promise of reward, coercion with threat of punishment, sexual crimes and misdemeanors
stereotype
rigid, exaggerated, irrational beliefs associated with a particular group of people
perceptual distortions
errors in perceptual judgment that arise from inaccuracies in any part of the perception process
Big Five personality factors
extroversion, agreeableness, conscientiousness, emotional ability, openness to experience
extroversion
degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships
agreeableness
degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting
conscientiousness
degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement-oriented
emotional stability
degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure
openness to experience
degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas
locus of control
how people perceive the cause of life events, whether they place the primary responsibility within themselves or on outside forces
leadership
the ability to influence people toward the attainment of goals; leaders are involved with other people in the achievement of goals
servant leader
transcends self-interest to serve others, the organization, and society; operate on two levels: for the fulfillment of their subordinates’ goals and needs and for the realization of the larger purpose or mission of their organization
levels of leadership
individual, team member, manager, leader, executive
individual
level 1 leader; capable – contributes talent, skills, knowledge
team member
level 2 leader; contributing – contributes individually; works well in group
manager
level 3 leader; component – manages team members and assets to reach set objectives
leader
level 4 leader; effective – stimulates high standards, champions dedication to vision
executive
level 5 leader; builds excellence through dedication and humility
leadership traits
distinguishing personal characteristics of a leader, such as intelligence, honesty, self-confidence, and even appearance;
situational model of leadership
originated with Hershey Blanchard; focuses on the characteristics of followers in determining appropriate leadership behavior; directing, coaching, entrusting, supporting
directing style
high focus on task needs, low focus on people needs; authoritative leader provides detailed goals and tasks, closely monitors operations and performance; used with low readiness, low ability, and lack of confidence in employees
coaching style
high focus on task needs, high focus on people needs; dual-focus leader provides task instruction and personal support; used with employees with moderate readiness because of confidence to proceed but lack ability
entrusting style
low focus on task needs, low focus on people needs; delegating leader displays little focus on either task or people needs; used with high readiness because of ability and confidence to perform tasks in employees
supporting style
low focus on task needs, high focus on people needs; engaging leader encourages, supports, consults with, and develops followers’ skills and confidence; used with employees with moderate readiness because of ability but lack confidence and need personal support
motivation
forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action; affects productivity
model of motivation
need – behavior – rewards – feedback
need
creates desire to fulfill needs (money, friendship, recognition, achievement)
behavior
results in actions to fulfill needs
rewards
satisfy needs; intrinsic or extrinsic rewards
feedback
reward informs person whether behavior was appropriate and should be used again
equity theory
focuses on individuals’ perceptions of how fairly they are treated compared with others; developed by J. Stacy Adams; proposes that people are motivated to seek social equity in the rewards that they receive for performance
expectancy theory
motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards; associated with Victor Vroom; concerned with the thinking process that individuals use to achieve rewards
communication
the process by which information is exchanged and understood by two or more people, usually with the intent to influence or motivate behavior
communication channels
medium by which the message is sent; phone call, email, formal report, face-to-face conversation
channel richness
amount of information that can be transmitted during a communication episode; ability to handle multiple cues simultaneously, ability to facilitate rapid, two-way feedback, and ability to establish a personal focus for the communication
nonverbal communication
messages sent through human actions and behavior rather than through words
grapevine
informal, person-to-person communication network that is not officially sanctioned by the organization; links employees in all directions ranging from CEO through middle management, support staff, and line employees
crisis communication
stay calm, listen hard; be visible; get the awful truth out; communicate a vision for the future
team
unit of two or more people who interact and coordinate their work to accomplish a common goal to which they are committee and hold themselves mutually accountable
self-managed teams
5-20 multiskilled workers who rotate jobs to produce an entire product or service or at least one complete aspect or portion of a product or service; teams themselves take responsibility for their work, make decisions, monitor their own performance, and alter their work behavior as needed to solve problems, meet goals, and adapt to changing conditions
team effectiveness
organizational context – team type, team characteristics, team composition – team processes – work team effectiveness
organizational context
leadership, environment, culture, strategy, reward, control systems
team type
formal, self-managed, virtual/global
team characteristics
size, diversity, roles
team composition
knowledge and skills, benefits and costs
team processes
stages of development, cohesiveness, norms, conflict resolution
work team effectiveness
productive output, personal satisfaction, capacity to adapt and learn
virtual teams
group made up of geographically or organizationally dispersed members who are linked primarily through advanced information and telecommunications technologies
balanced scoreboard
comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors; financial performance, customer service, internal business processes, the organization’s capacity for learning and growth
feedback control model
establish strategic goals – establish standards of performance – measure actual performance – compare performance to standards – take corrective action or provide reinforcement
total quality management
organization wide effort to infuse quality into every activity in a company through continuous improvement
hierarchical control
monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms
financial statements
balance sheet, income statement
balance sheet
shows the firm’s financial position with respect to assets and liabilities at a specific point in time
income statement
summarizes the firm’s financial position with respect to assets and liabilities at a specific point in time