MGMT 3001 Final Exam

What are some of the key regulations that human resources must manage compliance with?

Age Discrimination in Employment Act: protects employees from any form of inequality at work based on age (for example: neglect and discrimination of older employees because of younger ones, etc.) Americans with Disabilities Act: protects employees with certain disorders and disruptions from inequalities at work. Fair Labor Standards Act: refers to the rights of employees in the field of payment, employment, overtime work, and the like. Family and Medical Leave Act: is a law that allows employees to be absent from work for 12 weeks (unpaid) due to health problems of their own or a family member. National Labor Relations Act: gives employees the right to choose and protects them from employer misconduct. It also allows organizing unions where they don't exist. Worker Adjustment and Retraining Notification Act: a law requiring employers that if they plan a mass layoff or closure, they must notify employees 60 days in advance

What are ways to classify and describe how industries and organizations fit and do not fit with their external environments?

Digital technologies and artificial intelligence (AI): provide numerous opportunities for current and future companies in terms of facilitating and accelerating operations, but also pose a challenge for companies to always apply the latest trends and include the possibility of abuse (hacking, system crashes, blocking, etc.) Blockchain technologies: imply a "set" of technologies, which contains records of all transactions performed by users. These technologies will change the way all business processes work. Sharing-economy cultural and economic value-added business models: involve the use of technology to create business models, which can create a competitive advantage for many but also a challenge for those who do not fit in. Shifts in learning and learning credentials: As the costs of higher education increase, and companies increasingly demand highly educated employees (especially in the IT sector), this will create challenges for both students who cannot afford education and for companies due to the shortage of highly educated employees. Ethics, corporate social responsibility (CSR), and sustainability: rules, orders, cultures, law, and others are increasingly influenced by constant change. This worsens relations in the organization because it is increasingly difficult to establish universal rules.

Why do managers use strategic analysis?

Strategic analysis: is the process of analyzing the internal and external characteristics of a company. Strategy implies directing the company's business direction. In order to determine that "direction" accurately and correctly, it is necessary to prepare in advance by collecting all the necessary information. This is exactly the role of strategic analysis - scanning the external and internal environment of the company, in order to determine the strategy as precisely as possible.

How does strategic analysis help a firm develop its own strategic position? Why should that position be unique?

Strategy implies directing the company's business direction. In order to determine that "direction" accurately and correctly, it is necessary to prepare in advance by collecting all the necessary information. This is exactly the role of strategic analysis - scanning the external and internal environment of the company, in order to determine the strategy as precisely as possible. The strategy should be unique because that is how every company operates. Each one has specific requirements, conditions, resources and activities to which it is necessary to adapt the strategy - that will best suit.

Describe the three levels of strategy and what a manager developing strategy at each level is concerned with.

1. Business-Level Strategy: is determined by the top managers of the company, and it implies the definition of activities by which the business goals are to be achieved (after determining the goals, the business-level strategy describes their realization). This strategy is applied in smaller companies with a single product or product line. 2. Corporate Level Strategy: implies defining broad goals such as growth, development, expansion or reduction of business. This es.strategy is applied in larger compani 3. International Strategy: like Corporate Level Strategy implies "big goals" and here they concern business in the international market. This strategy is used in large companies that operate internationally.

What are some best practices for recruiting new leadership candidates?

1. Develop the pool: collecting contacts about persons whose characteristics could correspond to the position 2. Assess the candidates: interview, question, and evaluate them together with a team of other managers. 3. Close the deal: it implies the final step or employment of the candidate, and in this phase it is important to monitor his first working months and his ability to fit and cope with new circumstances. 4. Integrate the new comer: providing support, introducing the employee to others, helping to fit into the work culture and the like.

Identify and briefly describe each stage in the planning and controlling processes.

1. Developing awareness of the present 2. Determining outcomes 3. Premising 4. Determining actions 5. Forming plans

There are five types of plans discussed in this chapter, compare and contrast three of these.

1. Goal planning: means setting specific goals (desired future events) and directing activities towards their realization. 2. Domain planning: or direction planning, is, in short, having a vision of a future state, and working on its realization. That domain can be, for example, higher sales, higher profits, a wider market, and the like - so, a certain condition, which is not specified. 3. Hybrid planning: is a combination of domain planning and goal planning, ie it starts with extensive domain planning, and later adapts to goal planning.

