Intro. to Business Management

——— is a positive reaction to stress that generates a desire to achieve and overcome challenges. •Neustress •Distress •Eustress

Eustress

_______ are the unfortunate outcome of changes in industries or problems with individual corporations. Most often, employees are terminated because their employer has been forced to close stores, stop producing certain products, or simply save money. •Firings •Layoffs

Layoffs

The Boston Consulting Group's Yves Morieux argues for increasing the total quantity of power in a firm. Morieux echoes the earlier ideas of about sharing power and empowering employees. •Elton Mayo •Harvey Gantt •Mary Parker Follett

Mary Parker Follett

Human Resource management must ensure a safe work environment and compliance with legal requirements set forth by OSHA, a federal agency. OSHA is the •Occupational Sustainability and Health Administration •Occupational Safety and Health Agency •Occupational Safety and Health Administration

Occupational Safety and Health Administration

People are not motivated when they do not have clear goals and do not know what is expected of them. _______ reduces uncertainty and indicates what everyone is expected to accomplish. •competition between employees •Insurance •planning

Planning

———- are making a huge positive difference in company's ability to reach clients and manage business transactions and vice versa. Employees can respond to client queries from a ball game or discuss a bond from the golf course. •Emails •Websites •Social media

Social media

———— decides how best to attain a company's mission and vision through the coordinated efforts to achieve specific goals and objectives. •Human resource management •Strategic management •Social network management

Strategic management

———- is committed to persuading followers to share a leader's vision and desired goals. •Contingency •Transformational •Transactional

Transformational

"Soft skills" may be unrelated to your job goals, but they will help you build valuable transferable workplace capabilities that you can use to market yourself to employers. True or False

True

Procter & Gamble needs many different skills to put together a new product launch. They need •a task force •a committee •a cross-functional team

a cross-functional team

Johnson & Johnson is an American multinational manufacturer of medical devices, pharmaceuticals, and consumer packaged goods. Its credo, on a stone at the entrance to headquarters, says that stockholders come fourth, after customers, employees, and communities. The credo is •a deep seated assumption •a statement of values. •a cultural artifact

a statement of values

Today, ABB is a Swedish-Swiss multinational corporation headquartered in Zürich, Switzerland, operating in robotics and in the power and automation technology areas. The robotics industry requires high investment costs in developing the new technology and in manufacturing facilities. ABB would like to spread these costs over as large a customer base as possible. But each customer also requires small adaptations to their way of doing things. For its robotics business, ABB needs •a transnational strategy •a standardization strategy •a multi-domestic strategic

a transitional strategy

Hewlett-Packard (HP) is one of the world's largest technology companies and has one of the industry's most extensive supply chains. Comprising more than 1,000 production suppliers and tens of thousands of nonproduction suppliers, it spans 6 continents, more than 45 countries and territories, and many cultures. HP's suppliers compete •across the globe •in the United States and Europe •in North America

across the globe

MinTsung prefers to work independently as a risk analyst. In fact, he gets upset and competitive if someone else crosses into his responsibilities. But left on his own, he produces exceptional, well-organized work. His manager should •assign a consultant to document everything so that his work can be duplicated •add staff reporting to MinTsung so that he can train someone to support his work

add staff reporting to MinTsung so that he can train someone to support his work

In the ————-, most of the team's goals have been accomplished. The emphasis is on wrapping up final tasks and documenting the effort and results. As the work load is diminished, individual members may be reassigned to other teams, and the team disbands. •performing stage •storming stage •adjourning stage

adjourning stage

As a manager you may need to discipline poor-performing employees and clearly communicate both good news and critical feedback. If you are preoccupied by how others perceive you, you have a need for ., according to McClellend's acquired- needs theory, and you might find managing others difficult. •power •affiliation •achievement

affiliation

An example of a feedback control is •using the plans of the last marketing campaign to develop a new marketing campaign without asking how well it worked. •an employee performance review. •taking yourself in for annual checkups at the doctor.

