Everything over 50 - Test 1

Understanding theoretical perspectives of management will help you understand why some practices are still favored, whether for right or wrong reasons. 1) True 2) False

1) True

When the Americans entered the war in 1941, they used the British model to form operations research teams to determine how to deploy troops, submarines, and equipment most effectively. These techniques have evolved into quantitative management. 1) True 2) False

1) True

Personal aggression (Interpersonal and serious)

1. Sexual harassment 2. Verbal abuse 3. Stealing from coworkers 4. Endangering coworkers

Political deviance (Minor and interpersonal)

1. Showing favoritism 2. Gossiping 3. Blaming coworkers 4. Competing nonbenificially

Three levels of organizational culture Surface level (seen)

1. Symbolic artifacts such as dress code 2. Workers and managers behavior 3. What people say

Zone of indifference

1. Understood 2. Consistent with organizations purpose 3. Comparable with people's personal interest 4. Can be carried out

Entrepreneurship

Entrepreneurship is the process of taking risks to try to create a new enterprise. There are two types of entrepreneurship.

Steps to understand organizational environments

Environmental scanning, interpreting environmental factors, and acting on threats and opportunities

Taylor's 4 principles of management Fourth

Equal division in the work place,

Changes in Organizational Structure

With computers and telecommunications technology, organizations and teams become "virtual"; they are no longer as bound by time zones and locations. Employees, for instance, may telecommute, or work from home or remote locations using a variety of information technologies. Meetings may be conducted via videoconferencing, using video and audio links along with computers to let people in different locations see, hear, and talk with one another. In addition, collaborative computing, using state-of-the-art computer software and hardware, will help people work better together. Goal setting and feedback will be conducted via Web-based software programs such as eWorkbench, which enables managers to create and track employee goals. All such forms of interaction will require managers and employees to be more flexible, and there will be an increased emphasis on knowledge management—the implementing of systems and practices to increase the sharing of knowledge and information throughout an organization.

Managing for Ethical Standards

With the pressure to meet sales, production, and other targets, managers can find themselves confronting ethical dilemmas. What do you do when you learn an employee dropped a gyroscope but put it in the helicopter anyway in order to hold the product's delivery date? How much should you allow your sales reps to knock the competition? How much leeway do you have in giving gifts to prospective clients in a foreign country to try to land a contract? In an era of global warming and rising sea levels, what is your responsibility to "act green"—avoid company policies that are damaging to the environment? Ethical behavior is not just a nicety; it is a very important part of doing business. This was certainly made clear in December 2008, when financier Bernard Madoff confessed that his investments were all "one big lie"—not investments at all, but rather a $50 billion scheme (Ponzi scheme), using cash from newer investors to pay off older ones. Not since sociologist Edwin Sutherland invented the term "white-collar crime" in the 1930s have so many top-level executives been hauled into court.

In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the vertical axis reflects

market growth rate.

Quadrant D in Figure 2-5 represents the marketing strategy of

market penetration.

Managing for Globalization

"In Japan it is considered rude to look directly in the eye for more than a few seconds," says a report about teaching Americans how to behave abroad, "and in Greece the hand-waving gesture commonly used in America for good-bye is considered an insult." The point: Gestures and symbols don't have the same meaning to everyone throughout the world. Not understanding such differences can affect how well organizations manage globally. American firms have been going out into the world in a major way, even as the world has been coming to us—leading to what New York Times columnist Thomas Friedman has called, in The World Is Flat, a phenomenon in which globalization has leveled (made "flat") the competitive playing fields between industrial and emerging-market countries.

7 Challenges to Being An Exceptional Manager

-Managing for Competitive Advantage -Managing for Diversity -Managing for Globalization -Managing for Information Technology -Managing for Ethical Standards -Managing for Sustainability -Managing Your Own Happiness & Life Goals

