Test 1 - management 2010, Management chapter 2, Management 2010- Chapter 3, Chapter 4- MGT 2010

Evidence based management

translating principles based on best evidence into organizational practice, and bringing rationality to the decision making process

Which type of organization represents the employees of a firm?

unions

Sarbanes-Oxley Act

established requirements for proper financial record keeping for public companies

Characteristics of a Successful International Manager

ethnocentric, polycentric, geocentric

institutional collectivism

extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals

what is entropy?

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

Hugo Munsterberg

father of industrial psychology -study jobs and determine which people are best suited to specific jobs -identify the psychological conditions under which employees do their best work -devise management strategies to influence employees to follow management's interests

Cultural Variations

language, interpersonal space, communication, time orientation, religion, law and political stability

How can we explain the increase in the diversity of the labor force?

legislative requirements for diversity

Corporate Governance Includes:

long-term strategies, sustainable finances, accurate reporting, and positive work environment

Foreign Corrupt Act (FCPA)

makes it illegal for companies to make "dubious" contributions to political decision makers in foreign nations

Philanthropy

making charitable donations to benefit humankind

Social Responsibility

manager's duty to take actions that will benefit the interests of society as well as of the organization

conceptual skills

managers ability to think in the abstract

administrative management focuses on?

managing the total organization

triple bottom line

measures an organization's social, environmental, and financial performance

World Trade Organization (WTO)

monitor/enforce trade agreements

Organizations are influenced by the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by employees of different cultures known as

multiculturalism

Technological Forces

new developments in methods for transforming resources into goods or services

multinational organization

nonprofit organization with operations in several countries

Approaches to Social Responsibility (low -> high)

obstructionist, defensive, accommodative, proactive

Triple bottom line represents

People, planet, profit

supplier

Provides raw materials, services, equipment, labor, or energy to other organizations

general environment

Refers to the macroenvironment such as economic, technological, and sociocultural

3 Influential Effects of Globalization

Rise of the Global Village, Rise of E-Commerce, and One Big World Market: Global Economy(megafirms and minifirms)

What about Henri Fayol?

Suggested classical management consist of both Scientific management ideas and administrative management ideas 1. planning 2. organization 3. command 4. coordinate 5. control

what is the integrative/systems perspective?

Systems perspective - a system is an interrelated set of elements functioning as a whole - an open system acts with its environment - a closed systems does not act with its environment - a subsystem is a system within another system

Minifirms are operating worldwide

The Internet allows almost anyone to be global, Small companies can get started more easily, Small companies can maneuver faster

social audit

a systematic assessment of a company's performance in implementing socially responsible programs - can measure success

Open systems

organizations that are affected by, and that affect, their environment, produce synergy

Using the elements of the systems perspective, synergy can be thought of as a(n) ______________?

output

Management in past civilizations?

over 4000 years of breakthroughs and practices over these years

key assumptions of scientific management?

people are tools to be tweaked and perfected people will work harder for financial incentives level of analysis problem

external stakeholders

people or groups in the organization's external environment that are affected by it

competitors

people or organizations that compete for customers or for service

high-context culture

people rely heavily on situational (nonverbal) cues for meaning when communicating with others

values

relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior

Behavioral science approach

relies on scientific research for developing theory to provide practical management tools

Sarbanes-Oxley Act of 2002

requires that the CEO and CFO of large companies that have publicly traded stock personally certify that financial reports made to the SEC comply with SEC rules and that info in the reports are accurate.

