Management Test 1 (Chapters 1-5)

A group of people working together in a structured and coordinated fashion to achieve a set of goals


managerial talent and labor; people

human resources

capital investments to support ongoing and long-term operations

financial resources

raw materials; office and production facilities, and equipment

physical resources

usable data, information linkages

information resources

a set of activities directed at an organization's resources with the aim of achieving organizational goals in an efficient and effective manner


using resources wisely and in a cost-effective way


making the right decisions and successfully implementing them


making a B&W TV for $99 is

efficient because $99 is cheap but it is not effective because B&W is old and not a good decision

someone whose primary responsibility is to carry out the management process


A _______________ plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.


4 components of the management process

-planning and decision making

determining goals and courses of action

planning and decision making

coordinating activities and resources


motivating and managing people


monitoring and evaluating activities


an exam is an example of a

control mechanism

are the small group of executives who manage the overall organization. They create the organization's goals, overall strategy, and operating policies.

top managers

are primarily responsibile for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers.

middle managers

supervise and coordinate the activities of operating employees

first-line managers

the higher position the manger, the______________ the number of people that have that position


work in areas related to getting consumers and clients to buy the organization's products and services- new product development, promotion, and distribution

marketing managers

deal primarily with an organization's financial resources- accounting, cash management, and investments

financial managers

are involved with systems that create products and services- production control, inventory, quality control, plant layout, site selection

operations managers

are involved in human resource activities

human resource managers

are generalists familiar with all functional areas of management and are not associated with any particular management speciality

administrative managers

hold specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization

other kinds of managers

managerial roles

-interpersonal roles
-informational roles
-decisional roles

figurehead, leader, and liaison roles involve dealing with other people

interpersonal roles

monitor, disseminator, spokesperson roles involve the processing of information

informational roles

entrepreneur, disturbance handler, resource allocator, and negotiator

decisional roles

fundmental mangement skills

-time management
-decision making

to accomplish or understand the specific kind of work being done in an organization, managers need good ____________ skills


to communicate with, understand and motivate both individuals and groups, managers need good ___________ skills


to think in the abstract, managers need good __________ skills


to visualize the appropriate response to a situation, managers need good ___________ skills


to convey ideas and information effectively to others and to receive the same effectively from others, managers need good __________ skills


to recognize and define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opportunities, managers need good ________ skills


to prioritize work, to work efficiently, and to delegate appropriately, managers need good ___________ skills


-assumes that problems can be approached using rational, logical, objective, and systematic ways
-requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems

the science of management

-making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights
-using conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities

the art of management

-large businesses
-small businesses and start-up businesses
-international management

for-profit organizations

-governmental organizations (local, state, & federal)
-educational organizations (public & private schools, colleges, and universities)
-healthcare facilities (public hospitals and HMOs)
-nontraditional settings (community, social, spiritual groups)

not-for-profit organizations

all the revenues go back into the company

non-for-profit organizations

Regina is engaging in which function of management when she monitors the performance of her subordinates by checking their production quotas?
a) coordinating
b) controlling
c) organizing
d) leading
e) planning & decision making

b) controlling

why use theories?

- Theories provide conceptual frameworks for organizing knowledge and blueprints for actions
- Management theories are grounded in reality
- Managers develop their own theories about how they should run their organizations

why study history?

understanding history aids managers in the development of management practices and in avoiding the past mistakes of others

the classical management perspective consists of 2 different viewpoints:

-scientific management
-administrative management

-concerned with improving the performance of individual workers
-grew out of the industrial revolution's labor shortage at the beginning of the 20th century

scientific management

Focuses on managing the total organization

administrative management

-replaced the rule of thumb methods with scientifically-based work methods to eliminate "soldiering"
-believed in selecting, training, teaching, and developing workers
-used time studies, standard planning, exception rule, slide-rules, instruction cards,

Frederick Taylor

Frederick Taylor is concerned with

scientific management

one best way to do things

scientific management

reduced the number of movements in bricklaying, resulting in increased output of 200%

Frank and Lillian Gilbreth

-was an early associate of Frederick Taylor
-developed the Gantt chart to improve working efficiency through planning and scheduling

Henry Gantt

advocated job specialization in both managerial and operating jobs

Harrington Emerson

focusing on individual worker efficiency

scientific management

-laid foundation for later theoretical developments
-identified management processes, functions, and skills
-focused attention on management as a valid subject of scientific inquiry

contributions of classical management

-more appropriate approach for use in traditional, stable, simple organizations
-prescribed universal procedures that are not appropriate in some settings
-employees viewed as tools rather than resources

limitations of classical management

-emphasized individual attitudes and behaviors, and group processes
-recognized the importance of behavioral processes in the workplace

behavioral management

who was a big pioneer of the behavioral management

Elton Mayo

brought in workers at Western Electric and placed them in 2 rooms and changed the lighting in both rooms. in both rooms, workers established informal levels of acceptable individual output

