Ch 1-2 Quiz, Ch. 3 & 4, ch 7 and 8, ch 5, ch 6 MGMT, ch 9

uncertainty

extent to which managers can predict which external changes and trends will affect their business

according to the ______ , the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

the contingency approach

In the context of task interdependence, in _____, each job or department contributes to the whole independently.​

​pooled interdependence

​Bridget's Gifts, a greetings and gifts store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for producing their own products. This scenario is an example of _____.

​product departmentalization

​Organizations can achieve a competitive advantage by using their resources to _____.

​provide greater value for customers than competitors can

​In the context of task interdependence, in _____, different jobs or groups work together in a back-and-forth manner to complete an intraorganizational process.

​reciprocal interdependence

​The second transfer that occurs with delegation is:

​that a manager gives a subordinate full authority over the budget, resources, and personnel needed to do a job.

​The primary disadvantage of customer departmentalization is:

​that it leads to duplication of resources.

components of the general environment:

- economy - technology - sociocultural - politcal / legal

job characteristics model

188

roles of managers:

3 major roles: interpersonal roles, informational roles, decisional roles. the 10 subroles: 1. interpersonal roles a) figurehead role b) leader role c) liaison role 2. informational roles a) monitor role b) disseminator role c) spokesperson role 3. Decisional roles a) entrepreneur role b) disturbance handler role c) resource allocator role d) negotiator role

the top mistakes that managers make in their jobs

Another way to understand what it takes to be a manager is to look at the top mistakes managers make. Five of the most important mistakes made by managers are being abrasive and intimidating; being cold, aloof, or arrogant; betraying trust; being overly ambitious; and being unable to delegate, build a team, and staff effectively.

Explain for what organizations are socially responsible. ( page 82 )

Companies can best benefit their stakeholders by fulfilling their economic, legal, ethical, and discretionary responsibilities. Being profitable, or meeting its economic responsibility, is a business's most basic social responsibility. Legal responsibility consists of following a society's laws and regulations. Ethical responsibility means not violating accepted principles of right and wrong when doing business. Discretionary responsibilities are social responsibilities beyond basic economic, legal, and ethical responsibilities.

Explain whether social responsibility hurts or helps an organization's economic performance. ( page 86 )

Does it pay to be socially responsible? Studies show that there is generally no trade-off between social responsibility and economic performance. In most circumstances, there is generally a small positive relationship between social responsibility and economic performance that becomes stronger when a company or its products have a positive reputation. Social responsibility, however, does not guarantee profitability, as socially responsible companies experience the same ups and downs as other companies. when businesses enhance their reputations by being socially responsible, they hope to maximize willingness to pay

Explain what practical steps managers can take to improve ethical decision making.

Employers can increase their chances of hiring ethical employees by testing all job applicants. Most large companies now have corporate codes of ethics. In addition to offering general rules, ethics codes must also provide specific, practical advice. Ethics training seeks to increase employees' awareness of ethical issues; make ethics a serious, credible factor in organizational decisions; and teach employees a practical model of ethical decision making. The most important factors in creating an ethical business climate are the personal examples set by company managers, the involvement of management in the company ethics program, a reporting system that encourages whistle-blowers to report potential ethics violations, and fair but consistent punishment of violators.

Identify common kinds of workplace deviance.

Ethics is the set of moral principles or values that define right and wrong. Workplace deviance is behavior that violates organizational norms about right and wrong and harms the organization or its workers. There are four different types of workplace deviance. Production deviance and property deviance harm the company, whereas political deviance and personal aggression harm individuals within the company.

ch. 4 key terms

Ethics: the set of moral principles or values that defines right and wrong for a person or group Ethical behavior: behavior that conforms to a society's accepted principles of right and wrong Workplace deviance : unethical behavior that violates organizational norms about right and wrong Production deviance: unethical behavior that hurts the quality and quantity of work produced - examples: * leaving early, taking excessive breaks, intentionally working slowly, wasting resources Property deviance: unethical behavior aimed at the organization's property or products - examples: * sabotaging equipment, accepting kickbacks, lying about hours worked, stealing from company Employee shrinkage: employee theft of company merchandise Political deviance: using one's influence to harm others in the company - examples: * showing favoritism, gossiping about coworkers, blaming coworkers, competing nonbeneficially. Personal aggression : hostile or aggressive behavior toward others - examples: * sexual harassment, verbal abuse, stealing from coworkers, endangering coworkers Ethical intensity : the degree of concern people have about an ethical issue Magnitude of consequences: the total harm or benefit derived from an ethical decision Social consensus: agreement on whether behavior is bad or good Probability of effect : the chance that something will happen that results in harm to others Temporal immediacy : the time between an act and the consequences the act produces Proximity of effect : the social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions Concentration of effect: the total harm or benefit that an act produces on the average person Preconventional level of moral development: the first level of moral development, in which people make decisions based on selfish reasons Conventional level of moral development : the second level of moral development, in which people make decisions that conform to societal expectation Postconventional level of moral development : the third level of moral development, in which people make decisions based on internalized principles Principle of long-term self-interest: an ethical principle that holds that you should never take any action that is not in your or your organization's long-term self-interest Principle of religious injunctions : an ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community Principle of government requirements: an ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard Principle of individual rights: an ethical principle that holds that you should never take any action that infringes on others' agreed-upon rights Principle of personal virtue: an ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV Principle of distributive justice: an ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, the unemployed Principle of utilitarian benefits: an ethical principle that holds that you should never take any action that does not result in greater good for society Overt integrity test: a written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors Personality-based integrity test: a written test that indirectly estimates job applicants' honesty by measuring psychological traits, such as dependability and conscientiousness Whistle-blowing : reporting others' ethics violations to management or legal authorities Social responsibility: a business's obligation to pursue policies, make decisions, and take actions that benefit society Shareholder model: a view of social responsibility that holds that an organization's overriding goal should be profit maximization for the benefit of shareholders Stakeholder model: a theory of corporate responsibility that holds that management's most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders Stakeholders: persons or groups with a stake, or legitimate interest, in a company's actions Primary stakeholder : any group on which an organization relies for its long-term survival Secondary stakeholder: any group that can influence or be influenced by a company and can affect public perceptions about the company's socially responsible behavior Economic responsibility: a company's social responsibility to make a profit by producing a valued product or service Legal responsibility : a company's social responsibility to obey society's laws and regulations Ethical responsibility: a company's social responsibility not to violate accepted principles of right and wrong when conducting its business Discretionary responsibilities: the social roles that a company fulfills beyond its economic, legal, and ethical responsibilities Social responsiveness: a company's strategy to respond to stakeholders' economic, legal, ethical, or discretionary expectations concerning social responsibility Reactive strategy : a social responsiveness strategy in which a company does less than society expects Defensive strategy : a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations Accommodative strategy: a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem Proactive strategy: a social responsiveness strategy in which a company anticipates a problem before it occurs and does more than society expects to take responsibility for and address the problem

ch 3 key terms

External environments: all events outside a company that have the potential to influence or affect it Environmental change: the rate at which a company's general and specific environments change Stable environment: an environment in which the rate of change is slow Dynamic environment: an environment in which the rate of change is fast Punctuated equilibrium theory: the theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium Environmental complexity : the number and the intensity of external factors in the environment that affect organizations Simple environment : an environment with few environmental factors Complex environment : an environment with many environmental factors Resource scarcity: the abundance or shortage of critical organizational resources in an organization's external environment Uncertainty: extent to which managers can understand or predict which environmental changes and trends will affect their businesses General environment: the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations Specific environment : the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business Business confidence indices: indices that show managers' level of confidence about future business growth Technology: the knowledge, tools, and techniques used to transform inputs into outputs Competitors: companies in the same industry that sell similar products or services to customers Competitive analysis: a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses Suppliers: companies that provide material, human, financial, and informational resources to other companies Supplier dependence: the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product Buyer dependence: the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products Opportunistic behavior : a transaction in which one party in the relationship benefits at the expense of the other Relationship behavior : the establishment of mutually beneficial, long-term exchanges between buyers and suppliers Industry regulation: regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions Advocacy groups: concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions Public communications : an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out Media advocacy : an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage Product boycott: an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service Environmental scanning: searching the environment for important events or issues that might affect an organization Cognitive maps : graphic depictions of how managers believe environmental factors relate to possible organizational actions Internal environment: the events and trends inside an organization that affect management, employees, and organizational culture Organizational culture: the values, beliefs, and attitudes shared by organizational members Organizational stories: stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions Organizational heroes: people celebrated for their qualities and achievements within an organization Company mission: a company's purpose or reason for existing Consistent organizational culture: a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes Behavioral addition : the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create Behavioral substitution : the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture Visible artifacts: visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, such as stock options, personal parking spaces, or the private company dining room

government ....

