MAN 3025 EXAM 1 (CH 1-5)
leading
The set of processes used to get members of the organization to work together to further the interests of the organization - often considered to be the most important and most challenging of all management activities
corporate-level strategy
The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets
business-level strategy
The set of strategic alternatives that helps an organization focus its competitive efforts for each industry or market in a targeted and focused manner
technical skills
The skills necessary to accomplish or understand the specific kind of work done in an organization
corporate governance
The system of governing a company so that the interests of corporate owners and other stakeholders are protected
satisficing
The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency
What does the ultimate success of a tactical plan depend on?
The way it is carried out
Which of the following statements is true about tactical goals?
Their focus is on how to operationalize actions necessary to achieve strategic goals
manager
Someone whose primary responsibility is to carry out the management process
task environment
Specific organizations or groups that affect the organization
managerial ethics
Standards of behavior that guide individual managers in their work
general environment
The set of broad dimensions and forces in an organization's surroundings that determines its overall context
tactical goals
A goal set by and for an organization's middle managers
venture capital companies
A group of small investors seeking to make profits on companies with rapid growth potential
interest groups
A group organized by its members to attempt to influence organizations
regulators
A body that has the potential to control, legislate, or otherwise influence the organization's policies and practices
small business
A business that is privately owned by one individual or a small group of individuals and has revenues and assets that are not large enough to influence its environment
intuition
A characteristic of the art, rather than the science, of management
bounded rationality
A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits
theory
A conceptual framework for organizing knowledge and providing a blueprint for action
state of risk
A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
state of uncertainty
A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have
state of certainty
A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative
franchising agreements
A contract between an entrepreneur (the franchisee) and a parent company (the franchiser); the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans
strategic alliance
A cooperative arrangement between two or more firms for mutual gain
escalation of commitment
A decision maker's staying with a decision even when it appears to be wrong
programmed decision
A decision that is fairly structured or recurs with some frequency (or both)
non-programmed decision
A decision that is relatively unstructured and occurs much less often than a programmed decision
interacting groups and teams
A decision-making group or team in which members openly discuss, argue about, and agree on the best alternative
administrative model
A decision-making model that argues that decision makers (1) use incomplete and imperfect information (2) are constrained by bounded rationality (3) tend to "satisfice" when making decisions
business plan
A document that summarizes the business strategy and structure
focus strategy
A firm pursuing this strategy concentrates on a specific regional market, product line, or group of buyers
Delphi group
A form of group decision making in which a group is used to achieve a consensus of expert opinion
code of ethics
A formal, written statement of the values and ethical standards that guide a firm's action
strategic plan
A general plan outlining decisions about the resource allocation, priorities, and action steps necessary to reach strategic goals set by top managers
operational goals
A goal set by and for an organization's lower-level managers
Sarbanes-Oxley Act of 2002
A law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms' financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption - imposes tough measures to deter corporate and accounting fraud
established market
A market in which several large firms compete according to relatively well-defined criteria
GE Business Screen
A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business
product life cycle
A model that portrays how sales volume for products changes over the life of products
entropy
A normal process leading to system decline
theory X
A pessimistic and negative view of workers, consistent with the views of scientific management
operational plan
A plan that focuses on carrying out tactical plans to achieve operational goals
theory Y
A positive view of workers; it represents the assumptions that human relations advocates make
start-up
A relatively new small business
niche
A segment of a market not currently being exploited
economic community
A set of countries that agrees to markedly reduce or eliminate trade barriers among member nations (a formalized market system)
project
A single-use plan of less scope and complexity than a program
groupthink
A situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision
SOP
A standard plan that outlines the steps to be followed in particular circumstances
policy
A standing plan that specifies the organization's general response to a designated problem or situation
overall cost leadership strategy
A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms
single-product strategy
A strategy in which an organization manufactures just one product or service and sells it in a single geographic market
related diversification
A strategy in which an organization operates in several businesses that are somehow linked with one another
differentiation strategy
A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services
nominal group
A structured technique used to generate creative and innovative alternatives or ideas
General Agreement on Tariffs and Trade (GATT)
A trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets - uses the most favored national (MFN) principle, in which members of the agreement receive preferential treatment
North American Free Trade Agreement (NAFTA)
An agreement between the United States, Canada, and Mexico to promote trade with one another
licensing
An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales - excessive transportation costs, government regulations, and home production costs might lead a firm to choose this approach to internationalization
universal perspective
An attempt to identify the one best way to do something
ethics
An individual's personal beliefs about whether a behavior, action, or decision is right or wrong
coalition
An informal alliance of individuals or groups formed to achieve a common goal
system
An interrelated set of elements functioning as a whole
board of directors
An organization working together with one or more other organizations in a joint venture or similar arrangement
strategic partners
An organization working together with one or more other organizations in a joint venture or similar arrangement
World Trade Organization (WTO)
An organization, which currently includes 164 member nations and 23 observer countries, that requires members to open their markets to international trade and to follow WTO rules
distinctive competence
An organizational strength possessed by only a small number of competing firms
first-mover advantage
Any advantage that comes to a firm because it exploits an opportunity before any other firm does - created by a firm when it exploits an opportunity before any other firm
ethical behavior
Behavior that conforms to generally accepted social norms
unethical behavior
Behavior that does not conform to generally accepted social norms
operations management
Concerned with helping the organization produce its products or services more efficiently
scientific management
Concerned with improving the performance of individual workers
classical management perspective
Consists of two distinct branches—scientific management and administrative management
organizational behavior
Contemporary field focusing on behavioral perspectives on management
standing plan
Developed for activities that recur regularly over a period of time
behavioral management perspective
Emphasizes individual attitudes, behaviors, and group processes
soldiering
Employees deliberately working at a slow pace
Evidence-based management (EBM) practices suggest treating the organization as an unfinished prototype, which means what?
Encourage experimentation and learning by doing
Kamiya owns a small business that has always put customer service first, even if it meant a loss in profit. Kamiya's company is being bought by another firm that has always emphasized profits, to the point that some employees are fired if they cost the company profit. What will be the greatest challenge of integrating the two companies?
Establishing a single organizational culture
external environment
Everything outside an organization's boundaries that might affect it
Supertech Inc. is a large firm that manufactures mobile phones accessories. The company sells a line of inexpensive accessories exclusively targeted at youth and teenagers who like to personalize their phone. Which of the following strategies is illustrated in the scenario?
Focus strategy
quantitative management perspective
Focuses on decision making, cost-effectiveness, mathematical models, and the use of computers
administrative management
Focuses on managing the total organization
management science
Focuses specifically on the development of mathematical models
Who was one of the earliest advocates of scientific management?
Frederick Taylor
Who was one of the first experts to recognize decisions are not always made rationally and developed the administrative model to describe how decisions are often made?
Herbert Simon
resource deployment
How an organization distributes its resources across the areas in which it competes
Who is recognized as the father of industrial psychology based on his belief that psychologists can make valuable contributions in the areas of training, employee selection, and motivation?
Hugo Münsterberg
In the systems perspective, outputs include _____.
employee behaviors
According to the BCG matrix, what should a company do with the cash that is generated by cash cows?
Invest it in stars
Which of the following is true of a trade quota?
It is used most commonly to restrict trade.
Which of the following statements about the behavioral management perspective is true?
It was influenced by the industrial psychology movement
Maquiladoras
Light assembly plants that are built in northern Mexico close to the U.S. border and are given special tax breaks by the Mexican government
effective
Making the right decisions and successfully implementing them
Portfolio management techniques
Methods that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance
Which is likely to be the largest group of managers in most organizations, who are primarily responsible for implementing the policies and plans of an organization?
Middle managers
controlling
Monitoring organizational progress toward goal attainment
As the head of Human Resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?
More alternatives can be identified and evaluated
Which of the following statements best reflects contemporary management trends?
More and more organizations are using quality as a basis for competition
In addition to management science, which of the following is one of the two branches of the quantitative management perspective?
Operations management
human relations movement
Proposed that workers respond primarily to the social context of the workplace, including social conditioning, group norms, and interpersonal dynamics
United States-Mexico-Canada Agreement (USMCA)
Revised and amended NAFTA to provide greater incentives for Mexico to increase its imports from the United States
Whose works should you study if you want to understand the origins of the recognition of the importance of human resources and the personal welfare of workers?