Scientific management focuses on?

ways to improve production of individual workers

Contemporary perspective

systems, contingency, and quality-management

power distance

the degree to which a society's members expect power to be unequally shared

uncertainty avoidance

the extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events

gender egalitarianism

the extent to which a society should minimize gender discrimination and role inequalities

in-group collectivism

the extent to which people should take pride in being members of their family, circle of close friends, and their work organization

performance orientation

the extent to which society encourages and rewards its members for performance improvement and excellence

Global Economy

the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets - Positive effects: world is more interconnected leading to better and more affordable products and better communication - Negative Effects: movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs

Corporate Social Responsibility

the notion that corporations are expected to go above and beyond following the law and making a profit

Which of the following has contributed to the increased diversity in the labor force?

the percentage of people who are of Hispanic origin is increasing

Organization justice what is it?

the perceptions of people in an organization regarding fairness

quality control

the strategy for minimizing errors by managing each stage of production

Corporate Governance

the system of governing a company so that the interests of corporate owners and other stakeholders are protected

customers

those who pay to use an organization's goods or services

problem with classical viewpoint

to mechanistic, views humans as cogs within a machine

Quality

total ability of a product or service to meet customer needs

ethical dilemma

a situation in which there is a choice between two options, neither of which resolves the situation in an ethically acceptable fashion

sanctions

a trade prohibition on certain types of products or services for a specific reason

Barriers to International Trade

tariffs, import quotas, embargoes, sanctions

Import Quotas

limits on the numbers of a product that can be imported

Task Environment

consists of 11 groups that present you with daily tasks to handle

Moral-Rights Approach

guided by respect for the fundamental rights of human beings

strategic allies

relationship of two organizations who join forces to achieve advantages neither can perform as well alone

postconventional

guided by internal values, they lead by example (1/5 managers)

Justice Approach

guided by respect for impartial standards of fairness and equity

Ulitarian Approach

guided by what will result in the "greatest good for the greatest number of people; often associated with financial performance

Individual Approach

guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest

Hawthorne effect

Employees work harder if they receive added attention

Elton Mayo

"Hawthorne effect" Study

Kurt Lewin (father of social psychology)

"there is nothing so practical as a good theory" father of social physcology

what is organization behavior?

- contemporary field focusing on behavioral perspectives on management - organization behavior takes a holistic view of behavior and addresses individual, group, and organization processes Limitations: - behavior difficult to predict -managers reluctant to adopt concepts - research ineffectively communicated to managers

Tools business uses for social responsibilities?

- personal contacts - lobbying - Political action committees (PAC) - favors and other influence tactics

Tools government use on social responsibilities?

- regulation: laws, rules, dictate what can/cannot be done - indirect regulation: tax incentives from companies opened new training centers

principles of logic

1. A well-defined hierarchy of authority 2. Formal rules and procedures 3. A clear division of labor 4. Impersonality 5. Careers based on merit

Why companies expand internationally

1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to finance capital 5. Avoidance of tariffs & import quotas

Who are the "founding fathers" of classical management theory

1. Frederick Taylor 2. Henri Fayol 3. Max Weber

Trans-Pacific Partnership

A trade agreement among 11 Pacific Rim countries

Total Quality Management

1. Make continuous improvement a priority 2. Get every employee involved 3. Listen to and learn from customers and employees 4. Use accurate standards to identify and eliminate problems

Taylor's Four Principles of Scientific Management

1. Scientifically study each part of the task 2. carefully select workers with the right abilities 3. give workers the training and incentives to do the task properly 4. use scientific principles to plan the work methods

Layer of managers?

1. Top managers - control everything 2. middle managers - implement policies from those above 3. first line managers - supervise and coordinate the activities of OPERATING EMPLOYEES

Build a learning organization

1. build a commitment to learning 2. work to generate ideas within impact 3. work to generalize ideas with impact

20th century saw field emerge into what two perspectives

1. classical 2. behavioral

Behavioral Viewpoint Three Phases

1. early behaviorism 2. the human relations movement 3. Behavioral Science

similarities across Henri Fayol's, Max Webers, and Frederik Taylors theories

1. hierarchy and division of labor 2. standardization 3. centralization of authority at the top 4. separate work from the personal 5. select most qualified people (no favorites) 6. use fair pay as an incentive to keep the best people

resources the manager must use efficiently?