Global business the buying and selling of goods and services by people from different countries Multinational corporation a corporation that owns businesses in two or more countries Direct foreign investment a method of investment in which a company builds a new business or buys an existing business in a foreign country Trade barriers government-imposed regulations that increase the cost and restrict the number of imported goods Protectionism a government's use of trade barriers to shield domestic companies and their workers from foreign competition Tariff a direct tax on imported goods Nontariff barriers nontax methods of increasing the cost or reducing the volume of imported goods Quota a limit on the number or volume of imported products Voluntary export restraints voluntarily imposed limits on the number or volume of products exported to a particular country Government import standard a standard ostensibly established to protect the health and safety of citizens but, in reality, is often used to restrict imports Subsidies government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition Customs classification a classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas General Agreement on Tariffs and Trade (GATT) a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property World Trade Organization (WTO) the successor to GATT; the only international organization dealing with the global rules of trade between nations; its main function is to ensure that trade flows as smoothly, predictably, and freely as possible Regional trading zones areas in which tariff and nontariff barriers on trade between countries are reduced or eliminated Maastricht Treaty of Europe a regional trade agreement among most European countries North American Free Trade Agreement (NAFTA) a regional trade agreement among the United States, Canada, and Mexico Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) a regional trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States Union of South American Nations (UNASUR) a regional trade agreement among Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and Chile Association of Southeast Asian Nations (ASEAN) a regional trade agreement among Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam Asia-Pacific Economic Cooperation (APEC) a regional trade agreement among Australia, Canada, Chile, the People's Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the United States, and all the members of ASEAN except Cambodia, Lao PDR, and Myanmar Global consistency when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures Local adaptation modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies Exporting selling domestically produced products to customers in foreign countries Cooperative contract an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country Licensing an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service, or use its brand name in a specified foreign market Franchise a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee Strategic alliance an agreement in which companies combine key resources, costs, risks, technology, and people Joint venture a strategic alliance in which two existing companies collaborate to form a third, independent company Wholly owned affiliates foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company Global new ventures new companies that are founded with an active global strategy and have sales, employees, and financing in different countries Purchasing power the relative cost of a standard set of goods and services in different countries Political uncertainty the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events Policy uncertainty the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business National culture the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country Expatriate someone who lives and works outside his or her native country

the 4 functions of management

Henri Fayol's classic management functions are known today as planning, organizing, leading, and controlling. Planning is determining organizational goals and a means for achieving them. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom. Leading is inspiring and motivating workers to work hard to achieve organizational goals. Controlling is monitoring progress toward goal achievement and taking corrective action when needed. Studies show that performing the management functions well leads to better managerial performance.

the origins of management

Management as a field of study is just 125 years old, but management ideas and practices have actually been used since 5000 BCE. From ancient Sumer to sixteenth century Europe, there are historical antecedents for each of the functions of management discussed in this textbook: planning, organizing, leading, and controlling. However, there was no compelling need for managers until systematic changes in the nature of work and organizations occurred during the past two centuries. As work shifted from families to factories; from skilled laborers to specialized, unskilled laborers; from small, self-organized groups to large factories employing thousands under one roof; and from unique, small batches of production to standardized mass production; managers were needed to impose order and structure, to motivate and direct large groups of workers, and to plan and make decisions that optimized overall performance by effectively coordinating the different parts of an organizational system.

Discuss the importance of identifying and adapting to cultural differences.

National culture is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country. The first step in dealing with culture is to recognize meaningful differences such as power distance, individualism, masculinity, uncertainty avoidance, and short-term/long-term orientation. Cultural differences should be interpreted carefully because they are based on generalizations rather than specific individuals. Adapting managerial practices to cultural differences is difficult because policies and practices can be perceived differently in different cultures.

Explain organizational authority.

Organizational authority is determined by the chain of command, line versus staff authority, delegation, and the degree of centralization in a company. The chain of command vertically connects every job in the company to higher levels of management and makes clear who reports to whom. Managers have line authority to command employees below them in the chain of command but have only staff, or advisory, authority over employees not below them in the chain of command. Managers delegate authority by transferring to subordinates the authority and responsibility needed to do a task; in exchange, subordinates become accountable for task completion. In centralized companies, most authority to make decisions lies with managers in the upper levels of the company. In decentralized companies, much of the authority is delegated to the workers closest to the problems, who can then make the decisions necessary for solving the problems themselves.

Discuss the benefits and pitfalls of planning.

Planning is choosing a goal and developing a method or strategy for achieving it. Planning is one of the best ways to improve organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). However, planning also has three potential pitfalls. Companies that are overly committed to their plans may be slow to adapt to environmental changes. Planning can create a false sense of security: planning is based on assumptions about the future, and when those assumptions are wrong, plans can fail. Finally, planning can fail when planners are detached from the implementation of their plans.

ch. 5 key terms

Planning: choosing a goal and developing a strategy to achieve that goal S.M.A.R.T. goals: goals that are specific, measurable, attainable, realistic, and timely Goal commitment : the determination to achieve a goal Action plan: a plan that lists the specific steps, people, resources, and time period needed to attain a goal Proximal goals: short-term goals or subgoals Distal goals: long-term or primary goals Options-based planning: maintaining planning flexibility by making small, simultaneous investments in many alternative plans Slack resources : a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities Strategic plans: overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years Purpose statement: a statement of a company's purpose or reason for existing Strategic objective: a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame Tactical plans: plans created and implemented by middle managers that direct behavior, efforts, and attention over the next six months to two years - middle management is responsible for developing and carrying out tactical plans to accomplish the organization's strategic objective Management by objectives: a four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment - a management technique often used to develop and carry out tactical plans Operational plans: day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a thirty-day to six-month period Single-use plans: plans that cover unique, one-time-only events Standing plans: plans used repeatedly to handle frequently recurring events Policies standing : plans that indicate the general course of action that should be taken in response to a particular event or situation Procedures standing: plans that indicate the specific steps that should be taken in response to a particular event Rules and regulations: standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event Budgeting: quantitative planning through which managers decide how to allocate available money to best accomplish company goals Decision making: the process of choosing a solution from available alternatives Rational decision making: a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions Problem: a gap between a desired state and an existing state Decision criteria: the standards used to guide judgments and decisions Absolute comparisons: a process in which each decision criterion is compared to a standard or ranked on its own merits Relative comparisons: a process in which each decision criterion is compared directly with every other criterion Maximize: choosing the best alternative Satisficing: choosing a "good-enough" alternative Groupthink: a barrier to good decision making caused by pressure within the group for members to agree with each other C-type conflict (cognitive conflict) : disagreement that focuses on problem- and issue-related differences of opinion A-type conflict (affective conflict): disagreement that focuses on individuals or personal issues Devil's advocacy : a decision-making method in which an individual or a subgroup is assigned the role of critic Dialectical inquiry: a decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution Nominal group technique: a decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group Delphi technique: a decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue Brainstorming : a decision-making method in which group members build on each others' ideas to generate as many alternative solutions as possible Electronic brainstorming: a decision-making method in which group members use computers to build on each others' ideas and generate as many alternative solutions as possible Production blocking: a disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea Evaluation apprehension: fear of what others will think of your ideas

ch. 6 key terms

Resources: the assets, capabilities, processes, employee time, information, and knowledge that an organization uses to improve its effectiveness and efficiency and create and sustain competitive advantage Competitive advantage: providing greater value for customers than competitors can Sustainable competitive advantage: a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate Valuable resource: a resource that allows companies to improve efficiency and effectiveness Rare resource: a resource that is not controlled or possessed by many competing firms Imperfectly imitable resource: a resource that is impossible or extremely costly or difficult for other firms to duplicate Nonsubstitutable resource: a resource that produces value or competitive advantage and has no equivalent substitutes or replacements Competitive inertia: a reluctance to change strategies or competitive practices that have been successful in the past Strategic dissonance: a discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy Situational (SWOT) analysis: an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment Distinctive competence: what a company can make, do, or perform better than its competitors Core capabilities: the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs Shadow-strategy task force: a committee within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage Strategic group: a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities Core firms: the central companies in a strategic group Secondary firms: the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms Strategic reference points: the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage Corporate-level strategy : the overall organizational strategy that addresses the question, "What business or businesses are we in or should we be in?" Diversification : a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio Portfolio strategy: a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines Acquisition: the purchase of a company by another company Unrelated diversification : creating or acquiring companies in completely unrelated businesses BCG matrix : a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds Star : a company with a large share of a fast-growing market Question mark: a company with a small share of a fast-growing market Cash cow: a company with a large share of a slow-growing market Dog: a company with a small share of a slow-growing market Related diversification: creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures Grand strategy: a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use Growth strategy: a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business Stability strategy: a strategy that focuses on improving the way in which the company sells the same products or services to the same customers Retrenchment strategy : a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business Recovery: the strategic actions taken after retrenchment to return to a growth strategy Industry-level strategy: a corporate strategy that addresses the question, "How should we compete in this industry?" Character of the rivalry : a measure of the intensity of competitive behavior between companies in an industry Threat of new entrants : a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry Threat of substitute products or services : a measure of the ease with which customers can find substitutes for an industry's products or services Bargaining power of suppliers: a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs Bargaining power of buyers: a measure of the influence that customers have on a firm's prices Cost leadership : the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry Differentiation: the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it Focus strategy : the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment Defenders: companies using an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers Prospectors : companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market Analyzers : companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors Reactors : companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur Firm-level strategy : a corporate strategy that addresses the question, "How should we compete against a particular firm?" Direct competition: the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions Market commonality: the degree to which two companies have overlapping products, services, or customers in multiple markets Resource similarity: the extent to which a competitor has similar amounts and kinds of resources Attack: a competitive move designed to reduce a rival's market share or profits Response: a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profit

Describe the four components of the general environment.