What are the four "waves" of the human resource management evolution?

1. HR administration: at this stage, HR was mainly based on formal task allocations, administration, regular activities and the like. 2. HR practices: this is the second phase in which HR focused on finding solutions to improve HR practices through communication, understanding, socialization and the like. 3. HR strategies: implies the integration of HR with the overall strategy of the organization, ie understanding the importance of HR for achieving the goals of the entire organization. 4. HR outside in: implies the understanding of HR as an extremely important business factor and as a basis for gaining a competitive advantage.

Describe the steps of a talent review session.

1. Identification of the "high-potential" employees; 2. Definition of development actions/action plans for each employee; 3. Insight into talent gaps; 4. Input into the succession planning process.

What are generic competitive strategies, and how are they implemented in a firm's value chain activities?

A company can take three strategies to gain advantages: Cost Leadership - this is a strategy by which the company wants to attract clients by offering cheaper prices, i.e. by reducing its own costs. Differentiation - is a strategy by which the company wants to attract clients by offering a product/service that is different from others or that does not exist among others. Focus - the company wants to gain the advantage and sympathy of a narrow audience of clients on which it has focused.

What are the main process steps for implementing pay for performance?

1. defining the philosophy of the organization; 2. assessing the financial effects of the pay for performance strategy; 3. finding shortcomings in the current payment process; 4. updating compensation processes with the new pay process; 5. adjusting employees to the new payment process.

What are some of the challenges that multicultural teams face?

1. difficulty of understanding; 2. difficulty in communication; 3. excessive differences in working methods; 4. conflicts over diversity; 5. inability to work together and the like.

Why are diverse teams better at decision-making and problem-solving?

1. greater creativity; 2. variety of solutions; 3. different perspectives; 4. variations of working methods; Diverse people also mean diverse ideas, attitudes, opinions, solutions, and decisions. The main advantage of diversity in each segment is the wider range of ideas offered. Hence the link between diversity and innovation ( for decision-making and problem-solving).

What can cause a team to digress to an earlier stage of team development?

1. joining a new member of the team - previously unknown, who needs to be re-introduced to the procedures as well as to other members; 2. introduction of a new project - any change in work goals, methods and procedures can lead to confusion of members and thus difficulties in the work.

What do strategic group members have in common with each other? What impact do firms outside a strategic group have on those in that group?

A strategic group is a set of firms that share the same/similar strategy. Members within the same strategic group are closely related. Decisions made by one member of the group affect all the other Members outside the strategic group do not have an exceptional effect on the strategic group, as much as members within it do on each other.

When does a firm have a competitive advantage over its rivals?

Competition can arise between companies of the same activity that intend to attract the same group of clients. Competition is often a positive "pusher" for companies, which, to overtake each other, undertake activities that will improve them. The company can gain an advantage in three ways: - having lower expenses; - by differentiating its services and products; - by focusing on a smaller market segment.

How does managing conflict help a team learn and grow?

Conflicts are disagreements between individuals due to different opinions. Conflicts are a determinant of positive progress, and in order to realize the benefits they bring, their proper management is important.

How does the desire for personal control affect managers, and how can they balance it with organizational control systems?

Control systems: are a set of procedures for checking, detecting and controlling the accuracy of work activities.

What are country clusters? Pick any three clusters and discuss some of the leadership preferences for each cluster.

Country clusters include the countries that have similar work environment cultures, which are usually those that are near one another. The Confucian Asia cluster differs from that, as the people there mostly prefer team-oriented managers that can inspire and lead functional teams. Humane-oriented and self-protective managers are also respected there, as they fit well into the culture. The managerial type that is the least favorite of people there is the participative one, as most Asians prefer to work as teams with a clear hierarchy, which means that those at the top make decisions without involving those at the bottom. Lastly, the Middle East cluster is completely different from both of these clusters. There, the self-protective and autonomous managers are preferred the most, as the culture there has a high masculinity rate and accepts the power inequality easily. People there do not care for managers that are charismatic, team-oriented, nor participative.

What are the key sources of cultural intelligence?

