GB 370 Final (Copy with All Terms)

Complex-Stable environments Complex-Unstable environments Simple-Stable environments Simple-Unstable environments

Complex-Stable environments- Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly. Complex-Unstable environments- Environments that have a large number of external elements, and elements are dissimilar and where elements change frequently and unpredictably Simple-Stable environments- Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly. Simple-Unstable environments- Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably.

designated leader emergent leader formal leader informal leader transformational leader visionary leader

designated leader- person placed in the leadership position by forces outside the group. emergent leader- The person who becomes a group's leader by virtue of processes and dynamics internal to the group. formal leaderThat individual who is recognized by those outside the group as the official leader of the group. formal leader That individual who is recognized by those outside the group as the official leader of the group. informal leader- That individual whom members of the group acknowledge as their leader. transformational leader- A leader who moves and changes things "in a big way" by inspiring others to perform the extraordinary. visionary leader- A leader who influences others through an emotional and/or intellectual attraction to the leader's dreams of what "can be."

What is the step where a decision maker wants to be creative in coming up with possible alternative?

developing alternatives

Nebuchadnezzar (605 BC-c. 562 BC)

development of Incentives in that he gave greater Rewards to workers who were productive.

unity of command

each worker should have only one supervisor

effort-performance expectancy performance-outcome expectancy

effort-performance expectancy E1, the perceived probability that effort will lead to performance (or E ➨ P). performance-outcome expectancy E2, the perceived relationship between performance and outcomes (or P ➨ O).

emergent or bottom-up approach vs top-down change

emergent or bottom-up approach- Organizations exist as socially constructed systems which people are constantly making sense of and enacting an organizational reality as they interact with others in a system. top-down change- Relies on mechanistic assumptions about the nature of an organization.

Branding meshes your marketing, public relations, business plan, pricing, customers, and ______.

employees

Allowing individuals to work on their own, with little supervision is called

empowerment

Renee made a bad decision. She stays with it, trying to convince others it was a good decision. This is an example of

escalation of commitment

performance measurement

evaluation of firm activities to determine the success of that activity in helping the firm reach its strategic objectives.

extrinsic motivation extrinsic outcomes intrinsic motivation intrinsic outcomes

extrinsic motivation- performs a given behavior to acquire something that will satisfy a lower-order need. extrinsic outcomes- Are awarded or given by other people (like a supervisor). intrinsic motivation- Arises out of performing a behavior in and of itself, because it is interesting or "fun" to do. intrinsic outcomes- Are awarded or given by people to themselves (such as a sense of achievement).

Competitors could not be an angel investor.

false

Decentralized companies give more authority to a higher level employee, resulting in a sense of empowerment.

false

Exit interviews involve a meeting with the departing employee's manager.

false

Goals are typically not set for the organization, but for the stakeholders outside the organization

false

In a matrix, each employee reports to only one manager at a time

false

In jobs with high complexity, it is not critical to have high general mental ability (""g"").

false

In the equity theory, inputs are the rewards the person feels he or she is receiving from a situation.

false

Installment loans are the most useful types of loans for a small business.

false

It is easier to get venture capital now than it once was.

false

Niches represent a market segment that is over exploited in a market where several large firms compete

false

One of the negatives of a sole proprietorship is the tax aspect

false

Special events, while effective, is a slow growing area of marketing

false

The cost of market research is the only reason people do not usually engage in it

false

Typically, only big companies need assistance from accountants.

false

World trade is declining about 7% a year for the last ten years.

false

Your marketing goals don't need to be measurable.

false

Approximately two thirds of applicants lie about their experience and educational achievements on their resumes.

false 1/3 lie

Mary Parker Follett (1868-1933)

found a way to utilize the tenets of the human relations movement to solve some of the issues with scientific management.

Bootstrapping-

funding the operation with your own resources. Saving many wherever you can

Content vs Process Perspective of motivation

Content Perspective: 1. Need or Deficiency WHAT motivates people 1.Murray's Manifest Needs 2.McClelland's Learned/Individ Needs (Achievement,Power,Affiliation) 3.Maslow's Hierarchy of Needs 4.Herzberg's Two-Factor (Hygiene) 5.Aldefer's ERG (3 needs-existence, relatedness, growth) Process Perspectives: HOW motivation occurs WHY people become motivated 2. Search for ways to satisfy need 3. Choice of Behavior to satisfy need 4. Evaluation of Need Satisfaction 5. Determination of future needs and search/choice for satisfaction 1. Operant Conditioning (Posits that people learn to behave in a particular fashion as a result of the consequences that followed their past behaviors.) 2.Equity (human motivation is affected by the outcomes people receive for their inputs, compared to the outcomes and inputs of other people.) 3. Goal (people perform better if have difficult, specific, accepted performance goals or objectives.) 4. Expectancy (exert high effort levels to perform at high levels so that they can obtain valued outcomes.) 5. Porter-Lawler Extension of Expectancy Theory

Licensing

Contractual agreement - a company is given the right to another company's trademarks, know-how, and other intangible assets in return for a royalty or a fee.

Types of Corporate Cultures

Corporate culture motivating employees' beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in. Adhocracy culture- environment of innovating, visioning the future, accepting of managing change, risk taking, rule-breaking, experimentation, entrepreneurship, uncertainty. Clan culture- Focuses on relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching. Hierarchy culture Emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, careful decision making. Market culture delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, competing and getting things done.

World Trade Organization WTO

global organization - rules of trade around the world.

Planning involves two important elements:

goals and strategies

Modern bureaucracy

Decisions should be made on a formal basis, rather than what a bureaucrat felt was correct. Weber - knowledge, not birth circumstances, should be the basis of hiring and promotion within a bureaucracy.

Using Porter's analysis, firms are likely to generate higher profits if the industry includes which of the following? There are many substitutes Difficult to enter Unlimited rivalry Buyers are strong

Difficult to enter B/c if it is difficult to enter there is probably few of you so not a lot of competition

Adam Smith

Division of Labor, specialization, and coordination within a corporation.

