V236 Exam 1

quotas

Sets a limit on the number or volume of a product that can be imported or exported during a set period.

What does SHRM stand for?

Society for Human Resource Management

Ethical CSR

Corporate Social Responsibility: to be benevolent, ethical, and legal

Trade Wars

Countries impose tariffs or other restrictions on goods from another nation to eliminate trade deficit

Three types of Managerial Skills

Technical Skills: ability to use methods and techniques to perform a task (hard skills) Interpersonal Skills: human or people skills, as well as soft skills. Decision-Making Skills: ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities.

World Trade Organization (WTO)

Dedicated to global free trade. Can order unfair practices to stop or allow the country claiming unfair practices to retaliate

Affirmative Action

Designed to improve work outcomes for underrepresented groups by providing them with extra help in the employment process. Have increased the number of women and minorities in several occupations and management

tariff

Direct tax on imports to make them more expensive.

Explain why diversity is important in organizations. Give an example of how companies can be more diverse and inclusive.

Diversity is important in an organization for a number of reasons. One, because it is reflective of the population within the country. Secondly, hiring diverse employees allows for a new and enriching perspective and enriching within the workplace environment. A company can be more diverse by hiring a wide range of employees with different genders, sexual orientations, races, and/or ethnicities. To be more inclusive, a workplace must consciously accept everyone and their ideas as well as create a welcoming environment for them.

What is IMF and its purpose?

International Monetary Fund: ensures the stability of the international monetary system including all macro and financial sector issues that bear on global stability

international companies

Is based primarily in one country but transacts business in other countries. Example: Ferrari cars are made in Italy and imported for sale by car dealers in other countries.

Kaizen

Japanese term for continuous improvement

Glass Ceiling

The invisible barrier that prevents women and minorities from advancing to the top jobs in organizations

Stereotypes

The mistaken generalization of the perceived characteristics of a diversity group to an individual

Whistle-blower

enforcing ethical behaviors within a company and shouldn't suffer negative consequences

Learning organizations

everyone engaged in identifying and solving problems, enabling change, and continuous improvement. They share knowledge through alliances with other organizations. They have three characteristics: a team-based structure, participative management, and the sharing of information through knowledge management.

Top Managers

executives responsible for the overall direction of the organization (CEO, Pres, VP). spend more time planning and organizing

external factors

factors such as: customers, competition, suppliers, technology, economy, government, society, etc

Abraham Maslow (Behavoralist)

hierarchy of needs theory

Total Quality Management (TQM)

includes everyone in an org focusing on the customer to continually improve product value

System Processes

input-throughput-output, exchange, feedback

Knowledge Management

involves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes.

Sustainability

meeting the needs of the present without compromising the ability of future generations to meet their own needs -triple bottom line (people, profits, and planet)

General Agreement on Tariffs and Trade and what replaced them

minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulation. Replaced by WTO

internal environment

mission, management, and culture, resources, structure, and system process

Sarbanes-Oxley Act of 2002

passed to tighten the laws affecting business ethics. It is not always easy to distinguish between ethical and unethical behavior, such as accepting a gift (ethical) versus taking a bribe (unethical).

Administrative Theory (Henri Fayol)

planning, coordinating, organizing, controlling, and commanding apart from and 14 principles.

first-line managers

responsible for implementing middle managers' operational plans. Report to middle managers. spend more time leading and controlling

Hofstede's National Diversity Dimensions. Next, explain how these work in a global environment.

(1) Power distance inequality versus power equality: Power distance being distributed between levels of management down to employees can be more accepted or rejected as employees want to participate in decision-making. (2) Individual versus collectivism: Individualistic cultures believe people should be self-sufficient, with loyalty to themselves first. Collectivism places the group first. (3) Assertiveness versus nurturing: Assertive cultures are more aggressive and competitive, with a focus on achievement and material possessions, whereas nurturing cultures emphasize the importance of relationships, modesty, caring, and quality of life. (4) Uncertainty avoidance or acceptance: Uncertainty-avoidance cultures like structure and security and are less likely to take risks, whereas uncertainty-acceptance cultures are more comfortable dealing with the unknown and change and taking more risk. (5) Long-term versus short-term orientation: Long-term cultures look to the future and value thrift, whereas short-term cultures focus on the past and present and immediate gratification. Next, students should discuss challenges that exist in a global environment when employees and managers operate out of different value dimensions. For example, if a manager is more individualistically- and assertive-oriented, he or she might be focused on their team winning or beating out the competition so their team looks good and gets incentives. The team members, however, may be collectivist-oriented and worried about the group or company as a whole, making it challenging to focus solely on winning or beating out competition.

