MGMT Exams

Describe entrepreneurs

Compared to general administrators, entrepreneurs tend to be high achievers who are more future-orientated, externally focused, ready to take risks, and comfortable with ambiguity.

Define the term group

two or more freely interacting individuals who share a common identity and purpose

Explain the practical significance of adopting a contingency perspective

- Contingency approach stresses situational appropriateness rather than universal principles - Contingency approach is characterized by an open-system perspective, a practical research orientation and a multivariate approach to research

Summarize the demographics of the new American workforce

- Demographics: statistical profiles of population characteristics—are a valuable planning tool for managers - Demographically, the U.S. workforce is becoming larger, older, more culturally diverse, and increasingly female

Describe what "management by best seller" involves, and explain what managers can do to avoid it

- "Management by best seller": occurs when managers read a popular book by a management guru and hastily try to implement ideas and recommendations without proper regard for their organization's own needs and problems - Can be avoided by staying current with management literature, engaging in critical thinking, running pilot studies, and requiring rigorous support for claims

Explain why America's education and workplace readiness situation is a crisis

- America's education system has major problems at all areas - Many students do not have the basic reading, writing, math, and technical skills needed in today's technically sophisticated workplaces * This puts the U.S. at a competitive disadvantage in the global economy - While managers must devote time and money to remedial education and training for general work skills new hires should already possess, it takes longer to get marketable goods and services out the doors

Explain how break-even points can be calculated

- Break-even analysis if often referred to as cost-volume-profit analysis and can be carried out algebraically or graphically - Helps planners gauge the potential impact of price changes and profit objectives on sales volume

Explain the significance of cohesiveness, roles, norms, and ostracism in regard to the behavior of group members

- Cohesiveness is the tendency of group members to follow the group and resist outside influences - Roles allow a determined prescription for behavior in a specific position - Norms are general standards of conduct that help individuals judge what is right or wrong in a given social setting - Ostracism (rejection from group), is the capital punishment of group dynamics

Discuss project planning within the context of the project life cycle

- Conceptualization: develop overall project goals, budget and schedule; *Stages 1 & Into Stage 2: "Big picture" - Planning: acquire needed facilities, equipment, personnel, coordinate individual and team efforts *Stage 2: "Little details" - Execution: monitor progress and take corrective action; satisfy client's expectations; complete project on time and under budget *Stage 3 - Termination: identify new project opportunities; turn project over to client *Near end of Stage 3 & Stage 4: Both "little details and big picture"

Explain what a condition of risk is and what managers can do to cope with it

- Condition of risk: said to exist when a decision must be made on the basis of incomplete but reliable factual information Managers can cope with condition of risk through reliable information

Discuss what managers can do to improve business ethics

- Conduct ethics training - Use ethical advocates in high-level decision making - Formulate, disseminate; consistently enforce specific codes of ethics - Create an open climate for dissent in which whistle-blowing becomes unnecessary

Define and discuss the management of virtual teams

Virtual team is a physically dispersed task group linked electronically. Periodic face-to-face interaction, trust building, and team building is one reality of managing virtual teams.

Discuss how the changing political legal environment is affecting the practice of management

- Due to government regulations and sociopolitical demands from a growing list of special-interest groups, managers are becoming increasingly politicized - Today's managers often find themselves embroiled in issues with clearly political overtones

Describe the three types of forecasts

- Event outcome: used when strategists want to predict the outcome of highly probable future events - Event timing: predict when, if ever, given events will occur - Time series forecasts: seek to estimate future values in a sequence of periodically recorded statistics

Define and discuss the three decision traps:

- Framing Error: occurs when people let labels and frames of reference sway their interpretation - Escalation of Commitment: locked into losing propositions for fear of quitting and looking bad - Over-confidence: tends to grow with the difficulty of the task

Explain the significance of applying open-system thinking to management

- In an open-system environment, the various components of an organization will communicate and share information with each other - An organization will take inputs from within and from outside the organization, and its actions will produce the outputs that impact the internal environment and the environment outside of the organization

Describe the general aim of the human relations movement, and explain the circumstances in which it arose

- Management has turned to the human factor in the human relations movement - Emerging from influences such as unionization; began as a centered effort to make employees' needs a high management priority

Define the term management, and explain the managerial significance of the terms effectiveness and efficiency