1. human resources 2. financial resources 3. physical resources 4. informational resources

Quantitative Management Perspective

1. management science - focuses on specifically the development of mathematical models 2. operations management - concerned with helping the organization more efficiently produce its products or services (Grouped with management science less sophisticated) often includes use of metric "Return on Investment" (ROI) limitations: - cannot fully explain or predict behavior - models may require unrealistic assumptions

what is the management process

1. planning and decision making 2. organizing 3. leading 4. controlling

BRICS Countries

5 major emerging economies - Brazil, Russia, India, China, South Africa

Definition of an organization

A group of people working together in a structured and coordinated fashion to achieve a set of goals

Expatriates

Americans living or working in a foreign country

financial institutions

Banks, savings and loans, and credit unions

Max Weber

Believed that bureaucracy was a rational, efficient, ideal organization based on the principles of logic

Embargoes

Complete bans on trade between one country and another

Single parents, gays and lesbians, and people with different religious beliefs represent major dimensions of _______________in today's organizations?

Diversity

What is synergy?

Effect of two or more agents combined to produce a greater effect than the sum of their individual effects.

Behavioral viewpoint

Emphasis on importance of understanding human behavior and motivating and encouraging toward achievments

Scientific Management

Emphasizes scientific study of work methods to improve productivity of individual workers pioneered by: Frederick W. Taylor and the Gilbreths assumes people are rational Concerned with the jobs of individuals

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico

Michael Porter defined the?

Five competitive forces -Threat of new entrants - competitive rivalry - threat of substitute products - power of buyers - power of suppliers

what about Frederick Taylor?

Frederick Taylor saw workers soldiering, he devised a four step method to overcome this issue (narrow approach/ micro) 1. develop science for each element of the job to replace old-rule of thumb methods 2. scientifically select employees and then train them for the job 3. supervise employees doing jobs 4. continue to plan the work, using workers to accomplish

Mayo is?

Hawthorne studies, social context was important

Megafirms and mergers are on the rise

Industries are becoming bigger and cross-global, especially automobiles, telecommunications, and healthcare

employee organizations

Labor unions and professional associations

McGregor

Leaders assumptions about work/workers guide their behaviors Theory X and Theory Y

Henri Fayol

Macro level focus how do we manage an organization? Administrative management and processes that exist today

Integration Framework (main idea from all these perspectives)?

Managers should include portions of each perspective relevant to their situation and apply them using systems and contingency approaches.

local communities

May institute clawbacks: rescinding tax breaks when firms don't deliver promised jobs May engage in crowdfunding: raising money for a project by obtaining many small amounts of money from many people (the crowd)

Though ____________ is less statistically sophisticated than management science, it is still categorized with the quantitative management perspective.

Operations management

diagnostic skills

The manager's ability to visualize the most appropriate response to a situation

Technical skills

The skills necessary to accomplish or understand the specific kind of work being done in an organization

Douglas McGregor

Theory X and Y

Theory X vs Theory Y managers?

Theory X: (negative assumptions) - people do not like work - threaten employees to accomplish - no ambition Theory Y: (positive assumptions) - people are motivated if committed - people seek responsibility given right conditions - people are bright, potential underutilized

what is the managers job?

To achieve organizational goals -efficiently: using resources wisely and in a cost effective way -effectively: making the right decisions and effectively implementing them

Why the Classical Viewpoint is Important?

Work activity was amenable to a rational approach Through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity

Organizations Promoting International Trade

World Trade Organization, World Bank, International Monetary Fund

what are yuppies?

Young urban professionals 80s generation x,y, and millenials

Franchising

a company allows a foreign company to pay it a fee and a share of the profit in return for using the company's brand name and a package of materials and services

Licensing

a company allows a foreign company to pay it a fee to make or distribute the firm's product or service

importing

a company buys goods outside the country and resells them domestically

Geocentric managers

accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

Quantitative Viewpoint

applies quantitative techniques to management

humans relation movement started?

argued that workers respond primarily to the social context of the workplace -stemmed from Hawthorne studies - basic assumption is that a managers concern for workers will lead to increased satisfaction and improved performance

Theory X

assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.