Essential skills to succeed in the work place

- soft skills - positive manager-subordinate relationships - gratitude and happiness

Rank the six forms that make a business a global one, in order from lowest to highest cost and risk.

1. global sourcing 2. importing and exporting 3. licensing and franchising 4. contracting 5. strategic alliances and joint ventures 6. direct investments

Scientific Management (Frederick Winslow Taylor)

1. Develop a procedure for each element of a worker's job. 2. Promote job specialization. 3. Select, train, and develop workers scientifically. 4. Plan and schedule work. 5. Establish standard methods and times for each task. 6. Use wage incentives such as piece rates and bonuses.

Four Management Functions

1. Planning 2. Organizing 3. Leading 4. Controlling

prejudice

A negative attitude toward an entire category of people, often an ethnic or racial minority.

not invented here syndrome

A negative attitude toward knowledge/technology/products from other external sources.

Ethnicity

A social trait, such as cultural background, customs, or allegiances, again creating diverse groups

transnational

A type of MNC that eliminates artificial geographical barriers without having a real single national headquarters. Example: IBM changed its structure from a country-based structure to industry groups to transcend boundaries.

Describe the differences between affirmative action, valuing diversity, and inclusion.

Affirmative action refers to policies designed to improve work outcomes for underrepresented groups by providing them with extra help in the employment process. Valuing diversity is broader in scope, as it doesn't focus simply on not discriminating against diverse groups and helping only some of them (sometimes at the expense of others through reverse discrimination). But valuing diversity still has a focus on accepting differences and on helping certain groups. Inclusion is a practice of ensuring that every employee feels they belong as a valued member of the organization. An inclusive value system creates a sense of belonging: a feeling of being respected and of being valued for who you are, feeling a level of supportive energy and commitment from others so that everyone can do their best work.

What does AACSB stand for?

Association to Advance Collegiate Schools of Business

Using your school as an example, describe the four components of the systems process. Be sure to explain where you, the student, fit in the overall process.

At IU, the primary input is the acceptance of qualified students into the university. The transformation is when those students utilize their education to create a path for their career. The outputs in this system process is when students graduate and start entering the workforce. Lastly, the feedback would be the number of employers who hire Indiana University graduates for their company.

What is FCPA and what does it do

Foreign corrupt practices act: Law bars US based/listed companies from bribing foreign officials in exchange for business and requires them to keep accurate books and records

subsidies

Government grants, loans, and tax breaks given to domestic companies.

multinational companies

Has ownership in operations in two or more countries. Partial ownership is through buying stocks in a foreign company or through a strategic alliance.

Managerial Resources, what are they and how are they utilized?

Human Resources: success on any company depends on human capital financial resources: allocation of budget to operate physical resources: making product and resources and keeping equipment in working condition informational resources: need information to set objectives and make decisions

Behavioral Theory (Elton Mayo)

In the 1920s, management writers began to focus from the job itself to the people who perform the job

What are the three levels of organizational culture and what is their relationship to each other?

Level 1: Behavior includes the observable things people do and say or the actions employees take. Heroes, stories, slogans, symbols, rituals, and ceremonies are all part of behavior-level culture. Level 2: Values and Beliefs—Values represent the way people believe they ought to behave. Although organizations use all six artifacts to convey the important values and beliefs, the slogan is critical to level 2 culture. A slogan expresses key values. Level 3: Assumptions are values and beliefs so deeply ingrained they are considered unquestionably true and taken for granted.

What are the four most common business functional areas and what is the basic responsibility of each?

Marketing: responsible for selling and advertising products and services Operations/production: responsible for providing a service/making a product Finance/accounting: responsible for obtaining the necessary funds and investments and for keeping records of sales and expenses and determining profitability Human resources/personnel management: responsible for forecasting future employee needs and for recruiting, selecting, evaluating, and compensating employees

Americans with Disabilities Act

Prohibits discrimination against people with disabilities. Requires companies to make reasonable accommodations so their facilities are accessible to people with disabilities to enable them to perform jobs.

ethnocentrism

Regarding one's own ethnic group or culture as superior to others.