- Management: the process of working with and through others to achieve organizational objectives in a changing environment - Management could be called "applied economics" -Effectiveness: entails promptly achieving a stated objective - Efficiency: when resources required to achieve an objective are weighed against what was actually accomplished

Distinguish between managerial functions and skills

- Managerial Functions: describe what managers do - Managerial Skills: describe how they carry those functions

Define the term managing diversity, and explain why it is particularly important today

- Managing Diversity: process of creating an organizational culture that enables all employees, including women and minorities, to realize their full potential - Managing diversity programs attempt to go a step beyond equal employment opportunity

Identify and describe five conflict resolution techniques

- Problem solving: when parties take the time to identify and correct the source of their conflict - Superordinate goals: big, valuable goals that are usually unattainable by one individual - Compromise: says everyone wins because compromise is based on negotiation on give and take - Forcing: management must step into a conflict and order the conflicting parties to handle the situation in a particular manner. Reliance on formal power - Smoothing: "Things will work out by themselves" settle own

Discuss why programmed and nonprogrammed decisions require different decision-making procedures, and distinguish between the two types of knowledge in knowledge management

- Programmed decisions are relatively clear-cut and routinely encountered, fixed decision rules can be formulated for them - Nonprogrammed decisions require creative problem solving because they are novel and unfamiliar

Distinguish among state, effect, and response uncertainty

- State Uncertainty: occurs when the environment is considered unpredictable o "WHAT will happen?" - Effect Uncertainty: manager's attempt to predict the effects of specific environmental changes or events on his or her organization o "What will happen TO our organization?" - Response Uncertainty: inability to predict the consequences of a particular decision or organizational response o "What will be the OUTCOME of our decisions?"

Identify and define the three types of planning

- Strategic Planning: process of determining how to pursue the organization's long term goals with the resources expected to be available - Intermediate Planning: process of determine the contributions that subunits can make with allocated resources - Operational Planning: process of determining how specific tasks can best be accomplished on time with available resources *Each level of planning is vital to an organization's success and cannot effectively stand-alone without the support of the other two levels

Summarize the four practical lessons from business ethics research

1) 48% of surveyed workers reported in engaging in illegal or unethical in illegal or unethical practices 2) Perceived pressure from above can erode ethics 3) Employees desire clear ethical standards in ambiguous situations 4) Rationalization sometimes enables good people to do bad things

Challenge two myths about small businesses

1) 80% of small business do not fail within five years. In fact, one large study found only an 18% failure rate during the first eight years. 2) Belief that small businesses create only low-wage jobs also has been shown to be a myth

Identify the four key elements of a crisis management program.

1) Anticipate 2) Plan 3) Staff 4) Practice

Specify and discuss at least four of Deming's famous 14 points

1) Constant purpose: Strive for continuous improvement in products and services to remain competitive 2) New philosophy: Western management needs to awaken to the realities of a new economic age by demanding wiser use of all resources 3) Give up on quality by inspection: Inspecting for faulty products is unnecessary if quality is built inform the very beginning 4) Seek continuous improvement: Constantly improve production process for greater productivity and lower costs

Identify and describe eight generic influence tactics used in modern organizations

1) Consultation: seeking someone's participation in a decision 2) Rational Persuasion: Trying to convince someone by relying on a detail plan and supporting information 3) Inspirational Appeals: Appealing to someone's emotions or ideals 4) Ingratiating Tactics: making someone feel important or good before making a request 5) Coalition Tactics: Seeking the aid of others to persuade someone to agree 6) Pressure Tactics: Relying on intimidation, demand, or threats to gain compliance or support 7) Upward Appeals: Obtaining formal or informal support for higher management 8) Exchange Tactics: Offering an exchange of favors

Identify and describe four characteristics common to all organizations, and distinguish between line and staff positions

1) Coordination of effort: joining together; collaborating 2) Common goal/purpose: collaboration; agree to strive for something of mutual interest 3) Division of labor: dividing tasks evenly 4) Hierarchy of authority

Identify at least four key quality improvement ideas from W. Edwards Deming and the other quality advocates

1) Deming: continuous improvement 2) Shewhart: statistics 3) Ishikwawa: prevention 4) Juran: teamwork