The general environment consists of trends that affect all organizations. Because the economy influences basic business decisions, managers often use economic statistics and business confidence indices to predict future economic activity. Changes in technology, which transforms inputs into outputs, can be a benefit or a threat to a business. Sociocultural trends, such as changing demographic characteristics, affect how companies staff their businesses. Similarly, sociocultural changes in behavior, attitudes, and beliefs affect the demand for businesses' products and services. Court decisions and new federal and state laws have imposed much greater political/legal responsibility on companies. The best way to manage legal responsibilities is to educate managers and employees about laws and regulations as well as potential lawsuits that could affect a business.

​In the context of adaptive strategies, which of the following is true of defenders?

They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.

Describe what influences ethical decision making.

Three factors influence ethical decisions: the ethical intensity of the decision, the moral development of the manager, and the ethical principles used to solve the problem. Ethical intensity is high when decisions have large, certain, immediate consequences and when the decision maker is physically or psychologically close to those affected by the decision. There are three levels of moral development. At the preconventional level, decisions are made for selfish reasons. At the conventional level, decisions conform to societal expectations. At the postconventional level, internalized principles are used to make ethical decisions. Each of these levels has two stages. Managers can use a number of different principles when making ethical decisions: long-term self-interest, religious injunctions, government requirements, individual rights, personal virtue, distributive justice, and utilitarian benefits.

advocacy groups

___ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions

behavioral addition

_____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.​

Claire is faced with an issue and wants to come up with a rational decision regarding the issue. Which of the following steps should Claire take first in order to make a rational decision?

defining the problem

Mary Parker Follet believed that the best way to deal with conflict was _____

integration

​_____ are responsible for the creation of tactical plans.

middle managers

arrivers and derailers both:

only a few differences. both are talented and both have weaknesses difference is where they managed people

strategic reference points

page 116

environmental change

rate at which a companys general and specific environments change

using an approach of production where 2 teams working together is more productive than the teams working separate is an example of :

synergy

management

your job as manager is not to do the work but to help others do it. management is getting work done through others. strive for effectiveness and efficiency. Good management is working through others to accomplish tasks that help fulfill organizational objectives as efficiently as possible.

​Which of the following is a difference between a line function and a staff function?

​A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.

​Which of the following statements is true of functional departmentalization?

​It allows work to be done by highly qualified specialists.

​_____ is solving problems by consistently applying the same rules, procedures, and processes.

​Standardization

​_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

​Sustainable competitive advantage

media advocacy

​A _____ approach typically involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

political / legal

​A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment.

​_____ refers to the emotional reactions that can occur when disagreements become personal rather than professional.

​A-type conflict

dynamic environment

rate of change is fast

stable environment

rate of change is slow

according to Henri Fayol's 14 principles of management, _____ requires that compensation should be fair and satisfactory to both the employees and the organization.

remuneration

​The most popular approach to increase goal commitment is to _____.

set goals participatively

​_____ are forces that produce differences in the form, quality, or condition of an organization over time.

change forces

punctuated equilibrium theory

companies go through long periods of stability followed by short periods of dynamic, fundamental change, and then a new equilibrium

environmental scanning

the managers at Alpha Corp. are closely observing trends in the industry. they are trying to identify the factors that might have a significant influence on Alpha's business operations. which of the following concepts is illustrated in the scenario?

delegation: responsibility, authority, and accountability

page 185

reengineering and task interdependence

page 193

modular organization

page 194

effects of goal setting, training, and feedback on safe behavior in a factory

page 94

planning from top to bottom

page 95

integration

" integration involves intervention, and the clever thing is to recognize this, and not let one's thinking stay within the boundaries of 2 alternatives which are mutually exclusive" - Follett when 2 desires are integrated, that means that a solution has been found in which both desires have found a place that neither side has had to sacrifice anything rather than compromising or dominating, the point is integrative conflict resolution

​The last step in effective planning is to _____.

​maintain flexibility in planning

2 kinds of external environment influence organizations

1) general environment - consists of the economy and the technological, sociocultural, and political/legal trends that indirectly affect ALL organizations. - changes in any sector of the general environment eventually affect most organizations 2) specific environment - each organization has a specific environment that is unique to that firm's industry and directly affects the way it conducts day to day business

kinds of managers:

1. Top managers Jobs: CEO, COO, CFO, CIO, vice president, corporate heads responsibilities: change, commitment, culture, environment - monitor business environments: competitors moves, economic and social trends. longterm. 2. Middle managers jobs: general manager, plant manager, regional manager, divisional manager responsibilities: resources, objectives, coordination, subunit performance, strategy implementation - plan and allocate resources to meet objectives 3. First-line managers jobs: office manager, shift supervisor, department manager responsibilities: nonmanagerial worker supervision, teaching, training, scheduling, facilitation - encourage, monitor, reward performance of workers 4. Team Leaders jobs: team leader, team contact, group facilitator responsibilities: facilitation, external relationships, internal relationships - work effectively, solve problems

Porter's five industry forces

1. bargaining power of supplies 2. threat of new entrants 3. bargaining power of buyers 4. threat of substitute products or services

keys to an organizational culture that fosters success:

1. consistency 2. adaptability 3. clear mission 4. employee involvement

Explain the five components of the specific environment.

1. customer 2. competitor 3. supplier 4. industry regulation 5. advocacy group The specific environment is made up of five components: customers, competitors, suppliers, industry regulations, and advocacy groups. Companies can monitor customers' needs by identifying customer problems after they occur or by anticipating problems before they occur. Because they tend to focus on well-known competitors, managers often underestimate their competition or do a poor job of identifying future competitors. Suppliers and buyers are very dependent on each other, and that dependence sometimes leads to opportunistic behavior in which one party benefits at the expense of the other. Regulatory agencies affect businesses by creating rules and then enforcing them. Advocacy groups cannot regulate organizations' practices. Nevertheless, through public communications, media advocacy, and product boycotts, they try to convince companies to change their practices.

general steps for organizational development interventions

1. entry 2. start up 3. assessment and feedback 4. action planning 5. intervention 6. evaluation 7. adoption 8. separation

a basic model of ethical decision making

1. identify the problem 2. identify the constituents 3. diagnose the situation 4. analyze your options 5. make your choice 6. act steps in order page 79

the 4 functions of management:

1. planning - involves determining organizational goals and a means for achieving them - encourages people to work harder for extended periods, engage in goal accomplishment behavior - planning is one of the best ways to improve performance 2. organizing - deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. 3. leading - involves inspiring and motivating workers to work hard to achieve organizational goals 4. controlling - monitoring progress toward goal achievement and taking corrective action when progress isnt being made. - the basic control process involves setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance to those standards

Describe the steps involved in the strategy-making process.

3 step process: The first step in strategy making is determining whether a strategy needs to be changed to sustain a competitive advantage. The second step is to conduct a situational (SWOT) analysis that examines internal strengths and weaknesses as well as external opportunities and threats. The third step involves choosing a strategy. Strategic reference point theory suggests that when companies are performing better than their strategic reference points, top management will typically choose a risk-averse strategy. When performance is below strategic reference points, risk-seeking strategies are more likely to be chosen.

what companies look for in managers

Companies do not want one-dimensional managers. They want managers with a balance of skills. Managers need to have the knowledge and abilities to get the job done (technical skills), must be able to work effectively in groups and be good listeners and communicators (human skills), must be able to assess the relationships between the different parts of their companies and the external environment and position their companies for success (conceptual skills), and should want to assume positions of leadership and power (motivation to manage). Technical skills are most important for team leaders and lower-level managers, human skills are equally important at all levels of management, and conceptual skills and motivation to manage both increase in importance as managers rise through the managerial ranks.

Discuss the different methods for job design.

Companies use specialized jobs because they are economical, easy to learn, and don't require highly paid workers. However, specialized jobs aren't motivating or particularly satisfying for employees. Companies have used job rotation, job enlargement, job enrichment, and the job characteristics model to make specialized jobs more interesting and motivating. The goal of the job characteristics model is to make jobs intrinsically motivating. For this to happen, jobs must be strong on five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback), and workers must experience three critical psychological states (knowledge of results, responsibility for work outcomes, and meaningful work). If jobs aren't internally motivating, they can be redesigned by combining tasks, forming natural work units, establishing client relationships, using vertical loading, and opening feedback channels.