Theory Y

assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.

countertrading

bartering goods for goods

Law and Political Stability

be aware of the Foreign Corrupt Practices Act and Expropriation

Global Mindset

be patient, quiet, listen, don't use slang, don't talk about wealth, be globally focused but study local customs, learn appropriate behavior, rituals of respect, become minimally skilled in the language

ethnocentric management

believe that their native country, culture, language, and behavior are superior to all others - related to parochialism

Imagine you are the manager of a quick service restaurant that sells sub sandwiches. Using the systems perspective, match each item in the table below with the appropriate system element. (what is input, transformative process, output, feedback)? yelp reviews, training, bread, sandwiches

bread - input training - transformative process sandwiches - output yelp reviews - feedback

Stuff about max weber

bureaucracy - big picture approach (macro) - move away from feudal systems - authority derived from your position - legal/rational approach - clear rules and standard guidelines avoiding favoritism

International Forces

changes in the economic, political, legal, and technological global system that may affect an organization

Political-Legal Forces

changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

Historical Perspective

classical, behavioral, and quantitative

administrative management

concerned with managing total organization Herni Fayol and Max Weber

economic forces

consist of the general economic conditions and trends (unemployment, inflation, interest rates, economic growth - that may affect an organization's performance)

tarrifs

customs duty, or tax, levied mainly on imports - 2 types: revenue and protective

human orientation

degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair

most favored nation status

describes a condition in which a country grants other countries favorable trading treatment, such as the reduction of import duties - purpose: to promote stronger and more stable ties between companies in 2 countries

International Monetary Fund (IMF)

designed to assist in smoothing the flow of money between nations

Sustainability

economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Carroll's Global Corporate Social Responsibility Pyramid

economic, legal, ethical, philanthropic

The manager must also be able to make the right decisions meaning she/he needs to also be?

effective

The managers job is to use the organizations resources wisely, meaning he/she must be _______________?

efficent

Classical Viewpoint

emphasis on ways to manage work more efficiently

Behavioral management theory?

emphasizes individual attitudes and behaviors and group processes

contingency viewpoint

emphasizes that a manager's approach should vary according to the individual and the environmental situation adresses on case by case basis

As environmental forces change—including consumer shopping patterns and the power of competitors—companies like JCPenney and Best Buy seek to remain relevant. They seek to avoid__________?

entropy

1940s - management new field of study

first textbook on management

Operations Management

focuses on managing the production and delivery of an organizations products or services more effectively Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels

quality assurance

focuses on the performance of workers, urging employees to strive for "zero defects"

management science

focuses on using mathematics to aid in problem solving and decision making

conventional

follows expectations of others (most managers)

preconventional

follows rules to avoid unpleasant consequence

multinational corporation

for-profit business firm with operations in several countries

Major catalyst for management theory?

industrial revolution

Sociocultural Forces

influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

Demographic Forces

influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

organizing

involves determining how activities and resources are to be grouped what do we want to accomplish?

decision making

involves selecting a course of action from competing alternatives

controlling

is monitoring organization progress toward goal attainment how we will motivate and inspire our employees?

leading

is set of processes used to get members of the organization to work together to further the interest of the organization how we are performing against our goals?

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

Faylos major functions of management

planning, organizing, leading, controlling, coordinating

mass media

power of print, radio, TV, and the Internet on an organization's news, both good and bad

Kohlberg's 3 levels of moral development

preconventional, conventional, postconventional

exporting

producing goods domestically and selling them outside the country

Human Relations Movement

proposed better human relations could increase worker productivity Abraham Maslow and Douglas McGregor

World Bank

provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications

Quality management viewpoint

quality control, quality assurance, total quality management

Exchange Rates

rate at which the currency of one nation can be exchanged for the currency of another nation

complexity theory

recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules

what is distributive justice?