an emplovee performance review

General Motors had long-running problems with Chevy Cobalt ignition switches. The switches could disable the emergency airbags, causing accidental deaths. The GM culture discouraged anyone from stepping up and addressing the problem. Mary Barra, the new CEO, made a public commitment to change. After an investigation, two senior managers left the company in 2014. By —————-, GM was better able to move forward. •creating a crisis •changing leaders •role modeling

changing leaders

Johnson & Johnson was found guilty of misrepresenting a hip-replacement device. Executives knew there was a problem with the device but continued selling it for years. Better attention to Johnson & Johnson's ——— might have saved the company from litigation and penalties •mission •vision •code of ethics

code of ethics

Financial strength can be a competitive advantage. In the Great Recession, General Motors went bankrupt, but Ford had acquired long-term financing beforehand that carried it through the downturn. This insight is part of •industry analysis •Porter's Five Forces •competitive analysis

competitive analysis

Companies can accurately assess employee work attitudes by •sharing individual responses to attitude surveys with management. •monitoring employees online social media accounts •conducting confidential attitude surveys and exit interviews.

conducting confidential attitude surveys and exit interviews.

In communication, the validity of the message is tied to the ———— of the sender. If the receiver doesn't trust the sender, he will view the message itself with skepticism or suspicion. •selective perception •credibility •semantics

credibility

Legg Mason's senior management was concerned about the risk that portfolio managers were taking, Rather than dictate changes in the portfolios, they gave each manager a risk budget. In this way, they •used top down controls to reduce risk. •delegated the authority and decisions. •avoided responsibility for risk decisions.

delegated the authority and decisions

An export strategy is used when a global company •treats the whole world as one market with little meaningful variation •adapts to local needs and markets •does not intend to expand globally but does export some products

does not intend to expand globally but does export some products

The Social Security Administration has a long-standing role managing the Social Security benefits required by law. Its environment is stable, and employees follow rules and rarely need to innovate. The organization uses •a network organization •matrix structure •functional departmentalization

functional departmentalization

Southwest Airlines is famous for operating at low cost. They achieve low costs because they are very selective in the people they hire and they create a friendly and supportive environment. In return, the employees support the company. Competitors have failed to duplicate this and Southwest has retained •low cost structure •good employees •its competitive advantage

its competitive advantage

Controls start with handling cash. On average, fraud takes 5% from US business revenues. It pays to pay attention. For example, a company may give some employees company credit cards and •allow the companies credit limit to be charged on each card. •give the same limit to all employees. •limit the maximum amount allowed on each.

limit the maximum amount allowed on each.

A motivation for scientific management, which uses time and motion studies and work standardizations, is to: •require employees to choose their own work and train themselves •make workers solely responsible for improving their conditions •make manual labor run more efficiently

make manual labor run more efficiently

A ———- structure tries to borrow the flexibility of a social system. The goal of this structure is to achieve rapid organizational evolution and adaptation to constantly changing external and internal environments •modular •network •team

network

Applications from Internet job sites flood companies with more applications than they can process manually. In response, companies rely more on •contact services •personal referrals •part-time workers

personal referrals

In the resource view of strategy, VRIO stands for: •valuable, reproducing, inimitable, and organized •validating, rare, inert, and organic •valuable, rare, inimitable, and organized

valuable, rare, inimitable, and organized

Google's motto is "Don't be evil." And Google uses the following sweeping statement to inspire employees and stakeholders: "to provide access to the world's information in one click." This is Google's •goal •vision •mission

vision

Reinforcement theory was developed in training animals. B.F. Skinner called it operant conditioning and worked with pigeons, rats, and dogs. Rewards are generally effective, but some people, especially professionals. •will expect larger rewards next time •will take offense if they are treated like animals

will take offense if they are treated like animals.