Classical Theory

Scientific management stressed job efficiency through the development of technical skills. Includes Scientific management and administrative theory

Parochialism

Seeing things solely from one's own perspective.

dumping

Sell products in one country at a high profit and sell in another country at a loss with the intention of driving out the competition.

You have been the manager of a popular night club for the past 3 years. The night club industry is highly vulnerable to the external environment. Please select and discuss at least two external factors that you think are most important to this industry.

The three most crucial external factors for the nightclub are the labor force, suppliers, and customers. The labor force is crucial due to the fact they directly affect the environment of the nightclub. Having people who maintain safety, serve customers, and provide a source of entertainment is what keeps a positive relationship with customers. Suppliers are important when it comes to selling goods and services to customers. Lastly, customers drive revenue as long as they feel valued and that their needs are being met.

Douglas McGregor (Behavoralist)

Theory X managers assume people dislike work and that only if managers plan, organize, and closely direct and control their work will workers perform at high levels. Theory Y managers assume people like to work and do not need close supervision

Explain the different skills needed at each of the three management levels and discuss why these skills are needed.

Top-level managers have a greater need for decision-making skills since they are responsible for setting the "big picture" or mission of a company. Middle managers need a balance of decision-making, technical, and interpersonal skills, though the mix required differs somewhat from organization to organization. Middle managers must use more of these skills since they are working with both top managers helping to implement a company's mission and first-line managers who are responsible for implementing alternatives needed to meet a company's objectives. First-line managers have a greater need for technical skills since they are closest to the actual day-to-day operations of a company. At all three levels of management, the need for interpersonal skills remains fairly constant.

embargos

Total ban on the importing of a product from one or more countries.

protectionism

Trade barriers to protect domestic companies and their workers from foreign competition.

Explain the three views of ethics. Next, give a situation in which you would need to implement each.

Utilitarian view states that ethical decisions should be based on creating greater good for society. An example might be when making decisions about using animals for medical testing. You may argue that testing medicine on animals may hurt animals, but the medicine may end up saving the lives of many people. The rights view of ethics states that ethical decisions should respect and protect individual privileges. An example might be an argument that everyone, regardless of sexual orientation, has a right to marry. The justice view of ethics states that ethical decisions should be made to treat everyone fairly and impartially. An example might be that everyone has the right to attend college no matter their background or learning ability.

(glass) Cliff

Women are more likely to be promoted to CEO when the company is struggling and after years of climbing to the top, they are at risk to tumble and not make it back up again to that level if they are fired.

As a new manager, the three functions I will fulfill are planning, organizing, and leading. With planning, I will write down daily objectives and tasks for employees to have completed by the end of the day. These tasks will be organized and assigned to fit those employees' strong suits. Lastly, in terms of leading, I will be sure to adjust daily tasks to the preference of my employees. This works in terms of asking if you prefer to be assigned tasks personally or figuring out another solution to best assign and complete daily objectives,

You have recently been promoted to the position of manager at your business. So far you have been doing nonmanagement tasks, but now you will be called on to fulfill three new managerial functions focused on helping your employees do their work. What are they and how will you accomplish them?

franchises

a company that offers similar products or services in many locations

B Corp

benefit corporation. power of business to solve social and environmental problems—it's their mission (TOMS)

Mary Parker Follett

contributed to administrative theory by emphasizing the need for worker participation, conflict resolution, and shared goals. Best known for integrative conflict resolution. when all parties agree to a conflict resolution rather than one person dominates and wins and the other loses, and when there is no compromise where one party gives up something to get something because all parties win.

Evidence-Based Management

the basing of managerial decisions on the best available scientific evidence. Bridges the gap between science/theory and practice, as it proves practical relevance

external environment

the factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes

egocentrism

the inability to see the world through anyone else's eyes

middle management

the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization (heros, symbols, slogans, ceremonies)

Classification of Management

three types of managers are General managers: Top-level and some middle managers, Functional managers: Middle and first-line managers, and Project managers, who are often team leaders. A project manager coordinates employees and other resources across several functional departments.

Trade Agreements worldwide

to expand business, one must know the trade agreement their home country is a apart of. Although not a trade agreement, many global companies are expanding in the BRIC (Brazil, Russia, India, and China) countries.

issues managers encounter through foreign trade

trade barriers such as dumping, protectionism, embargo, quota, subsidies, and/or tariff

What is "going suit"

transition from being an employee to being a manager. forgetting basic job skills because you need to perform non-management functions