MGMT 3000 Test 1
GLOBE Project
-Nine dimensions that explain cultural differences -5 additional value dimensions on top of Hofstede's
Subsets of Management Science
-Operations research -Operations Management -Information Tecnology
Contingency View
-Organizational phenomena exist in logical patterns -Managers devise and apply similar responses to common types of problems
Labor Market
-People in the environment who can be hired to work for the organization -Not the employees, the market in which we choose employees
Name each of the GLOBE Project's value dimensions (9)
-Power Distance -Uncertainty Avoidance -Individualism and Collectivism -Masculinity/Femininity -Assertiveness -Future Orientation -Gender Differentiation -Performance Orientation -Humane Orientation
Demographic Characteristics
Norms, customs, and values of a population
High-Context Culture
People are sensitive to circumstances surrounding social exchanges
Unity of direction
People at the top have all the power and the people at the bottom have none
Implicit Communication
People send and receive unspoken cues, such as tone of voice or body language, in addition to the explicit spoken words when talking to others
Low-Context Culture
People use communication primarily to exchange facts and information; meaning is derived primarily from words
Employee Engagement
The emotional commitment the employee has to the organization and its goals (Not employee happiness or job satisfaction)
Universalist View
There is one best way
What did Frank and Lillian Gillbreth pioneer?
Time and motion studies to promote efficiency
Compensatory Justice
individuals should be compensated for the cost of their injuries by the party responsible
Staff Managers
responsible for departments that support the organization's line departments with specialized advisory or support functions
Organizational Effectiveness
the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do
Hawthorne Studies
-1927-1932 in Western Electric Hawthorne Works in Chicago -HBS professor Elton May studied productivity and work conditions
European Union
-27-nation alliance to improve economic and social conditions among members -A powerful single-market system for Europe's millions of consumers, allowing people, goods, and services to move freely
Henri Faylor
-A major contributor to the administrative principles of management -Listed 14 general principles of management
What is the criteria for a decision to be considered ethical?
-Acceptable by the professional community -Manager would not hesitate to publicize decision on the evening news -Person would typically feel uncomfortable explaining to family and friends
Define the Natural Factor of the General Environment
-All elements that occur naturally on earth, including plants animals, rocks, and natural resources such as air, water, and climate -Organizations must show sensitivity concerning their environmental impact
Downside of Partnerships
-Shared revenue -Risk of partner gaining inside information of the other company
What is the General Agreement on Tariffs and Trade (GATT)?
-Signed by 23 nations in 1947 -People use communication primarily to exchange facts and information; meaning is derived primarily from words
Current Sociocultural Trends on the General Environment
-Technologically savvy customers -Growing diversity -Aging population -Work/life balance
General Environment Factors
-Technology -Natural -Sociocultural -Economic -Legal/Political
Spauldings 8 Fundamental Necessities (only need to know 5)
1. Authority and responsibility 2. Division of labor 3. Adepquate manpower 4. Cooperation 5. Work
Polycentric Companies
oriented toward the markets of individual foreign host countries
Organizational Efficiency
refers to the amount of resources used to achieve an organizational goal
General Managers
responsible for several departments that perform different functions
Why is exporting less risky?
since there is no overseas infrastructure and can pull out quickly and cheaply
High Performance
the attainment of organizational goals by using resources in an efficient and effective manner
Nudge Management
Applying behavioral science insights in organizational design to guide people toward behaviors that support organizational goals and values
Strategic Issues
Events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives
Case view
Every situation is unique
Toxic Culture
Exists when persistent negative sentiments and infighting cause stress, unhappiness, and lowered productivity among subgroups of employees
Define the Legal/Political Factor of the General Environment
Government regulations at local, state, and federal levels, as well as political activities
Long-Term Orientation
Greater concern for the future and highly values thrift and perseverance
Moral Rights Approach to Ethical Decisionmaking
Humans have fundamental rights and liberties that cannot be taken away by an individual's decision
Scientific Management
Improve efficiency and labor productivity through scientific methods
Political Instability
Includes riots, revolutions, civil disorders, and frequent changes in government
What does knowing an employees' needs allow you to do?
