Management Domain

Minztberg's Interpersonal Roles

-Figurehead: performs ceremonial duties. Examples: greeting visiting dignitaries, attending an employee's wedding, taking an important customer to lunch. -The Leader: responsibility for the work of subordinates, motivating and encouraging employees, exercising their formal authority. -The Liaison: making contacts outside the vertical chain of command including peers in other companies or departments, and government and trade organization representatives.

Mintzberg's Informational Roles

-The Monitor: scans the environment for new information to collect. -The Disseminator: Passing on privileged information directly to subordinates. -The Spokesperson: Sharing information with people outside their organization. Examples: a speech to a lobby or suggesting product modifications to suppliers.

Organizational hierarchy:

A hierarchy is a way to structure an organization. It consists of different levels of authority where higher levels control and manage lower levels. Information usually flows up the hierarchy to the top where decisions are made.

Acceptance authority

Acceptance theory of authority states that a manager's authority rests on workers' acceptance of his right to give orders and to expect compliance. Workers have to believe that the manager can legitimately give orders and there is a legitimate expectation that the orders will be carried out. There are a few reasons for this expectation: -Workers will be rewarded for compliance -There will be discipline for non-compliance -Workers respect the manager for his experience

Substitution (defense mechanism)

An unconscious defense mechanism through which an unattainable or unacceptable goal, emotion, or object is replaced by one that is more attainable or acceptable.

Minztberg's Managerial Roles

Interpersonal Roles Informational Roles Decisional Roles

Positional authority

Positional authority is the authority that comes from title, rank, and status. It's the authority you get from the hierarchy of an organization. Relational authority is different. It's the authority that comes from the trust and respect of others. It cannot be demanded, but is given freely (or not) by your followers.

Programmed Decisions

Programmed decisions are those that a manager has encountered and made in the past. The decision the manager made was correct because she used the assistance of company policies, computations or a set of decision-making guidelines. In addition to being well structured with predetermined rules regarding the decision-making process, programmed decisions may also be repetitive or routine as their outcome was successful in the past. It generally does not take a manager as long to come to a conclusion when faced with a business-related programmed decision because the challenge faced is not new. As a result, programmed decisions allow a manager to make streamlined and consistently effective choices. Individuals naturally make programmed decisions on a daily basis. For example, in an emergency, most people automatically decide to call 9-1-1. From a business perspective, a company may create a standard routine for handling technical issues, customer service problems or disciplinary matters. An employee's duties may become routine with repetition, like the process a mechanic uses to troubleshoot problems with a customer's car.

Repression (defense mechanism)

Repression (sometimes called motivated forgetting) is a primary ego defense mechanism since the other ego mechanisms use it in tandem with other methods. Thus defense is often 'repression + ....'. Repression is unconscious. When we deliberately and consciously try to push away thoughts, this is suppression.

Theory X

Theory X is based on assumptions regarding the typical worker. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. Management believes employee's work is based on their own self-interest.Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management.

Theory Y

Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. It is important to note, however, that before an employee carries out their task, they must first obtain the manager's approval. This ensures work stays efficient, productive, and in-line with company standards.

NAFTA is common market, free trade agreement between which countries?

US, Canada, Mexico

Nonprogrammed Decisions

Unprogrammed decisions involve scenarios that are new or novel and for which there are no proven answers to use as a guide. In such a case, a manager must make a decision that is unique to the situation and results in a tailored solution. Unprogrammed decisions generally take longer to make because of all the variables an individual must weigh; and the fact that the information available is incomplete, so a manager cannot easily anticipate the outcome of his decision. An individual may make an unprogrammed decision when she visits a new restaurant, is unfamiliar with the menu and the menu is in a language she does not understand. In the business world, the makers of the earliest personal computers had to make unprogrammed decisions regarding the type of marketing to use to attract customers who possibly had never used a computer in the past. Fast-food companies also had to make an unprogrammed decision regarding consumer concerns about high fat contents and lack of healthy menu options.