Describe at least three of the seven TQM process improvement tools

1) Flow chart: A graphical representation of a sequence of activities and decision 2) Control chart: Used to monitor actual versus desired quality measurement during repetitive operations 3) Histogram: A bar chat showing whether repeated measurements of a given quality characteristic conform to a standard bell shaped curve

Identify and summarize five major sources of change for today's managers

1) Globalization: increased global commerce; controversy over offshoring of jobs to low-wage countries; greater need for global managers who can work effectively across cultures 2) Evolution of Product Quality: emphasis on continuous improvement; moving toward build-it-in and design-it-in approaches 3)Environmentalism/Sustainability: greater emphasis on making money without destroying the natural environment; leaving the planet better than we found it 4) Ethical Reawakening: the public's low opinion of managers' ethical conduct is spurring renewed emphasis on honesty and ethical behavior 5) Internet/Social Media Revolution: net generation of 81 million young Americans reshaping the workplace with their creativity and collaboration

List and explain the four basic steps in the creative problem-solving process

1) Identifying the problem: only then can answers be found 2) Generating alternative solutions: brainstorming, free association 3) Selecting a solution: best of time and financial constraints; most appealing and effective 4)Implementing and evaluating the solution

Identify and briefly describe the six stages of group development

1) Orientation: attempts to "break the ice"; uncertainty about goals, power, and interpersonal relationships 2) Conflict and Challenge: individuals or subgroups advocating alternation courses of action that tend to struggle for control. 3) Cohesion: Under a new leader or new authority and structure, a "we" feeling emerges and everyone becomes truly involved 4) Delusion: a feeling of "having been through the worst of it" prevails 5) Disillusion: growing disenchantment with how things are turning out 6) Acceptance: highly effective and efficient--groups are aware of issues and pursue it

Identify the eight basic managerial functions

1) Planning 2) Decision Making 3) Organizing 4) Staffing 5) Communicating 6) Motivating 7) Leading 8) Controlling

Identify the five bases of power and explain what it takes to make empowerment work

1) Reward Power 2) Coercive Power 3) Legitimate Power 4) Referent Power 5) Expert Power Empowerment officers when employees are adequately trained, provided with all relevant information, fully involved in key decisions, and fairly rewarded for results

Demonstrate your knowledge of Wilson's three managerial skill categories, and explain the practical significance of his research findings

1) Technical 2) Teambuilding 3) Drive - His research uncovered an imbalance in managerial skills; one third of managers attempt to exercise control without first applying their technical and teambuilding skills; managers need to strive for an effective balance of skills

Identify two key assumptions supporting the universal process approach, and briefly describe Henri Fayol's contribution

1) The universal process approach 2) The operational approach Henri's universal process approach assumes that all organizations, regardless of purpose of size, require the same management process. It assumes that this rational process can be reduced to separate functions and principles of management. The universal approach, the oldest of the various approaches, is still popular today.

Identify five types of product quality

1) Transcendent quality 2) Product-based quality 3) User-based quality 4) Manufacturing-based quality 5) Value-based quality

Identify and describe the elements of effective negotiation and explain the advantage of added value negotiating (AVN)

3 elements of effective negotiations are: win-win attitude, a BATNA to serve as a negotiating standard, and the calculation of a bargaining zone to identify overlapping interests.

Describe a transformational leader, and explain Greenleaf's philosophy of the servant leader

A transformational leader are visionary, charismatic leaders dedicated to change. Greenleaf's philosophy of the servant leader helps aspiring leaders integrate what they have learned about leadership.

Define the term intraprenuer

An intrapreneur is an employee who champions an idea or innovation by pushing it through the organization

Explain how groupthink can lead to blind conformity

Blind conformity is ultimately dehumanizing and destructive. Cohesive decision-making groups can be victimized by groupthink when unanimity becomes more important than critical evaluation of alternate courses of action.

Discuss why business cycles and the global economy are vital economic considerations for modern managers

Business Cycle: the up-and-down movement of an economy's ability to generate wealth; has a predictable structure but variable timing - Managers need to adapt to the up-and-downs of the economy - Managers can make timely decisions about inventory, borrowing, hiring, and capital spending during unpredictable business cycles by taking a consensus approach to economic forecasts

Describe the three step innovation process

Consisting of conceptualization, product technology, and production technology, a healthy innovation process is vital to technological development - Conceptualization: when a new idea occurs to someone - Product Technology: development of a working prototype - Production Technology: developing a production process to create a profitable relationship among quantity, quality, and price

Contrast the competitive and cooperative conflict styles

Cooperative conflict involves a constructive cycle of cooperative goals, trust and reliance with a win-win attitude while competitive conflict is characterized by a destructive cycle of opposing goals, mistrust, and disbelief with a win-lose attitude.

