MGMT 300 Exam 1 Professor Ford

What are input, transformational process, outputs, and feedback from the systems viewpoint?

Inputs-Transformational Process-Outputs Inputs- what goes in Output - what goes out Transformational processes- the prices of converting inputs to outputs. Feedback-info about the reaction of outputs and inputs.

What is the difference between an internal and external stakeholder (see the text book)? Internal Stakeholder:

Interest in a company comes through a direct relationship. (employment, Ownership, Investments)

How do Scientific Management and Bureaucracy theory differ from the Human Relations movement? Bureaucracy Theory

Division of labor and specialization, Delegation of authority, formalization, span of control

Eternal Stakeholders

Do not directly work with a company but are affected somehow by the actions and outcomes of the business.

What are the principles that tend to influence intuitive (automatic, emotion- or feeling-based) moral judgment

Driven by emotion/gut feeling, based on past experiences, associations, automatic reaction Moral judgment is often initially intuitive Tends to be based on at least 5 principles ◦Help/harm ◦Fairness/reciprocity ◦Loyalty ◦Respect for authority ◦Purity Influence immediate, emotional reactions to moral/ethical behavior

What were the most important findings from the Hawthorne Studies?

Elton Mayo -Lighting, rest intervals, length of day/week, wage incentives -Worker intentionally kept productive low - very low ability performance correlations. The Hawthorne studies showed that people's work performance is dependent on social issues and job satisfaction, and that monetary incentives and good working conditions are generally less important in improving employee productivity than meeting individuals' need and desire to belong to a group and be included.

What is evidence-based decision-making and how is this different from intuitive decision-making?

Evidence Based- Uses data to make descions Intuitive- Going with your gut

i. Vision statement

Example- Become the Worlds most trusted company - Ford

How does artificial intelligence build on big data?

Computerization and automation of cognitive tasks, robotic process automation.

What is sustained competitive advantage referring to?

Culture, Brand, employees, Skills

What are Kohlberg's 3 stages of moral development? Be able to recognize an example. Preconventional

" People who have achieved this level tend to follow rules and to obey authority to avoid unpleasant consequences. Managers at Level 1 tend to be autocratic or coercive, expecting employees to be obedient for obedience's sake." The stage of moral development in which an individual's moral decisions are based primarily on self-protection or self-interest.

Conventional

"follows expectations of others. People whose moral development has reached this level are conformist but not slavish, generally adhering to the expectations of others in their lives. Level 2 managers lead by encouragement and cooperation and are more group and team oriented. Most managers are at this level." Example: An employee notices that a manager is falsifying records in order to improve the group's standing. The employee decides not to say anything because this practice appears to be widely accepted and allowed by others. Thus, the employee is following the norms of the organization. This shows which stage of Kohlberg's levels of moral development?

post conventional

"guided by internal values. The farthest along in moral development, Level 3 managers are independent souls who follow their own values and standards, focusing on the needs of their employees and trying to lead by empowering those working for them. Only about a fifth of American managers are said to reach this level." The stage of moral development in which an individual's moral decisions are based primarily on what he or she believes is good for society as a whole.

3 Major levels of MGMT Lower Level Managers

(Leading a work unit of 6 employees) [EX] First time line manager team leaders Titles: Department head, foreperson, supervisor./ Makes short term operating decisions

Middle-level managers

(leader of a district that has 6 work units of 6 employees each.) [EX] Titles: Plant manager, District regional manager. -Policies and plans of top managers above them and supervise and coordinate the activities of the first line managers below them.

What is a code of ethics?

A written set of principles and rules intended to serve as a guideline for determing appropriate ethical behavior for those individual's under its authority.

Interpersonal people oriented

Ability to interact well with people. Soft Skills: Interpersonal people skills

What are the three types of skills that differentiate effective from ineffective managers? Technical

Ability to perform a specific job./"consist of the job-specific knowledge needed to perform well in a specialized field. Having the requisite technical skills seems to be most important at the lower levels of management—that is, among employees in their first professional job and first-line managers."

Conceptual

Ability to think analytically, to visualize an organization as a whole and understand how the parts work together. Conceptual skills are more important as you move up the management ladder, particularly for top managers, who must deal with problems that are ambiguous but that could have far-reaching consequences. Today a top car executive must deal with several radical trends—autonomous (self-driving) cars, electric-powered vehicles, and new business models of start-ups like Uber and Lyft."

Human Behavior Movement

Adds personal/Human element, Considers individual motives, psychological needs

learning organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. SMART Goals

What are analytics and big data? What type of decision-making system do they support (system 1 or system 2)?