Circuit City went bankrupt because of a series of poor managerial decisions and a down turn in the economy. In retrospect, it would seem that there was too much emphasis on the group reaching a consensus decision. As a result, many decisions were made to

groupthink

growth strategy vs stability strategy

growth strategy- grand strategy to increase the size of the firm in terms of revenue, market share, geographic reach, or a combination of these elements. stability strategy- a grand strategy for a company that wants maintain its current income, market share, or geographic reach.

Emerging market multinationals

Emerging markets - countries that present tremendous potential for multinationals. Emerging market multinationals- Influential companies from emerging markets that are competing head-on with established multinationals and rewriting the rules of competition by using new business models.

Examples of direct pay include which of the following?

hourly wages

Strategic plans include the formulation of goals, whereas operational plans define ways to ________

how to carry them out

identity group invisible social identities social identity theory

identity group individuals who share the same demographic characteristics such as race, sex, or age. invisible social identities based on hidden diversity traits such as sexual orientation or a nonobservable disability that may be concealed or revealed. social identity theory Self-concept based on an individual's physical, social, and mental characteristics.

input outcome valences self-efficacy-

input personal qualities a person views as having value and relevant to the organization. outcome getting back from an organization in exchange for the person's inputs. valences The degree to which a person perceives an outcome as being desirable, neutral, or undesirable. self-efficacy- A belief that one can execute some future action or task, or achieve some result. Believe in your own ability

A balloon loan requires only the _____ must be paid before the final day of the loan.

interest

Despite potential benefits, the disadvantages of a matrix structure include which of the following

interpersonal conflict

Virtual companies present special leadership challenges because:Because

it's essential for leaders to keep people informed of what they are supposed to be doing and what other arms of the organization are doing

Two important tools in prescreening job candidates are the resume and the ________,"

job application

Decision Tree Approach (Vroom)

leadership style appropriate to a given situation. Subordinate participation in decision making depends on characteristics of situation. No one decision-making process is best for all situations. After evaluating problem attributes, leader chooses path on decision trees that determines the decision style and specifies the amount of employee participation.

Which is typically used in international trade?

letter of credit

Leader-Member Exchange LMX relationships

linking leader with follower -Not everyone will get along LMX is most helpful for thinking about leading a team Out Group- the people not in the in group Ex. Group of 5 pairs off and 1 person left out Always going to be Out Group

Human resource management

management of people within organizations, focusing on the employee life cycle.

This program assists borrowers who generally do not meet traditional lenders' credit standards.

micro-loan

micro environment

middle layer of elements in a firm's external environment, primarily concerned with a firm's industry situation.

The following statements regarding tall structures in an organization are true EXCEPT: Top-down Hierarchies Highly Centralized more freedom Vertical communication

more freedom

motivation motivators motive work motivation hedonism hygienes

motivation- A force within or outside of the body that energizes, directs, and sustains human behavior. - within the body- needs, personal values, and goals -outside of the body- incentives, rewards, pay motivators- Jobs that people perform and ability to feel achievement as a result of performing them. motive- A source of motivation; the need that a person is attempting to satisfy. work motivation Amount of effort a person exerts to achieve a level of job performance hedonism People are motivated to satisfy mainly their own needs (seek pleasure, avoid pain). hygienes human need to "avoid pain."

need latent needs manifest needs manifest needs theory primary needs secondary needs instincts

need when people feel deficient in some respect. latent needs- Cannot be inferred from a person's behavior at a given time, yet the person may still possess those needs. (may not realize you have that need) manifest needs- Are needs motivating a person at a given time. manifest needs theory-Assumes that human behavior is driven by the desire to satisfy needs. primary needs instinctual in nature and include physiological needs for food, water, and sex (procreation). secondary needs learned throughout one's life span and are psychological in nature. instincts natural, fundamental needs, basic to our survival.

Those who want to influence others and control their environment have a high:

need for achievement

need for achievement (nAch) need for affiliation (nAff) need for power (nPow)

need for achievement (nAch)- The need to excel at tasks, especially tasks that are difficult. need for affiliation (nAff)- The need to establish and maintain warm and friendly relationships with other people. need for power (nPow)- The need to control things, especially other people; reflects a motivation to influence and be responsible for other people.

contingency school

no universal laws in management, wide variety of variables that influence relationships and create unique situations, each situation required a different response.

Yum Brands is expanding its Chinese presence into smaller cities like Yiyang and Zhengzhou because larger cities are saturated. This is an example of a(n) ____ decision

non programmed

Inappropriate goals

not inline w mission/vision

operant conditioning operant conditioning theory reinforcement positive reinforcement negative reinforcement nonreinforcement extinction avoidance learning schedules of reinforcement

operant conditioning A learning process based on the results produced by a person "operating on" the environment. reinforcement- a consequence makes it more likely a behavior will be repeated in the future. positive reinforcement desirable consequence that satisfies an active need or removes a barrier to need satisfaction increases the likelihood of a behavior reoccurring. negative reinforcement- behavior causes something undesirable to be removed, increasing the likelihood of the behavior reoccurring. nonreinforcement- no consequence follows a worker's behavior. extinction a consequence or lack of a consequence makes it less likely that a behavior will be repeated in the future. avoidance learning people learn to behave in a certain way to avoid encountering an undesired or unpleasant consequence. schedules of reinforcement frequency at which effective employee behaviors are reinforced.

organization development (OD) OD consultant-

organization development (OD)- Specialized field that focuses on how to design and manage change. OD consultant- Someone who has expertise in change management processes.

macro environment

outermost layer of elements in a firm's external environment but beyond the firm's direct control, the economy and political activity.

Plan Operational planning Strategic planning Tactical planning

plan- a decision to carry out a particular action in order to achieve a specific goal, including decisions about when and how the action should be accomplished and what resources will be required to carry out the action. operational planning- first-line strategic planning consisting of specific daily and short-term actions that employees will perform to make the company function. strategic planning- connects the company's actions back to its vision and mission statements. tactical planning- mid-level strategic planning consisting of broad ideas of what a company should do to pursue its mission.

planned change vs unplanned change

planned change intentional activity designed to create movement toward a specific goal or end unplanned change-unintentional activity usually the result of informal organizing..