Define the term corporate social responsibility (CSR), and specify the four levels in Carroll's global CSR pyramid

Corporate social responsibility is the idea that management has broader responsibilities than just making a profit.

Define the term delegation, and list at least five common barriers to delegation

Delegation: generally resisted for a variety of reasons, is crucial to decentralization Five barriers to delegation: 1) Investigate and report back 2) Investigate and recommend action 3) Investigate and advise on action planned 4) Investigate and take action; advise on action taken 5) Investigate and take action

Discuss the criteria and determinants of team effectiveness

Determinants of team effectiveness are group into people-, organization-, and task-related factors.

List at list six reasons why employees resist change, and discuss what management can do about resistance to change

Employees who resist change due to surprise, lack of trust, ignorance, fear of failure, passive-aggressive behavior, competing commitments, and inertia. Management can educate, communicate, and negotiate to those resistant to change

Describe how causes of problems can be tracked down with fishbone diagrams

Fishbone diagram show how separate causes for problems interact and assist in problem solving

Identify and briefly describe the five basic departmentalization formats

Five basic types of departmentalization are: - Functional Departments: categorize jobs according to the activity performed - Product-service Departments: product is the unifying theme - Geographic Location: dictates structural format; dispersion of resources - Customer Classification Departments: market-focused units; dedicated to a different segment of customer needs - Work Flow Process Departments: called horizontal organizations; emphasis on the smooth and speedy horizontal flow of work between identifying customer needs and satisfying the customer

Identify and describe the four steps in the strategic management process

Four major steps: 1) Formulation of a grand strategy 2) Formulation of strategic plans 3) Implementation of strategic plans 4) Strategic control

Identify at least four of Pfeffer's people-centered practices

Four people-centered practices are: - provision of job security - employee empowerment - comprehensive training - sharing of key information

Identify and describe four types of organizational change, according to Nadler-Tushman model

Four resulting types of change are: tuning (preventive maintenance), adaptation (incremental changes, due to external problems, events, or pressures), re-orientation (frame bending), and re-creation (frame breaking)

Discuss Frederick W. Taylor's approach to improving the practice of industrial management

Frederick was dedicated to promotion production efficiency and reducing waste, the operational approach has evolved from scientific management to operations management

Explain the concept of emotional intelligence in terms of Goleman's four leadership traits

Goleman's four leadership traits can all be learned. Emotional intelligence deals with thinking and reasoning, and broadly with building social relationships, and controlling one's emotions

Define the term "human capital"

Human capital encompasses all present and future workforce participants and emphasizes the need to develop their fullest potential for the benefit of everyone

Explain what human resource management involves.

Human resource management involves the acquisition, evaluation, retention, and development of human resources necessary for organizational success

Describe a business organization in terms of the open-system model

In open-system terms, business organizations are made up of interdependent technical, boundary spanning, and managerial subsystems. As an open-system, a business is dependent on its environment and has inputs and outputs

Summarize what the Ohio State model has taught managers about leadership

Leadership studies at OSU isolated four styles of leadership based on two categories of leader behavior: initiating structure and consideration

Describe the four-step management by objectives (MBO) process, and explain how it can foster individual commitment and motivation

Management by Objectives (MBO): an approach to planning and controlling, is based on measurable and participatively set objectives: 1) Setting Objectives Participatively 2) Developing Action Plans 3) Periodically Reevaluating Objectives and Plans and Monitoring Performance 4) Conducting Annual Performance Appraisal

Explain how managers learn to manage

Managers learned 50% of what they know about managing from job assignments and the other 50% came from relationships and formal training and education

Describe how the unfreezing-change-refreezing metaphor applies to organization development (OD)

OD programs are tailored to unique situations and is a systematic approach to planned organizational change. The principal objectives of OD are increased trust, more effective communication, improved cooperation, and greater willingness to change.