Cultural Intelligence: is the skill of accepting, understanding and respecting cultural diversity. Head: refers to the acquisition of theoretical knowledge about cultural diversity. Body: refers to understanding the meaning of body movements specific to different cultures - greetings, eye contact, bowing and the like (which is specific to each culture). Heart: means developing one's own feelings and awareness of the importance of each culture individually and respecting the diversity of cultures.

Distinguish between cybernetic and noncybernetic control and between pre, concurrent, and postaction control systems.

Cybernetic:are control systems that automatically perform self-monitoring and detect possible errors. Noncybernetic: are control systems that are not directly related to the system, but error detection and control is performed from external sources (eg special department). Precontrol: represents the control of the procedures before their beginning (to avoid errors). Concurrent: involve control during a certain procedure. Postaction: involve checking and detecting errors after a procedure is completed.

Why do diverse teams utilize data more often than homogeneous teams?

Diversity teams use facts to avoid the occurrence of so-called groupthink, a phenomenon in which all members think similarly or the same. The goal of diversity is to achieve broader, more numerous, and more diverse ideas, so members in such groups try to think rationally, and focus on facts without influencing the opinions of other members. Groupthink is a very common occurrence, and it is a situation where members, out of fear, reluctance, or insecurity, do not want to offer their unique opinion but fit into the opinion of the majority (which is a common situation in homogeneous teams).

What are some advantages and disadvantages of divisional structures?

Divisional structure is a form of structure where work is organized into divisions, within each division there are individually organized roles (marketing, accounting, HR, and others). This form of organization works well for companies with several products sold in different ways and groups of customers (which is why they require specially organized roles).

What are the various means available to companies to go international? When is an exporting strategy most appropriate?

Exporting is one way through which a company can become global. Exporting is relatively similar to filling orders for the domestic market, the only difference is that the order is sent to another country and is thus exported. Almost every company strives to become global and international, and exporting is one of the easiest ways to do it. Also, because of how easy it is, there is no particular time at which exporting is the most appropriate. Perhaps it can be said that it is best used as the first strategy in an attempt to become international because it does not take too much experience to do so. Another way in which a company might become global is through a strategic alliance. A strategic alliance means that two or more companies from different countries have entered a business agreement in which usually one of them is aiming to enter the market of the other. This way, entering a foreign market is easier as it is done through an already established infrastructure. Also, strategic alliances offer a way of manipulating through local laws and barriers, as the company entering the market is not seen as foreign but as domestic. Usually, all parties that have entered the alliance have some profit from it. Those that are expanding often seek new ventures and markets, while the others often gain the much-needed influx of cash or improved technology. Lastly, we have foreign direct investments. When the disadvantages of strategic alliances become too much to bear, some companies expand through foreign direct investments. This mostly means that they invest in the facilities of a company from a different country, gaining influence on that country's market through that company. This can be done through mergers or acquisitions, in which one company completely acquires another. Foreign direct investments are often appealing to companies because they can claim to the customers from different countries that they are selling them products that were domestically made, as they were made by the company they acquired.

What are some of the unintended consequences of a forced ranking system?

Forced ranking system involves assessing employees and ranking them from best to worst. 1. jealousy and conflicts between members; 2. a sense of inferiority of some members; 3. guilt; 4. demotivation and unwillingness to progress; 5. negative attitude towards work; 6. rebellion due to potential negative ratings and the like.

What are some advantages and disadvantages of functional structures?

Functional structure is among the first emerging organizational structures and comes down to the distribution according to functions (marketing, accounting, HR, etc.), skills, and work abilities. The advantages of this structure are: - clear division of tasks; - high specialization; - not "mixing" tasks; - reliability in performing tasks; - clarity of tasks. The disadvantages: - non-coordination between departments; - unrelated operations of departments; - high formality; - restraining creativity, participation, and involvement in decision making.

What advantages do geographic structures have compared to a functional structure?

Geographic structure represents an expansion of the divisional structure, where departments are organized according to the geographical distribution of customers, and all-important functions take place within departments. In the geographic structure, the adjustment to the differences of the market is achieved, which is more difficult to achieve with the functional structure.

What is a global strategy? When do companies prefer a global strategy?