It allows you to guide them to the right hierarchy for maximum satisfaction
What does nudge management discourage?
It discourages using orders and directions and replace with giving choices and through providing enabling environment and encouragement
How do bureaucratic organizations view ownership?
It should be seperate from management
Controlling
Monitor activities and make corrections
Utilitarian Approach to Ethical Decisionmaking
Moral behavior produces the greatest good for the greatest number
Justice Approach to Ethical Decisionmaking
Moral decisions must be based on standards of equity, fairness, and imparity
Short-Term Orientation
More concerned with the past and present and places a high value on tradition and meeting social obligations
What do many new managers expect from their role?
More freedom to make changes
Story
Narrative based on true events that is repeated and shared among organizational employees
Ethnocentrism
Natural tendency of people to regard their own cultures as superior and to downgrade or dismiss other cultural values
Is it more important to focus on efficiency or effectiveness?
Neither, they are equally important
Supply Chain
Network of multiple businesses and individuals that are connected through the flow of products or services
Symbol
Object, act, or event that conveys meaning to others
Partnerships
Partners with a local company in a foreign market
What is the fastest, cheapest, and least risky way to get into global markets?
Partnerships
Subsystems
Parts of a system that depend on one another
Customers
People and organizations that acquire goods or services from the organization
Suppliers
People and organizations that provide the raw materials that the organization uses to produce its output
Acceptance Theory of Authority
People can choose to follow management orders
Ceremony
Planned activity at a special event that is conducted for the benefit of an audience
Why is it diffucult doing business with China?
Regulations and government policies
Middle Managers
Responsible for business units and major departments
Functional Managers
Responsible for departments that perform a single task
Line Mangers
Responsible for departments that perform core function of an organization (i.e. Make the food in a resturant or generate the revenue directly from the product)
Lower Level Managers
Responsible for production of goods or services
Top Managers
Responsible for the entire organization
What did Henry Gantt develop?
The Gantt chart
Efficiency
The ability to accomplish something with the least amount of wasted time, money, and effort or competency in performance.
Systems Thinking
The ability to see the distinct elements of a situation as well as the complexities
U.S.-Mexico-Canada Agreement (USMCA)
The agreement that replaced NAFTA increased environmental and labor regulations and incentivized the domestic production of cars and trucks.
What are administrative principles focused on?
The entire organization
Globalization
The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries
Synergy
The whole is greater than the sum of its parts
BREXIT
Withdrawal of UK in 2020
What do administrators actions and decisions get recorded as in Bureaucratic Organizations?
Writing
Organization
a social entity that is goal directed and deliberately structured
Effectiveness
The degree to which something is successful in producing a desired result; success.
External Organizational Environment
All outside elements that could affect the organization
Management Science
Applies mathematics, statistics, and other quantitative techniques to management decision making, and problem solving
What do successful managers do?
Build teams and networks
Which country has a top 2 market?
China
Peter Drucker
Father of Modern management. Thought management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant
Most popular ethical dilema
Heinz Dilema
What does internet of things help with?
Helps with managing the supply chain, or the sequnce of suppliers and purchases
Division of Labor in Bureaucratic Organizations
Labor is divided with clear definitions of authority and responsibility
Who introduced Bureaucratic Organizations?
Max Weber
Which company's management system is perfectly following scientific management system from producing to selling?
McDonald's
How do bureaucratic organizations manage organizations?
On an impersonal, rational basis
Competitors
Organizations in the same industry or type of business that provide goods or services to the same set of customers
How are Positions Organized in a Bureaucratic Organization?
Organized in a hierarchy of authority
Slogan
Phrase or sentence that succinctly expresses a key corporate value
How does the humanistic perspective compare to scientific management?
The humanistic perspective focuses on the importance of people rather than engineering techniques
What does studying management history help you understand?