Jamie Dimon, the CEO of J.P. Morgan bank, wanted to clarify his position on "racism and intolerance" after events in Charlottesville, VA. He sent a message to all employees, saying in part, "Racism, intolerance and violence are always wrong. The equal treatment of all people is one of our nation's bedrock principles. There is no room for equivocation here. It is a leader's role, in business or government, to bring people together, not tear them apart." This is an example of ——— communication. •downward •upward •external

downward

Domestic U.S. companies conducting a PESTEL analysis consider national growth, employment, inflation, and interest rates. These are aspects of which macro term? •ecological •economic •environmental

economic

Bureaucratic Management looked at how large organizations with layers of management could operate in an •benevolent and caring manner •efficient, rational manner •clear and coherent manner

efficient, rational manner

To coordinate efforts, managers must also take into account •employees' preferences, job satisfaction, and engagement •employee's social network •employees ambitions and aspirations

employees' preferences, job satisfaction, and engagement

The German car company, Daimler-Benz, merged with Chrysler in 1998. Cultural differences and organizational culture are both acknowledged to have played a role in the failure of the merger. Daimler was a German company that could be described as "conservative, efficient and safe," while Chrysler was known as "daring, diverse, and creative." The attitude toward hierarchy was different as well. Daimler was heavily hierarchical, with a clear chain of command and respect for authority. Chrysler, on the other hand, was more team-oriented and egalitarian in its approach. Daimler valued reliability and achieving the highest levels of quality, while Chrysler relied on catchy designs and offering cars at competitive prices. These cultural differences led to conflicting orders and goals in different departments. The difference in the two companies' views of reliability vs. competitive pricing is an example of: •gender equalitarianism •human orientation •future orientation

future orientation

One graphic representation of the tasks required over the course of a project is called a •scheduling chart •project planning chart •gantt chart

gantt chart

Intrinsic rewards are not tangible, meaning that they can't be easily measured or quantified. Some examples are •skill development and mastery social status, or promotions. •skill development and skill mastery, raises, or power. •skill development and skill mastery, social status, or power.

skill development and skill mastery, social status, or power.

Starbucks focuses on making coffee. By L. they are faster, more consistent, and their production costs are lower than McDonald's. Although they have an advantage in the coffee department, they fall well short of par in the food department. •branding their coffee •offering a Italian cafe experience •specializing in making coffee

specializing in making coffee

'Leadership is about establishing a direction and influencing others to follow. Management is about •pursing goals and challenging the status quo •successfully administering the details involved in a business's operations

successfully administering the details involved in a business's operations.

A code of ethics is •a resentment of religious injunctions •essentially a moral compass.

essentially a moral compass.

Nick's Pub wants employees to be friendly to customers. To be clear what that means, Nick's made a rule that employees should smile and greet any customer within 5 feet. This is • a financial control. •a normative control. •an objective control.

an objective control

Informal communication systems skip over hierarchical levels and between departments and functions. They can connect •only people on similar levels in the hierarchy •anyone in the organization except for the CEO •anyone in an organization to anyone else

anyone in an organization to anyone else

Although it may seem straightforward, the management process is complex. The management functions include: •distributing organizational resources to the highest bidder •applying organizational resources to the pressing problems •applying and distributing organizational resources effectively

applying and distributing organizational resources effectively

Bill is a Brazilian immigrant. Bill's work before joining the group was terrific, a breakthrough in combining position data and financial modeling. He joined a new group to clean up a financial database. His work relied on cooperation from the IT department, and they claimed to be too busy to help. He made no substantive progress for months. Peter, the executive for the division, did not like Bill from the start. When he heard of the delays, he blamed Bill. This is an example of •in group bias •confirmation bias •similarly bias •

confirmation bias.