Global strategy by definition would mean that a certain company is managed almost the same wherever its operations in the world might be, making its operations very similar in all parts of the world it had extended to. Reasons why companies do this include cost reduction and more profit.

Compare and contrast a global, regional, and local strategy. Discuss some advantages and disadvantages of each method.

Global strategy by definition would mean that a certain company is managed almost the same wherever its operations in the world might be, making its operations very similar in all parts of the world it had extended to. Regional strategies: When adopting a regional strategy, a company can expand around the world just as it would in a global strategy. The main difference between the two concepts is that global strategies also mean globally standardized operations, while regional strategies often adapt differently to certain regions by establishing headquarters that can be fairly independent when conducting business for the region they are in. To be able to do so correctly, a company again needs thorough research which is supposed to help it decide which areas to group as regions based on which characteristics. However, the same as with global strategies, if this research is done properly, those differences in each market can be used to the company's advantage and a lot of profit can be turned from it. Local strategies: Again, the fact that it is called local does not mean that a company adopting it cannot expand into several markets around the world. However, it does mean that the focus will be on each market that it has expanded to individually. This is done because certain national markets are very specific and the people active in this market differ from others in terms of their habits and preferences. In those cases, customizing a product or a service according to the national values of a market can be very attractive to customers.

Why are good goals important to the planning process?

Goals are desired future events and conditions. Goals are future orientations, but as such, they are not sufficient to guide success. Goals must be precisely, clearly, and concretely defined, for their realization to lead to success. The aforementioned Smart principle is what sets good goals apart from others. Therefore, essentially defining good goals is the basis for their realization and the realization of their benefits.

Give an example for why a firm would pursue each of the three grand strategies.

Grand strategy is a broad definition of the company's actions - that is, answering questions about whether the company wants to grow, maintain the current state, or stagnate in the market. 1. The growth strategy: it implies defining activities for the sake of progress and expansion concerning the current state of the company. 2. The stability strategy: it implies defining activities for the sake of maintaining the company's current position. 3. The defensive strategy: it implies defining activities to reduce and lower the company's market activities.

Briefly describe the main cultural dimensions of Hofstede's framework. Where does the U.S. stand on each of the dimensions?

Hofstede's Framework: Hofstede created a cultural framework that is supposed to help multinational businesses adapt to the different cultures around the globe. Hofstede realized that not all cultures have the same approach to work, so to reduce the miscommunication that might occur when two opposite cultures work together, he ranked most countries according to their approach to certain cultural aspects. The main variables covered by him included power distance, individualism, uncertainty avoidance, and masculinity. The U.S has a low power distance, which means that people of the U.S. do not just easily accept that someone is more powerful and influential than them. It ranks high in individualism, meaning that U.S. society appreciates someone for their personal accomplishments, not just because they are a part of a successful group. Also, it ranks low on the uncertainty avoidance scale, as people there prefer their workplace to be a stable place, without many risks and surprises, with rules and procedures covering every possible situation. Lastly, it ranks high in the masculinity aspect of its culture, which means that personal success and the accumulation of wealth play an important role in U.S. society.

Why have functional structures been criticized for not accommodating new changes in the environment?

In general, the negativity of this structure that is most often emphasized is that it is not flexible and that it involves high formality, which very often doesn't allow mutual interaction between departments, and thus interaction with the external environment. All this affects the ability to identify external changes.

What is an industry, and how do Porter's Five Forces help a manager trying to understand a firm's industry environment?

Industry is a group of several companies engaged in the same activities (products and services). Porters Five Forces Include: 1. Supplier power 2. Buyer power 3. Threat of substitution 4. Threat of entry 5. Competitive rivalry

Compare and contrast low-rigor versus high-rigor cross-cultural training. Provide some examples of each type of training.

Low rigor cultural training: low rigor kind of training exposes people to a lot of information about the culture they are studying. However, they will not engage it directly in this type of training. Here, employees will learn from books and be given lectures, which will be the way they can learn about the culture they need to adapt to. This type of training is much cheaper and easier to conduct, but it does not offer a hands-on experience which might leave people a little unprepared for when they actually arrive in the new culture. Examples of this type of training might include cross-cultural management courses and even taking a semester to study abroad. High rigor cultural training: high rigor training does offer first-hand experience and can often prepare the participants better for what awaits them in new cultures, but is often more time-consuming and more expensive to conduct. This way, employees will actually be involved with examples of a different culture through language courses, case studies, or sensitivity training, which will later translate better into what they might expect abroad. Other examples of high rigid training include role-playing, field experiences, and even simulations, which means that participants will not only get theoretical knowledge as they do in low rigid training.

