Test 1 MGMT 309

Export restraint agreements

voluntarily limit the volume or value of a country's exports into another country. Countries take this action when they wish to encourage the other country to keep minimal controls against imports.

The political-legal dimension

of the general environment consists of the government regulation of business and the relationship between business and government.

The Hawthorne Studies

systematically manipulated the independent variable of lighting to assess changes in the dependent variable of productivity.

George Steinbrenner shared his passion for winning to everyone in the New York Yankees organization. He is quoted as having said, "Winning is the most important thing in my life, after breathing. Breathing first, winning next."

Leading

A marketing manager at a soft drink company works with an advertising agency in France. The goal is to reduce advertising costs by creating a YouTube video that goes viral.

Organizing

science

Perspectives including scientific management and management science are consistent with management as a science.

A wedding organizer sets a budget for a wedding with the engaged couple.

Planning

Synergy

result when two or more subsystems work together to create more value than if the two operated separately. Because these airlines were able to combine their operations to serve more locations, they could achieve synergy through a merger.

Dynamic

Art

Organizing

Assigning responsibilities for task accomplishment. Note that organizing may also include decisions about where to spend money, how the company should be organized, and how many people need to be assigned to a particular project.

Which management perspective is most closely aligned to industrial psychology?

Behavioral management perspective

In companies that strive to be first to market with new technology, the risk that employees may divulge trade secrets is great.

Employee's Treatment of Organization

top manager

Managers at this level of the organization have job titles such as President, Vice President, and Chief Executive Officer. They have responsibilities related to change, commitment, culture, and environment. In this case, giving a speech in a video to announce a new change initiative is an example of spearheading organizational change initiatives.

Theory X and Theory Y

Managers who believe in the Theory X approach believe employees need strong supervision, and that employees will tend to avoid work when they can. Theory Y managers believe that employees want to work and are capable when given the proper resources.

Planning/decision making

Selecting goals and ways to attain them. Planning is different from organizing. When managers plan, they predict what will happen in the future. When managers organize, they arrange resources so that they can achieve the goals they set during the planning process. Note that creating a budget is part of the planning process; checking to see whether the budget has been met is part of the controlling process.

An organization that is trying to motivate its employees will seek to improve its internal environment.

Specifically, it will adjust its culture, which is collectively the values, beliefs, behaviors, customs, and attitudes that give the organization a unique identity. Organizations with strong cultures.

The following table lists the four steps in Frederick Taylor's system of scientific management. Indicate the order in which the steps should be performed in order to optimize employee productivity, according to Taylor.

Step 1: Develop a science for each element of the job to replace old rule-of-thumb methods. Step 2: Scientifically select employees and then train them to do the job as described. Step 3: Supervise employees to make sure they follow the prescribed methods for performing their jobs. Step 4: Continue to plan the work, but use workers to get the work done.

Art

When the "right" answer is not obvious, managers must rely upon intuition, gut reaction, and experience to make decisions.

general environment

Demographic shifts, such as an increase in people of a certain age, affect entire industries, not just one company.

Should we enter an emerging market?

Plan

Douglas McGregor

behavioral management.

In a disagreement about what is right and what is wrong, if your greatest concern is caring, you want to know

"Is it consistent with responsibility to care?"

In a disagreement about what is right and what is wrong, if your greatest concern is justice, you want to know,

"Is it consistent with what is fair?"

Arguments for Social Responsibility

1. Businesses create problems and should help solve them. 2. Corporations are citizens in our society. 3. Businesses have the resources to solve problems. 4. Business is a partner in society.

Arguments against Social Responsibility

1. Business lacks expertise in social programs. 2. Involvement gives businesses more power. 3. There may be conflicts of interest. 4. Business exists to generate profit for the owners.

The cultural belief that the needs of the group comes before the needs of the individual

Collectivism

Can we expect for deadlines to be respected?

Control

At a research lab, the manager allows scientists the freedom to explore their research interests, but still checks to make sure that their results add to the company's bottom line.

Controlling

Obstructionist

Do as little as possible to solve social or environmental problems.

Defensive

Do only what is legally required

Which scientist was primarily associated with the Hawthorn Studies?

Elton Mayo

Nina waits tables, and a large part of her earnings comes from tips, which depend on how large the bill is. She falsely tells customers who order less expensive dishes that the kitchen is sold out of those items so that they are limited to more expensive choices.

Employee's or Organization's Treatment of Others

Which scientist was primarily associated with the development of scientific management?

Frederick Taylor

Which entity relies upon consumer protection legislation as a tool of influence?

Governments rely on laws or legislation to influence businesses.

Target has posted a job description for the following open position: Selecting prospective employees from submitted résumés and job applications; supervising staff; serving as liaison with managerial staff and other colleagues. Which type of organizational resource will this job manage?

Human

Though generally managers are thought to plan, organize, lead, and control across four types of organizational resources, managers may specialize in one specific resource area. For instance, ________________ primarily manage employees and decisions related to employee efficiency and effectiveness.