The impact of social forces on organizations
Moral Agent
The individual who must make an ethical choice in an organization
International Management
The management of business operations conducted in more than one country
Political Risk
The risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country
Euro
The single European currency that replaced national currencies in many European countries
Uncertainty Avoidance
Uncomfortable with unstructured, ambiguous, and unpredictable situations
Humanistic Perspective
Understanding human behaviors, needs, and attitudes in the workplace
Leading
Using influence to motivate employees
Time Management
Using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life
Individualism
Value for a loosely knit social framework in which individuals are expected to take care of themselves
Codified Law
Values and standards written into the legal system and enforceable in the courts
Femininity
Values relationships, cooperation, group decision making, and quality of life
Under what conditions do employees perform better?
When managers treat them better
Organizational Development
Who is likely to have observed people working in an attempt to find a more efficient way of performing the job?
Focus on Humanity of Production
management focus is on meeting human needs for greater motivation and engagement to increase effectiveness
Focus on Things of Production
management focus is on production efficiency via organization design and workflow systems and control
Internet of Things
"Smart" devices and chips that communicate to other devices
Theory X
-Average human has an inherent dislike of work and will avoid it if possible -Because of an inherent dislike of work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organized objectives -The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all
Theory Y
-Average human is intrinsically motivated to do well at work and seek additional responsibility -The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work -The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely (NOT narrowly) distributed in the population
What was found via the Hawthorne Studies?
-Brighter lights lead to increased productivity -Having cubicles set up increases productivity
3 Dimensions fo the Global Mindset
-Cognitive Dimension -Psychological Dimension -Social Dimension
Visible Level of Corporate Culture
-Culture that can be seen at the surface level -Artifacts, such as dress, office layout, symbols, slogans, ceremonies
Task Environment Factors
-Customers -Competitors -Suppliers -Labor Market
Invisible Level of Corporate Culture
-Deeper values and shared understandings held by organization members -Underlying assumptions and deep beliefs, such as "people here care about one another like a family"
What are the contributions of scientific management?
-Demonstrated the importance of compensation for performance -Initiated the careful study of tasks and jobs -Demonstrated the importance of personnel selection and training
What is the general approach of Scientific Management?
-Developing standard methods for performing each job -Selecting workers with appropriate abilities for each job -Training workers by planning their work and eliminating interruptions -Providing wage incentives to workers fro increased output
What are some criticisms of scientific management?
-Did not appreciate the higher needs of workers -Did not acknowledge variance among individuals -Tended to regard workers are uninformed and ignored their ideas and suggestions
Today's Effective Manager Does What?
-Does more with less -Engages employees' hearts, minds, and energy -Inspires vision and cultural values that allow people to create a collaborative and productive workplace
Classical Perspective
-Emerged during the 19th and early 20th centuries during the rise of the factory system -Large complex organizations required new approaches to coordination and control
Internal Environment Factors
-Employees -Culture -Management
What terms/theories (2) did Mary Parker Follett and Chester Barnard create?
-Empowerment -Acceptance Theory of Authority
In the international dimension, what must managers consider?
-Events originating in foreign countries -New opportunities for U.S. companies in other countries -New competitors, suppliers, and customers -New technological, social, and economic trends
Task Environment
-Factors that affect organizations directly -The sectors that conduct day-to-day transactions with the organization
Types of Managers in the Horizontal Structure
-General Managers -Functional Managers -Project Managers -Line Managers -Staff Managers
What did USMCA establish tougher rules on?
-Labor and environmental standards -New provisions for e-commerce and information technology
Characteristics of a Multinational Corporations
-Managed as integrated worldwide business systems -Controlled by a single management authority -Regard the entire world as one market
World Trade Organization (WTO)
-Maturation of GATT into permanent global institute -164 member countries by July 2016
Name each of Hofstede's Value Dimensions (5)
-Power Distance -Uncertainty Avoidance -Masculinity/Femininity -Fifth Dimension Developed Later
Impacts of technology on the general environment
-Products/services produced -Process by which product/service is produced
What is the emphasis from the human resources perspective?