An organization:

a group of people working together in some form of coordinated effort to obtain objectives

Which of the following are considered DECISIONAL roles of managers by Mintzberg? a. Disturbance handler and negotiator b. Figurehead and leader c. Liaison and spokesperson d. Monitor and disseminator

a. Disturbance handler and negotiator Other Decisional roles in Mintzberg's theory: -The Entrepreneur: Seeks to improve the unit by initiating projects. -The Disturbance Handler: Responds involuntarily to pressures too severe to be ignored. Examples: a looming strike, a major customer gone bankrupt, or a supplier reneging on a contract. -The Resource Allocator: Decides who gets what. -The Negotiator: Committing organizational resources in "real-time" with the broad information available from their informational roles.

The ERG theory grouped human needs into what three categories? a. Existence, relatedness, growth b. Esteem, respect, group cohesiveness c. Expectancy, relationships, goals d. Excellence, responsibility, generosity

a. Existence, relatedness, growth

__________ departmentalization occurs when organization units are defined by the nature of the work being performed a. Functional b. Product and service c. Geographic d. Customer

a. Functional In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department.

Which of the following would likely result in a narrower span of management? a. Having complex work that needs to be done b. Having comprehensive work that needs to be done c. Having access to staff experts d. Having a highly skilled work force

a. Having complex work that needs to be done >complexity = narrower span of control

______________ is the process of influencing the activities of employees toward goal achievement. a. Leadership b. Job satidfaction c. Expectancy d. Motivation

a. Leadership

Being unable to recognize differences in people from different culture and countries is termed a(n) a. Parochial attitude b. Geocentric attitude c. Discriminatory attitude d. Ethnocentric attitude

a. Parochial attitude Parochial: having a limited or narrow outlook or scope. An ethnocentric attitude is the parochialistic belief that the best work approaches and practices are those of the home country (the country in which the company's main offices are located). (Ethnocentric CAN see the differences and chooses to think of them as less which is why it is not the answer)

The decision making technique that involves graphically displaying alternatives consider in a decision and the outcomes expected as a result is termed a. decision tree b. CPM chart c. PERT chart d. decision network chart

a. decision tree

Standards are important in the control process because they a. define the dimensions for what is expected to happen b. set the strategy for use of resources c. provide a way to group activities d. help create the flexibility needed for an organization to function effectively

a. define the dimensions for what is expected to happen In essence, a standard is an agreed way of doing something. It could be about making a product, managing a process, delivering a service or supplying materials - standards can cover a huge range of activities undertaken by organizations and used by their customers.

Which of the following would be a characteristic of Theory X manager's beliefs about the average employee? a. employee's have an inherent dislike for work and will avoid it if possible b. employees will exercise self-discretion in the service of the objectives to which they are committed c. employees will learn not only to accept but also seek responsibility d. employees use only a portion of their intellectual potential

a. employee's have an inherent dislike for work and will avoid it if possible

The basic model of a system contains which three components? a. inputs, transformation, and outputs b. controls, feedback and environment c. human, physical, and operational resources d. memory, functional subsystems, and linking processes

a. inputs, transformation, and outputs (b. are parts of a system, just not a basic one)

The management function of planning a. involves determining in advance what should happen b. is the process of grouping activities and delegating authority to accomplish these activities c. is the responsibility if the human resource department in many organizations d. requires an understanding of human behavior

a. involves determining in advance what should happen

Technical skill a. is the most importance at the start of one's management career b. involves working with people and understanding their behavior c. requires effective communication skills d. is needed to recognize the interrelationships of factors on the job

a. is the most important at the start of of one's management career Technical skills are the knowledge and capabilities to perform field-specific, specialized tasks. These skills enable a manager to coordinate work, solve problems, communicate effectively, and also understand the big picture in light of the front-line work that must be performed.