Human Resource Managers

The cultural belief that a person comes before the group

Individualism

As a manager, you need to consider how technology impacts your organization's culture. Over the last decade, which of the following has been one of the most pronounced effects of technology on the workplace?

It has increased the pace of work and promoted working outside traditional work hours.

Buyers

Lowe's Home Improvement sells to its customers about 50% of the spray paint Rust-Oleum manufactures.

Controlling

Monitoring activities and making corrections. The fundamental purpose of control is to compare an existing situation with a desired situation and make a decision about what needs to be done to reach the desired state. Managers are engaged in control when they appraise an employee's performance, compare expenses with a budget, or check to see whether product quality is meeting quality standards.

There are four levels of social responsibility, which range from lowest to highest in this order:

Obstructionist, Defensive, Accommodative, Proactive.

At Zappos, managers are committed to making workers happy.

Organization's Treatment of Employees

What benefits should we offer expatriates?

Organize

A high premium on personal relationships

Passive goal behavior

How strong is the infrastructure in our prospective markets?

Plan

Respect for the right of someone to hold power

Power respect

Perceived equalities in the relative power of people

Power tolerance

What was the major stimulus to international trade following World War II?

The General Agreement on Tariffs and Trade (GATT)

task environment

The PhD graduates represent the university's labor market. The labor market directly affects the university, making it part of the task environment.

Companies typically issue a social responsibility report.

The SEC Annual Report refers to the required report for publicly-traded companies. A charitable giving report would only encompass financial donations.

Corporate leaders may face a variety of ethical dilemmas. Which ethical concern is addressed by the Sarbanes-Oxley Act?

The accuracy of corporate financial disclosures

AT&T, a cable provider, merged with DirecTV, a satellite provider

The example explains how a company can manage the threat of substitutes using tools like mergers and acquisitions, information management, and marketing strategy

Facebook acquired Instagram

The example illustrates how one company in the industry managed competitive rivalry by merging or acquiring a competitor.

Facebook is funding the development of infrastructure that will provide Internet access in developing countries.

The example illustrates that companies can influence the relative power of suppliers through strategic negotiations.

Management is a set of activities directed at an organization's resources.

The four types of resources are human, physical, financial, and information. Jobs that are focused on the financial health of the company including taxes, costs, profits, and investments deal with financial resources.

The general environment is a set of broad dimensions that are not necessarily associated with specific organizations.

These are broadly classified as economic, technological, sociocultural, political-legal, and international dimensions. Consumer confidence relates to the economic dimension. How people view their pets is part of the sociocultural dimension.

An affinity for change and new opportunities

Uncertainty acceptance

A resistance to change and ambiguity

Uncertainty avoidance

internal environment

because both the managers making the policies and the affected employees are inside the company.

internal environment

because the internal environment of an organization consists of that organization's culture, employees, and managers.

The technological dimension

consists of methods available for converting resources into products or services, whereas the economic dimension relates to the overall health of the economic system in which an organization operates.

The internal environment

consists of the conditions and forces within an organization.

Henri Fayol and Max Weber

development of administrative management

Scientific management began as managers faced labor shortages in a time of business expansion. Consequently, the focus of scientific management is how to use labor ____________.

efficiently

The political/legal environment

includes four components: controls on international trade, economic communities, incentives for international trade, and government stability. Government stability, in part, encompasses the potential for the nationalization of private property. Because Argentina has a history of nationalization, this should be your biggest concern.

systems perspective

inputs are transformed into outputs and feedback enables the system to be improved in the future. For a sandwich shop, anything that is used to create the product being sold, such as lettuce and bread, is an input. These inputs are transformed into the product, which is an output. Profit is an output of the store, while repeat customers provide the sandwich shop with feedback.

Financial management

is an area in which managers work rather than a theoretical perspective.

Licensing

is an arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty on sales.

Culture

is the set of values, beliefs, behaviors, customs, and attitudes that define what the organization stands for, how it works, and what it values.

Ethical issues can stem from

leadership, corporate governance, and information technology.

The quantitative management perspective

relies on mathematical models to guide decisions.

Systematic

science

Efficiency

using resources wisely and without unnecessary waste.

Technology

has increased the pace of work and the rate of change in the business environment. Managers in particular may feel as though it's difficult to keep up with everything from consumer trends to the flow of information, and the additional pressure to respond to work tasks 24/7. Even so, technology also makes communication easier than ever, through media as varied as chat apps to video calls to cloud-based project management tools. The easy sharing of information via any internet-enabled device means that employees can work almost anywhere, making the physical workspace less important.

In a disagreement about what is right and what is wrong, if your greatest concern is utility, you want to know,

"Does it optimize the best for all?"

In a disagreement about what is right and what is wrong, if your greatest concern is rights, you want to know,

"Does it respect the rights of those involved?"

According to most management researchers, the modern study of management originated in which century?