Waves of HR / 4 Parts of HR System 1. Administration 2. Practices 3.Strategy 4.Outside-In 5. policy

policy

For a differentiation strategy to be effective, the product difference should NOT be based on:

price

The ______ is the basic unit of advertising.

print ad

Structured problems align well with which type of decision making?

programmed

When Canine Companions for Independence trainers train a dog to be a service dog they start from a basic training approach. Dogs communicate through body language that the trainer knows. The trainer routinely makes ____ decisions.

programmed

2nd Era 1960s-1990 All Are Similar Horizontal Flat Organic Hybrid Cross-functional Matrix Virtual Teams Network Modular Cross cuts

Ex: Ford, Xerox, tech, sales, school Needed after computers Integration Unstable, high uncertainty (changing) environment Less rigid Informal Flexible Fewer rules Wide span Fewer managers/less expensive Clear goals Shared tasks Self-organize Participatory decision Higher productivity Outsourcing Pros: -Motivated teams -faster info sharing, coordination, and integration -flexibility -integrate decision-making -Learn new skills -efficient human resources. -Teams bridge departments -Useful for decentralization -2 bosses -Department and team/project Cost saving NEED: -good interpersonal comm, conflict management Cons -confusion/conflicts -reporting 2 bosses. -collaborate colleagues, distance, -divided loyalties

What four elements determine whether a sale will be made or not?

rapport need importance confidence

1st 1800s-1970 All Are Similar Functional Divisional Mechanistic Hierarchal Tall Pyramid Formal Specialization Bureaucratic Departments- (MaxWeber)

Ex: Post Office Stable Low Uncertainty Top-down Hierarchies Division Heads Formal rules/authority Highly Centralized Tasks defined Specialized Differentiated Narrow span of control Departmentalization Vertical communication Structured decision making Traditional structure Typical organization clearly defined roles, responsibilities & rules More managers/more expense Pros: simple and straightforward reporting economies of scale easier to scale staffed by functional-area experts. managers narrow set skills. Coordination in departments easier area focused on business segment/budget that it manages now their responsibilities and accountability

3rd Era 1990s-Now Virtual Matrix Organic Network Horizontal Modular

Ex: Uber, air bib, Amazon -internet, global -outsourcing -China/India- low cost labor speedier production -Informal -Flexible -cluster -path lengths -digital -no boundaries -info comm tech (ICT) Pros of network/virtual -cost savings -decreased customer response time -diverse labor -less harmful to environment. Cons of network/virtual -need clear communication -technology crucial -no central location -no face to face -social isolation -lack of trust -reduced collaboration

3 levels of management: Know names

Executivesm (Top)- More conceptual less technical Highest Level FAVOL Middle- about same conceptual, technical First Line- Less conceptual More technical at a level just below that of senior executives. WEBBER first-line management- Less conceptual More technical directly managing nonmanagerial employees. TAYLOR

COMPENSATION AND BENEFITS LAWS

Fair Labor Standards Act (FLSA) of 1938--min wage, overtime pay, record keeping, youth employment Equal Pay Act of 1963-men and women paid same amt same jobs Employee Retirement Income Security Act 1974 (ERISA)-Sets standards for pension (retirement) plan management Family and Medical Leave Act (FMLA) 1993-12 weeks of unpaid leave for family & medical emergencies

Being a figurehead is not one of the ten basic managerial roles. a. True b. False

False

Executive leaders do not play a large role in defining organizational culture.

False

In highly assertive countries, competition between individuals and groups discouraged. a. True b. False

False

It is important to note that the concept of strategy is relevant to only large, public companies like GE

False

It is very common for people currently in the workforce to hold the same job for 40 years. a. True b. False

False

Mission and vision both relate to an organization's purpose and are typically communicate orally.

False

Not all organizations need strategies to survive and thrive.

False

Owning resources which do not meet the VRIO test of value puts the firm at a competitive advantage.

False

Stakeholders are individuals not group

False

Targeting teenagers is a specific enough target market for your niche

False

The customer always knows what they want.

False

You have to use an attorney to file for incorporation.

False

Industries with many companies that have successfully differentiated their product have more rivalry. a. True b. False

False If you differentiate your product enough- make it different fro others- there won't be as much competition or rivalry

Lewin's Change Model

routines/behaviors disrupted people naturally adjust. 1."unfrozen" existing norms, routines, practices disrupted. 2. Move- Take Action, Make Changes, Involve people 3. Refreeze, Make changes permanent,Establish new way, Reward

Which option below is the fastest growing segment of small business enterprise?

service

VS has more than 600 pharmacies with minute clinics in them. They are staffed with physician assistants. The plan to create a clinic is a(n) ____ plan. It takes less than a year to carve the space out of existing floor plans.

short term plan

Suppose you came up with a faster way to do a task, but your team was reluctant to make the change; what would you do?" is an example of what kind of interviewing?"

situational

Human capital

skills, knowledge, and experience of an individual or group, and that value to an organization.

great man theory of leadership

some people are born to be leaders and others are not.

The SBA's International Trade Loan Program would fall under which loan category?

special purpose loan

Employee life cycle

stages of an employee—attraction, recruitment, onboarding, development, retention, separation.

state of equity referent others overreward inequity underreward inequity

state of equity- people perceive their outcome/input ratio to be equal to that of their referent other. referent others Workers that a person uses to compare inputs and outcomes, and who perform jobs similar in difficulty and complexity to the employee making an equity determination. overreward inequity- Occurs when people perceive their outcome/input ratio to be greater than that of their referent other. underreward inequity Occurs when people perceive their outcome/input ratio to be less than that of their referent other.

strategic analysis strategic management process strategic objectives

strategic analysis- the systematic examination of a firm's internal and external situation that informs managerial decision-making. strategic management process- the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace. strategic objectives- the big-picture goals for the company: what the company will do to try to fulfill its mission.

Which of the following directly follows from the organization's mission?

strategic goals

Groupthink

tendency of a group to reach agreement very quickly and without substantive discussion.