Hawthorne studies

the impact that people can have on productivity and production represents the ________________ management


what grew out of the Hawthorne studies?

the human relations movement

advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy

Abraham Maslow

proposed Theory X and Theory Y concepts of managerial beliefs about people and work

Douglas McGregor

assumes that people do not like work and only work because they have to

theory X

believes that work is apart of who you are

theory Y

focuses on behavioral perspectives of management; draws on psychology, sociology, anthropology, economics, and medicine

organizational behavior

-provided insights into motivation, group dynamics, and other interpersonal processes
-focused managerial attention on these critical processes
-challenged the view that employees are tools and furthered belief that employees are valuable resources

contributions of behavioral management

-complexity of individuals makes behavior difficult to predict
-concepts are not used because managers are reluctant to adopt them
-research findings are not often communicated to practicing managers in an understandable form

limitations of behavioral management

-helped WW2 allied forces manage logistical problems
-focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems

quantitative management uses

2 parts to quantitative management perspective

-management science
-operations management

focuses on the development of representative mathematical models to assist with decisions
-creation of model

management science

the practical application of management science to efficiently manage the production and distribution of products and services
-application of model

operations management

-sophisticated quantitative techniques can assist managers in decision making
-application of its models has increased awareness and understanding of complex processes and situations
-it is useful in planning and controlling processes

contributions of quantitative management

-cannot fully explain or predict behavior of people in organizations
-mathematical sophistication may come at the expense of other managerial skills
-its models may require unrealistic or unfounded assumptions, limiting their general applicability

limitations of quantitative management

an interrelated set of elements functioning as a whole


an organization that interacts with its external environment

open system

an organization that does not interact with its environment

closed system

the importance of subsystems is due to their interdependence on each other within the organizations


subsystems are more successful working together in a cooperative and coordinated fashion than working alone; the whole system is more productive and efficient than the sum of its parts


a normal process in which an organizational system declines due to its failure to adjust to change in its environment


-suggests that each organization is unique
-appropriate managerial behavior for managing an organization depends on the current situation in the organization

contingency perspective

The use of the Gantt chart to schedule workers' duties, breaks, and lunches at a day-care center is an application of one of the principles associated with?
a) the behavioral perspective
b) scientific management
c) management science
d) contingency theory

b) scientific management

what are the 2 components of the external environment

-general environment
-task environment

everything outside an organization's boundaries-economic, legal, political, socio-cultural, international, and technical forces

general environment

specific groups and organizations that affect the firm

task environment

conditions and forces present and at work within an organization

internal environment

The set of broad dimensions and forces in an organization's surroundings that create its overall context

general environment

employment, inflation, anything that influences potentially how people will spend their money
ex) high unemployment
ex) low inflation

economic dimension

how we are converting products and/or services
ex) digital display of your order at McDonald's because you are verifying that your order is correct
ex) conveyor belt for soft drinks at McDonald's

technological dimensions

value, morals, things that are important to us
ex) McDonald's has calories on the menu
ex) lettuce burgers
ex) kids' meals have the option of apples instead of fries

sociocultural dimension

ex) government food standards like FDA changes the temperature holding of food
ex) general posture towards business regulation

politcal-legal dimensiosn

things outside of our country
ex) restaurants in 115 countries
ex)about 2/3 of sales from outside the US

international dimension

specific groups affecting the organization

task environment

what are the special groups that affect the organization in the task environment

-strategic partners

seek the same resources as the organization


control, legislate, or influence the organization's policies or practices


two types of regulators

regulatory agencies and interest groups

acquire an organization's products or resources


provide resources for the organization


in a joint venture or partnership with the organization

strategic partners or allies

conditions and stakeholder forces within an organization

internal environment

persons with legal property rights to a business


elected by the stockholders and are charged with overseeing the general management of the firm to ensure that it is run in a way that best serves the stockholders' interest

board of directors

persons who work for the firm and have a vested interest in its continued operation and existance


the actual physical environment of the organization and the work that people do

physical work environment

culture determines the overall ____________ of the organization, although it may vary across different segments of the organziation


is a powerful force that can shape the firm's overall effectiveness and long-term success


what determines an organization's culture?