Explain the different kinds of corporate-level strategies.

Corporate-level strategies, consisting of portfolio strategies and grand strategies, help managers determine what businesses they should be in. Portfolio strategy focuses on lowering business risk by being in multiple, unrelated businesses and by investing the cash flows from slow-growing businesses into faster-growing businesses. One portfolio strategy is based on the BCG matrix. The most successful way to use the portfolio approach to corporate strategy is to reduce risk through related diversification. The three kinds of grand strategies are growth, stability, and retrenchment/recovery. Companies can grow externally by merging with or acquiring other companies, or they can grow internally through direct expansion or creating new businesses. Companies choose a stability strategy when their external environment changes very little or after they have dealt with periods of explosive growth. Retrenchment strategy, shrinking the size or scope of a business, is used to turn around poor performance. If retrenchment works, it is often followed by a recovery strategy that focuses on growing the business again

Discuss how changing environments affect organizations.

Environmental change, environmental complexity, and resource scarcity are the basic components of external environments. Environmental change is the rate of variation in a company's general and specific environments. Environmental complexity is the number and intensity of factors in the external environment. Resource scarcity is the abundance or shortage of critical resources in the external environment. As the rate of environmental change increases, as the environment becomes more complex, and as resources become more scarce, managers become less confident that they can understand, predict, and effectively react to the trends affecting their businesses. According to punctuated equilibrium theory, companies experience long periods of stability followed by short periods of dynamic, fundamental change, followed by a return to stability.

Explain the components and kinds of firm-level strategies.

Firm-level strategies are concerned with direct competition between firms. Market commonality and resource similarity determine whether firms are in direct competition and thus likely to attack each other and respond to each other's attacks. In general, the more markets in which there is product, service, or customer overlap and the greater the resource similarity between two firms, the more intense the direct competition between them will be.

Specify the components of sustainable competitive advantage, and explain why it is important.

Firms can use their resources to create and sustain a competitive advantage, that is, to provide greater value for customers than competitors can. A competitive advantage becomes sustainable when other companies cannot duplicate the benefits it provides and have, for now, stopped trying. Four conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage. The resources to for a sustainable competitive advantage must be: valuable, rare, imperfectly imitable, and nonsubstitutable.

Explain why companies choose to standardize or adapt their business procedures.

Global business requires a balance between global consistency and local adaptation. Global consistency means using the same rules, guidelines, policies, and procedures in each location. Managers at company headquarters like global consistency because it simplifies decisions. Local adaptation means adapting standard procedures to differences in markets. Local managers prefer a policy of local adaptation because it gives them more control. Not all businesses need the same combination of global consistency and local adaptation. Some thrive by emphasizing global consistency and ignoring local adaptation. Others succeed by ignoring global consistency and emphasizing local adaptation.

DIFFERENT kinds of organizational development intervention

Large-System Interventions: Sociotechnical systems: An intervention designed to improve how well employees use and adjust to the work technology used in an organization. Survey feedback: An intervention that uses surveys to collect information from the members of the system, reports the results of that survey to the members, and then uses those results to develop action plans for improvement. Small-Group Interventions: Team building: An intervention designed to increase the cohesion and cooperation of work group members. Unit goal setting: An intervention designed to help a work group establish short- and long-term goals. Person-Focused Interventions: Counseling/coaching: An intervention designed so that a formal helper or coach listens to managers or employees and advises them on how to deal with work or interpersonal problems. Training: An intervention designed to provide individuals with the knowledge, skills, or attitudes they need to become more effective at their jobs.

ch 1 key terms

Management: getting work done through others Efficiency: getting work done with a minimum of effort, expense, or waste Effectiveness: accomplishing tasks that help fulfill organizational objectives Planning: determining organizational goals and a means for achieving them Organizing: deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom Leading: inspiring and motivating workers to work hard to achieve organizational goals Controlling: monitoring progress toward goal achievement and taking corrective action when needed Top managers: executives responsible for the overall direction of the organization Middle managers: responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving these objectives First-line managers: responsible for training and supervising the performance of nonmanagerial employees who are directly responsible for producing the company's products or services Team leaders: managers responsible for facilitating team activities toward goal accomplishment Figurehead role: the interpersonal role managers play when they perform ceremonial duties Leader role: the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives Liaison role: the interpersonal role managers play when they deal with people outside their units Monitor role: the informational role managers play when they scan their environment for information Disseminator role: the informational role managers play when they share information with others in their departments or companies Spokesperson role: the informational role managers play when they share information with people outside their departments or companies Entrepreneur role: the decisional role managers play when they adapt themselves, their subordinates, and their units to change Disturbance handler role: the decisional role managers play when they respond to severe pressures and problems that demand immediate action Resource allocator role: the decisional role managers play when they decide who gets what resources and in what amounts Negotiator role: the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises Technical skills: the specialized procedures, techniques, and knowledge required to get the job done Human skills: the ability to work well with others Conceptual skills: the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment Motivation to manage: an assessment of how enthusiastic employees are about managing the work of others

the transition that employees go through when they are promoted to management

Managers often begin their jobs by using more formal authority and less people management skills. However, most managers find that being a manager has little to do with "bossing" their subordinates. According to a study of managers in their first year, after six months on the job, the managers were surprised by the fast pace and heavy workload and by the fact that "helping" their subordinates was viewed as interference. After a year on the job, most of the managers had come to think of themselves not as doers but as managers who get things done through others. And, because they finally realized that people management was the most important part of their job, most of them had abandoned their authoritarian approach for one based on communication, listening, and positive reinforcement.

major roles and subroles that managers perform in their jobs

Managers perform interpersonal, informational, and decisional roles in their jobs. In fulfilling interpersonal roles, managers act as figureheads by performing ceremonial duties, as leaders by motivating and encouraging workers, and as liaisons by dealing with people outside their units. In performing informational roles, managers act as monitors by scanning their environment for information, as disseminators by sharing information with others in their companies, and as spokespeople by sharing information with people outside their departments or companies. In fulfilling decisional roles, managers act as entrepreneurs by adapting their units to change, as disturbance handlers by responding to larger problems that demand immediate action, as resource allocators by deciding resource recipients and amounts, and as negotiators by bargaining with others about schedules, projects, goals, outcomes, and resources.

Describe the process that companies use to make sense of their changing environments.

Managers use a three-step process to make sense of external environments: environmental scanning, interpreting information, and acting on threats and opportunities. Managers scan their environments in order to keep up to date on factors influencing their industries, to reduce uncertainty, and to detect potential problems. When managers identify environmental events as threats, they take steps to protect their companies from harm. When managers identify environmental events as opportunities, they formulate alternatives for taking advantage of them to improve company performance. Using cognitive maps can help managers visually summarize the relationships between environmental factors and the actions they might take to deal with them.

Explain how to successfully prepare workers for international assignments.

Many expatriates return prematurely from international assignments because of poor performance. This is much less likely to happen if employees receive language and cross-cultural training, such as documentary training, cultural simulations, or field experiences, before going on assignment. Adjustment of expatriates' spouses and families, which is the most important determinant of success in international assignments, can be improved through adaptability screening and language and cross-cultural training.

Discuss the history of operations, information, systems, and contingency management.

Operations management uses a quantitative or mathematical approach to find ways to increase productivity, improve quality, and manage or reduce costly inventories. The manufacture of standardized, interchangeable parts; the graphical and computerized design of parts; and the accidental discovery of just-in-time inventory systems were some of the most important historical events in operations management. Throughout history, organizations have pushed for and quickly adopted new information technologies that reduce the cost or increase the speed with which they can acquire, store, retrieve, or communicate information. Historically, some of the most important technologies that have revolutionized information management were the invention of machines to produce pulp for paper and the printing press in the fourteenth and fifteenth centuries, the manual typewriter in 1850, the telephone in the 1880s, the personal computer in the 1980s, and the Internet in the 1990s. A system is a set of interrelated elements or parts (subsystems) that function as a whole. Organizational systems obtain inputs from both general and specific environments. Managers and workers then use their management knowledge and manufacturing techniques to transform those inputs into outputs that, in turn, provide feedback to the organization. Organizational systems must also address the issues of synergy and open versus closed systems. Finally, the contingency approach to management clearly states that there are no universal management theories. The most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time. This means that management is much harder than it looks.

Explain how organizational cultures are created and how they can help companies be successful.