Which of the following circumstances would most likely result in the use of a planning task force to help develop plans?

there is a special circumstance to be addresses

Training stretch assignments individual assessment individual development plans

tools used in talent development: Training— learning in person or online Stretch assignments—challenge roles for high-potential employees Individual assessments—personality and work style inventories of employees Individual development plans—highlight an individuals opportunities for growth and path of action

A letter of credit is issued by a bank at the request of an importer and states that the bank will pay a specified sum of money to an exporter on presentation of particular, specified documents.

true

A marketing plan is different from a business plan.

true

A membership in a credit union can provide access to lower loan rates.

true

A percentage of projected gross sales should be devoted to your annual marketing budget.

true

According to Lewin, executing change without prior preparation is likely to lead to failure.

true

An engaged employee is dedicated, passionate, and absorbed in their work

true

An organization pursuing a differentiation strategy seeks competitive advantage by offering products or services that are superior from those offered by rivals.

true

An unsecure loan generally has a lower interest rate than a secure loan.

true

Analyzing on the media your target audience turns to for information is the key for identifying your idea marketing mix

true

Assessing performance through financial returns only provides information about how well the organization did prior to the assessment.

true

Depending on the state you are in, the business owner will be automatically included or excluded from workers' compensation insurance.

true

Hiring a market research firm to assist in primary data research is one of the cheapest ways to obtain the information.

true

If companies want to achieve what they hope for, they need payment systems aligned with their goals.

true

In decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question.

true

Job enrichment may sometimes cause employees to be dissatisfied.

true

Job specialization is efficient in terms of automation and standardization.

true

Keeping operating control and power of your company can be more difficult with outside investors

true

Large businesses outsource many routine business operations such as packaging, delivery, and distribution to small businesses.

true

Line of credit loans usually carry the lowest interest rate a bank offers.

true

Managers develop mission and vision statements not only to clarify the organization's larger purpose, but also to meet or exceed the needs of its key stakeholders.

true

Managers do NOT spend all their time managing.

true

Mechanistic structures limit individual autonomy and self determination which will likely lead to lower levels of intrinsic motivation on the job.

true

Motivation is the intention of achieving a goal, leading to goal directed behavior

true

One method some companies use to improve the match between job candidate and the job is personality testing.

true

Proper branding can mean less money spent on advertising and marketing.

true

Putting the legal loan agreement on paper helps protect both parties during tax time.

true

Research indicates that flat organizations provide greater satisfaction for employees.

true

Selffinancing is the most common form of financing in business startups.

true

Shareholders of a company frequently want different things such as Cap Gains, dividends and legitimate hiring practices.

true

Strategic management process is the coordinated means by which an organization chooses its mission and vision.

true

The amount of stress present in a job is related to employee satisfaction and commitment.

true

The best strategies, corporate and business, are based on a thorough SWOT analysis.

true

The culture of an organization is very difficult to change.

true

The more difficult it is for other firms to enter a market the more likely it is that existing firms can make relatively high profit. a. True b. False

true

The unique selling proposition outlines what is unique about your product.

true

Things that make us happy with our job often make us more committed to the company as well

true

When a company has a diverse product line, each product will have unique demands, deeming divisional structures more useful.

true

Whether a person believes that high levels of effort will lead to desired outcomes is a perception labeled expectancy.

true

You can extend credit beyond your profit margin

true

Your ads should be brand focused.

true

Your business plan should be updated annually.

true

Executives at Lululemon Athletica have just written a plan that allocates a large part of the firm's cash to a new product line. They have done this because they feel that they can get a real advantage over their competition and that the new product line

true/strategic plan that will provide opportunity

Hierarchy in an organization is necessary for: PICK 2 a. Decentralization b. Lunch Meetings ' c. Communication d. Unity of Demand

unity of demand Decentralization

The backbone of the business plan is included in which section? A. Business description B. Operations and management plan C. Design ad development plan D. Financial factors

Financial factors

Functional structure Geographic structure Matrix structure Virtual structure Divisional structure Horizontal organizational structures

Functional structure- The earliest and most used organizational designs. Geographic structure- organized by locations of customers that a company serves. Matrix structure attempt to respond to environmental uncertainty, complexity, and instability. Virtual structure a response to requiring more flexibility, solution based tasks on demand, less geographical constraints, and accessibility to dispersed expertise. Divisional structure- characterized by functional departments grouped under a division head. Horizontal organizational structures A "flatter" structure found in matrix organizations where individuals relish development that their team offers.

The company that relies on computer and telecommunications technologies instead of physical presence for communication between employees is a:

virtual organization

command-and-control span of control

way people report to one another or connect to coordinate their efforts in accomplishing the work of the organization. span of control- scope of the work that any one person in the organization will be accountable for.

Bounded rationality

when we make decisions, we cannot be fully rational because we don't have all the possible information or the cognitive processing ability to make fully informed, completely rational decisions.

Globalization Global strategy

Globalization-countries more interconnected and trade barriers disappearing. Global strategy- all operations and activities are managed similarly worldwide.

Exit interviews are often conducted by:

HR rep

Human resources compliance

HR role to ensure adherence to laws and regulations that govern the employment relationship.

In the expectancy model of motivation, the perception labeled ""expectancy"" is a result of asking oneself:"

will my effort lead to high performance

Kauffman Foundation

Helps Entrepreneurs and small businesses

Mayo

Human Relations Theory

participatory management

Includes employees in deliberations about key business decisions.

DHL Global Connected Index

Index tracking the flow of capital, information, trade, and human resources and representing the degree of globalization.

barriers to entry

Industry factors (ex- high start-up costs) that can prevent new firms from successfully launching new operations in that industry.

