Management Exam #3

task group

-type of formal group -group of organization members who interact with one another to accomplish nonrountine organizational tasks. members of any one task group can come from various levels in the organizational hierarchy

command group

-type of formal group -outlined in the chain of command on an organization chart. they typically handle routine activities

elements of communication process

1. Source/encoder: person who originates the information to be shared with others 2. Signal: a message is encoded information that the sources intends to share with others--> when the message is transmitted from person to person it is called a signal 3. The decoder/ destination: the person the interpersonal communication situation with whom the source is attempting to share information

stages of group think

1. antecedents: precursors are associated with the development of groupthink 2. concurrence 3. symptoms of groupthink: members feel pressure to conform and censor their own ideas 4. decision-making defects: members fail to make effective decisions

stages of team development

1. forming 2. storming 3. norming 4. performing 5. adjourning

the controlling process

1. measuring performance 2. comparing measured performance to standards 3. taking corrective action

types of teams

1. problem solving teams -members share ideas or offer suggestions on how work processes and methods can be improved 2. self-managed team -team that operates without a manager, is responsible for a complete work process or segment and also has authority and responsibility to perform a specified activity 3. cross-functional team -work team composed of individuals from various functional specialties

entrepreneurs exploit opportunités when:

1. when they believe that customers value a new product or service(this provides market demand/profits) 2. when they perceive that they have the support of important stakeholders 3. when they perceive that their management team is capable

forming

1st stage of team development -members of the newly formed team become oriented to the team and acquainted with one another

measuring performance

1st step in controlling process -mangers establish a unit of measurement that gauges performance and observe the quantity of this unit as generated by the employee whose performance is being measured. (measure current organizational performance)

storming

2nd stage of team development process -characterized by conflict and disagreement as team members become more assertive in clarifying their individual roles -lack of unity

comparing measured performance to standards

2nd step in controlling process -after mangers has taken a measure of organizational performance they must compare this measure against some standard. standards may involve past performance or external parties (competitors)

Reinforcement

Positive: a reward that consists of a desirable consequence of behavior Negative: a reward that consists of the elimination of an undesirable consequence of behavior

informal group

a collection of individuals whose common work experiences result in the development of a system of interpersonal relations that extend beyond those established by management types: interest, and friendship groups

Communication MICRObarriers

a factor hindering successful communication that relates primarily to such variables as the communication message, the source, and the destination EX. 1. source's view of the destination-individuals speak one way to people they think are informed and another way to those they think are uninformed 2. message interference 3. destination's view of the source 4. perception 5. multimeaning words

committee

a group of individuals charged with performing a type of specific activity and is usually classified as a task group

formal group

a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives

team

a group whose members influence one another toward the accomplishment of an organizational objective

needs-goal theory

a motivation model that hypothesizes that felt needs cause human behavior

feasibility analysis

analysis that helps entrepreneurs understand whether an idea is practical -used to figure out if idea is PRACTICAL / FEASIBLE

control

entails ensuring that an event occurs as it was planned to occur

illusion of control

exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity

Communication MACRObarriers

factors that hinder successful communication in a general communication situation Ex. 1. the increasing need for information 2. the need for increasingly complex information 3. the reality that people in the US are increasingly coming into contact with people who use languages other than English 4. the constant need to learn new concepts, which cuts down on the time available for communication

venture capitalists

firms that raise money from investors and then use this money to make investments in new firms

serial transmission

involves passing information from one individual to another in a series Con: messages tend to become distorted

social entrepreneurship

involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth *difference in social and corporate is that the goal structure focuses on creating social value over profit

operations management

is performance of managerial activities entailed in selecting, designing, operating, controlling, and updating production systems -it conveys 3 key notions: 1. operations management involves managers 2. operations management takes place without the context of the objectives and policies that drive the organization's strategic plans 3. the criteria for judging the actions taken as a result of operations mgt are standards for effectiveness and efficiency

operations control

making sure that operations activities are carried out as planned

communication and decision-making stage

members are able to communicate frankly with one another

group control stage

members attempt to maximize the group's success by matching individual abilities with group actives by assisting one another

Formal organizational communication

organizational communication that follows the lines of the organization chart -uses listening by managers

cross-cultural experience

refers to experience living in a foreign country

social networks

represent individuals' patterns of social relationships

ERG theory

spin off of Maslow. basic needs are: 1. existence need 2. relatedness need 3. growth need

noise

stimuli that compete with the communication message

job design

strategy managers use to motivate organization members. it involves designing the jobs that organization members perform.

Total Quality Management (TQM)

the continuous process of involving all organization members in ensuring that every activity related to the production of goods or services has an appropriate role in establishing product quality -organization members work both individually and collectively to maintain the quality of the products offered to the marketplace

quality

the extent to which a product reliably does what it is intended to do -concentrating on improving product quality throughout all phases of a production process actually improves the productivity of the manufacturing system

information asymmetry

the fact that individuals vary interns of the information to which they have access

entrepreneurship

the identification, evaluation, and exploitation of opportunities

Job enrichment

the process of incorporating motivators into a job situation

encoding

the process of putting information in to a form that can be received and understood by another individual

Verbal communication

the sharing of information through words, either written or spoken

non-verbal communication

the sharing of information without using words

ability to establish mean-ends relationships

understanding how to turn a new technology into a product or service that will be desired by consumers -one way to identify opportunity

angel investors

wealthy individuals who provide capital to new companies

cost control

wide-ranging controls aimed at keeping organizational costs at planned levels. it is involved in all organizational areas stages: 1. establishing standard or planned cost amounts 2. measuring actual costs incurred 3. comparing planned costs to incurred costs 4. making changes to reduce actual costs when necessary