-symbols, stories, heroes, slogans, and ceremonies
-corporate success that strengthens the culture
-shared experiences that bond the organizational members together

the manifestations of an organization's culture that employees can easy see or talk about
ex)symbols, physical structures, language, stories, rituals, ceremonies

observable artifacts

the beliefs, philosophies, and norms that a company explicitly states

espoused values

taken-for-granted beliefs that are so ingrained that employees simply act on them

basic underlying assumptions

the heart of the culture

basic underlying assumptions

manage organizational culture

-understand it
-articulate the culture
-reward and promote

how to change the organizational culture

-develop a clear idea fo what kind of culture you want to create
-bring in outsiders to important managerial positions
-adopt new slogans, stories, ceremonies, and purposely break with tradition

The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures


when members of a group differ from one another along dimensions such as age, gender, or ethnicity


today, organizations have expanded the concept of diversity to include all ways in which _____________ are different


the concept of _________ goes beyond representation of different groups but includes an employee's perception that the employee receives fair treatment and respect and that the employees feel valued and appreciated


inclusion makes sure that employees receive ______ treatment and respect AND that the employees feel ____________ and appreiated


in the workforce, we are seeing shifts in _______________ _________________________, ________________, and _______________________.

age distributions

average age of the US workforce is increasing and will continue to do so for the next several years

age distributions

-females are approximately 47% of the workforce
-the "glass ceiling" has a discriminatory effect on female managers


-U.S. workforce will have an increasing number of Hispanic workers and a decline in white workers


competitive advantages of having a diverse and multiculturalism workplace

-cost argument
-resource acquisition argument
-marketing argument
-creativity argument
-problem solving argument
-systems flexibility argument

Firms that learn to cope with diversity will generally have higher levels of productivity and lower levels of turnover and absenteeism.

Cost Argument

Firms who manage diversity effectively will become known among women and minorities as good places to work.

Resource Acquisition Argument

Firms with diverse workforce will be better to understand different market segments than those with less diverse ones.

Marketing Argument

Firms with diverse workforce will generally be more creative and innovative than those with less diversity.

Creativity Argument

Diverse organizations have a better pool of information from which to draw and make decisions.

Problem-solving Argument

Firms must become flexible as a way of managing a diverse workforce, causing the overall organization to be more flexible.

Systems Flexibility Argument

Source of Conflict from Diversity and Multiculturalism

-personnel actions being attributed to diversity status
-misunderstood, misinterpreted or inappropriate actions between people or groups
-cultural differences in work hours, personal styles interpersonal relations, and conflict

Basic Characteristics toward the multicultural organization

-Pluralism in which every organizational group works to understand every other group.
-Full structural integration such that the makeup of the organization reflects the external labor market.
-Full integration of the informal network that removes barriers

Porter's 5 Competitive Forces

-the threat of new entrants
-competitive rivalry
-the threat of substitute products
-the power of buyers
-the power of suppliers

extent to and ease with which competitors can enter a market

threat of new entrants

competitive rivalry between firms in an industry

competitive rivalry

extent to which alternative products/services may replace the need for existing products/services

threat of substitute products

extent to which buyers influence market rivals

power of buyers

extent to which suppliers influence market rivals

power of suppliers

Models of Organizational Effectiveness

-systems resource approach focuses on acquiring inputs
-internal processes approach focuses on the transformation process (outputs>inputs)
-goal approach focuses on outputs (achieving organizational goals)
-strategic constituencies approach focuses on fee

A(n) __________ would come under the heading of The economic element of the general environment.
a)Increase in the number of single parent families
b)Increase in unemployment
c)Large increase in immigration
d)Increase in the mean age of the population

b)Increase in unemployment

an individual's personal beliefs regarding what is right and wrong or good and bad


eye of the beholder" or behavior that conforms to generally accepted social normals

ethical behavior

what are the 4 factors that shape your individual ethics

-individual experiences
-values and morals

what 2 factors create your managerial values?

-individual values
-organizational values

Managerial ethical behavior must begin with _______ ________________ which establishes the organization's culture and defines what will and what will not be acceptable behavior.

top management

how to manage ethical behavior in organizations

-begins with top management
-training how to handle different ethical dilemmas
-develop a written code of ethics
-individual issues

ethical norms affecting actions


act optimizes what is best for its contituencies


act repsects the rights of others involved


act is consistent with what is considered fair


act is consistent with people's responsibilities to each other


need for immediate gratification

I want my MTV!

we are training people that you get a trophy for participating; this is not real life; you have to try hard to succeed

winner takes all

when leaders aren't demonstrating ethical behavior, who do you look to?