Internal locus of control VS Authoritarian

Internal locus of control -participative Authoritarian - directive

Which is not an example of debt financing? Bank loan Investor

Investor

A stakeholder group, composed of the CEO and members of the top management team, is considered an important stakeholder group for all of the following reasons EXCEPT: A.Its responsibility for formulation a strategy that realizes the mission and vision B. Its key role in strategy implementation C. Its power and influence in the organization D. Its influence as either originator or steward of the organization's mission and vision

Its power and influence in the organization

Kotter's change model

Kotter's most used, mechanistic, hierarchical, change predictable, empowered to change down, top-down approach, large scale

Working with people from different countries can be a challenge because: A. Different work skills according to cultural norms B. Cross-cultural misunderstandings C. Global strategic communication D. Language issues and different cultural norms

Language issues and different cultural norms

5 Situational Leadership Theories:

Leadership behavior continuum (Tannenbaum and Schmidt) Least preferred coworker theory Path-goal theory Decision tree approach Leader-member exchange approach

Maintenance vs. task needs

Maintenance needs-need for individuals to fit and work together having shared norms Task needs -need for group to make progress to attaining the goal

Mechanistic organizational structures vs Organic organizational structures

Mechanistic organizational structures- for environments that range from stable and simple to low-moderate uncertainty and have a formal "pyramid' structure. (Vertical, Tall) Organic organizational structures The opposite of a functional organizational form that works best in unstable, complex changing environments. (horizontal, flat)

Heuristics

Mental shortcuts to reach a good decision quickly. strategies that develop based on prior experience.

The ____ for Catholic Charities is ""To provide service to people in need, to advocate for justice in social structures, and to call the entire church and other people of good will to do the same. Mission or Vision?

Mission

LABOR RELATIONS LAWS

National Labor Relations Board (NLRB)-Federal agency enforce Labor Laws National Labor Relations Act (NLRA) 1935 WAGNER- procedures for employees to vote to have a union; management required to bargain collectively with the union. Labor Management Relations Act 1947 (TAFT-HARTLY)\amended NLRA limit the power of unions & increase mgmt rights Allows U.S. president to prevent or end a strike that endangers national security. Worker Adjustment/Retraining Notification Act (WARN) 1988-employers give 60 days notice before plant closings & mass layoffs

Nonexempt vs Exempt

Nonexempt - minimum wage, overtime pay, protection set in FLSA -anyone paid hourly automatically not exempt but nonexempt can be paid salary Work 40 hours a week, hours over that paid overtime Exempt -not protected, paid on a salary not hourly at least 50% of time exercising discretionary powers such as executive, administrative, professional (office work)

HEALTH/SAFTEY LAWS

Occupational Safety & Health Administration (OSHA)-Oversees federal Safety requirements for businesses -Occupational Safety & Health Act1970 -Obey safety & health standards. Duty to provide no hazards cause death or physical harm, know all possible hazards, learn safety standards: exits, ventilation, hazardous materials, personal protective equipment like goggles and gloves, sanitation, first aide, fire safety Employee falls under OSHA requirements if control over these: 1. Control the actions of the employee. 2. Power to control the employee's actions. 3. Are able to fire the employee or modify employment conditions. Small employers (10 or fewer employees) don't have to report injuries/illnesses. But not exempt from OSHA regulations.

Least Preferred Coworker (LPC) Theory (Fiedler)

Of the people you like least how do you behave to them Assumed leadership style is fixed, situation must be changed to favor the leader. Appropriate leadership style varies with situational favorableness (from leader's viewpoint).

Performance management 360 assessment 9-box and Talent review calibration process Merit matrix Pay-for-performance mode

Performance management organization ensures its goals are being met by evaluating the performance of individuals 360 assessment- evaluation tool that collects feedback from manager, peers, direct reports, and customers. 9-box- A matrix tool used to evaluate an organization's talent pool based on performance and potential factors. Talent review calibration process The meeting where 9-box matrix is reviewed and discussed, with input and sharing from organizational leadership. Merit matrix A calculation table that provides a framework for merit increases based on performance levels. Pay-for-performance model- tying individual performance levels to rewards levels

PESTEL

Political- political activities in the macro environment relevant to a firm's operations. Economic- Ex-unemployment rates, interest rates, prices) state of the local, national, or global economy. Social- trends, facts, and changes in society's composition, tastes, and behaviors, including demographics. Technological- Internet, social media, automation, innovations that impact how businesses compete or how they manufacture, market, or sell their goods or services. Environmental- external situation in environment- pollution, natural resource availability preservation, alternative energy. Legal- laws impacting business, governing contracts and intellectual property rights and illegal activities, online piracy.

People in societies where assertiveness is low: A. Take risks more often B. Are encouraged to compete among themselves C. Want to be rewarded for the best ideas D. Prefer harmony in relationships

Prefer harmony in relationships

types of decisions

Programmed- routine decision -repeated over time Nonprogrammed- unstructured and occurs much less often a programmed decision. -not a routine decision new, unstructured decisions

Reactive system vs Reflective system of decision making

Reactive system- decision-making that is quick and intuitive. Reflective system- decision-making that is logical, analytical, and methodical.

Gantt Chart

Scheduling system Process of control allowed for the process of control to occur.

self-determination theory (SDT)

Seeks to explain not only what causes motivation, but also the effects of extrinsic rewards on intrinsic motivation.

value chain

Sequence of activities that firms perform to turn inputs (parts or supplies) into outputs (goods or services).

SWOT

Situational Analysis Inside your business- Internal. -strengths- Resources and capabilities; what it is good at. -weaknesses-a firm does not have good capabilities to perform or gaps in firm resources. Outside- External -opportunities- firm has the resources and capabilities to take advantage of. -Threats- make it harder for a firm to be successful.

Small Business Administration (SBA) Small Business Investment Company (SBIC)

Small Business Administration (SBA)- Government agency helps small business; Small Business Investment Company (SBIC)- Privately owned managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses.

Which is the legal structure with the easiest start-up process? C Corp Partnership Sole Proprietorship LLC

Sole Proprietorship

Strategy Strategic Analysis Strategic Group Strategic Positionin

Strategy- planning and implementing actions that will lead to success in competition. Strategic Analysis- study and understand their competitive environment. Strategic Group- Businesses offering similar products or services and following the same generic competitive strategy. Strategic Positioning- how to organize and operate to effectively serve customers and compete against rivals.

Mechanistic structures include which of the following?

Structures where employees are given specific job descriptions delineating their roles and responsibilities

Related Approaches to Leadership

Substitutes Charismatic Leadership (House) Transformational Leadership

Talent acquisition Talent development

Talent acquisition- finding and acquiring skilled candidates for employment -long-term view of building talent pipelines, rather than short-term recruitment. Talent development- Integrated HR processes that are created to attract, develop, motivate, and retain employees.