19th century

Competitors

A family that wants pizza for dinner can order from a delivery restaurant, make their own pizza from scratch at home, or buy a frozen pizza in the grocery store. Verizon claims to have the largest and most reliable mobile network in the country.

Which entity relies upon political action committees as a tool of influence?

Businesses rely on lobbying, political action committees, and personal contacts to influence the government.

competitors

Companies that already have or could gain access to suppliers and customers in a market are competitors. Strong competitors make entry to a market more difficult.

Accommodative

Meet legal and ethical obligations and do more on a case by case basis

If a manager measures which location has the most traffic and includes that information in a model to predict store profits by location, which management perspective is she using?

Quantitative management

Logical

Science

Proactive

Seek opportunities to contribute to society.

general environment

Shifts in economic power from one country to another affect entire industries, not just individual companies.

Argentina is part of Mercosur

a trade agreement among countries in Latin America. BRIC stands for the four largest emerging economies: Brazil, Russia, India, and China. USMCA is the United States-Mexico-Canada Agreement, the successor to the North American Free Trade Agreement (NAFTA). The EU is the European Union.

Scientific management

emphasizes the efficient design of jobs and performance of tasks.

When leaders are unethical

every member of the organization may receive the message that ethics are not valued and that unethical behavior is acceptable.

Managerial staff at the Dairy Queen make decisions about how to reinvest profits, how to improve profit margins, and how to manage tax liabilities, all of which are ___________ resources.

financial

Scientific management

focused on the efficiency of human resources. Productivity was enhanced when people could do more work.

Classical management

largely viewed people as machines providing necessary labor. Thus, classical management principles are associated with efficiency, job specialization, bureaucracies, manufacturing jobs, and organizations functioning in highly stable environments.

Effectiveness

making the right decisions and implementing them successfully.

conceptual skills

used for high-level planning activities. They require a manager to be able to see the big picture and to understand how the organization is and could be affected by its environment.

The physical work environment

where people do the work of the organization, so these vans are an example of the physical work environment.

An organization that seeks a competitive advantage will work to establish a workforce

with a variety of family structures, abilities, and ethnic backgrounds

Which of the following statements about culture are true?

A major way to shape culture is by bringing outsiders into important leadership positions. Cultural problems can arise when two companies with different cultures merge.

A high premium on material possessions and money

Aggressive goal behavior

Suppliers

Airlines charge a premium for flights around Thanksgiving, the busiest travel holiday of the year.

Philanthropic giving is the awarding of funds or gifts to charities or other worthy causes.

The gifts of money and products are examples of philanthropic giving. Companies making investments in their own facilities is not philanthropic giving. Lobbying those who make regulatory decisions does not constitute charitable giving.

New Entrants

The vast size of the population in India and the anticipated increase in smartphone adoption makes it an attractive target for additional smartphone providers.

You've worked for several years in a department where most employees had recently graduated from college. Tomorrow, however, you start a new position, and most of your coworkers will be nearing retirement age. Based on research findings about people of the Baby Boomer generation, what attitudes can you expect your new colleagues to hold?

They tend to feel loyalty to the organization. They tend to place work at the center of their lives. They tend to believe that hard work and sacrifice should be rewarded.

Monsanto is a multinational business.

This type of business has a worldwide marketplace from which it buys raw materials and where it manufacturers its products, and to which it subsequently sells its products. Though Monsanto works and sells in multiple countries, its home base is in a single country. Therefore, it does not meet the definition of a global business.

Leading

Using influence to motivate people to achieve company goals. In today's workplace, the most effective leaders create environments that will engage and empower employees, rather than ones that command and control them.

A country's infrastructure

includes many systems, which support businesses and aspects of daily life. These include power plants, transportation systems, communication systems, educational systems, and more.

Entropy

may occur when an organization does not adequately monitor environmental feedback and make adjustments.

Quantitative management techniques

might include simulations, modeling, queuing theory, and more. As an operations manager, you would use these techniques to improve the efficient production of goods and services.

Management

set of activities which are directed at an organization's resources to accomplish organizational goals as efficiently and effectively as possible. The activities are grouped into four categories: planning and decision-making, organizing, leading, and controlling. The resources are also grouped into four categories: human, financial, physical, and information.

A political action committee

an organization created to solicit money, which is then donated to political campaigns. Businesses cannot legally make direct donations to political campaigns, so they use political action committees. Companies can use political action committees, lobbying, and personal contacts to influence government.

Behavioral management

focuses on employee attitudes and group processes.

Organizations that focus on quality

tend to gain a competitive advantage, increase productivity, lower costs, and move to market more quickly. The relationship of quality to productivity, costs, and speed can seem counterintuitive since it might seem that to ensure quality, an organization would have to spend more and work slower. In fact, the same improvements to operations that result in a higher-quality product/service also tend to produce it more effectively and efficiently.

Classical management remains relevant to contemporary managers. In which of the following current situations is the relevance of classical management apparent?

Bureaucracies, like government organizations, utilize the bureaucratic procedures first proposed by Max Weber.