The division of labor that involves bringing together experts from different departments to work on a project is termed a. matrix b. functional c. team d. decentralized

a. matrix

__________ is the use of eye contact during communication a. oculesics b. proxemics c. olfactics d. chronemics

a. oculesics Oculesics, a subcategory of kinesics, is the study of eye movement, eye behavior, gaze, and eye-related nonverbal communication. Proxemics: the branch of knowledge that deals with the amount of space that people feel it necessary to set between themselves and others. Olfactics is a sense of smell which use in nonverbal communication. Chronemics is the study of the role of time in communication. It is one of several subcategories of the study of nonverbal communication. Other prominent subcategories include haptics (touch), kinesics (body movement), vocalics (paralanguage), and proxemics (the use of space).

According to Maslow's need theory, which of the following needs would be addressed first? a. physiological b. safety c. social d. self-actualization

a. physiological (food, shelter, etc.)

The critical path in a PERT diagram is the one that a. takes the longest amount of time b. has the most activities on it c. is the most likely to occur d. has the activities that can be delayed without impacting the completion date of the project

a. takes the longest amount of time A PERT chart is a project management tool used to schedule, organize, and coordinate tasks within a project. PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in the 1950s to manage the Polaris submarine missile program.

McClelland proposed which of the following motivation theories? a. Two-factor (maintenance and motivational) b. Achievement-power-affliliation c. Expectancy d. Reinforcement

b. Achievement-power-affliliation

__________ is the extent to which a person is in tune with his/her own feelings and the feelings of others a. Metacognition b. Emotional intelligence c. Social intelligence d. Interdependence

b. Emotional intelligence

When selecting a food supplier, Jim, the food service manager, compared the dependability, price, and variety of products offered by three different suppliers. This illustrated which step in the decision making process? a. Defining the problem b. Evaluating the alternatives c. Implementing the decision d. Evaluating the decision

b. Evaluating the alternatives

The University of MI and OH Leadership studies both suggested that the most effective managers are those who a. make decisions themselves b. allow employees to participate in decisions c. give detailed directions

b. allow employees to participate in decisions

The manager who makes the "satisfying" decision has made a. the optimal decision b. an acceptable but not optimal decision c. an unacceptable and inappropriate decision

b. an acceptable but not optimal decision

Factors affecting the span of management include all of the following EXCEPT: a. organizational policies b. Authority of the manager c. Nature of the work being completed d. Competency of the workers

b. authority of the manager The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply, the manager having the group of subordinates who report him directly is called as the span of management. (So his authority does not affect how WELL he can mange them)

A system is a a. model of a real situation b. collection of interrelated parts c. framework of loosely organized ideas

b. collection of interrelated parts

The use of symbols :) to indicate a sense of happiness is an example of an a. acronym b. emoticon c. icon d. chromatic

b. emoticon

One technique to improve communication would be to use a. one way communication b. face-to-face communication c. only one channel of communication d. limited repetition

b. face-to-face communication

Procurement, production, safety/sanitation/maintenance, and distribution/service are __________ in the foodservice systems model. a. inputs b. functional subsystems c. controls d. linking processes

b. functional subsystems

A transformational leader a. motivates employees through use of words b. has high need for affiliation c. Guides employees by clarifying roles and tasks

b. has high need for affiliation Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders.

An example of an input to the foodservice system is a. production b. human resources c. meals d. budgets

b. human resources

The area of interdependency between two subsystems is referred to as the _____________. a. linking processes b. interface c. core d. boundary

b. interface

Line and staff positions differ in that a. line positions have a smaller span of management than staff positions do b. line positions have supervisory responsibility; staff positions have advisory responsibility c. line positions usually are lower on the organization chart and report to staff positions line positions usually are paid hourly employees; staff positions usually are paid a salary

b. line positions have supervisory responsibility; staff positions have advisory responsibility The types and degree of authority vary with the decision-making levels. Different authority relationships basically revolve around line and staff relationships. "Line and staff relation refers to a pattern in which staff specialists advise line managers to perform their duties." A line position is a position that has authority and responsibility for achieving the major goals of the organization. A staff position is a position whose primary purpose is providing specialized expertise and assistance to line positions. Staff can also be defined by the type of people: technical or support.