Organizational culture is the set of key values, beliefs, and attitudes shared by members of an organization. Organizational cultures are often created by company founders and then sustained through repetition of organizational stories and recognition of organizational heroes. Companies with adaptable cultures that promote employee involvement, make clear the organization's strategic purpose and direction, and actively define and teach organizational values and beliefs can achieve higher sales growth, return on assets, profits, quality, and employee satisfaction. Organizational cultures exist on three levels: the surface level, where visible artifacts and behaviors can be observed; just below the surface, where values and beliefs are expressed; and deep below the surface, where unconsciously held assumptions and beliefs exist. Managers can begin to change company cultures by focusing on the top two levels. Techniques for changing organizational cultures include using behavioral substitution and behavioral addition, changing visible artifacts, and selecting job applicants who have values and beliefs consistent with the desired company culture.

ch. 7 key terms

Organizational innovation the successful implementation of creative ideas in organizations Technology cycle a cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, substantially better technology S-curve pattern of innovation a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits Innovation streams patterns of innovation over time that can create sustainable competitive advantage Technological discontinuity the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function Discontinuous change the phase of a technology cycle characterized by technological substitution and design competition Technological substitution the purchase of new technologies to replace older ones Design competition competition between old and new technologies to establish a new technological standard or dominant design Dominant design a new technological design or process that becomes the accepted market standard Technological lockout the inability of a company to competitively sell its products because it relies on old technology or a nondominant design Incremental change the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design Creative work environments workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged Flow a psychological state of effortlessness, in which you become completely absorbed in what you're doing, and time seems to pass quickly Experiential approach to innovation an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding Design iteration a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype Product prototype a full-scale, working model that is being tested for design, function, and reliability Testing the systematic comparison of different product designs or design iterations Milestones formal project review points used to assess progress and performance Multifunctional teams work teams composed of people from different departments Compression approach to innovation an approach to innovation which assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation Generational change change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology Organizational decline a large decrease in organizational performance that occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival Change forces forces that produce differences in the form, quality, or condition of an organization over time Resistance forces forces that support the existing conditions in organizations Resistance to change opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change Unfreezing getting the people affected by change to believe that change is needed Change intervention the process used to get workers and managers to change their behaviors and work practices Refreezing supporting and reinforcing new changes so that they stick Coercion the use of formal power and authority to force others to change Results-driven change change created quickly by focusing on the measurement and improvement of results General Electric workout a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems Organizational development a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance Change agent the person formally in charge of guiding a change effort

ch. 9 key terms

Organizational structure: the vertical and horizontal configuration of departments, authority, and jobs within a company Organizational process : the collection of activities that transforms inputs into outputs that customers value Departmentalization: subdividing work and workers into separate organizational units responsible for completing particular tasks Functional departmentalization : organizing work and workers into separate units responsible for particular business functions or areas of expertise Product departmentalization: organizing work and workers into separate units responsible for producing particular products or services Customer departmentalization: organizing work and workers into separate units responsible for particular kinds of customers Geographic departmentalization: organizing work and workers into separate units responsible for doing business in particular geographic areas Matrix departmentalization: a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together Simple matrix: a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources Complex matrix: a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems Authority : the right to give commands, take action, and make decisions to achieve organizational objectives Chain of command : the vertical line of authority that clarifies who reports to whom throughout the organization Unity of command: a management principle that workers should report to just one boss Line authority: the right to command immediate subordinates in the chain of command Staff authority: the right to advise, but not command, others who are not subordinates in the chain of command Line function: an activity that contributes directly to creating or selling the company's products Staff function: an activity that does not contribute directly to creating or selling the company's products but instead supports line activities Delegation of authority: the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible Centralization of authority: the location of most authority at the upper levels of the organization Decentralization: the location of a significant amount of authority in the lower levels of the organization Standardization : solving problems by consistently applying the same rules, procedures, and processes Job design : the number, kind, and variety of tasks that individual workers perform in doing their jobs Job specialization : a job composed of a small part of a larger task or process Job rotation: periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills Job enlargement: increasing the number of different tasks that a worker performs within one particular job Job enrichment: increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work Job characteristics model (JCM): an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes Internal motivation: motivation that comes from the job itself rather than from outside rewards Skill variety: the number of different activities performed in a job Task identity : the degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work Task significance: the degree to which a job is perceived to have a substantial impact on others inside or outside the organization Autonomy: the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job Feedback : the amount of information the job provides to workers about their work performance Mechanistic organization: an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication Organic organization : an organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge Intraorganizational process: the collection of activities that take place within an organization to transform inputs into outputs that customers value Reengineering : fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed Task interdependence: the extent to which collective action is required to complete an entire piece of work Pooled interdependence: work completed by having each job or department independently contribute to the whole Sequential interdependence: work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job Reciprocal interdependence: work completed by different jobs or groups working together in a back-and-forth manner Empowering workers: permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions Empowerment : feelings of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination Interorganizational process: a collection of activities that take place among companies to transform inputs into outputs that customers value Modular organization: an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants Virtual organization: an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services

Describe the methods that companies are using to redesign external organizational processes (that is, interorganizational processes).

Organizations are using modular and virtual organizations to change interorganizational processes. Because modular organizations outsource all noncore activities to other businesses, they are less expensive to run than traditional companies. However, modular organizations require extremely close relationships with suppliers, may result in a loss of control, and could create new competitors if the wrong business activities are outsourced. Virtual organizations participate in a network in which they share skills, costs, capabilities, markets, and customers. Virtual organizations can reduce costs, respond quickly, and, if they can successfully coordinate their efforts, produce outstanding products and services.

Discuss how companies can use plans at all management levels, from top to bottom.

Proper planning requires that the goals at the bottom and middle of the organization support the objectives at the top of the organization. The goals at the top will be longer range than those at the bottom. Top management develops strategic plans, which start with the creation of an organizational purpose statement and strategic objectives. Middle managers use techniques such as management by objectives to develop tactical plans that direct behavior, efforts, and priorities. Finally, lower-level managers develop operational plans that guide daily activities in producing or delivering an organization's products and services. There are three kinds of operational plans: single-use plans, standing plans (policies, procedures, and rules and regulations), and budgets.

Explain the steps and limits to rational decision making. ( page 99 )

Rational decision making is a six-step process in which managers define problems, evaluate alternatives, and compute optimal solutions. Step 1 is identifying and defining the problem. Problems are gaps between desired and existing states. Managers won't begin the decision-making process unless they are aware of a gap, are motivated to reduce it, and possess the necessary resources to fix it. Step 2 is defining the decision criteria used to judge alternatives. In Step 3, an absolute or relative comparison process is used to rate the importance of the decision criteria. Step 4 involves generating many alternative courses of action (that is, solutions). Potential solutions are assessed in Step 5 by systematically gathering information and evaluating each alternative against each criterion. In Step 6, criterion ratings and weights are used to compute the weighted average for each alternative course of action. Rational managers then choose the alternative with the highest value. The rational decision-making model describes how decisions should be made in an ideal world without constraints. However, managers' limited resources, incomplete and imperfect information, and limited decision-making capabilities restrict their decision-making processes in the real world.

the history of management

Scientific management involves studying and testing different work methods to identify the best, most efficient way to complete a job. According to Frederick W. Taylor, the father of scientific management, managers should follow four scientific management principles. First, study each element of work to determine the one best way to do it. Second, scientifically select, train, teach, and develop workers to reach their full potential. Third, cooperate with employees to ensure that the scientific principles are implemented. Fourth, divide the work and the responsibility equally between management and workers. Above all, Taylor believed these principles could be used to align managers and employees by determining a fair day's work (what an average worker could produce at a reasonable pace) and a fair day's pay (what management should pay workers for that effort). Taylor believed that incentives were one of the best ways to align management and employees. Frank and Lillian Gilbreth are best known for their use of motion studies to simplify work. Whereas Taylor used time study to determine a fair day's work based on how long it took a "first-class man" to complete each part of his job, Frank Gilbreth used motion-picture films and microchonometers to conduct motion studies to improve efficiency by eliminating unnecessary or repetitive motions. Henry Gantt is best known for the Gantt chart, which graphically indicates when a series of tasks must be completed in order to complete a job or project, but he also developed ideas regarding worker training, specifically, that all workers should be trained and their managers should be rewarded for training them.

key terms ch 2

Scientific management: thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job Soldiering: when workers deliberately slow their pace or restrict their work output Rate buster: a group member whose work pace is significantly faster than the normal pace in his or her group Motion study: breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive Time study: timing how long it takes good workers to complete each part of their jobs Gantt chart: a graphical chart that shows which tasks must be completed at which times in order to complete a project or task Bureaucracy: the exercise of control on the basis of knowledge, expertise, or experience Domination: an approach to dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party's desires and objectives Compromise: an approach to dealing with conflict in which both parties give up some of what they want in order to reach agreement on a plan to reduce or settle the conflict Integrative conflict resolution: an approach to dealing with conflict in which both parties indicate their preferences and then work together to find an alternative that meets the needs of both Organization: a system of consciously coordinated activities or forces created by two or more people System: a set of interrelated elements or parts that function as a whole Subsystems: smaller systems that operate within the context of a larger system Synergy: when two or more subsystems working together can produce more than they can working apart Closed systems: systems that can sustain themselves without interacting with their environments Open systems: systems that can sustain themselves only by interacting with their environments, on which they depend for their survival Contingency approach: holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place

Explain to whom organizations are socially responsible.