-Satisfied workers produce more work -Allows workers to use their full potential by shifting emphasis to workers' daily lives and combining job design and motivation
Characteristics of managers day-to-day (3 Things)
-Work at unrelenting pace -Interrupted constantly -Ad hoc meetings
Assumptions of Theory X and Y
-Workers need to be adjusted based on the work -Assumptions about a manager from their employees
Maslow's Hierarchy of Needs (lowest to highest)
1. Physiological (survival; Food, clothes and shelter) 2. Safety (job security) 3. Love and Belonging Needs (friendship) 4. Esteem 5. Self-Actualization
Fayol's 5 Functions of Management
1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling
What are the 4 Functions of Management?
1. Planning 2. Organizing 3. Leading 4. Controlling
Four Subfields of the Classical Perspective
1. Scientific Management 2. Bureaucratic Management 3. Administrative Principles 4. Management Science
What Do Managers Do? (5 Things)
1. Set Objectives 2. Organize 3. Motivate and Communicate 4. Measure 5. Develop People
What are the 3 forces that affect management practices and perspectives?
1. Social forces 2. Political forces 3. Economic forces
3 Categories of Management Skills
1. Technical 2. Human 3. Conceptual
Structure of Vertical Management (Top to Bottom)
1. Top Level Management 2. Middle Level Mangers 3. Lower Level Managers
Faylor's 14 Principles of Management (Only need to know 4)
1. Unity of command 2. Division of work 3. Unity of direction 4. Scalar chain
Gantt Chart
A bar graph that measures planned and completed work
Joint Venture
A company shares costs and risk with another firm, typically in the host country, to develop new products, build a manufacturing facility, or set up sales a distribution network
The Factory System
A new way of making products that began during the industrial revolution. The factory system used powered machinery, division of labor, and unskilled workers in a centralized workplace to mass-produce products
What is the relationship between ethical and socially responsible behavior and a firm's financial performance?
A positve, but weak correlation
Ethical Dilemas
A situation where right and wrong cannot be clearly defined, thus there is often no real clear right answer as every alternative has a downside
Global Mindset
Ability of managers to appreciate and influence individuals, groups, and organizations that possess different social, cultural, political, institutional, intellectual, and psychological characteristics
Boundary Spanning
Actions that link to and coordinate the organization with key elements in the external environment
Individualism Approach to Ethical Decisionmaking
Acts are considered moral if they promote the individual's best long-term interests
How do technological advances affect the general environment?
Advances drive competition and help innovative companies gain market shares
Organizing
Assign responsibility for task accomplishment
Management
Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
How are personnel selected and promoted in Bureaucratic Organizations?
Based on technical qualifications
Distributive Justice
Bases decisions on prevailing standards, society, and all stakeholders
Practical Approach to Ethical Decisionmaking
Bases decisions on prevailing standards, society, and all stakeholders
Free Choice
Behavior not covered by law and for which an individual has complete freedom
Scalar Chain
Chain of command through an organization
What does the Internet of Things change?
Changes the way we communicate
Ethics
Code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong
Motivate and Communicate
Create teamwork via decisions on pay, promotions, etc., and through communication
Organize
Divide work into manageable activities and select people to accomplish tasks
What is the main criticism of scientific management?
Does not take into account the social context of work
Unity of command
Each person reports ot only one person
Define the Economic Factor of the General Environment
Economic health of the country/region in which the organization operates
What does the Internet of Things increase?