Describe the MBO process, the philosophy behind it, and its relationship with performance.

Management by objectives is a theory of control and planning, which is based on a detailed analysis of employee behavior and their impact on business performance

What purposes does an organization's culture serve when considering the external environment?

Many believe that culture is more important than strategy when it comes to achieving goals. Because culture implies a set of customs, beliefs, and attitudes shared by members, it is these characteristics that are key to making any decisions. When it comes to the impact of culture when considering the external environment, it is: the way in which members of an organization work together (their cultural values) affects how they will understand threats and opportunities from the environment and whether they will react accordingly.

What are some strategies to make conflict more productive?

Mining: is a technique that obliges one team member to point out a particular cause of conflict (a sensitive topic), to bring it to light, and thus cause it to be resolved. Real-time permission: is a technique that emphasizes to members who are in conflict, that their conflict is beneficial for business. This permits members and emphasizes the benefits of conflict to motivate them to draw positive ideas from it.

What does a mission statement explain about a firm that a vision statement does not?

Mission statement: the company's business philosophy. Vision statement: is the goal of the organization in the future - what the organization strives for. The vision does not show how the company will achieve its defined goals (it does not show the strategy), but simply offers a wider view of the company's goals. The mission, on the other hand, is more detailed and precise, because it explains how the company will achieve its vision and goals.

What major trends discussed at the end of this chapter are different from previous external environments and the ways organizations were organized?

Modern trends concern: - persistent inequality and unfairness, - domestic and international political tensions, - environmental dangers, - cyber vulnerabilities, - sustainability, etc. Compared to history, where the biggest focus was on people, their productivity, and finding solutions to motivate them to achieve the best performance, today's trends are significantly different. Today, technology greatly changes the human factor (which still remains important), and the turbulent environment creates the need for companies to constantly adjust by monitoring and adapting to constant changes in the environment.

What are multiple goals? What is a goal hierarchy? How are these concepts related?

Multiple goals: are various goals that, according to the scholar Peter Drucker, every company should strive to achieve at the same time. Goal hierarchy: means arranging goals so that some have primacy over others.

Briefly describe the two views of the goal formulation process, and explain how they differ.

Office goals: are the goals that the company presents to the public, ie how it wants the public to see it. For example: ''the first choice in interior construction''. Operational goals: are goals within the company, which managers keep among themselves and which serve to achieve specific visions. For example:''increase sales by 10%.''

What are some major differences between organic and mechanistic organizational structures and systems?

Organic organizational structure is an informal and decentralized labor organization, which promotes freedom and participation. Mechanistic organizational structure is a formal and centralized labor organization, which includes strict rules and procedures.

Describe a firm's macro environment and how managers use PESTEL to understand it.

PESTEL: Political, Economic, Sociological, Technological, Environmental, and Legal

Why are many companies interested in moving to a pay-for-performance strategy?

Pay-for-performance strategy is an organization's policy to gain a competitive advantage by offering different salaries (in relation to the competition) based on employee performance. So, with this strategy, a company wants to motivate its employees by rewarding them with additional payment for successful performances.

Why is performance measurement often the start of new strategy development?

Performance evaluation implies performance assessment, by comparing them with previously set performance standards. We can see that by evaluating performance, depending on their success/failure, we can get direction for future action (start a new strategy).

What is the difference between performance and potential?

Performance: is the success of accomplishing a task. Potential: is a set of characteristics of a person that make him "capable" for future tasks.

At what stage of team development does the team finally start to see results?

Performing stage: this is the final and essential phase, where the whole story turns into action, that is, where the work is finally realized.

Define managerial planning and controlling.

Planning: goals and actions, procedures, and activities to achieve those goals. Controlling: monitoring, evaluation, and assessment.

How can you tell if a candidate has potential?