Define the organizational politics and summarize relevant research insights

Organization politics: the pursuit of self-interest at work in the face of real or imagined opposition Research shows greater political activity to be associated with higher levels or management, larger organizations, staff, reorganization and marketing personnel through posturing, collecting and using social IOUs, creating power and loyalty cliques.

Describe at least three characteristics of organizational cultures, and explain the cultural significance of stories

Organizational Culture: the collection of shared beliefs, values, rituals, stories, myths, and specialized language that fosters a feeling of community among organization members Characteristics of Organizational Cultures: - Collective: social entities - Emotionally charged: comforting security; emotional attachment - Historically based: shared experiences, over extended periods of time, bind groups of people together - Cultural significance of stories are powerful and lasting socialization techniques.

Describe the time dimension of organizational effectiveness

Organizational Effectiveness: defined as meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving into the distant future • Satisfying different effectiveness criteria in the near, intermediate, and distant future

Explain how Deming's PDCA cycle can improve the overall management process

PDCA cycle forces managers to make decisions and take actions on the basis of observed and carefully measured data. It reminds managers that what is really important is to use observed data, start small and build upon accumulated knowledge, and be research oriented in observing changes and results

Identify and briefly explain the seven steps in the PROCEED model of employee selection

PROCEED model is: 1) preparing (job analysis, job descriptions, and interview questions) 2) review (ensure the legality and fairness of the questions) 3) organize (assign the questions to an interview team) 4) conduct (collect information from the candidate) 5) evaluate (judge the candidate's qualifications) 6) exchange (meet and discuss information about the candidate 7) decide (extend a job offer or not)

Describe the path-goal theory of leadership, and explain how the assumption on which it is based differs from the assumption on which Fiedler's contingency theory is based

Path-goal leadership theory is an expectancy perspective, assumes that leaders are effective to the extent that they can motivate followers by clarifying goals and achieving those goals and valued rewards

Explain how people tend to respond differently to changes they like and those they dislike

People who like a change endure three stages: unrealistic optimism, reality shock, and constructive direction. Dislike changes in five stages: getting off on the wrong track, laughing it off, experiencing growing self-doubt, buy-in in, and moving in a constructive direction.

Describe Porter's model of generic competitive strategic

Porter's generic competitive strategies model four strategies are: o Cost leadership o Differentiation o Cost Focus o Focused differentiation

Discuss the value of PERT networks

Program Evaluation and Review Technique (PERT): sequencing and scheduling tool appropriate for large, complex, and nonroutine projects o Weighted PERT times enable managers to factor in their uncertainties about time estimates

Explain how providing a service differs from manufacturing a product, and identify the five service-quality dimensions

Service providers face a unique set of challenges that distinguish them from manufacturers such as customer participation, provision of services at customer's convince, immediate consumption of service, etc. Customers are way more involved in the purchase of services than a product

Identify seven basic Internet business models and discuss the strategic significance of social media

Seven basic Internet business models: o Commission-based o Advertising-based o Markup-based o Production-based o Referral-based o Subscription-based o Fee-for-service-based

Define the term strategic management, and explain its relationship to strategic planning, implementation, and control

Strategic Management: the ongoing process of ensuring a competitively superior fit between an organization and its changing environment sets the state for all managerial activity

Explain the concept of synergy, and identify four kinds of synergy

Synergy: occurs when two or more variables interact to produce an effect greater than the sum of the effects of all the variables acting independently. Four kinds of synergy: - Market synergy - Cost synergy - Technological synergy - Management synergy

Define total quality management (TQM) and specify the four basic TQM principles

TQM involves creating a culture dedicated to customer-centered, employee-driven continuous improvement. The 4 basic TQM principles are: 1) Do it right the first time 2) Be customer-centered 3) Making continuous improvement a way of life 4) Build teamwork and empowerment

Explain the nature and purpose of a SWOT analysis

Technique for matching organizational strengths and weaknesses with environmental opportunities and threats to determine the right niche for the organization

Describe tempered radicals, and identify the 5Ps in the checklist for grassroots change agents

Tempered radicals are those who want to succeed at work while retaining their personal values and identities. The 5P checklist for grassroots change agents: preparation, purpose, participation, progress, and persistence.