Efficiency
Radical Decentralization
Employees have authority to make key decisions about their work, eliminating much of hierarchical reporting
Global Outsourcing
Engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies
Set Objectives
Establish goals for the group and decide what must be done to achieve them
Future Orientation
Extent to which a society encourages planning for the future over short-term results
Assertiveness
Extent to which a society encourages toughness, assertiveness, and competitiveness
Gender Differentiation
Extent to which a society maximizes gender role differences
Humane Orientation
Extent to which a society places emphasis on performance and rewards people for improvement
Performance Orientation
Extent to which a society places emphasis on performance and rewards people for improvement
Empowerment
Facilitating instead of controlling employees
General Environment
Factors that affect organizations indirectly
Hero
Figure who exemplifies the deeds, character, and attributes of a strong corporate culture
Hofstede's Value Dimsenions
Four (or 5?) dimensions of national value systems that influence organizational and employee working relationships
Who is likely to have observed people working in an attempt to find a more efficient way of performing the job?
Frederick Taylor
Sociocultural Characteristics
Geographical distribution, population density, age and education levels
Max Weber
German Theorist who introduced the concepts of bureaucratic organizations
What does globalization lead to?
Leads to increasing interdependence among countries, businesses, and people
What is one of the greatest challenges new managers face?
Learning to manage time effectively
How long do managers spend on individual activities?
Less than 9 minutes
Power Distance
Level of acceptance of inequality in power among institutions, organizations, and people
Charles Clinton Spaulding
Major contributor to the administrative principles of management who outlined 8 fundamental neccesities for organizations
What did Frederick Winslow Taylor's study find?
Management decisions should be based on precise procedures
How do bureaucratic organizations see managers using their power?
Managers in a bureaucratic organization should use their power instead of personality to delegate
Big Data Analyitics
Managers must determine what method will work in every new situation
What must managers determine based on contigency view?
Managers must determine what method will work in every new situation
What must managers identify based on contingency view?
Managers must determine what method will work in every new situation
Collectivism
Preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests
Masculinity
Preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success
What was work like before the factory system?
Products were made one at time by individual workers. The work was generally performed at a small workshop or at home. As machinery became larger and more expensive, factories were formed
Serving the Bottom of the Pyramid
Proposes that corporations can alleviate poverty and other social ills as well as make significant profits by selling to the world's poorest people
Multinational Corporation
Receives more than 25% of its total sales revenues from operations outside parent's home country
Develop People
Recognize the value of employees and develop this critical organizational asset
What do bureaucratic organizations depend on?
Riles and records
Procedural Justice
Rules must be administered fairly
What is Big Data Analyitics a descendant of?
Scientific management and recent iteration of quantitative approach
Planning
Select goals and ways to attain them
System
Set of interrelated parts that function as a whole to achieve a common purpose
Corporate Culture
Set of key values, beliefs, understandings, and norms shared by members of an organization
Measure
Set targets and standards; appraise performance
Exporting
Strategy in which the corporation maintains its production facilities within their home nation and ships its products for sale in foreign countries
What did Peter Drucker Teach?
Successful leaders should put people and ethics first rather than focusing entirely on profits and rigid rules and work structures
Organizational Ecosystem
System formed by the interaction among a community of organizations in the environment
Two levels of External Organizational Environment
Task Environment and General Environment
Artificial Intelligence
Techniques by which computer systems learn, communicate, and make decisions similar to or better than human beings can Does the work that humans find unsatisfying
What did McGregor formulate?
Theory X and Theory Y regarding workers' motivation
Is radical decentralization based on theory X or theory Y?
Theory Y
What Rules and Procedures are Mangers Subject to in Bureaucratic Organizations?
They are subject ot rules and procedures that will ensure reliable, predictable behavior
What happens to the application of management skills as managers move up the hierarchy?
They change
What hierarchy levels did factory workers achieve?
They got food, shelter, and clothing, so level 1-3, but nothing higher
What is the central idea of nudge management?
To indirectly influence individuals without taking freedom of choice
Ethnocentric Companies
place emphasis on their home countries
When do employees flourish based on radical decentralization?
when given more responsibility and control over their own work
What did Frederick Winslow Taylor propose?
workers "could be retooled like machines"
Geocentric Companies
world oriented and favor no specific country