Social responsibility is a business's obligation to benefit society. According to the shareholder model, a company's only social responsibility is to maximize shareholder wealth by maximizing company profits. According to the stakeholder model, companies must satisfy the needs and interests of multiple corporate stakeholders, not just shareholders. The needs of primary stakeholders, on which the organization relies for its existence, take precedence over those of secondary stakeholders.

Explain how organizations can respond to societal demands for social responsibility.

Social responsiveness is a company's response to stakeholders' expectations concerning socially responsible behavior. There are four social responsiveness strategies. When a company uses a reactive strategy, it denies responsibility for a problem. When it uses a defensive strategy, a company takes responsibility for a problem but does the minimum required to solve it. When a company uses an accommodative strategy, it accepts responsibility for problems and does all that society expects to solve them. Finally, when a company uses a proactive strategy, it does much more than expected to solve social responsibility problems.

Explain why innovation matters to companies. discontinuous change ( page 141 )

Technology cycles typically follow an S-curve pattern of innovation. Early in the cycle, technological progress is slow, and improvements in technological performance are small. As a technology matures, however, performance improves quickly. Finally, as the limits of a technology are reached, only small improvements occur. At this point, significant improvements in performance must come from new technologies. The best way to protect a competitive advantage is to create a stream of innovative ideas and products. Innovation streams begin with technological discontinuities that create significant breakthroughs in performance or function. Technological discontinuities are followed by discontinuous change, in which customers purchase new technologies, and companies compete to establish the new dominant design. Dominant designs emerge because of critical mass, because they solve a practical problem, or because of the negotiations of independent standards bodies. Because technological innovation both enhances and destroys competence, companies that bet on the wrong design often struggle, while companies that bet on the eventual dominant design usually prosper. When a dominant design emerges, companies focus on incremental change, lowering costs, and making small but steady improvements in the dominant design. This focus continues until the next technological discontinuity occurs.

Discuss the different methods that managers can use to better manage change as it occurs.

The basic change process involves unfreezing, change intervention, and refreezing. Resistance to change stems from self-interest, misunderstanding, and distrust as well as a general intolerance for change. Resistance can be managed through education and communication, participation, negotiation, top management support, and coercion. Knowing what not to do is as important as knowing what to do to achieve successful change. Managers should avoid these errors when leading change: not establishing a sense of urgency, not creating a guiding coalition, lacking a vision, undercommunicating the vision, not removing obstacles to the vision, not creating short-term wins, declaring victory too soon, and not anchoring changes in the corporation's culture. Finally, managers can use a number of change techniques. Results-driven change and the General Electric workout reduce resistance to change by getting change efforts off to a fast start. Organizational development is a collection of planned change interventions (large-system, small-group, person-focused), guided by a change agent, that are designed to improve an organization's long-term health and performance.

Explain how to find a favorable business climate.

The first step in deciding where to take your company global is finding an attractive business climate. Be sure to look for a growing market where consumers have strong purchasing power, and foreign competitors are weak. When locating an office or manufacturing facility, consider both qualitative and quantitative factors. In assessing political risk, be sure to examine both political uncertainty and policy uncertainty. If the location you choose has considerable political risk, you can avoid it, try to control the risk, or use a cooperation strategy.

Describe the different kinds of industry-level strategies.

The five industry forces determine an industry's overall attractiveness to corporate investors and its potential for long-term profitability. Together, a high level of these elements combine to increase competition and decrease profits. Industry-level strategies focus on how companies choose to compete in their industries. The three positioning strategies can help companies protect themselves from the negative effects of industry-wide competition. The four adaptive strategies help companies adapt to changes in the external environment. Defenders want to defend their current strategic positions. Prospectors look for new market opportunities to bring innovative new products to market. Analyzers minimize risk by following the proven successes of prospectors. Reactors do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur.

Discuss why not changing can lead to organizational decline page 144

The five-stage process of organizational decline begins when organizations don't recognize the need for change. In the blinded stage, managers fail to recognize the changes that threaten their organization's survival. In the inaction stage, management recognizes the need to change but doesn't act, hoping that the problems will correct themselves. In the faulty action stage, management focuses on cost cutting and efficiency rather than facing up to the fundamental changes needed to ensure survival. In the crisis stage, failure is likely unless fundamental reorganization occurs. Finally, in the dissolution stage, the company is dissolved through bankruptcy proceedings; by selling assets to pay creditors; or through the closing of stores, offices, and facilities. If companies recognize the need to change early enough, however, dissolution may be avoided.

Explain the different ways that companies can organize to do business globally.

The phase model of globalization says that, as companies move from a domestic to a global orientation, they use these organizational forms in sequence: exporting, cooperative contracts (licensing and franchising), strategic alliances, and wholly owned affiliates. Yet, not all companies follow the phase model. For example, global new ventures are global from their inception.

Describe how to make a plan that works

There are five steps to making a plan that works: (1) Set S.M.A.R.T. goals—goals that are Specific, Measurable, Attainable, Realistic, and Timely. (2) Develop commitment to the goals. Managers can increase workers' goal commitment by encouraging their participation in goal setting, making goals public, and getting top management to show support for goals. (3) Develop action plans for goal accomplishment. (4) Track progress toward goal achievement by setting both proximal and distal goals and by providing workers with regular performance feedback. (5) Maintain flexibility by keeping options open.

Describe the departmentalization approach to organizational structure.

There are five traditional departmental structures: functional, product, customer, geographic, and matrix. Functional departmentalization is based on the different business functions or types of expertise used to run a business. Product departmentalization is organized according to the different products or services a company sells. Customer departmentalization focuses its divisions on the different kinds of customers a company has. Geographic departmentalization is based on the different geographic areas or markets in which the company does business. Matrix departmentalization is a hybrid form that combines two or more forms of departmentalization, the most common being the product and functional forms. There is no single best departmental structure. Each structure has advantages and disadvantages.

different kinds of managers

There are four different kinds of managers. Top managers are responsible for creating a context for change, developing attitudes of commitment and ownership, creating a positive organizational culture through words and actions, and monitoring their companies' business environments. Middle managers are responsible for planning and allocating resources, coordinating and linking groups and departments, monitoring and managing the performance of subunits and managers, and implementing the changes or strategies generated by top managers. First-line managers are responsible for managing the performance of nonmanagerial employees, teaching entry-level employees how to do their jobs, and making detailed schedules and operating plans based on middle management's intermediate-range plans. Team leaders are responsible for facilitating team performance, fostering good relationships among team members, and managing external relationships.

Discuss the different methods that managers can use to effectively manage innovation in their organizations.

To successfully manage innovation streams, companies must manage the sources of innovation and learn to manage innovation during both discontinuous and incremental change. Because innovation begins with creativity, companies can manage the sources of innovation by supporting a work environment in which creative thoughts and ideas are welcomed, valued, and encouraged. Creative work environments provide challenging work; offer organizational, supervisory, and work group encouragement; allow significant freedom; and remove organizational impediments to creativity. Discontinuous and incremental change require different strategies. Companies that succeed in periods of discontinuous change typically follow an experiential approach to innovation. The experiential approach assumes that intuition, flexible options, and hands-on experience can reduce uncertainty and accelerate learning and understanding. A compression approach to innovation works best during periods of incremental change. This approach assumes that innovation can be planned using a series of steps and that compressing the time it takes to complete those steps can speed up innovation.

Explain the methods that companies are using to redesign internal organizational processes (that is, intraorganizational processes).

Today, companies are using reengineering and empowerment to change their intraorganizational processes. Reengineering changes an organization's orientation from vertical to horizontal and changes its work processes by decreasing sequential and pooled interdependence and by increasing reciprocal interdependence. Reengineering promises dramatic increases in productivity and customer satisfaction, but it has been criticized as simply an excuse to cut costs and lay off workers. Empowering workers means taking decision-making authority and responsibility from managers and giving it to workers. Empowered workers develop feelings of competence and self-determination and believe that their work has meaning and impact.

Discuss the impact of global business and the trade rules and agreements that govern it.

Today, there are 103,000 multinational corporations worldwide; just 9.4 percent are based in the United States. Global business affects the United States in two ways: through direct foreign investment in the United States by foreign companies and through U.S. companies' investment in businesses in other countries. U.S. direct foreign investment throughout the world amounts to more than $4.2 trillion per year, whereas direct foreign investment by foreign companies in the United States amounts to more than $2.5 trillion per year. Historically, tariffs and nontariff trade barriers such as quotas, voluntary export restraints, government import standards, government subsidies, and customs classifications have made buying foreign goods much harder or more expensive than buying domestically produced products. In recent years, however, worldwide trade agreements such as GATT and the WTO, along with regional trading agreements such as the Maastricht Treaty of Europe, NAFTA, CAFTA-DR, UNASUR, ASEAN, and APEC have substantially reduced tariffs and nontariff barriers to international trade. Companies have responded by investing in growing markets in Asia, Eastern Europe, and Latin America. Consumers have responded by purchasing products based on value rather than geography.