reflects the perceived fairness of decision making outcomes - equity, equality, need

procedural justices what is it?

reflects the perceived fairness of decision making processes does the organization... -make decisions accurately - treat people with consistency - have a way to correct decisions - ethical and legal standards - avoid supervisor bias

information justice?

reflects the perceived fairness of the communication between organization authorities from employees

government regulators

regulatory agencies that establish ground rules under which organizations may operate

social responsibility?

set of obligations an organization has to protect and enhance the societal context in which it functions

planning

setting an organization's goals and deciding how best to achieve them who does what?

low-context culture

shared meanings are primarily derived from written and spoken words

culture

shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

Mary Parker Follett

social worker and social philosopher Work anticipated todays concepts of "self managed teams" -organizations should be operated as communities -conflicts should be resolved by managers and workers talking over differences, solution satisfies both parties -work process should be controlled by workers with relevant knowledge; managers are facilitators

ethics

standards of right and wrong that influence behavior

Conflicting value systems for an organization

stressing financial performance versus stressing cohesion and solidarity in employee relationships

Types of Social Responsibility

sustainability, natural capital, philanthropy

Your inputs from environments are? then _____ process? and what is goals are attained?

your resources (humans, financial, physical, etc...) management process cycles goals attained are efficiently and effectively

Max weber again?

macro level focus, bureaucracy and later organization theory how should organizations be structured and organized?

interpersonal justice

reflects the perceived fairness of the treatment received by employees from authorities

distributor

a person or organization that helps another organization sell its goods and services to customers

GLOBE Project

a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes started by House

parochialism

a narrow view in which people see things solely through their own perspective

board of directors

members elected by the stockholders to see that the company is being run according to their interests

Frederick Taylor again?

micro level focus, scientific management how do we make work more efficient? "Soldiering"

Learning Organization

organization that actively created, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge

Disney experienced _____________ with the development of the movie, Frozen, because it was able to also use Frozen as a theme at its theme parks and in product merchandising?

synergy

Global Village

the "shrinking" of time and space as air travel and the electronic media have made it much easier for the people of the globe to communicate with one another

Future Orientation

the extent to which a society encourages investment in the future, as by planning and saving

Closed systems

Organizations that have little interaction with their environment

what are theories?

a conceptual framework for organizing knowledge and providing a blueprint for action

greenfield venture

a foreign subsidiary that the owning organization has built from scratch

Expropriation

a government's seizure of a domestic or foreign company's assets

Trading Blocs

group of nations within a geographic region that have agreed to remove trade barriers with one another ex: USMCA and EU

special-interest groups

groups whose members try to influence specific issues

Internal stakeholders

consists of employees, owners, and board of directors

owners

consists of those who claim the organization as their legal property

Classical Management review (scientific and administrative) ?

contributed: - foundation for management theory - identified key processes, functions, and skills - made management a valid subject of study limitations - best used in simple organizations - universal procedures may not be appropriate in some settings - employees not viewed as resources

Expanding Internationally

global outsourcing, importing, exporting, countertrading, licensing, franchising, joint ventures, and wholly-owned subsidiary

Wholly-owned subsidiary

foreign subsidiary that is totally owned and controlled by an organization (highest risk and investment)

Joint Ventures

formed with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country (strategic alliance)

Mary has been promoted several times but she has struggled to make it into top management. This may be due to a barrier known as the

glass ceiling

Systematic, dynamic, logical, intuitive, experience, rational, objective, subjective are Art or science?

systematic - science dynamic - art logical - science intuitive - art experience - art rational - science objective - science subjective - art

Polycentric managers

take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

Assertiveness

the extent to which a society expects people to be confrontational and competitive as opposed to tender and modest

globalization

the trend of the world economy toward becoming a more interdependent system

natural capital

the value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on

global outsourcing (offshoring)

using suppliers outside the United States to provide labor, goods, or services (lowest risk and investment)

4 approaches to deciding ethical dilemmas

utilitarian, individual, moral-rights, justice