Principles of Management – FINAL EXAM

Management
is the process of working with and through others to achieve organizational objectives in a changing environment
Effectiveness and Efficient use of limited resources
is central to the management process
Maximizing shareholder wealth
is not a key component in the definition of management
Efficiency; Effectiveness
_______ enters the picture when the resources required to achieve an objective are weighted against what was actually accomplished, whereas ________ entails achieving a stated objective
Controlling
involves comparing desired results with actual results and taking corrective action
Efficiency
amount of resources used to accomplish the goal
Effectiveness
achieving a stated organizational objective
Planning
is commonly referred to as the primary management function
Entrepreneurship
the process by which individuals pursue opportunities without regard to resources
The multinational approach
Which of the following is not one of the approaches to management discussed in the text? (systems, contingency, universal, multinational, behavioral)
The division of work
Henry Fayol’s 14 Universal Principles of Management includes _______, the principle that specialization of labor is necessary for organizational success
Operational approach
product-oriented field of management
Fredrick W. Taylor’s pig handling experiment
dramatic improved output by having the workers rest more than they worked
Human relations movement
a concerted effort to make managers more sensitive to their employees needs
Union-avoidance tactic
when the Wagner act was passed in 1935 legalizing the collective bargaining, business managers began adopting morale-boosting human-boosting relations techniques
Systems theorist
study management by putting together things assuming the whole is greater than the sum of its parts
Contingency approach
research effort to determine which management practice is appropriate in specific situations
Innovation
Which of the following is not a dimension of the social environment? (demographics, new social contract, inequalities, management diversity, innovation)
Demographics
statistical profiles of human population
Smaller
Which is false about the U.S workforce? (more racially diverse, less prominently white (non-Hispanic), smaller, increasingly female, older)
Myth about older workers
are more costly to employ
Contingent workers
part-timers and older employees who do not have a long-term implicit contract with their ultimate employers
Proactive
improve performance to avoid political attacks and government intervention
Business cycle
up and down movement of an economy’s ability to generate wealth
Expansion
phase of the business cycle, employment and wages usually rise
Neutral
Watch and wait
Reactive
defend status quo and/or actively actively fight government intervention
A joint venture
pooling together resources with one or more companies in a foreign country to produce, market and sell goods resulting in shared profit/loses
International process
1. Licencing
2. Exporting
3. Local ware house
4. Assembly/packaging
5. Joint Venture
6. Direct Foreign investment
Geo-centrism (geocentric)
world-oriented view, draws talent from around the globe
Polycentric Time
the perception of time as flexible, elastic, and multidimensional
Humane oriented
GLOBE leadership style, a compassionate, generous, considerate, and supportive person
Voluntary
action to be considered responsible
all stakeholders; socioeconomic
business has an obligation to ____, according to managers supporting the ____ view
Four social responsible strategies
1. Reaction
2. Defense
3. Accommodation
4. Pro action
Terminal
values involve end-state of existence
Instrumental
related to the way of behaving
Whistle-blowing
reported perceived unethical organizational practices to outside authorities
Planning
primary management function
Reactors
wait for adversity before taking corrective steps
Well-written mission statement
– define the organization for key stakeholders
– create an inspiring vision of what the organization can be and do
– state a common goal and foster a sense of togetherness
– establish key priorities
Objectives
should include quantitative increases with a set end date
Critical path
in a PERT network is considered the most time-consuming chain of events/activities
PERT
sequencing and scheduling of main activities
Strategic planning =
strategic management + implementation + control
Market synergy
when one product or service fortifies the sales of one or more product or services
Porters generic competitive strategies (4)
1. Cost leadership
2. Differentiation
3. Cost focused
4. Focused differentiation
Positive
Porters model indicates _____ relationship between long-term earnings growth and a good strategy/environment fit
Scenario analysis
alternative but equally likely situations
Decision complexity
– long-term implications
– risk/uncertainty
– multiple criteria
– interdisciplinary input
Uncertainty
decision made off incomplete but reliable sources
Escalation of commitment
“Throwing good money after bad”
General decision making model
1. scan
2. required
3. routine
4. programmed/non-programmed
5. monitor results
Tactic knowledge
is personal, intuitive, undocumented information about how to skillfully perform tasks, solve problems and make decisions
Explicit knowledge
documented shareable information
Humor
can unlock creative energies and release tension
Characteristics common to all organizations
– coordination of effort
– division of labor
– hierarchy of authority
– common goal or purpose
Hierarchy of authority
organizational characteristic that the chain of command refer to
Learning
a _____ organization is one that is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insight
Organic organizations
tend to be more successful when the environment was unstable and uncertain
Functional departmentalization
departments: fiance, marketing, sales, and service
Centralized management structure
should implement because the cost-savings realized from shared resources
Organizational socialization
transforms outsiders into accepted insiders
Human resource management process
– performance appraisal
– recruiting and selection
– training
– human resource strategy
Title VII of the Civil Rights Act of 1964
equal employment opportunity (EEOC)
Affirmative action
a plan for actively seeking out, employing, and developing the talents of those groups traditionally discriminated against in employment (make up for past discrimination)
Traditional unstructured interviews
notorious for being culturally insensitive and is open to legal attacks
Critical incidents technique
specific examples of an employees good/bad performance as they occur later used as evidence during performance appraisal
Maslow (bottom-> top)
Physiological, safety, love, esteem, and self-actualization
The work itself
According to Herzberg, what motivated employees?
Employee participation
is the key to creating a sense of personal ownership of goals
Contingent time off
ex. employees can go home after they have assembled 15 internet switching units
Task identity
is the degree to which a person completes a “whole” piece of work from beginning to end with a visible outcome
Extrinsic reward
praise from a top manager