Potential: a set of characteristics of a person that make him "capable" of future tasks. Having the ability to perform The positive characteristics of a candidate are: 1. work experience in the same or similar jobs; 2. sharing the same values and norms; 3. respect, courtesy, and modesty; 4. knowledge of the company's needs; 5. understanding the company's business; 6. ambition and clarity of goals; 7. desire for progress, motivation, and the like.

What is power distance? What are the implications of power distance for how management is conducted in different societies?

Power distance: is one of the variables used in Hofstede's framework of national cultures which he created to show the differences between working cultures around the world. Power distance implications: countries with low power distance are those that do not lightly accept power inequality. There, all people are treated as equals from the start, and only those with greater personal experience and skill can be treated differently. In other words, only those that deserve more power actually get it.

What are some disadvantages in working in a matrix structure and why?

Power struggles arise for the following reason: since in this structure, the responsibility for certain departments have both managers of these departments and project managers, inconsistencies can be created between their goals, aspirations, work procedures, and the like, which can create problems and alleged power struggles. Accountability reduction arises due to the following reason: Employees can only hold managers accountable for their actions, and not accept responsibility. It also happens that they blame others if things don't go according to plan (due to not accepting responsibility).

What is predeparture cross-cultural training? What is postarrival cross-cultural training? Which method works best and why?

Predeparture cross cultural training: usually lasts between one and twelve weeks, even though those lasting just a couple of days are also becoming popular. By taking predeparture training, the person leaving will be taught things they need to know about the culture they are arriving in, which allows them to know more about what to expect when they get there and to manage all cultural shocks they might have experienced otherwise. This type of training also reduces their anxiety about leaving, as it reduces the unknown aspect of their trip. On the other hand, postarrival training helps the person that had already left address all issues they might experience in real-time. This allows them to focus more on the work-related issues, and not so much on the daily ones. Postarrival cross cultral training: gives better results for the people leaving for international assignments. Both types of training are beneficial and all of their aspects help people to adjust to life in a different culture much more easily. However, postarrival training is more beneficial, as it teaches people about the things they have already experienced to a degree, which allows them to better understand them. But, since this type of training is more costly and difficult to manage, companies usually choose predeparture training. It is also important to note that to get the best possible results, studies show that it is best to mix multiple types of training, which is no surprise.

How is a product structure one type of a divisional structure? Explain.

Product structure involves the division of departments in the company based on different products. In some companies, it is necessary to divide departments due to the variety of products that the company offers.

What are firm resources and capabilities, and what information does VRIO provide about them?

Resources refer to the "property" of a company, i.e. - people, capital, building, material, and the like. So everything that the company has and needs to work. Capabilities are all the capacities, abilities and possibilities of the company to achieve its goals. VRIO is simply said, a tool used to assess the quality of company resources and activities. So by using VRIO, which is based on a detailed assessment of factors such as value, rarity, imitability, and organization

What information does a SWOT analysis provide managers? What information might it miss?

SWOT analysis: involves the analysis and assessment of the company's internal and external environment, through the identification of its internal: strengths and weaknesses and external: opportunities and threats. The negatives are that it does not provide enough information, the SWOT analysis is only a general framework of important characteristics, but does not go into the depth of those characteristics. Therefore, we can say that the main disadvantage is the non-specificity of the information obtained.

What are the strategic planning time frames? How do they work together?

Short term plans: are those that can be completed in less than a year Long terms plans: take more than a year What is important to emphasize is that these time frames created by companies are not always precise and often exceed the deadline or are completed before it.

What can a team leader do to manage the team's boundaries?

Team boundaries arise due to the influence of external factors on the team. A team leader can build good relations with both internal and external members and balance them in the best direction.

What are the key differences between a team and a working group?

Team: a group made up of members with individual responsibilities to achieve a specific goal. Working group: is a cohesive group of people who are organized to work with each other to achieve common purposes and goals.

Explain how several current environmental forces are affecting and will affect organizations and organizational structures' effectiveness and efficiency in the near future?