Where does it end?

when you have a paper about polar bears, you search it on Google and find so much many pages of information about them, but how much is enough?

your disk is too full to complete this function

today, it is difficult to name 3 people in the public eye that have not demonstrated unethical behavior

Where have you gone, Joe DiMaggio?

skills and competencies that enable an authority to be successful in some specific area


the belief that the authority wants to do good for the trustor


the perception that the authority adheres to a set of values and principles that the trustor finds acceptable


3 things to a track record


forms of organziation justice

-distributive justice
-procedural justice
-informational justice
-interpersonal justice

peoples perceptions of the fairness with which rewards are distributed within the organization

distributive justice

individual perceptions of the fairness used to determine various outcomes

procedural justice

degree of fairness people see in how they are treated by others in the organization

interpersonal justice

perceived fairness of information used to arrive at decisions

informational justice

people and organizations directly affected by the behaviors of an organization and that have a stake in its performance


The set of obligations an organization has to protect and enhance the societal context in which it functions

social responsibility

customers, employees, and investors


environmentally sensitive products, recycling, public safety

the natural environment

charitable contributions, support for social issues such as child labor and human rights

the general social welfare

-business creates problems and should therefore help solve them
-corporations are citizens in our society
-business often has the resources necessary to solve problems
-business is a partner in our society, along with the government and the general popula

arguments for social responsibility

-the purpose of business in the U.S. society is to generate profit for owners
-involvement in social programs gives business too much power
-there is potential for conflicts of interest
-business lacks the expertise to manage social programs

arguments against social responsibility

do as little as possible

obstructionist stance

do only what is legally required and nothing more

defensive stance

example of defensive stance

tobacco companies

meet legal and ethical obligations and go beyond that in selected cases

accommodative stance

organization views itself as a citizen and proactively seeks opportunities to contribute to society

proactive stance

most companies will follow either the ________________ stance or _________________ stance


Business influences the government through

-personal contacts and networks
-political action committees
-favors and other influence tactics

the government influences business through

-environmental protection legislation
-consumer protection legislation
-employee protection legislation
-securities legislation
-tax codes

the extent to which the organization conforms to local, state, federal, and international laws

legal compliance

extent to which members of the organization follow basic ethical/legal standards of behavior

ethical compliance

awarding of funds or gifts to charities and other social programs

philanthropic giving

what are the formal organization dimensions of social responsibility

-legal compliance
-ethical compliance
-philanthropic giving

what are the informal organizational dimensions of social responsibility

-organization leadership and culture
-whistle blowing

the organizational response to the disclosure by an employee of illegal or unethical conduct on the part of others within the organization is indicative of the organization's stance on social responsibiliy

whistle blowing

leadership practices and the culture of the organization can help define the social responsibility stance an organization and its members will adopt

organization leadership and culture

traditionally, experts have suggested a 3 step model for applying ethical judgments to situations that may arise during the course of business activities. The first step is to:
a) gather the relevant factual information
b) appoint an ombudsman
c) locate a

a) gather the relevant factual information

Acquires all of its resources and sells all of its products or services within a single country

domestic business

is based in a single country yet acquires a meaningful share of its resources and/or revenues from other countries

international business

Transcends national boundaries and buys raw materials, borrows money, and manufactures and sells its products in a worldwide marketplace

multinational business

Transcends national boundaries and is not committed to a single home country

global business

making a product in the firm's domestic market and selling it in another country


bringing a good, service, or capital into a home country from abroad


disadvantages of importing

tariffs and taxes imposed on cross-border goods, high transportation costs to/from distant markets, and governmental restrictions and regulations

advantages of importing

small cash outlay, little exchange risk, and no adaptation of product or service is necessary

one company allows another to use its brand name, trademark or other assets in exchange for royalty based on sales


increased profitability from licensing without additional capital requirements, lower operational costs in foreign markets, and extended profitability from existing technologies

advantages of licensing

inflexibility in the licensing arrangement, loss of profits from licensee failure, and licensing possibly helps competitors learn to compete

disadvantages of licensing

two or more firms jointly cooperate for mutual gain

strategic alliance and joint ventures

quick market entry, access to materials and technology, reduced risk

advantages of strategic alliance and joint venture

shared ownership limits control and profitability

disadvantages of strategic alliance and joint venture

occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country. foreign operation then becomes wholly-owned subsidiary of the firm

direct investment

enhanced operational control, it allows the use of existing infrastructure and no adaptation of in-country product or service is necessary

advantages of direct investment

complexity in managing foreign operation, greater economic and political risk exposure, and greater uncertainty of business risk

disadvantages of direct investment

taxes collected on goods shipped across national boundaries


Limits placed on the number or value of goods that can be traded as exports or imports.


Voluntary limits on the volume or value of goods exported to or imported from another country.

export restraint agreements

most common form of trade restriction


relative importance of the interests of the individual versus the interests of the group

social orientation

social orientation

individualism vs. collectivism

the appropriateness of power/authority within organizations

power orientation

Power Orientation

power respect vs power tolerance

an emotional response to uncertainty and change

uncertainty orientation

uncertainty orientation

uncertainty acceptance v. uncertainty avoidance

what motivates people to achieve different goals

goal orientation

goal orientation

aggressive goal behavior v. passive goal behavior

the extent to which members of a culture adopt a long-term or a short-term outlook on work and life

time orientation

time orientation

long term outlook vs short term outlook