5 types of entrepreneurial opportunity

1. creation of new products and services 2. the discovery of new geographical markets in which new customers will appreciate the new product or service 3. the creation or discovery of new raw materials or after discerning alternative uses for existing raw materials 4. the discovery of new methods of production 5. new methods of organizing

types of formal organizational communication

1. downward organizational communication 2. upward organizational communication 3. lateral organizational communication

factors that allow entrepreneurs to identify opportunities

1. entrepreneurial alertness 2. information asymmetry 3. social networks 4. cross-cultural experience 5. ability to establish means-ends relationships

norming

3rd stage in team development process - characterized by agreement among team members on roles, rules, and acceptable behavior while working on a team

taking corrective action

3rd step in controlling process - corrective action is managerial activity aimed at bringing organizational performance up to the level of performance standards. it focuses on correcting the organizational mistakes that are hindering organizational performance -recognizing problems and symptoms

performing

4th stage of team development process - team fully focuses on solving organizational problems and on meeting assignments challenges

adjourning

5th stage of team development process -the team is finishing its job and preparing to disband

Expectancy theory

a motivation theory that hypothesizes that felt needs cause human behavior and that motivation strength depends on an individual's degree of desire to perform a behavior

behavior modification

a program that focuses on encouraging appropriate behavior by controlling the consequences of that behavior

Theory X (McGregor)

a set of essentially negative assumptions about human nature

equity theory

an explanation of motivation that emphasizes the individual's perceived fairness of an employment situation and how perceived inequities can cause certain behaviors

friendship group

an informal group that forms in organizations b/c of the personal affiliation members have with one another

job enlargement

helps to overcome boredom. managers increase the number of operations an individual performs

Maslow's hierarchy of needs

human beings possess the five basic needs described and theorizes that these five basic needs can be arranged in a hierarchy of importance 1. physiological need 2. security/safety need 3. social need 4. esteem need 5. self-actualization need

Theory Z

implies that managers who use either theory x or y assumptions when dealing with people can be successful, depending on their situation

Feedback

in the interpersonal communication situation: it is the destination's reaction to a message

budgetary control

insuring that income and expenses occur as planned. budget outlines how funds in a given period will be spent as well as how they will be obtained

decoding

interpreting the message to determine its meaning

commercial entrepreneurship

involves individuals or corporations that pursue entrepreneurial opportunities for the purposes of generating sales and profits

Group

is "any number of people who (1) interact with one another, (2) are psychologically aware of one another, and (3) perceive themselves to be a group"

bank financing

occurs when an entrepreneur obtains financing from a financial institution in the form of a loan -if firm does not want to give up a portion of the firm's equity

informal organizational communication

organizational communication that does not follow the lines of the organization chart -follows the pattern of personal relationships among organization members

Successful communication

refers to an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are the same

unsuccessful communication

situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are DIFFERENT

importance of quality

successfully offering high quality goods and services to the marketplace typically results in a positive company image, lower costs and higher market share, and decreased product liability costs

exploitation

the activities and investments that are committed to gain returns from the new product or service arising from an opportunity 1. identify, 2. evaluate, 3. exploit

organizational communication

the communication within organizations that directly relates to the goals, functions, and structure human organizations

Motivation

the inner state that causes an individual to behave in a away that ensures the accomplishment of some goal

entrepreneurial risk

the likelihood and magnitude of the opportunity's downside loss Downside loss: the resources that the entrepreneur could lose if the opportunity does not succeed

linking pin

the managers or supervisors who are responsible for the coordination of and communication among formal organizational groups

grapevine

the network of informal organizational communication

innovation

the process of applying a new idea to the improvement of organizational processes, products or services

ratio analysis

the process of generating information that summarizes the financial position of an organization through the calculation of ratios based on various financial measures that appear on the organization's balance asset and income statements types of ratios: 1. profitability ratios 2. liquidity ratios 3. activity ratios 4. leverage ratios

influencing

the process of guiding the activities of organization members in appropriate directions

Communication

the process of sharing information with other individuals

Theory Y (McGregor)

a set of essentially positive assumptions about human nature -exercising self-direction

control tool

a specific procedure or technique that presents pertinent organizational information in a way that helps managers to develop and implement an appropriate control strategy

just in time (JIT) inventory control

a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility "just in time" for them to be used -products should be manufactured only when customers need them and only in the quantities customers require in order to minimize the amounts fo raw materials and finished foods inventories that manufacturers keep in hand

McClelland's acquired needs theory

an explanation of human needs that focuses on the desire for 1. achievement 2. power 3. affiliation that people develop as a result of their life experiences

process theory of motivation

an explanation of motivation that emphasizes how individuals are motivated

content theory of motivation

an explanation of motivation that emphasizes people's internal characteristics

entrepreneurial alertness

an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment

interest group

an informal group that gains and maintains memberships primarily b/c of a common concern members have about a specific issue

entrepreneurial opportunity

an occasion to bring into existence new products and services that allow outputs to be sold at a price greater than their cost of production

materials control

an operational activity that determines the flow of materials from vendors through an operations system to customers

law of small numbers

individuals relying on small samples of information to guide their decisions -helps decrease risk

punishment

the presentation of an undesirable behavior consequence or the removal of a desirable behavior consequence that decreases the likelihood that the behavior will continue

Corporate entrepreneurship

the process in which an individual or group of individuals in an existing corporation creates a new organization or instigates renewal or innovation within that corporation

controlling

the process managers go through to control. it is "a systematic effort...to compare performance to predetermined standards, plans, or objectives to determine whether performance is in line with theses standards" or needs to be corrected

productivity

the relationship between the total amount of goods and services being produced (output) and the organizational resources needed to produce them (input) -higher the ratio the better