Technological forces: include all those influences concerning technological innovations, new working methods, prices of technology, rules on the use of technology and the like. Sociocultural forces: include all influences concerning people and their preferences and desires, culture, consumer behavior, trends and the like. Government and political forces: mean the impact of legislation and changes in the law on business. Natural disasters and human-induced problems: are impacts of natural phenomena, pollution, climate change and the like. Economic forces: impacts such as employment levels, competition, consumer basket, average wages and the like. Digital technologies and artificial intelligence (AI): provide numerous opportunities for current and future companies in terms of facilitating and accelerating operations, but also pose a challenge for companies to always apply the latest trends and include the possibility of abuse (hacking, system crashes, blocking, etc.) Blockchain technologies: imply a "set" of technologies, which contains records of all transactions performed by users. These technologies will change the way all business processes work. Sharing-economy cultural and economic value-added business models: involve the use of technology to create business models, which can create a competitive advantage for many but also a challenge for those who do not fit in. Shifts in learning and learning credentials: As the costs of higher education increase, and companies increasingly demand highly educated employees (especially in the IT sector), this will create challenges for both students who cannot afford education and for companies due to the shortage of highly educated employees. Ethics, corporate social responsibility (CSR), and sustainability: rules, orders, cultures, law, and others are increasingly influenced by constant change. This worsens relations in the organization because it is increasingly difficult to establish universal rules.

What advantages do matrix structures have compared to functional structures?

The advantage of the matrix structure over the functional one is that it is essentially an expanded and adapted functional structure. In addition to the benefits provided by the functional structure (which are contained in the matrix structure), the matrix structure also has additional elements of project control. All this indicates that this structure is more flexible, controllable and detailed than functional.

What are some of the performance management challenges that must be addressed, no matter what the system?

The biggest challenge of this concept is to create a basis for performance evaluation that encourages employees to be efficient and that does not create a burden on business. Thus, the essence is to find an adequate level of performance assessment that does not endanger business and that controls employees in a dosed manner.

Discuss the relationship between the two managerial functions of planning and controlling.

The connection between these two concepts is that in the planning process, the desired conditions of the future are established. These conditions and the efficiency of their realization are monitored in controlling. In the planning process, current and desired conditions are defined, and this is the basis for controlling - that the efficiency of achieving desired conditions is assessed by comparison with the current ones.

What actions can help a firm grow?

The growth strategy Activities that can make a company grow are: - improve relations with customers, - improve customer service, - offer a more advanced product/service compared to - - competitors, - regularly monitor and evaluate results, - identify new opportunities, - provide innovation, - expand partnerships, - expand business internationally and many others.

What is a firm's micro environment, and why is it important?

The micro (environment) factors are factors directly related to the company (immediate factors) that closely affect its operation and success. These factors include: Customers; Competitors; Intermediaries; Suppliers.

What are issues that working in a networked team structure present?

The network team structure is a type of informal connection (via network) of members for the purpose of performing tasks. The disadvantages of this approach are related to: - Difficulties in communication (due to different conditions and positions of employees); - Internet interference (which can occur frequently and on which the entire business depends); - Impossibility of a live meeting (due to the wide distribution of employees)

What managerial skills and actions are included in the planning process?

The three levels of planning are: 1. Strategic planning, 2. Tactical planning, 3. Operational planning. The planning process consists of the following activities: Setting goals - defining the desired path. Designing a plan - finding the best way to achieve goals. Implementing a plan - realization of previously prepared activities. Reviewing results - comparison of achieved results with previously set standards and goals. Skills important for planning concern: - Organizational skills, - Leadership and HR skills, - Risk management skills, - Conceptual skills, - Analytical skills, - Effective time management skills, - Reasoning skills, and similar.

In what ways is a virtual organization and structure different from the other ones discussed in the chapter?

Virtual structure arose as a consequence of the specificity of all previous structures, in order to avoid the shortcomings they had. This is a flexible, simpler, and more modern structure that offers numerous reliefs compared to others.

Why is international management a critical area that all management students should be aware of?

it is because of globalization. In other words, it is because countries of the world are becoming better connected both in terms of travel and communication, which allows companies to conduct business in different parts of the world at the same time. Companies about a century ago needed to be mostly focused on their domestic markets, as others would be unreachable both because of the difficulty of such a process and its costs. Now, however, companies are virtually encouraged to exploit other markets, as most barriers that used to be in place to prevent this were removed.