Analytics: Risks, benefits, prediction modeling, forecasting Big Data- Massive amount of data produced System 2

Representativeness heuristic

Base our judgments of something based on similarity to past objects/experiences. (Hiring, Purchasing, Earnings forecast) Example: "As a form of financial planning, playing state lotteries leaves something to be desired. When, for instance, in 2019 the U.S. Powerball jackpot stood at $768 million, the third largest U.S. lottery prize in history, the odds of winning it were put at 1 in 292.2 million. (A person would have a far greater chance of being struck by an asteroid, with odds of 1 in only 1.9 million.)165 Nevertheless, millions of people buy lottery tickets because they read or hear about a handful of fellow citizens who have been the fortunate recipients of enormous winnings. This is an example of the 329representativeness bias"

What are the 4 levels of corporate social responsibility? Be able to recognize an example of these levels. Economic Responsibility

Be profitable, do what is required by global capitalism. Example: Asher is diligent at controlling costs in his area. He is always mindful of profitability

Be able to recognize a definition or example of the following systematic approaches to ethics Utilitarian

Maximize well-being, helps more people than it harms than its justifiable Example: An organization has to close one of its plants, harming the economy of the surrounding community. This is unfair to the plant workers. However, this closing will allow the company to devote enough resources to its other 10 locations to keep them going, benefiting those employees and their communities. Otherwise more widespread cuts would be required.

Moral Rights

Natural rights that are given Example: Suppose an organization is deciding on whether the monitor the computer activity of its remote employees. On the one hand, it may help to decrease the misuse of company materials. On the other hand, some may see this as a violation of the employees' freedom and privacy. They may choose not to monitor employee activity based on which principle of ethics?

What is the difference between theory X and theory Y management? Theory X

No personal motivation to work/ use rewards and discipline to encourage working.

Theory Y

People care about/identify with the work they are doing. Doing a good job just because.

Individualism

People will do the right thing when focusing on yourself. (Act on your own interest)

What are policies and procedures?

Policies: Broad Guidelines Procedures: More specific

What is the difference between rational and nonrational/intuitive decision-making? Can you recognize an example of each?

Rational: More effort and time, analytic, consider more information. Nonratinal: Driven by emotion/gut feeling, based on past experiences/Associations, automatic reaction.

What is satisficing?

Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision.

i. Values statement

Set of priorities/ list of what needs to be done. Example: Core values, Innovation, collaboration

What is bounded rationality and how does it limit rational decision-making?

Sets limits to abilities to be rational. Do not have enough time for it. There are limitations to everything. Sometimes we do not have enough information Bounded rationality describes the way that humans make decisions that departs from perfect economic rationality, because our rationality is limited by our thinking capacity, the information that is available to us, and time. Instead of making the 'best' choices, we often make choices that are satisfactory.

. What are the following types of plans? What time frame do they refer to (e.g., long-term, short-term)?

Strategic: Long Term objectives; Set direction Tactical: How to achieve the strategy Operational: How you run the organization

What are the main components of Total Quality Management and a Learning Organization? Total Quality Management

Supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high - quality goods and services

Confirmation bias

Tendency to search for, favor, and use information that confirms pre-existing beliefs.

Upper level management

Top-level: Establish a mission for the company. -Very conceptual, less direct Titles: CEO, COO, President, V-P Senior

i. Mission statement

What the organization is trying to do, why they exist. Example: Helping people on their path to better health - CVS

Ethical Responsibility

a company's social responsibility not to violate accepted principles of right and wrong when conducting its business Example: Orlando felt it was important to make sure raises given to his employees were based on their performance. He created a standardized performance evaluation system to reduce biases in decision about raises.

legal responsibility

a company's social responsibility to obey society's laws and regulations Example : As part of her job, Taylor ensures that income is reported properly. Not reporting income during the right period could result in fines and be a violation of regulations.

Organizing

arranging tasks, people, and other resources to accomplish the work

Philanthropic Responsibility

be a good global corporate citizen, do what is desired by global stakeholders Example: Laila always allows her employees to take time off for charity events.

Availability heuristic

making a decision based on the answer that most easily comes to mind. Using the ease with which information comes to mind as information Example: A student for business class reads a series of memorable cases in which businesses fail. Then the student goes on to believe that businesses have a low likelihood of succeeding because the student can easily recall failed businesses.

Controlling

monitoring performance, comparing it with goals, and taking corrective action as needed Example;As regional manager of a dollar store chain, Kamile compares weekly sales reports from each store with projected sales goals and then takes corrective action if needed. Which of the four key management functions is Kamile using?

Leading

motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals

What are the following 4 major types of managerial tasks? Planning

set goals and decide how to achieve them

Anchoring effect

substantial effect on financial descions. Base our judgment on a number. ($400 anchors - $143 average donation) Example:A store places a sign next to its soup cans stating "limit of 12 per person". They find that this increases the number of cans that people buy.

Stretch Goals

targets that are particularly demanding, sometimes even thought to be impossible

Escalation of commitment

the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action