Identify and explain the major contribution the business ecosystems model makes to strategic thinking

The business ecosystems model emphasizes that organizations need to be as good as cooperating as they are at competing. By balancing competition and cooperation, competitors can coevolve into a dominant economic community.

Contrast the classical economic and socioeconomic models of business, and summarize the arguments for and against CSR

The debate over the basic purpose of the corporation is long-standing. Those who embrace the classical economic model contend that business's social responsibility is to maximize profits for stockholders.

Explain the concept of contingency organization design, and distinguish between mechanistic and organic organizations

The idea behind contingency design is structuring the organization to fit situational demands • Mechanistic Organization: effective when the environment is relatively stable • Organic Organization: best when unstable conditions prevail

Discuss organizational control from a strategic perspective

The idea of strategic control is to create a pyramid to what needs to get done. As plans become reality, control measure of activities and results are translated up the pyramid

Identify three types of control and the components common to all control systems

The three basic components of organizational control systems are objectives, standards, and an evaluation-reward system

Identify the two key functions that mentors perform, and explain how a mentor can develop a junior manager's leadership skills

The two important functions that a mentor perform is: a career enhancement function and a psychological and social support function. Mentors engage in intensive tutoring, coaching, and guiding.

Explain the management of antecedents and consequences in behavior modification

There are two ways to manage antecedents: barriers can be removed and helpful aids can be offered. Proponents of behavior modification prefer to build up desirable behaviors rather than tearing down undesirable ones.

Distinguish between instrumental and terminal values, and explain their relationship to business ethics

Values serve as anchors for one's beliefs and conduct o Instrumental Value: enduring belief that a certain way of behaving is appropriate in all situations o Terminal Values: enduring belief that a certain end-state of existence is worth striving for and attaining

Explain the need for a contingency approach to group-aided decision making

When a group rather than an individual is responsible for making the decision, personal accountability is lost.

Explain why trust is a key ingredient of teamwork, and discuss what management can do to build trust

When work group members trust one another, there will be a more active exchange of information, more interpersonal influences, and hence greater self-control. Managers can build trust through communication, support, respect and fairness.

List six roles played by project managers

o Implementer o Entrepreneur o Politician o Friend o Marketer o Coach

Describe how a highly centralized organization differs from a highly decentralized one

• Centralized Organization: top management retains all major decision-making authority and does a lot of checking up on subordinates • Decentralized Organization: the delegation of decision authority to lower-level managers, has been praised as being democratic and has been criticized for reducing top management's control

Explain how the traditional pyramid organization is being reshaped

• Fewer layers • Greater emphasis on team • Smallness within bigness: importance of working in groups of two hundred or less

Compare and contrast flow charts and Gantt charts

• Flow Charts: visually sequence important events and yes-or-no decisions • Gantt Charts: graphical scheduling technique used in a wide variety of situations - Both Flow and Gantt charts have the advantage of forcing managers to be analytical - Gantt charts portray the time dimensions; flow charts do not

Explain the term learning organization

• Learning Organization: capable of turning new ideas into improved performance

Identify and briefly describe five of the ten "mental locks" that can inhibit creativity

• Looking for the "right" answer: a given problem may have several right answers, depending on one's perspective • Always trying to be logical: logic does not always prevail, given human emotions and organizational inconsistencies, ambiguity, and contradictions • Strictly following the rules: if things are to be improved, arbitrary limits on thinking and behavior needs to be questioned • Avoiding ambiguity: creativity can be stunted by too much objectivity and specificity • Fearing or avoiding failure: fear of failure can paralyze us into not acting on our own good ideas

Specify at least five sources of decision complexity for modern managers

• Risk and uncertainty • Value judgements • Unintended consequences • Pooled decision making • Multiple criteria

Identify and describe at least four of the ten general ethical principles

• Self-Interests: "Never take any action that is not in the long-term self-interests of yourself and/or of the organization to which you belong." •Personal Virtues: "Never take any action that is not honest, open, and truthful and that you would not be proud to see reported widely in media." • Economic Efficiency: "Always act to maximize profits subject to legal and market constraints, for maximum profits are the sign of the most efficient production." • Government Requirements: "Never take any action that violates the law, for the law represents the minimal moral standards of our society."

The two types of knowledge are:

• Tacit: personal; intuitive; undocumented • Explicit: documented; sharable