Walmart has exceptional logistics, but in 2014, Walmart was criticized for unusual shortages. Customers complained, saying they could not buy the product if it was not on the shelves. Management failed to •control the inventory process •organize the inventory process •direct the inventory process

control the inventory process

Michael Porter of Harvard Business School developed a concept of "shared value." The central premise behind creating shared value is that the competitiveness of a company and the health of the communities around it are mutually dependent. Shared value is similar to •unconscious capitalism •corporate global citizenship •corporate social responsibility

corporate social responsibility

Planning activities provide an opportunity for input from the departments and people affected. Some organizations establish planning committees that intentionally include people from ———— backgrounds to bring ———- perspectives into the planning process. •specialist, expert •consulting, excellent •diverse, new

diverse, new

The traditional hierarchical structure uses rules and procedures to standardize decisions. Some companies decide to trust the employees and to give them the authority to make decisions, even mistakes. This is called •standardizing activities •customer- friendly management •empowering the employee

empowering the employee

A broad survey of consumers shows that many factors affect reputation but that ————— is the primary concern. Customers will switch to other brands when a company appears in headlines reporting bad behavior. •perception of quality in products •media reports •ethics

ethics

Martin Winterkorn, ex-CEO of Volkswagen, was known for his exacting standards and perfectionism. He set VW on a path to become the world's largest automobile manufacturer. In the culture he shaped, failure simply was not an option, •even if it meant competing with colleagues •even if it meant neglecting training and employee deployment •even if it meant taking illegal steps

even if it meant taking illegal steps.

The US Sentencing Commission Guidelines require most companies to create an ethics program. This can be challenging, so most companies •follow a religious injunction in designing their ethics program •use a generic brand offered by McKinsley and company, a consulting firm •follow the 7 broad compliance steps created by the Commission

follow the 7 broad compliance steps created by the Commission.

All of the following are examples of external communication, EXCEPT: •websites or web pages •human resources management memos •press release

human resources management memos

The purpose of the balanced scorecard is to: •integrate nonfinancial and financial controls to provide a balanced understanding of organizational performance •provide Human Resources with a balanced means of disciplining employees •focus management's attention on finangial results and incentive payments

integrate nonfinancial and financial controls to provide a balanced understanding of organizational performance

Managers must motivate employees, negotiate salaries, and encourage employees toward innovation and creativity. Sheryl Sandberg, now COO of Facebook, is great at encouraging fellow employees, but this is usually the ———- role of middle management. •negotiator •interpersonal •informational

interpersonal

A democratic approach to leading means •allowing employees to make decisions on their own •involving the employee team in the decision-making process. •working from an authoritarian perspective

involving the employee team in the decision-making process.

Diversity as a strategy hopes to gain, for example. from more problem-solving approaches or more connections. In this context, diversity includes •race, age •personality, cognitive style

personality, cognitive style, education, and social background.

Companies need consistency in their HR practices to avoid charges of discrimination. Senior management usually approves broad guidelines for HR activities, like hiring and firing, performance appraisals, promotions, and discipline. These are •regulations •policies •plans

policies

The way team members function as a group is as important to the team's success as the quality of the individual efforts. Therefore the goals should encourage members •to do their best work in their own tasks •to finish their own tasks before helping anyone else •to be attentive to how they interact and collaborate with each other

to be attentive to how they interact and collaborate with each other

Sam works for a company creating marketing campaigns that raise awareness of environmental issues. He travels frequently to present these campaigns, and he has the freedom to work from anywhere with his laptop. Based on this description, Sam values: •Power, security, tradition •Universalism, self direction, stimulation

universalism, self direction, stimulation

The investment portfolio staff earn millions in profits by anticipating near-term market movements. The programmers tend to come in late and work late. Their goals are saving thousands of dollars through cost reductions. Differences in ————— can create friction over decisions that make little sense to the other group. •communication styles •opinion •work styles

work styles

Management at the SAS Institute, which sells packaged database and analysis software, says, "The investments we make in employee health, well-being, and can be seen in a dedicated workforce, committed to moving up the ranks rather than out the door. SAS' turnover rate of about 4 percent is far below the industry average of 15 percent, which translates into consistent, long-term relationships for our SAS customers." •their work ethic. •Interpersonal relationships •work-life balance

work-life balance