Principles of management-CLEP EXAM

Planning
Setting goals and deciding who to achieve them
Organization
Arranging tasks, people, and other resources to accomplish the work.
Leading
Motivating, directing and otherwise influencing people to work hard to achieve the organizations goals
Controlling
Monitoring performance, comparing it with goals, and taking corrective action when needed
Authority
Power to use and allocate resources effectively, to take decisions and give orders as well as achieve objectives.
Decision Making
Ongoing processes of evaluating situations or problems, considering alternatives, making choice and following them up with necessary actions
Organization Charts
A pictorial display the official lines of authority and communication within an organization
Leadership
The ability to garner the respect and cooperation of employees to achieve an organization’s goals
Organizational Structure
how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims
Budgeting
How an organization expects to spend and earn over a period of time
Problem Solving
Process of working through details of a problem to reach a solution.
Group dynamics
effects of these roles (peoples different distinct roles and behaviors) and behaviors on other group members, and on the group as a whole.
Conflict resolution Strategies
Include avoidance, smoothing, compromise, collaboration, confrontations, appeal to group objectives of third party interference.
Communication
Two-way process of reaching mutual understanding in which participants not only exchange (encode-decode) information, news, ideas and feelings but also create and share meaning.
Organizational Theory
Includes the scientific management approach, Weber’s bureaucratic approach, and administrative theory.
Scientific management approach- based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification.
Weber’s Bureaucratic Approach-rules and regulations, processes, procedures, patterns, etc. that are formulated to reduce the complexity of organization’s functioning.
Administrative approach-generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities.
Value dimensions
Study on how values in a work place are influenced by culture
-power distanceI index
-individualism VS collectivism
-masculinity VS femininity
-Uncertainty Avoidance index
-Long term orientation VS short term normative orientation
-Indulgence VS restraint
Historical Aspects
Regional Economic Integration
Efforts to promote free and fair trade on a regional basis
The 4 types of regional economic integration:
-Free trade area
-Customs Union
-Common Market
-Economic Union
Trading Alliances
A treaty governing commerce between two countries
Global Environment
Social Responsibilities of Business
ethical framework that suggests an organization or individual has an obligation to act for the benefit of society at large.
Ethics
moral principles that govern a person’s behavior or the conducting of an activity.
Systems
A system is a procedure, process, method, or course of action designed to achieve a specific result.
Environment
all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations
Government Regulation
A rule of order having the force of law, prescribed by a superior or competent authority, relating to the actions of those under the authority’s control.
Management Theories and Theorists
Theories on wick type of management style is more effective
-Contingency Theory: management makes decisions based off situation at hand rather than “one size fits all” approach.

-Systems Theory: different systems affect a worker and how a worker affects the systems around them.(Managers examine patterns and events in a work place and coordinate programs to work with the group as a whole)

-Chaos Theory:recognizes that change is inevitable and is rarely controlled. Organizations increase energy to maintain the new level of complexity, and as organizations spend more energy, more structure is needed for stability.

-Theory X and Theory Y: X-managers believe workers naturally lack ambition and need incentives to increase productivity. Y-workers are naturally driven and take responisbility

E-Business
Collecting business through the internet
Creativity and Innovation
ability to produce and create an original concept or idea and transform t into something tangible
Personnel Administration
the phase of management concerned with the utilization of manpower to obtain optimum efficiency of human resources.
Human Relations and Motivation
belief that people desire to be part of a supportive team that facilitates development and growth.
Training and development
An educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of employees
Performance Appraisal
Job performance of an employee is documented and evaluated.
Organizational Development
-study of successful organizational change and performance

-aligning organizations with their rapidly changing and complex environments through organizational learning, knowledge management and transformation of organizational norms and value

Legal Concerns
A legal question, which is the foundation of a case
Workforce Diversity
Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation.
Recruiting and Selecting
process of attracting and choosing candidates for employment.
Compensation and Benefits
Benefits-indirect and non-cash compensation paid to an employee. Some benefits are mandated by law (such as social security, unemployment compensation, and workers compensation)

Compensation-Sum of direct benefits (such as salary, allowances, bonus, commission) and indirect benefits (such as insurance, pension plans, vacations) that an employee receives from an employer.

Collective Bargaining
Written, legally enforceable contract for a specified period (usually one year), between the management of an organization and its employees. It sets down and defines conditions of employment (wages, working hours and conditions, overtime payments, holidays, vacations, benefits, etc.) and procedures for dispute resolution

-sometimes called labor agreement or union agreement

Operations Planning and Control
Operational Control-Authority over normal business operations at the operational level (as opposed to the strategic or tactical levels) (ex: controls how normal business procedures are executed NOT control over strategic planning)

Operational Planning-A short-term, highly detailed plan formulated by management to achieve tactical objectives.

Work Scheduling
-Determining when an activity should start or end, depending on its duration, procedure activities and relationships, resource availabilities and target completion date
Quality Management
Determination of quality policy and its implementation through means such as quality planning and quality assurance (including quality control).
Information Processing and Management
Information Processing- Interpreting incoming information (stimulus) to make a response suitable within the context of an objective, problem, or situation.

-Information Management- Application of management techniques to collect information, communicate it within and outside the organization, and process it to enable managers to make quicker and better decisions.

Strategic Planning Analysis
Internal document that 1)outlines an organization’s overall direction, philosophy, and purpose. 2) examines its current status in terms of its strengths, weakness, opportunities, and threats. 3) sets long-term objectives, and 4) formulates short-term tactics to reach them.
Productivity
A measure of the efficiency of a person, machine, factory, system.