MNG Class Study Guide Chapters 6,7,8,9

Decision Making Styles (4 of them)

1. Analytical 2. Behavioral 3. Directive 4. Conceptual

The Use of Big Data (#1)

Advancing Health and Medicine

The Strategic Management Process (Step 2)

Assess the current reality

The Use of Big Data (#5)

Improving Human Resource Management Practices

The chain of command is also known as the

hierarchy of authority.

Availability Bias

items that are more readily available in memory are judged as having occurred more frequently

determine if it is an advantage or a disadvantage of group decision making. Participating in making a decision helps in understanding the rationale for it.

Advantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. Participating in making a decision helps promote commitment to it.

Advantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. There is a greater pool of knowledge to draw from.

Advantage of group decision making

The Use of Big Data (#3)

Aiding Public Policy

Marlene works in the maintenance department in a large factory. The maintenance office has several posters of women in bikinis displayed on the wall. Which of the following accurately describes Marlene's situation?

Marlene is experiencing a hostile work environment.

The Use of Big Data (#2)

Meeting Customer Needs

4 Kinds of Workplace Agreements

Open Shop Union Shop Closed Shop Agency Shop

SWOT: Our product is targeted to young professionals under 35 years of age. That group is growing.

Opportunities

SWOT: Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory.

Opportunities

Colin, who is a paralegal for a powerful Manhattan law firm, likes the fast pace of his work and the fact that things are always changing there. Colin can be said to

have a high tolerance for ambiguity.

The Strategic Management Process (Step 5)

Maintain strategic control

The ___________ bias promotes the use of stereotypes.

representative

The three key principles of ________ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities.

strategic positioning

SWOT Analysis stands for

strengths, weaknesses, opportunities, threats

The U.S. federal minimum wage was first established by the

Fair Labor Standards Act.

Actively finding, hiring, and developing the talents of people from traditionally underrepresented groups is the goal of

affirmative action.

When acting upon the advice to organize your decisions into three categories, which type will require the most time and attention?

strategic decisions

Overconfidence Bias

the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

overconfidence bias.

the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

Representativeness Bias

the tendency to generalize from a small sample or a single event

Anchoring and Adjustment Bias

the tendency to make decisions based on an initial figure

knowledge capital.

the totality of the collective scientific and engineering knowledge possessed by a society

To derive a competitive advantage, firms can properly configure HR practices to drive ________ which leads to ________.

human and social capital; implementation of strategy

During a situational analysis of the ________ of her dog training service, Jaela determined that one of her strengths was that trained dogs retained their skills for at least three months after training, and that one of her weaknesses was that very few clients brought another dog to her for training.

internal environment

Santino has identified several rising stars in his organization, and he is looking for ways to cultivate their skills and prepare them to move into strategically important positions. Santino is focused on

talent management.

A(n) interview is susceptible to legal attack because some questions may infringe on non-job-related matters such as privacy, diversity, or disability.

unstructured

Before moving forward with its strategic management, organizations should develop vision statements that describe:

what the company wants to become and where it wants to go strategically.

Sunk-Cost Bias

when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it

Escalation of Commitment Bias

whereby decision makers increase their commitment to a project despite negative information about it

________ requires a manager to visit an earlier step in the strategic-management process in order to revise actions if necessary.

The feedback loop

Apple introduced its Homepod to the home sound system market that had been previously dominated by Sonos.

Threat of New Entrants

Consumers are drinking less diet soda in favor of things like flavored zero calorie water and fresh juices.

Threat of Substitute Products or Services

SWOT: The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain.

Threats

SWOT: There have been several up and coming companies that are beginning to enter our market space.

Threats

SWOT: Management does not provide a big budget to support the world-class staff that work for the company.

Weaknesses

SWOT: The equipment the company owns is last generation and does not have the latest technology.

Weaknesses

The ________ model assumes managers will make logical decisions that are the optimal means of furthering the organization's best interests.

classicalCorrect

This year's sales at Yours Truly Consignment have been strong, and next year's sales are also projected to be good. Even so, Yours Truly managers should conduct ________ so they are prepared in the case that sales drop unexpectedly.

contingency planning

Which of the following lists represents the order of levels of strategy from the top of the organization downward?

corporate, business, functional

Ford Motor Co. has separate work units for individual car owners, for businesses, and for agriculture. Ford's organizational structure is based upon

customer divisions.

basic assumptions

represent the core values of the organization's culture those taken for granted and highly resistant to change

enacted values

represent the values and norms actually exhibited in the organization

Four Types of Organizational Cultures

1. Hierarchy 2. Clan 3. Market 4. Adhocracy

________ is a control mechanism for making sure the right people do the right things at the right time.

A hierarchy of authority

determine if it is an advantage or a disadvantage of group decision making. A group may bring greater intellectual stimulation.

Advantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. People bring different perspectives.

Advantage of group decision making

If you don't like the price of something at your local store, you can probably find it online with two-day shipping at a lower price.

Bargaining Power of Buyers

Walmart demanded that all its vendors cut their prices by 15 percent.

Bargaining Power of Suppliers

3 types of Compensation & Benefits

Base pay Incentives Benefits

According to Porter, the cost-focus and focused-differentiation strategies have what in common?

Both focus on narrow markets.

Ryan is preparing for a job interview at a local hospital. Based on what you know about decision-making related career readiness competencies, which of these questions should Ryan be most prepared to respond to?

Describe the process you use to make decisions.

determine if it is an advantage or a disadvantage of group decision making. A small group of people may talk the longest and the loudest.

Disadvantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. Decisions may be made quicker using satisficing.

Disadvantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. Group members will strive for unanimity.

Disadvantage of group decision making

determine if it is an advantage or a disadvantage of group decision making. Sometimes other issues will arise and take precedence.

Disadvantage of group decision making

The Use of Big Data (#4)

Enhancing Production Efficiency

Pablo was not hired for a patient care position at a nursing home. The hiring manager told him that the patients preferred to be cared for by women. Pablo knows that sex-based discrimination is prohibited by Title VII of the CRA. Which organization should he contact to file a complaint?

Equal Employment Opportunity Commission

The Strategic Management Process (Step 1)

Establish the mission, vision, and values statements

(Types of Recruiting Approaches) A recruiting approach that may rely on partnerships with universities.

External recruiting

(Types of Recruiting Approaches) Often relies on potential applicants' social media presence.

External recruiting

SWOT: The employees who work for us are highly skilled and leaders in their field.

Strengths

The Strategic Management Process (Step 3)

Formulate corporate, business, and functional strategies

_______ bias occurs when someone uses information from the outcome of a decision, often a negative outcome, and retrospectively realizes what they should have done. Which basis?

Hindsight

(Types of Recruiting Approaches) 4. May be thought of as "taking back" former employees.

Hybrid recruiting

(Types of Recruiting Approaches) May increase employee engagement and commitment.

Internal recruiting

3 types of Recruiting Approaches

Internal recruiting External recruiting Hybrid recruiting

Juan had to take several employment tests while he was interviewing to be a bicycle messenger in a large city. Which of the following does NOT seem to be a legally defensible test for this position?

Juan was tested to see how many words per minute he can type.

Julieta believes she is a world-class singer. If Julieta has overconfidence bias, which of these is likely to happen?

Julieta will audition for a Broadway show, but will not get the part.

Pip Pop is an app development firm that prizes creativity and technical skills. If you were the chief people officer of Pip Pop, how would you ensure external fit of the HR system?

Reward innovative ideas and continually train employees on the latest computer programming languages.

On Amazon, the average product's cost changes every ten minutes based on data the company collects including rivals' prices.

Rivalry Among Competitors

In your role as management consultant, you have been contracted to advise a popular used-car dealership whether or not they should expand the business either by opening a new location or expanding the current one. As a first step, you interview the owner and customers. You also visit other local dealerships to determine the offerings and strategies of competitors. Which of the following best describes the process you are implementing?

SWOT

________ is the process wherein alternative possible plans are created and then the one that best fits the situation is applied.

Scenario analysis

The Strategic Management Process (Step 4)

Strategic implementation

SWOT: The R&D program at the company produces world-class products.

Strengths

________ occurs when people are hired or promoted, or denied hiring or promotion, for reasons not related to the job.

Workplace discrimination

Shuaifu wants to reorganize his beverage bottling company. Currently, there are HR, R&D, and purchasing units at each facility. Shuaifu feels that by bringing all of those key functions together in one location and deploying them to the facilities only when needed, he will save money and also create consistency. Is Shuaifu correct?

Yes, because the company will need fewer employees overall, saving money and allowing for consistency in processes.

Satisficing is the tendency of

a group to settle on a decision that is "good enough."

Fuller Freight, a medium-sized trucking company, is concerned that its drivers have been in an increasing number of crashes and driver morale seems quite low. To increase the drivers' human and social capital by way of enhancing individual performance, the Fuller Freight managers might implement

a high-performance work system.

hierarchy

a system or organization in which people or groups are ranked one above the other according to status or authority.

anchoring bias.

a tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information

Confirmation Bias

a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence

Martin, owner of Martin's Mattress Depot, said, "We have to focus on our customers and how we can beat the competition, so we have to be flexible." He encourages his merchandising department to develop innovative sales tactics and focuses on being quick to respond to market changes. Martin's Mattress Depot has a(n)

adhocracy culture.

