Principles of Management (IAC1)

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Situational analysis

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under

Conglomerate diversification

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Unity-of-command principle

A structure in which each worker reports to one boss, who in turn reports to one boss

Strategic control system

A system designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action

Expectancy theory

A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome

Path-goal theory

A theory that concerns how leaders influence subordinates' perceptions of their work goals and the paths they follow toward attainment of those goals

Job analysis

A tool for determining what is done on a given job and what should be done on that job

A

Which of the following is true about resistance to change? A. People at all levels of their organizations, from entry-level to executives, resist change. B. General reasons for resistance to change include self-interest, misunderstanding, and management tactics. C. Usually managers tend to overestimate the amount of resistance they will encounter. D. Change-specific reasons for resistance to change include peer pressure, surprise, and timing. E. All employees of an organization often tend to show the same level of resistance to change.

E

Which of the following steps of motivating people to change begins with establishing a vision of where the company is heading? A. Refreezing B. Leading C. Unfreezing D. Freezing E. Moving

Environmental Uncertainly

means managers do not have enough information about the environment to understand or predict the future

Network organization

A collection of independent, mostly single-function firms that collaborate on a good or service

Divestiture

A firm selling one or more businesses</em><span class

Task performance behaviors

Actions taken to ensure that the work group or organization reaches its goals

Domain selection

Entering a new market or industry with an existing expertise

Relationship-motivated leadership

Leadership that places primary emphasis on maintaining good interpersonal relationships

Strategic goals

Major targets or end results relating to the organization's long-term survival, value, and growth

Universalism

The ethical system stating that all people should uphold certain values that society needs to function

D

The final step in managing resistance involves strengthening new behaviors that support a change and is referred to as ____. A.moving B. stabilizing C. solidifying D. refreezing E. enforcing

Strategic vision

The long-term direction and strategic intent of a company

C

Which of the following is true of shared leadership in change efforts? A. It often escalates with growth of the company and over time. B. It is rare in start-ups and very small organizations. C. It occurs when people not only support a change but also help implement it. D. The traditional corporate structure is ideal for creating it. E. It is improved when organizations maintain rigid, bureaucratic environments.

Specialization

A process in which different individuals and units perform different tasks

Management by objectives (MBO)

A process in which objectives set by a subordinate and a supervisor must be reached within a given time period

Strategic management

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

Skunkworks

A project team designated to produce a new, innovative product

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers

Tactical planning

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing

Differentiation strategy

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Concentration

A strategy employed for an organization that operates a single business and competes in a single industry

Concentric diversification

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Coordination by mutual adjustment

Units interact with one another to make accommodations to achieve flexible coordination

B

Which of the following change-specific reasons for resistance is likely to occur when people think a change will cause them to lose something of value? A. Surprise B. Self-interest C. Different assessments D. Management tactics E. Misunderstanding

E

Which of the following helps managers to manage the change process by investigating specific factors that prevent people from changing and those that drive people toward change? A. SWOT analysis B. Trend analysis C. Situational analysis D. Six-sigma analysis E. Force-field analysis

Strategic leadership

Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future

Supervisory leadership

Behavior that provides guidance, support, and corrective feedback for day-to-day activities

Forecasting

Method for predicting how variables will change the future

Flexible processes

Methods for adapting the technical core to changes in the environment

Corporate governance

The role of a corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders

Corporate strategy

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Organization culture

The set of important assumptions about the organization and its goals and practices that members of the company share

Labor relations

The system of relations between workers and management

Arbitration

The use of a neutral third party to resolve a labor dispute

SWOT analysis

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Diversification

A firm's investment in a different product, business, or geographic area

Mechanistic organization

A form of organization that seeks to maximize internal efficiency

Strategic alliance

A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals

Trait approach

A leadership perspective that attempts to determine the personal characteristics that great leaders share

Behavioral approach

A leadership perspective that attempts to identify what good leaders do—that is, what behaviors they exhibit

Laissez-faire

A leadership philosophy characterized by an absence of managerial decision making

Six sigma quality

A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction

Scenario

A narrative that describes a particular set of future conditions

Group maintenance behaviors

Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group

Egoism

An ethical system defining acceptable behavior as that which maximizes consequences for the individual

Utilitarianism

An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers

Matrix organization

An organization composed of dual reporting relationships in which some employees report to two superiors—a functional manager and a divisional manager

Monolithic organization

An organization that has a low degree of structural integration—employing few women, minorities, or other groups that differ from the majority—and thus has a highly homogeneous employee population

Pluralistic organization

An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds

Multicultural organization

An organization that values cultural diversity and seeks to utilize and encourage it

Strategic maneuvering

An organization's conscious efforts to change the boundaries of its task environment

Organic structure

An organizational form that emphasizes flexibility

Prospectors

Companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring

Buffering

Creating supplies of excess resources in case of unpredictable needs

Functional organization

Departmentalization around specialized activities such as production, marketing, and human resources

Divisional organization

Departmentalization that groups units around products, customers, or geographic regions

Expectancy

Employees' perception of the likelihood that their efforts will enable them to attain their performance goals

Caux Principles

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States

Substitutes for leadership

Factors in the workplace that can exert the same influence on employees as leaders would provide

C

In managing resistance to organizational changes, facilitation and support method is most likely to be used when: A. the group has considerable power to resist. the B. initiators do not have all the information they need to design the change. C. people are resisting because of adjustment problems. D. there is a lack of information or inaccurate information and analysis. E. speed is essential, and the change initiators possess considerable power.

Bootlegging

Informal work on projects, other than those officially assigned, of employees' own choosing and initiative

Competitive intelligence

Information that helps managers determine how to compete better

Coordination by plan

Interdependent units are required to meet deadlines and objectives that contribute to a common goals

Task-motivated leadership

Leadership that places primary emphasis on completing a task

Smoothing

Leveling normal fluctuations at the boundaries of the environment

360-degree appraisal

Process of using multiple sources of appraisal to gain a comprehensive perspective on one's performance

Diversity training

Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce

Environmental scanning

Searching for and sorting through information about the environment

Structured interview

Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers

A

To be world class, an organization should: A. use the best and latest knowledge and ideas. B. strive for a controlled improvement. C. be driven by business-as-usual goals. D. solely focus on beating the competition. E. continue to use the methods, systems, and cultures of the past.

Affirmative action

Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past

A

Strategic, technostructural, human resources management, and human process are types of: A. organization development interventions. B. affirmative action programs. C. organization behavior modification approaches. D. awareness building techniques. E. total quality management systems.

Functional strategies

Strategies implemented by each functional area of the organization to support the organization's business strategy

Independent strategies

Strategies that an organization acting on its own uses to change some aspect of its current environment

Cooperative strategies

Strategies used by two or more organizations working together to manage the external environment

Dynamic network

Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment

Vertical integration

The acquisition or development of new businesses that produce parts or components of the organization's product

Validity

The degree to which a selection test predicts or correlates with job performance

Span of control

The number of subordinates who report directly to an executive or supervisor

Organizational climate

The patterns of attitudes and behavior that shape people's experience of an organizatio

Formalization

The presence of rules and regulations governing how people in the organization interact

Coordination

The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission

Benchmarking

The process of comparing an organization's practices and technologies with those of other companies

Operational planning

The process of identifying the specific procedures and processes required at lower levels of the organization


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