Deciding where to open a new restaurant would be considered a(n) ______________ type of decision. a. transformation b. nonprogrammed c. input d. programmed

b. nonprogrammed

Identifying the worst possible outcomes for each alternative in the decision making process is referred to as the a. optimistic approach b. pessimistic approach c. risk-averting approach d. satisfying approach

b. pessimistic approach

Policies are importance in organizations because they a. give a chronological sequence of activities that are to occur to achieve organizational goals b. provide a general guide for organizational behavior c. are single-use plans that help guide employee efforts on a project d. specify what must or must not be done

b. provide a general guide for organizational behavior Policies and procedures are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization. (a would be the procedures)

The decision-making technique used to examine ways to reduce the amount of time that people wait in line is termed a. game theory b. queuing theory c. linear programming d. PERT charting

b. queuing theory

"Corporate culture" is defined as a. the quality of life within an organization b. shared philosophies, values assumptions, and norms c. coordination of activities and tasks d. assignment of various activities to different groups of employees

b. shared philosophies, values, assumptions, and norms

The term ________ is used to describe the phenomenon in which parts of an organization acting together may have greater impact than the impact each has separately a. control b. synergy c. equinfinality d. dynamic equilibrium

b. synergy

Nonprogrammed decisions are most likely to be made by __________-level manager a. middle b. top c. first line

b. top

Management functions, functional subsystems, and linking processes are part of the ___________ portion of the food service systems model. a. input b. transformation c. control d. output

b. transformation

Which if the following can help reduce misconception when interacting with someone from a different culture? a. Emphasizing interpretation rather than description b. treating your interpretation as a working hypothesis c. assuming similarities until differences are proven d. practicing sympathy

b. treating your interpretation as a working hypothesis

Two-way communication differs from one-way communication in that a. Two-way involves a receiver; one-way does not b. two-way includes feedback; one-way does not c. two-way includes noise; one way does not d. two-way involves encoding a message; one way does not

b. two-way includes feedback; one-way does not

Which of the following types of power come from the formal position held by an individual in an organization? a. Referent b. Coercive c. Legitimate d. Expert

c. Legitimate

The scalar principle means that a. a vertical division of labor has occurred b. an employee reports to only one manager c. a clear and unspoken line of authority extends from top to bottom in an organization d. a manager has the right to direct the work of others

c. a clear and unspoken line of authority extends from top to bottom in an organization scalar principle (chain of command) a clear definition of authority in the organization. This authority flows down the chain of command from the top level to the first or lowest level in the organization.

Motivation could be described as a. a function that managers perform in coordinating work to be done b. the process of creating a work environment in which people do their best work' c. an inner force that activates or moves a person d. working together as a team to accomplish goals and objectives

c. an inner force that activates or moves a person The other options either help motivation or are a result of it, but motivation itself is an internal force

A group of people working together in some form of coordinated effort to attain objectives is termed ______________. a. Organizational hierarchy b. Vertical integration c. An organization d. Functional alliances

c. an organization

The fact that the word dinner may mean noon meal to one person and the evening meal to another is an example of a. noise in the communication process b. improper encoding of a message c. barrier to communication d. ineffective decoding of a message

c. barrier to communication

Situational leadership would suggest that a. one leadership style is appropriate in nearly all situations b. leaders should use their referent power in work situations to be successful c. behavior of effective leaders depends on the situation d. Theory Y believes human behavior leased to success as a leader

c. behavior of effective leaders depends on the situation

Making decisions based on generally held beliefs about proper corporate behavior is termed as organization's ______________ responsibility. a. legal b. ethical c. economic d. discretionary

c. ethical

When managers make a decision under conditions of uncertainty, they a. often use probability techniques to evaluate alternatives b. are faced with the possibility that several outcomes may occur c. have to use their experience, judgment, and intuition to narrow the range of choices d. have adequate information to assure results

c. have to use their experience, judgment, and intuition to narrow the range of choices

According to the expectancy theory, a high level of motivation requires a. high expectancy and high valance b. low expectancy and high valance c. high expectancy and low valance d. low expectancy and low valance

c. high expectancy and low valance Valence: the value an individual places on the rewards of an outcome, which is based on their needs, goals, values and sources of motivation. Influential factors include one's values, needs, goals, preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an actual level of satisfaction rather the expected satisfaction of a particular outcome.