Escalation of commitment

The tendency of decision makers to remain committed to poor decision, even when doing so leads to increasingly negative outcomes.

BENEFITS Law Requires-

Time off to vote, Jury, Military service, Worker's Compensation, Retirement, Disability, Family & Medical Leave, Withhold FICA taxes & Pay your portion of FICA taxes, Pay state federal unemployment taxes

Frederick Taylor is most famous for which 3 things: Standardization of work TPS reports Time studies Productivity reports Frontline Managers Motion studies Scientific Method of management

Time studies Scientific Method Frontline Managers And Traditional Approach Motivation

EQUAL OPPORTUNITY Laws

Title VII Civil Rights Act 1964- illegal discriminate in workplace b/c race, national origin, sex, disability, religion, pregnancy Age Discrimination in Employment Act (ADEA)1967-Outlaws discrimination against older than 40 Americans wi/ Disabilities Act (ADA) 1990-Forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees. Civil Rights Act 1991-Amended original Civil Rights Act, made easier to bring discrimination lawsuits Affirmative Action-Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization.

A firm's performance relative to industry peers is likely to vary according to the level to which resources, capabilities and ultimately core competences satisfy VRIO criteria. a. True b. False

True

Consciously creating an environment where passion is both encouraged and developed starts at the top through the communication of mission and vision. a. True b. False

True

Customers, employees and investors are the stakeholder's most often emphasized in the mission statements. a. True b. False

True

In some countries, it is considered rude to say ""no""

True

Leaders of an organization set the moral tone of the organization.

True

Many firms have valuable and rare resources that they fail to exploit.

True

Mission and vision play a prominent role in the planning facet of the POLC framework

True

One key stakeholder group is comprised of the CEO and members of the top- management team.

True

One of the main driving forces that influence organizational decisions is uncertainty.

True

People in positions of authority in high power distance societies expect obedience. a. True b. False

True

The ability to learn faster from customers is the essential competitive advantage that startups must possess.

True

The degree to which a stakeholder is affected by a firm's decisions is sometimes correlated with their power and influence over the decision.

True

Countries with low gender egalitarianism are male dominated. a. True b. False

True gender egalitarianism- feminine so if it is low it is more masculine

People in high power distance societies expect: A. Cooperative interaction across power levels B. Equality C. Opportunity for everyone D. Unequal power for distribution and greater satisfaction

Unequal power for distribution and greater satisfaction

Leadership Trait Theory (2 Universitys)

University of Michigan - (Rensis Likert) 1. Job centered 2. Employee-member-centered behaviors Ohio State Studies (Stogdill) 1. consideration -(concern, empathy) 2. 2. Initiating structure (clear order)

Unsecured loan vs Secured loan

Unsecured loan - -if you are considered low risk. -generally requires a track record of success. -Credit cards are unsecured loans Secured loan - -requires some kind of collateral (maybe real estate or inventory) - lower interest rate. -Mortgages are secured loans

People in societies where uncertainty avoidance is high: A. Want strict rules, laws and policies B. Tolerate a variety of opinions C. Are less rule-oriented D. Are open to change and taking risks

Want strict rules, laws and policies

Zone of indifference

Workers comply with orders if they were indifferent to them. - does not to agree with the orders. workers to be indifferent to an order to follow it.

Path-Goal Theory (Evans and House)

Your job as leader help them achieve goals and change if situation changes Primary functions of a leader are: Make valued or desired rewards available in the workplace Clarify to subordinate kinds of behavior that lead to goal accomplishment or rewards Leaders facilitate motivation

Where does strategy formulation fit within the POLC framework? a. Controlling b. Planning c. Organizing d. Leading

b. Planning

Regarding motivation, there are major theories in the need based category and they include all of the following EXCEPT:" A. big 5 personality B. Murray's Manifest Needs C. McClelland's Learned/Individ Needs (Achievement,Power,Affiliation) D. Maslow's Hierarchy of Needs E. Herzberg's Two-Factor (Hygiene) F. Aldefer's ERG

big 5 personality

Consider followup calls ___________ calls.

business development

business-level strategy vs corporate strategy

business-level strategy- ways that single-product firms organize their activities to succeed against rivals; at this level, include cost leadership and differentiation. corporate strategy- the broadest level of strategy, concerned with decisions about growing, maintaining, or shrinking very large companies.

The design and development plan charts its developments within the contexts of ________, marketing and the company itself. a. Strategy b. Production c. Sales d. Competition

c. Sales

Installment loans are paid back with equal monthly payments covering:

capital and interest

A disadvantage of the _________ decision making model is that it does not use ethics.

classical model When faced with a decision situation, managers should... -obtain complete and perfect information -eliminate uncertainty -evaluate everything logically and rationally ...and end up with a decision that best serves the interests of the organization

cognitive diversity cognitive diversity hypothesis

cognitive diversity- Differences between team members regarding characteristics such as expertise, experiences, and perspectives. cognitive diversity hypothesis- Multiple perspectives stemming from the cultural differences between group or organizational members result in creative problem-solving and innovation.

BCG Matrix

"Dogs" -small market shares and no growth prospects.- Shoot the dog- be sold, closed- doing poorly in low growth market & should be divested "Cash cows" high markets shares in market not growing Provide income to the corporation to invest in Stars Milk the Cow ex Disney Parks "Question marks" have small market shares in high growth markets. Decide if will try to make grow/invest or let it go "Stars" high market share and rapid/high growing markets. Invest heavily here

Porter's 5 Forces

*Rivalry among competitors- intensity of competition between firms in an industry. *Threat of new entrants- entrants assesses the potential that a new firm will start operations in an industry. *Threat of substitute products- products or services outside a firm's industry that can satisfy the same customer needs as industry products or services can. *Buyer Power- buyers with high power negotiate product price or features *Suppliers Power- the balance of power in the relationship between firms in an industry and their suppliers.