Robert Owen
When devising a new strategy, it is best to start with________.
SWOT analysis
In the context of the systems perspective, which of the following would be considered an output?
Services
planning
Setting an organization's goals and deciding how best to achieve them - decision making is part of this process
contingency perspective
Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, unique elements in a given situation
interpersonal skills
The ability to communicate with, understand, and motivate both individuals and groups
internal environment
The conditions and forces within an organization
contingency planning
The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate
whistle-blowing
The disclosure, by an employee, of illegal or unethical conduct on the part of others within the organization
risk propensity
The extent to which a decision maker is willing to gamble when making a decision
ethical compliance
The extent to which an organization and its members follow basic ethical standards of behavior
legal compliance
The extent to which an organization complies with local, state, federal, and international laws
entrepreneurship
The process of planning, organizing, operating, and assuming the risk of a start-up or new venture
Ralph Corp. and Swan Inc. have entered into an arrangement in which Ralph sells Swan's merchandise in its stores, and Swan promotes Ralph stores in its advertisements. In this context, which of the following best describes the relationship between Ralph Corp. and Swan Inc.?
They are strategic partners
Why is it important that a manager continuously monitor ongoing activities tied to a tactical plan?
To ensure they achieve desired results
synergy
Two or more subsystems working together to produce more than the total of what they might produce working alone
direct investment
When a firm builds or purchases operating facilities or subsidiaries in a different country from the one where it has its headquarters
unrelated diversification
firms that implement this strategy operate multiple businesses that are not logically associated with one another
tactical plan
focuses primarily on people and action
Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) _____.
interacting team
An organization that pursues a single-product strategy ______.
operates in a single geographic market
strategy implementation
organizations use this to operationalize or execute strategies, while it focuses on the processes through which strategies are achieved
Lillian Gilbreth's work in scientific management resulted in substantive contributions to _____.
personnel management
strategy formulation
process of creating or determining the organization's strategies
Petra was looking for ways to double her plant's production capacity, and she considered acquiring the production plant of a rival company. The engineers in Petra's company advised her against it because acquiring the new plant would only increase their company's production by 15 percent. Petra's idea failed the test for _____ in the context of the rational decision-making process.
satisfactoriness
scope
the component of a strategy that specifies the range of markets in which an organization will compete
The most significant disadvantage to owning a franchise is that_______.
the franchisee may have to pay a high start-up cost
classical decision model
A prescriptive approach to decision making that tells managers how they should make decisions; assumes that managers are logical and rational and that their decisions will be in the best interests of the organization
management
A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization's resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner
joint venture
A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis
closed systems
A system that does not interact with its environment
open systems
A system that interacts with its environment
subsystems
A system within a broader system
tariff
A tax collected on goods shipped across national boundaries
export restraint agreement
Accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another
regulatory agencies
An agency created by the government to regulate business activities
Avec runs an organization that is in a rapidly changing environment. Which management perspective should Avec take when planning how to respond to changes in the environment?
Contingency
organizing
Determining how activities and resources are to be grouped
Raphael started a new financial consulting business on the side, with the hopes that it would someday become his full-time work. He had a lot of experience in this field before launching his company. He did his research and knew what services to offer at what prices. Raphael lined up a number of clients and hired workers to service the accounts. In spite of all this, his business failed. What led to this business failure?
Neglect
decision making
Part of the planning process that involves selecting a course of action from a set of alternatives
European Union (EU)
The first and most important international market system
Which of the following is an advantage of a franchising agreement?
The franchisee can easily establish a business with reduced risks
political-legal dimension
The government regulation of business and the relationship between business and government
communication skills
The manager's abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others
decision-making skills
The manager's ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities
time management skills
The manager's ability to prioritize work, to work efficiently, and to delegate appropriately
conceptual skills
The manager's ability to think in the abstract
diagnostic skills
The manager's ability to visualize the most appropriate response to a situation
technological dimension
The methods available for converting resources into products or services
economic dimension
The overall health and vitality of the economic system in which the organization operates
In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?
The same culture is not found throughout the organization.
social responsibility
The set of obligations that an organization has to protect and enhance the societal context in which it functions
efficient
Using resources wisely in a cost-effective way