Group decision making is more likely to be used for a. programmed decisions b. decisions with a higher degree of certainty c. nonprogrammed decisions d. decisions with minimal risk

c. nonprogrammed decisions Unprogrammed decisions involve scenarios that are new or novel and for which there are no proven answers to use as a guide. In such a case, a manager must make a decision that is unique to the situation and results in a tailored solution. Unprogrammed decisions generally take longer to make because of all the variables an individual must weigh; and the fact that the information available is incomplete, so a manager cannot easily anticipate the outcome of his decision. Programmed decisions are those that a manager has encountered and made in the past. The decision the manager made was correct because she used the assistance of company policies, computations or a set of decision-making guidelines. In addition to being well structured with predetermined rules regarding the decision-making process, programmed decisions may also be repetitive or routine as their outcome was successful in the past. It generally does not take a manager as long to come to a conclusion when faced with a business-related programmed decision because the challenge faced is not new. As a result, programmed decisions allow a manager to make streamlined and consistently effective choices.

If the baker blames the oven for the poor bakery product when, in fact, recipe procedures were not followed, the baker is using which defense mechanism? a. repression b. withdrawal c. rationalization d. substitution

c. rationalization In psychology and logic, rationalization or rationalisation (also known as making excuses) is a defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation, and are made consciously tolerable—or even admirable

The longer the time into the future that a decision is being made a. the greater the degree of certainty in the decision b. the greater the degree of programmability c. the greater the degree of risk in the decision d. the greater the degree of knowledge of the manager about the situation

c. the greater the degree of risk in the decision

Which of the following activities would be part of the interpersonal role of a manger? a. Initiating a change in the way purchasing is done in the organization b. Negotiating the union contract c. Telling employees about the new restaurant policies related to childcare d. Hiring and training staff

d. Hiring and training staff This is under the "Leader" part of the job. a and b are most likely decisional roles and c is informational

_________ specify action by stating what must or must not be done in the organization a. Policies b. Procedures c. Methods d. Rules

d. Rules

In the two-factor theory, the hygiene (or maintenance) factors a. are related to the content of the job b. Will serve as motivators when present in the job c. include the concepts of achievement and recognition d. are often related to dissatisfaction on the job

d. are often related to dissatisfaction on the job The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. It was developed by psychologist Frederick Herzberg, who theorized that job satisfaction and job dissatisfaction act independently of each other. Motivators (e.g. challenging work, recognition for one's achievement, responsibility, opportunity to do something meaningful, involvement in decision making, sense of importance to an organization) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth. Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions, good pay, paid insurance, vacations) that do not give positive satisfaction or lead to higher motivation, though dissatisfaction results from their absence. The term "hygiene" is used in the sense that these are maintenance factors. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.[4][5] Herzberg often referred to hygiene factors as "KITA" factors, which is an acronym for "kick **********", the process of providing incentives or threat of punishment to make someone do something. According to Herzberg, hygiene factors are what causes dissatisfaction among employees in the workplace. In order to remove dissatisfaction in a work environment, these hygiene factors must be eliminated. There are several ways that this can be done but some of the most important ways to decrease dissatisfaction would be to pay reasonable wages, ensure employees job security, and to create a positive culture in the workplace. Herzberg considered the following hygiene factors from highest to lowest importance: company policy, supervision, employee's relationship with their boss, work conditions, salary, and relationships with peers

The acculturation process when individuals are absorbed in a new culture and withdraw from their former culture a. deculturation d. assimilation c. integration d. separation

d. assimilation (deculturation is not a real word, acculturation is)

The authority that is based on a manager's expertise is termed a. formal authority b. positional authority c. acceptance authority d. authority of competence

d. authority of competence A competent authority is any person or organization that has the legally delegated or invested authority, capacity, or power to perform a designated function. Similarly, once an authority is delegated to perform a certain act, only the competent authority is entitled to take accounts therefrom and no one else.