Max Weber

- Organizations should be formalized and legalistic in operations -knowledge, not birth, basis of hiring/promotion -Bureaucracy

Tannenbaum and Schmidt Continuum

- a continuum leadership styles range from authoritarian (boss management centered) to extremely high levels of worker freedom (subordinate centered) leader power styles 1. autocratic (boss-centered), 2. participative (workers are consulted and involved) 3, free-rein (members are assigned the work and decide how to do it; the leader relinquishes the active assumption of the role of leadership)

market research

- data on your customers to develop a marketing plan identify the specific segments you want to target help you choose the best way to reach your customers and even the best geographic or virtual location should provide you with information about three areas: 1. Industry information- latest trends 2. Consumer close up- demographics, 3. Competition

Situational Models of Leader Behavior or Contingency Model (Fielder)

-Appropriate leader behavior depends on the situation. -Situational factors that determine appropriate leader behavior can be identified. -Assess leader by their underlying trait, assess situation faced by the leader, construct a proper match between the two

3 managerial skills

conceptual, human, technical

Fayol 3 principal ideas about management. FAVOL- TOP MANAGEMENT

-Unity of command- Company's management should speak with only voice- each worker should have only one supervisor. - Esprit de corps, or worker cohesion - Organizational justice

Basic Insurance Needs

-Workers' compensation required -General liability -Auto and property casualty -An umbrella policy -business interruption coverage -life and disability insurance.

Income Statement Top and Bottom Line

.Sales/Revenues: (Top of income statement-Top line) Net Income or Profit after taxes: Bottom line

Types of equity financing

1. Angel investors - individual investors/groups of experienced investors provide financing for start-up businesses by investing own money- "seed capital." 2. Venture capital - financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies.

Employee falls under OSHA requirements if control over these:

1. Control the actions of the employee. 2. Power to control the employee's actions. 3. Are able to fire the employee or modify employment conditions.

Those stakeholders most often emphasized in mission statements are:

customers and employees

What are the basics in running a small business? a. Keeping books b. Looking out for taxes c. Deciding to accept credit cards d. All of the above

d. All of the above

PORTER 3 Generic Business-level Strategies

1. Cost Leadership strategy- product/service lower price than rivals. Reduce Manufacturing & other costs spend as little as possible producing a product/service will be profitable when selling at lowest price. Ex- Walmart 2. Differentiation strategy Distinguish Products/Services add value to poducts/services customers willing to pay higher price. increases quality, features, overall attractiveness products/services- innovation, customer service, marketing Starbucks. 3. Focus- Choose Cost leader OR differentiator to serve Smaller Market - Niche, specific region, product market, group of buyers

2 components of Motivation

1. Direction- what a person wants to achieve, what they intend to do. 2. Intensity - how hard people try to achieve their targets.- effort-energy expend

2 forms of business financing KNOW THIS!!!

1. Equity, funds raised through the sale of stock (ownership) in business. get a share of the business's profits. - Receive capital (money) in exchange for part ownership of company. Do not have to pay back principle (amount gave you) will take a portion of profits -. They want-Voting Rights on the business - You give up-Control - Benefit- Larger amounts and get guidance -. Problem with it - Lose control 2. Debt, borrowed funds that must be repaid with interest over a stated time period - Receive capital (money) in the form of a loan, which must be paid back principal (amount you borrow) and pay interest .-They want? Interest -. You give up? Just a monthly check -. Benefit? Easier to get and maintain control -. Problem with it? Smaller amounts and Must Make Payment

Business Plan

1. Executive Summary 2. Mission/Vision 3. Overview 4. Product/service 5. Marketing 6. Management plan 7. Operating plan 8. Financials 9. Documents

How to go international? -

1. Exporting - company sends product to international market and fills the order like they do a domestic order. most basic and cost-effective, easiest 2. International strategic alliances - 2 or more companies from different countries enter into an agreement to conduct joint business activities. 3. Foreign direct investment FDI company investing in another country through the construction of facilities and buildings in another country. through the form of ownership positions in companies in another country.

3 core roles of a manager (Henry Mintzberg)

1. Interpersonal roles- Figurehead, Leader, and Liaison -formal authority and involve basic interpersonal relationships 2. Informational roles- Monitor, Disseminator, Spokesperson-gather, collate, analyze, store, and disseminate many kinds of information. 3. Decisional Role - Entrepreneur, Crisis Handler, Resource Allocator, Negotiator.- decisions on behalf of organization and stakeholders

Fayol 5 Functions of management: And what else fit Flavol do?

1. Planning 2. Organizing 3. Staffing 4. Controlling 5. Directing -Favol also did the 14 principals pf management -Administrative theory was the first general statement on management theory.

Hofstede's Cultural Dimensions

1. Power Distance 2. Individualism 3. Uncertainty Avoidance 4. Masculinity Power Distance- accept differences in power and authority. high power distance - more likely to accept that power inequality is good and acceptable. low power distance - consider that all members are equal. Individualism-relationship of the individual to the group. Collectivism - focuses on the relationship of the group as a whole Uncertainty Avoidance- comfortable with risk, uncertainty, and unpredictable situations. Masculinity - traditional masculine qualities such as advancement and earnings.

Leadership can be a _______ and a as a ______

1. Property: who leaders are. Characteristics attributed to leaders. Leaders are accepted as leaders by others. 2. Process: what leaders actually do. Using influence to shape the group's or organization's goals. Motivating others' behavior toward goals. Helping to define organizational culture. Leaders- people who influence the behaviors of others without force.