Discuss the history of bureaucratic and administrative management

Today, we associate bureaucracy with inefficiency and red tape. Yet German sociologist Max Weber thought that bureaucracy—that is, running organizations on the basis of knowledge, fairness, and logical rules and procedures —would accomplish organizational goals much more efficiently than monarchies and patriarchies, where decisions were based on personal or family connections, personal gain, and arbitrary decision making. Bureaucracies are characterized by seven elements: qualification-based hiring; merit-based promotion; chain of command; division of labor; impartial application of rules and procedures; recording rules, procedures, and decisions in writing; and separating managers from owners. Nonetheless, bureaucracies are often inefficient and can be highly resistant to change. The Frenchman Henri Fayol, whose ideas were shaped by his more than twenty years of experience as a CEO, is best known for developing five management functions (planning, organizing, coordinating, commanding, and controlling) and fourteen principles of management (division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps).

Describe the U.S. Sentencing Commission Guidelines for Organizations, and explain how they both encourage ethical behavior and punish unethical behavior by businesses.

Under the U.S. Sentencing Commission guidelines, companies can be prosecuted and fined up to $300 million for employees' illegal actions. Fines are computed by multiplying the base fine by a culpability score. Companies that establish compliance programs to encourage ethical behavior can reduce their culpability scores and their fines.

the history of human relations management

Unlike most people who view conflict as bad, Mary Parker Follett believed that it should be embraced rather than avoided. Of the three ways of dealing with conflict—domination, compromise, and integration—she argued that the latter was the best because it focuses on developing creative methods for meeting conflicting parties' needs. Elton Mayo is best known for his role in the Hawthorne Studies at the Western Electric Company. In the first stage of the Hawthorne Studies, production went up because both the increased attention paid to the workers in the study and their development into a cohesive work group led to significantly higher levels of job satisfaction and productivity. In the second stage, productivity dropped because the workers had already developed strong negative norms. The Hawthorne Studies demonstrated that workers' feelings and attitudes affect their work, that financial incentives aren't necessarily the most important motivator for workers, and that group norms and behavior play a critical role in behavior at work. Chester Barnard, president of New Jersey Bell Telephone, emphasized the critical importance of willing cooperation in organizations. In general, Barnard argued that people will be indifferent to managerial directives or orders if they (1) are understood, (2) are consistent with the purpose of the organization, (3) are compatible with the people's personal interests, and (4) can actually be carried out by those people. Acceptance of managerial authority (that is, cooperation) is not automatic, however.

Explain how group decisions and group decision-making techniques can improve decision making. Using groups to improve decision making ( page 103 )

When groups view problems from multiple perspectives, use more information, have a diversity of knowledge and experience, and become committed to solutions they help choose, they can produce better solutions than do individual decision makers. However, group decisions can suffer from several disadvantages: groupthink, slowness, discussions dominated by just a few individuals, and unfelt responsibility for decisions. Group decision making works best when group members encourage c-type (cognitive) conflict. Group decision making doesn't work as well when groups become mired in a-type (affective) conflict. The devil's advocacy approach improves group decisions because it brings structured c-type conflict into the decision-making process. By contrast, the nominal group technique improves decision making by reducing a-type conflict. Because it overcomes the problems of production blocking and evaluation apprehension, electronic brainstorming is more effective than face-to-face brainstorming. groups can do a much better job than individuals in two steps of the decision making process: defining the problem and generating alternative solutions.

how and why companies can create competitive advantage through people

Why does management matter? Wellmanaged companies are competitive because their workforces are smarter, better trained, more motivated, and more committed. Furthermore, companies that practice good management consistently have greater sales revenues, profits, and stock market performance than companies that don't. Finally, good management matters because it leads to satisfied employees who, in turn, provide better service to customers. Because employees tend to treat customers the same way that their managers treat them, good management can improve customer satisfaction.

studies of British managers have compared derailers to arrivers :

derailers: - managers who were successful early in careers, but were knocked off the fast track by the time they reached the middle / upper levels of management - top mistake by derailers : insensitive to others by using abrasive, intimidating, and bullying management style - cold, aloof, and arrogant - betraying a trust... making others look bad by not doing what you said you would do - being overly political and ambitious arrivers: - not perfect but usually had no more than one fatal flaw or found ways to minimize the effects of it - didnt fail like the derailers did

adaptability

is the ability to notice and respond to changes in the organizations environment

selection

is the process of gathering information about job applicants to decide who should be offered a job

​The _____ is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes.

job characteristics model

​Tom is an editor for the sports column at Mailing Daily. Chloe, Tom's manager, asks him to handle the essay column along with the sports column. Which of the following job redesign techniques is used by Chloe?

job enlargement

corporate level strategies

page 117

managing change resistance to change

page 145

how to create a results driven change program

page 149

different kinds of organizational development interventions

page 150

forms for global business

page 161

finding the best business climate

page 164

functional departmentalization

page 179

2 basic strategies for monitoring customers: reactive and proactive

reactive customer monitoring: involves identifying and addressing customer trends and problems after they occur - listen to customer complaints and respond to customer concerns proactive customer monitoring: identifying and addressing customer needs, trends, and issues BEFORE they occur organ

the sociocultural component of the general environment

refers to the demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society. influence organizations in 2 ways: changes in demographic characteristics: - number of people with particular skills - the growth or decline in the number of people with particular population characteristics (age, gender, race) - affect how companies staff their businesses

determining punishment

step 1 compute the base fine by determining what level of offense has occurred step 2 the judge assesses the base fine and computes a culpability score

​_____ is the location of most authority at the upper levels of an organization.

​Centralization of authority

​Which of the following is an advantage of matrix departmentalization?

​It allows companies to manage in an efficient manner large, complex tasks.

​Which of the following is an advantage of product departmentalization?

​It allows managers and workers to specialize in one area of expertise.

​Which of the following is an advantage of geographic departmentalization?

​It can reduce costs by locating unique organizational resources closer to customers.

​Which of the following is an advantage of decentralization?

​It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.

​Which of the following best defines competitive inertia?

​It is a reluctance to change strategies or competitive practices that have been successful in the past.

​Which of the following best defines delegation of authority?

​It is the assignment of direct responsibility to a subordinate to complete tasks for which a manager is normally responsible.

​Which of the following best defines an interorganizational process?

​It is the collection of activities that take place among organizations to transform inputs into outputs that customers value.

​In the context of the job characteristics model, which of the following best defines autonomy?

​It is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work.

​Which of the following best defines staff authority?

​It is the right to advise but not command others who are not subordinates in the chain of command.

​Which of the following is true of job specialization?

​It occurs when a job composed of a small part of a larger task or process.

​Which of the following is an advantage of unity of command?

​It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.

​Jason is an employee at Manisch Burger and Meals. He is assigned the task of serving soft drinks to customers ordering meals with potato fries, a burger, and a roll. Which of the following best illustrates Jason's job design?

​Job specialization

​A competitive advantage becomes a sustainable competitive advantage when:

​other companies cannot duplicate the value a firm is providing to customers.

​Which of the following statements is true of analyzers?

​They are a blend of the defender and prospector strategies.

​Which of the following is a disadvantage of modular organizations?

​They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.

​In the context of organizational environments, which of the following is true of mechanistic organizations?

​They are characterized by specialized jobs and responsibilities.

​Which of the following best defines cash cows?

​They are the companies that have a large share of a slow-growing market.

​Which of the following is an advantage of virtual organizations?

​They let companies share costs and are fast and flexible.

​_____ is a management principle that workers should report to just one boss.

​Unity of command

​In the context of portfolio strategy, _____ is the purchase of a company by another company.

​acquisition

​The BCG matrix starts by recommending that while the substantial cash flows from cash cows last, they should be reinvested in stars to:

​help them grow even faster and obtain even more market share.

​In the context of the job characteristics model, _____ is motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss.

​internal motivation

​Staff function:

​is an activity that does not contribute directly to creating or selling a company's products but instead supports line activities.

​Stephanie is a receptionist at Violetcoast Corp. Over a period of six months, Stephanie has done a variety of jobs, such as data entry and preparing financial statements, along with her daily work. This scenario is an example of _____.

​job rotation

​A _____ is a gap between a desired state and an existing state.