Having same or similar outputs from using different inputs is termed ______________. a. synergy b. interdependency c. dynamic equilibrium d. equifinality

d. equifinality

The motivation theory that is based on the belief that people act to increase pleasure and decrease displeasure is a. reinforcement b. two-factor (maintenance and motivation) c. Achievement-power-affiliation d. Expectancy

d. expectancy

Which of the following would be an example of a strategic move to help shift from a blocked negotiation to a constructive dialog? a. limiting discussion of ideas to negotiation sessions only b. presenting ideas in very direct yer succinct ways c. identifying clearly the costs of change to the proposed state d. finding ways to help participants save face

d. finding ways to help participants save face

The marketing environment is defined as the a. interaction that occur between managers and employees relation to product promotion b. constraints within an organization that limit marketing options c. atmosphere created within the sales force to encourage product sales d. forces outside the organization that influence marketing activities

d. forces outside the organization that influence marketing activities

A franchisor is one who a. contracts with another to run a restauraunt b. is granted a company franchise c. partners with distributors to reduce costs of foodservice operation d. grants the right to another to market the company's concepts

d. grants the right to another to market the company's concepts

Which of the following is a characteristic of a subsystem? a. it is higher in the hierarchical order than is a system b. it contains a suprasystem within it c. it is independent of any other system d. it is a complete system in itself

d. it is a complete system in itself

Decision making, communication, and balance are referred to as ____________ within the foodservice systems model a. coordinating elements b. control c. functional subsystem d. linking processes

d. linking processes

Which of the following statements would be consistent with the beliefs of Argyris' theory? a. People behave in a certain way because they have learned at some time which behaviors result in positive outcomes and which result in negative actions b. power is the resource that enables a leader to induce compliance or influence others c. because humans have an inherent dislike for work, they must be coerced and controlled d. management created "Mickey Mouse" jobs and then are surprised by "Mickey Mouse" behavior

d. management created "Mickey Mouse" jobs and then are surprised by "Mickey Mouse" behavior

Groupthink is... a. a structured technique for generating innovative idea b. the tendency of groups to accept more risk that individual members would accept c. the goal desired by managers who use group decision making techniques d. occurs when reaching an agreement becomes more important than finding the best decision

d. occurs when reaching an agreement becomes more important than finding the best decision

The highest level in Maslow;s hierarchy of needs is termed____________ a. physiological b. safety c. social d. self-actualization

d. self-actualization

The leadership continuum developed by Tannenbaum and Schmidt includes which two major components? a. the level of maturity of the employee and the degree of power used by the manager b. the concern of the manager for production and concern for people c. the amount of initiating structure, and the amount of consideration d. the degree of authority used by the manager, and the amount of freedom available to the employee

d. the degree of authority used by the manager, and the amount of freedom available to the employee The Tannenbaum and Schmidt Continuum is a simple model of leadership theory which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager. As the team's freedom is increased, so the manager's authority decreases. This is a positive way for both teams and managers to develop. While the Tannenbaum and Schmidt model concerns delegated freedom to a group, the principle of being able to apply different levels of delegated freedom closely relates to the 'levels of delegation' on the delegation page. As a manager, one of your responsibilities is to develop your team. You should delegate and ask a team to make its own decisions to varying degrees according to their abilities. There is a rising scale of levels of delegated freedom that you can use when working with your team.

Span of management refers to a. the number of contacts outside the department that a manager is expected to interacts with b. the range of skills of employees answering to one manager c. the geographic distance a manager must cover to supervise employees d. the number of people that one manager can effectively manage

d. the number of people that one manager can effectively manage

Vertical integration:

the combination in one company of two or more stages of production normally operated by separate companies. In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need.