Marketing Plan

1. Situational Analysis 2. Target audience 3. Goals 4. Communication 5. Budget

Types of companies 1. Sole Proprietorship 2. Partnership 3. Corporation 4. LLC- Limited Liability Corporation 5. S Corporation

1. Sole proprietorship- simplest structure, one individual who owns and operates the enterprise, personally responsible for your companies liabilities placing your assets at risk and raising money can be difficult 2. Partnership- several individuals own 3. Corporation- independent legal entity, separate from its owners that has more regulations and tax requirements 4.LLC- Limited Liability Corporation bringing together some of the best features of partnerships and corporations. 5. S Corporation more attractive to small-business owners than a regular (or C) corporation. Tax benefits and still provides liability protection income and losses are passed through to shareholders and included on their individual tax returns. Just 1 level of tax Up to 100 Shareholders

Types of planning

1. Strategic planning-high-level planning company executives to set the overall direction of company. 2. Tactical planning is mid-level planning broad ideas of what company should do to pursue mission. 3. Operational planning front-line activities each employee will do to advance tactical plans. daily activities to function, ordering inventory or supplies, scheduling workers and defining their work tasks, developing sales goals and promotions to help achieve those goals

VRIO- stands for Use VRIO to evaluate their own resources and capabilities

1. Value 2. Rarity 3. Imitation 4. Organization

5 Key components to this "working relationship" in leadership

1. leader 2. follower 3. context 4. process 5. Consequences (outcomes)

USP "Peg"- 4 P's of marketing

1. product characteristics 2. price structure 3. placement strategy 3. promotional strategy

Big 5 Personality Traits

1.Agreeableness- easy to get along 2. Conscientiousness- keep list, organized 3. Negative Emotionality- 1st thought negative 4. Extraversion- comfort with large groups 5. Openness- try new things

Subject to some restrictions, according to IRS rules, a no interest loan cannot be more than:

100,000

The average job tenure has dropped from 15 years to:

4 years

What is a reasonable cold calling goal?

50 calls 150 mins

small business-

A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.

Evidence-based decision-making

A process of collecting the best available evidence prior to making a decision.

leadership

A social (interpersonal) influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation.

Centralization refers to decision making by: A. Top management B. Teams of managers C. Management and employee D. Employees E. Middle managers

A. Top management

The business concept should start with: Business description Developed plan An executive summary Sales analysis

An executive summary

Appreciative Inquiry model Complex Adaptive Systems (CAS)

Appreciative Inquiry model designed as an abundance-based, bottom-up, positive approach. Complex Adaptive Systems (CAS) views organizations as constantly developing and adapting to their environment, much like a living organism.

Total rewards strategy

As coined by World at Work, includes compensation, benefits, work-life effectiveness, recognition, performance management, and talent development.

A collection of revolving and non-revolving lines of credit used by the SBA for business that need working capital on a short-term or cyclical basis is called ___________.

CAPLINES

Competing Values Framework CVF

Cameron and Quinn used for diagnosing cultural effectiveness an its fit with its environment.

Cash vs. Accrual Basis

Cash Basis- books based on actual flow of cash in & out of business. Income recorded when received, expenses are reported when paid. Used by sole proprietors, sole entrepreneurs, businesses with no inventory, Small businesses. Accrual Basis- income & expenses reported as they occur, rather than when cash collected regardless if cash has changed hands. Ex- sale on credit.

3 kinds of decision -making conditions

Certainty Risk Uncertainty

Types of entrepreneurs:

Classic entrepreneurs- risk-takers companies based on innovative ideas. Micropreneurs- start small and plan to stay small. Growth-oriented entrepreneurs- want to grow into a major corporation. Multipreneurs entrepreneurs- start a series of companies. Intrapreneurs, apply their creativity, vision, and risk-taking within a large corporation own Minicompanies within the larger enterprise.

Born globals

Companies that operate internationally from the day that they are created.

A big difference between venture capitalists and angel investors is:

angel investors not in it for only the $

Which of the following is not a condition or stakeholder force within the internal environment of an organization? a. Board of directors b. Customers c. Employees d. Owners

b. Customers

abundance-based change deficit-based change organization-level change group-level change individual-level change managed change incremental change structural change technological change transformational change

abundance-based change- Leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work. deficit-based change Leaders assume that employees will change if they know they will otherwise face negative consequences. organization-level change A change that affects an entire organizational system or several of its units. group-level change Centers on the relationships between people and focuses on helping people to work more effectively together. individual-level change Focuses on how to help employees to improve some active aspect of their performance or the knowledge they need to continue to contribute to the organization in an effective manner. managed change How leaders in an organization intentionally shape shifts that occur in the organization when market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work over time. incremental change Small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization. structural change- Changes in the overall formal relationships, or the architecture of relationships, within an organization. technological change- Implementation of new technologies often forces organizations to change. transformational change Significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or its structures.

A number of things organizations can do prior to change to prepare employees include which of the following?

allow employees to participate

discrimination-and-fairness perspective treatment discrimination workplace discrimination covert discrimination disability discrimination national origin discrimination pregnancy discrimination race/color discrimination religious discrimination reverse discrimination sex-based discrimination

discrimination-and-fairness perspective -culturally diverse workforce is a moral duty that must be maintained in order to create a just and fair society. treatment discrimination treated differently while employed, by receiving different and unequal job-related opportunities or rewards. workplace discrimination Unfair treatment in the job hiring process or at work that is based on the identity group, physical or mental condition, or personal characteristic of an applicant or employee. covert discrimination (interpersonal- ) An interpersonal form of discrimination not visible or readily identifiable. disability discrimination- treated unfavorably due to their physical or mental disability. national origin discrimination Treating unfavorably because of their country of origin, accent, ethnicity, or appearance. pregnancy discrimination Treating unfairly because of pregnancy status, childbirth race/color discrimination- Treating unfairly because of race or characteristics associated with race- skin color, hair color, hair texture, or facial features. religious discrimination- treated unfairly because of their religious beliefs. reverse discrimination dominant group members perceive that they are experiencing discrimination based on their race or sex. sex-based discrimination treated unfairly because of their sex, including unfair treatment due to gender, transgender status, or sexual orientation.

Which of the following statements is an advantage of group decision making?

diversity

diversity managing diversity resource-based view deep-level diversity hidden diversity surface-level diversity

diversity- Identity based differences among and between people that affect their lives as applicants, employees, and customers. managing diversity Ways organizations seek to ensure that diverse groups are valued and treated fairly resource-based view how a diverse workforce can create a competitive advantage deep-level diversity- Diversity in characteristics that are nonobservable- attitudes, values, and beliefs- religion. hidden diversity Differences that are deep-level and concealed or revealed at discretion by individuals who possess them. surface-level diversity- Diversity in visible characteristics- age, body size, visible disabilities, race, or sex.