​problem

components of the specific environment:

1) customers - purchase products and services 2) competitors - companies in the same industry that sell similar products or services to customers 3) suppliers - companies that provide material, human, financial, and information resources to other companies 4) industry regulation - regulations and rules that govern the business practices and procedures 5) advocacy group - concerned citizens, band together to try to influence the business practices

economy of the country

Many people in Rhenasia are spending less as there are only few good-paying jobs in the country. Many businesses in the country are adversely affected as the purchasing power of consumers has drastically reduced. The environmental characteristic that is affecting businesses in Rhenasia is associated with the _____.

resource scarcity

abundance or shortage of critical organizational resources in an external environment

conventional level

according to Kohlberg's stages of moral development, people at the ____ make decisions that conform to societal expectations

product boycott

an advocacy group tactic that involves persuading consumers not to purchase a companys merchandise or service

a function of a top manager:

creating a positive organizational culture through language and action

Jake is a supervisor. He is bossy, arrogant, and insensitive to the needs of his subordinates. he is unable to delegate tasks effectively. this shows that Jake has the characteristics of a :

derailer

The company wants to ensure that raw materials are fully utilized. Also makes sure that minimal waste is produced. The company is designed in such a way that the quality of its products are maintained with minimal costs. This company is achieving :

efficiency

according to Henri Fayol's 14 principles of management, order can be achieved in an organization by ___

having a place for everyone and everyone in his or her place

technology

identify a component of the general environment of an organization

ethical intensity

is the degree of concern people have about an ethical issue

select and hire ethical employees

managers can use overt integrity to ________

environment complexity

number and the intensity of external factors in the environment that affect organizations simple environment: includes few factors complex environment: includes many factors

​Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____.

options-based planning

in the context of Mintzberg's managerial roles, managers in the _____ share information with people outside their departments or companies.

spokesperson role

act on the situation

the last step in a basic model of ethical decision making is to

According to Linda Hills study, after their first year of managerial experience, managers tend to:

use positive reinforcement

technological

​An automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. This new invention is a development in the _____ component of the general environment of the company.

​Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spade and Marcher's success, Keith & Sons, an arms manufacturer in Korowlla, starts to manufacture toy guns too. Which of the following adaptive strategies is used by Keith & Sons?

​Analyzers

Which of the following is the first step of a strategy-making process?​

​Assessing the need for strategic change

​_____ is a measure of the intensity of competitive behavior among companies in an industry.

​Character of the rivalry

​Which of the following is the last step of a strategy-making process?

​Choosing strategic alternatives after determining the need for strategic change and conducting a situational analysis, the last step in the strategy-making process is to choose strategic alternatives that will help the company create or maintain a sustainable competitive advantage. According to the strategic reference point theory, managers choose between 2 basic alternative strategies. They can choose a conservative, risk avoiding strategy that aims to protect an existing competitive advantage. Or they can choose an aggressive, risk seeking strategy that aims to extend or create a sustainable competitive advantage. ( page 115 )

resource scarcity

​Citrine Inc. is a manufacturer of electrical home appliances. The company is facing a serious shortage of copper scrap that is used in its manufacturing process. Hence, the manufacturing process has come to a halt. Which of the following characteristics of the external environment is illustrated in this scenario?

high magnitude of consequences

​Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _____.

​The operations manager of a car manufacturing company in the U.S. wants to set up factories in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?

​Develop commitment to the goal

​_____ is fear of what others will think of one's ideas.

​Evaluation apprehension

the management must develop practical ethical standards and procedures specific to the company's line of business

​For a code of ethics to encourage ethical decision making and behavior in a company, _____.

legal responsibility

​Horizon Inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. The company disposes the waste in the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that Horizon has failed to fulfill its _____.

identify the constituents

​In a basic model of ethical decision making, after a problem has been identified, the next step is to _____.

increase interpersonal effectiveness by helping people to become aware of their attitudes

​In the context of organizational development, the purpose of person-focused interventions is to:

​Which of the following is a disadvantage of planning?

​It creates a false sense of certainty.

​Which of the following is a benefit of planning?

​It gives direction to managerial efforts.

​Which of the following statements is true of a portfolio strategy?

​It guides the strategic decisions of corporations that compete in a variety of businesses.

​Which of the following statements is true of planning?

​It intensifies the effort put in by managers and employees.

​Which of the following best defines strategic dissonance?

​It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.

​Which of the following best defines a SWOT analysis?

​It is an assessment of both the internal and external environment of an organization.

​Which of the following statements is true of direct competition?

​It is determined by two factors: market commonality and resource.

​Which of the following best defines cost leadership?

​It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.

​Which of the following statements is true of the BCG matrix?

​It is used to categorize a corporation's businesses by growth rate and relative market share.

​Which of the following best defines a distinctive competence?

​It is what a company can make, do, or perform better than its competitors. Organizations can create competitive advantage if they have distinctive competence

​Which of the following statements is true of global consistency?

​It simplifies decisions for managers at company headquarters.

postconventional level

​Jason, a police officer, strongly believes in justice and does not accept bribes from others. According to Kohlberg's stages of moral development, Jason is operating at the _____ of moral development.

​Which of the following can help managers to improve the speed and accuracy with which they determine the need for strategic change?

​Looking for signs of strategic dissonance

​Which of the following trends has allowed companies to skip the phase model of globalization when going global?

​Low-cost communication technologies make it easier to communicate with global customers.

​_____ affects the likelihood of an attack or a response to an attack.

​Market commonality

defensive strategy

​Maxwell Lights Inc., a fireworks company, has workers operating under dangerous working conditions. Last year, one of its workers died on the job. Nevertheless, the company took a long time to acknowledge its responsibility for the accident. The worker's family was compensated only after several months. Moreover, the money received by the worker's family was only half of what they should have actually been paid. Which of the following social responsiveness strategies is the company using?

competitive analysis

​Opulent Inc., a furniture design company based in Winona, designs a wide range of office and household furniture. Umber Corp. has recently started offering custom-made furniture in the same city. The managers at Opulent are conducting a research to find out the strengths and weaknesses of Umber. The managers are also trying to figure out the strategies used by Umber. Which of the following is a component of the specific environment that is illustrated in the scenario?

​_____ is the risk of major changes in political regimes that can result from war, revolution, death of political leaders, or other influential events.

​Political uncertainty

​Which of the following is a core capability of a company that determines how efficiently inputs can be turned into outputs?

​Problem-solving processes

_____ occurs when a group member must wait to share an idea because another member is presenting an idea.

​Production blocking

high magnitude of consequences

​Red Spark Inc., a multinational electronics manufacturer, recently came under close scrutiny after it was involved in a major money laundering scam. The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam. This scenario illustrates that the scam had a:

​_____ is a process wherein each decision criterion is compared directly with every other criterion.

​Relative comparisons

​_____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.

​Resource similarity

​Identify the most specific type of standing plans.

​Rules and regulations

voluntarily disclose illegal activities to federal authorities

​The US Sentencing Commission Guidelines for Organizations impose smaller fines on companies that:

periods of incremental change

​The compression approach of innovation management is used in

​Which of the following is a disadvantage of wholly owned affiliates?

​The expense of building new operations

​Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage

​The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

​In the context of adaptive strategies, which of the following best describes prospectors?

​They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

reactive strategy

​When ten customers of Niall's Eatery fell seriously ill after dining at the restaurant, the issue was noticed by the public. The public demanded that the restaurant's kitchen be thoroughly inspected and the patients be compensated. However, the management at Niall's Eatery denied all claims that the customers had fallen ill by consuming the food served by the restaurant. Furthermore, the management was against any inspection on the kitchen. Which of the following social responsiveness strategies is the restaurant using?

1. temporal immediacy 2. magnitude of consequences 3. social consensus 4. probability of effect 5. proximity of effect 6. concentration of effect

​Which of the following factors should be taken into account when determining the ethical intensity of an action? (all 6 factors)

a trend toward less leisure time

​Which of the following is a sociocultural component in the general environment of a book publisher that can indirectly influence how it does business?

increasing popularity of weight management programs

​Which of the following is a sociocultural component in the general environment of a fast food chain?

the costs of being socially responsible can be offset by a better product or corporate reputation

​Which of the following statements is true of the relationship between social responsibility and economic performance?

buyer dependence

​Zimway Inc. is a small-scale manufacturer of linen. Couture Corp., a big apparel brand, buys linen from Zimway in large quantities. Zimway, otherwise, has very few clients, and most of them buy linen occasionally and in minimal quantities. Therefore, business ties with Couture is crucial for Zimway's survival and success. In the context of the specific environment, which of the following concepts is illustrated in the scenario?

creative work environments

​_____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. Components of creative work environments: 1. challenging work 2. organizational encouragement 3. supervisory encouragement 4. work group encouragement 5. freedom 6. lack of organizational impediments ( page 139 )

change intervention

​_____ is the process used to get workers and managers to change their behaviors and work practices.

​During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____ conflict.

​a-type

​ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh's Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB's price. This scenario is an example of a(n) _____.

​attack

​Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of _____.

​competitive inertia

​Bob's Assembly is a hardware manufacturer. It specializes in builders' hardware for doors, cabinets, windows, and bathrooms. Bob's Assembly products are cheaper and 95% more durable than its competitors' products. This scenario is an example of _____ as Bob's Assembly performs better than its competitors.

​distinctive competence

​A drawback of planning is that:

​it causes detachment, which leads planners to plan for things they do not understand.

​A(n) _____ is a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profit.

​response

​Political uncertainty is the risk associated with:

​social unrest.

​A _____ is a type of operational plan that saves managers time because once the plan is created, it can be used repeatedly to handle frequently recurring events.

​standing plan

​A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods can be referred to as _____.

​standing plans

​Management by objectives is a management technique often used to develop and carry out _____.

​tactical plans