When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefits, fit with the job, and working environment. In many cases, the salary may be good, but there are other, negative features of the job not being considered. This is an example of

anchoring bias.

After applying for a job at World Mart, Malena made a list of her personal values, strengths, and weaknesses. Then she compared her list with the values, strengths, and weakness of World Mart in an effort to

assess her P-O fit.

Lottery organizers heavily promote the jackpot winners so that people are continually hearing about those who've won big. By contrast, players hear almost nothing about the vast majority of people who haven't won a single dollar. This tactic draws upon which type of bias?

availability bias

Stores of data that are so vast that conventional database management systems cannot handle them, and very sophisticated analysis software and supercomputing-level hardware are required, are known as ________. These data include not only data in corporate databases but also web-browsing data trails, social network communications, sensor data, and surveillance data.

big data

A fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks is a

boundaryless organization.

In the Management in Action case, it is apparent that Juul's CEO is unable to make a rational decision because of imperfect information, conflicting goals, and the complexity of the problem. There barriers are associated with

bounded rationality.

Which of the following is an approach that increases creativity by limiting social cues and encouraging an uninterrupted flow of ideas?

brainwriting

In the BCG matrix, Kroger would be in the category of ________ due to being the largest retailer in the relatively stable grocery market.

cash cows

Indra, a loan officer with First Star Bank, was asked by a customer if First Star would join the Chamber of Commerce to meet potential customers and become more embedded in the local community. Believing this is a great idea, Indra approaches her manager, Deondre, about joining the Chamber. Deondre said to Indra, "Because the cost of membership is over $1,000 and you will have to leave the office to attend meetings, I will have to get approval from the vice president above me." First Star Bank is an example of an organization with

centralized authority.

A decision is a

choice made from among available alternatives.

Companies often make potential employees complete applications, interviews, background checks, and many other processes prior to hiring them. The EEOC considers all of these processes to be

employment tests.

In order, the steps of the strategic-management process are:

establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control.

Farrah's Furniture sells modern desks, chairs, and other office furniture mainly to businesses and institutions. An example of Farrah's pursuing a growth strategy would be

expanding to sell home furnishings.

espoused values

explicitly stated values and norms preferred by an organization

Connect Academy contracts with states to provide virtual public education. At Connect Academy, the work groups are divided into educators, assessors, recruiters, and business operations. Connect Academy's structure is best described as

functional

Carson Contractors specialize in ecofriendly construction of large, industrial buildings such as schools, hospitals, and factories. In response to the recent Coronavirus pandemic, Carson Contractors began to focus on construction techniques that minimize the spread of germs, such as improved ventilation, handwashing stations, and spaces with moveable furniture. The germ minimization goal now outweighs the ecofriendly goal, which is an example of

goal displacement.

DeAndre loves sales because he responds well to the pressure he faces in the many new or uncertain situations he encounters as a salesperson. Because DeAndre has an analytical decision-making style, he probably

has a high tolerance for ambiguity but struggles to make decisions quickly.

Which option below would be a winning move for Rolle's Bakery?

hiring a classically trained pastry chef to expand the business into desserts and custom cakes

A toy manufacturer, Kid & Play, operates its own design unit, but subcontracts the other business functions, such as engineering, assembly, HR, and distribution. Kid & Play's structure is best described as

hollow.

The commercial furniture manufacturer, Office Designs, utilizes a structure that includes functional divisions, such as accounting and production, and a divisional chain of command, such as the residential facilities and office divisions. For example, Neveah, a salesperson, reports to the sales manager and the office products manager. Business Designs has a

matrix structure.

financial capital.

money used to buy the tools and equipment used in production

Which of the following methods is most appropriate when people just need to learn facts such as work rules or legal matters?

online courses

According to the BCG matrix, stars are

organizations with high growth and high market share which are definite keepers.

If Philips, a company well-known for LED lights, debuted a smart tablet it would likely fall in which quadrant of the BCG matrix?

question marks

Strategic implementation is thought to be:

the greatest managerial challenge in strategic management.

observable artifacts

the manifestations of an organization's culture that employees can easily see or talk about

social capital.

the networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

human capital.

the skills and knowledge gained by a worker through education and experience

Framing Bias

the tendency of decision makers to be influenced by the way a situation or problem is presented to them

framing bias.

the tendency of decision makers to be influenced by the way a situation or problem is presented to them

Hindsight Bias

the tendency to believe, after learning an outcome, that one would have foreseen it

hindsight bias.

the tendency to believe, after learning an outcome, that one would have foreseen it

With the holiday season approaching, Denelle reviews holiday sales from the last five years to determine how much inventory to purchase and how many employees to schedule during peak sales times. Denelle is conducting a

trend analysis.