Why Learn About International Management

-You May Deal with Foreign Customers or Partners While working for a U.S. company you may have to deal with foreign customers. Or you may have to work with a foreign company in some sort of joint venture. The people you're dealing with may be outside the United States or visitors to it. Either way you would hate to blow a deal—and maybe all future deals—because you were ignorant of some cultural aspects you could have known about. Examples are legion. One American executive inadvertently insulted or embarrassed Thai businessmen by starting gatherings talking about business. "That's a no-no," he says. "I quickly figured out that I was creating problems by talking business before eating lunch and by initiating the talks." -You May Deal with Foreign Employees or Suppliers While working for an American company you may have to purchase important components, raw materials, or services from a foreign supplier. And you never know where foreign practices may diverge from what you're accustomed to. Many software developer jobs, for instance, have been moved outside the United States—to places such as India, New Zealand, and Eastern Europe. A lot of U.S. software companies—Microsoft, IBM, Oracle, Motorola, Novell, Hewlett-Packard, and Texas Instruments—have opened offices in India to take advantage of high-quality labor. General Electric, Caterpillar, and 3M have spent millions expanding their overseas research labs. -You May Work for a Foreign Firm in the United States You may sometime take a job with a foreign firm doing business in the United States, such as an electronics, pharmaceutical, or car company. And you'll have to deal with managers above and below you whose outlook is different from yours. For instance, Japanese companies, with their emphasis on correctness and face saving, operate in significantly different ways from American companies. Sometimes it is even hard to know that an ostensibly U.S. company actually has foreign ownership. For example, some American book publishers (though not McGraw-Hill) are British or German owned. -You May Work for an American Firm Outside the United States—or for a Foreign One You might easily find yourself working abroad in the foreign operation of a U.S. company. Most big American corporations have overseas subsidiaries or divisions. On the other hand, you might also well work for a foreign firm in a foreign country, such as a big Indian company in Bangalore or Mumbai.

A local furniture retailer routinely develops and acquires new knowledge, and the employees communicate what they learn to other employees, so the company is able to modify its behavior to reflect what they have learned. This organization is an example of a learning organization. 1) True 2) False

1) True

Ali, a CEO of a large IT organization, understands that many challenges are coming in his industry; therefore, he tells his upper-level management that it's helpful to look at theoretical perspectives of management to help make predictions and develop principles to guide future company strategies and actions. 1) True 2) False

1) True

Carmakers have broken down automobile manufacturing into its basic tasks, such as on an assembly line, because the application of scientific methods and job specialization boosts productivity. 1) True 2) False

1) True

Don, a restaurant manager and MBA student, was reflecting on a how he can apply the classical management viewpoint in his store from a recent class, which supposes his employees are rational in their decisions. 1) True 2) False

1) True

Gary Hamel of the Management Innovation Lab suggests that core beliefs about an organization can be rooted out by repeatedly asking the right questions, such as, "Is this a belief worth challenging?" or "Is this belief universally valid?" 1) True 2) False

1) True

In our time, the word bureaucracy has come to have negative associations: impersonality, inflexibility, red tape, and a molasses-like response to problems. 1) True 2) False

1) True

Scientific management emphasized the scientific study of work methods to improve the productivity of individual workers. 1) True 2) False

1) True

Susan, a department manager, believes that since the corporate office eliminated certain benefits to reduce costs, her employees have not been working as hard as in the past. This reduction in effort is known as "soldiering." 1) True 2) False

1) True

The classical viewpoint of management emphasized ways to manage work more efficiently. 1) True 2) False

1) True

W. Edwards Deming and Joseph M. Juran were pioneers of the quality-management movement. 1) True 2) False

1) True

Motion studies broke down each worker's job into basic physical motions and then trained workers to use the methods of their best-performing coworkers. 1) True 2) False

1)true

Quality is seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. 1) True 2) False

1)true

Managers Roles

1. A Manager Relies More on Verbal Than on Written Communication Writing letters, memos, and reports takes time. Most managers in Mintzberg's research tended to get and transmit information through telephone conversations and meetings. No doubt this is still true, although the technologies of e-mail, texting, and Twitter now makes it possible to communicate almost as rapidly in writing as with the spoken word. 2. A Manager Works Long Hours at an Intense Pace "A true break seldom occurred," wrote Mintzberg about his subjects. "Coffee was taken during meetings, and lunchtime was almost always devoted to formal or informal meetings." Long hours at work are standard, he found, with 50 hours being typical and up to 90 hours not unheard of. A 1999 survey by John P. Kotter of the Harvard Business School found that the general managers he studied worked just under 60 hours per week. Are such hours really necessary? Three decades following the Mintzberg research, Linda Stroh, Director of Workplace Studies at Loyola University Chicago, did a study that found that people who work more also earn more. "Those managers who worked 61 hours or more per week had earned, on average, about two promotions over the past five years," she reported.61 Prior to the 2007-2009 Great Recession, researchers at Purdue and McGill universities found that more companies were allowing managers to reduce their working hours and spend more time with their families yet still advance their high-powered careers. However, during economic hard times, top managers may be more apt to see subordinates' work-life flexibility as a luxury they can no longer afford. 3. A Manager's Work Is Characterized by Fragmentation, Brevity, & Variety Only about a tenth of the managerial activities observed by Mintzberg took more than an hour; about half were completed in under 9 minutes. Phone calls averaged 6 minutes, informal meetings 10 minutes, and desk-work sessions 15 minutes. "When free time appeared," wrote Mintzberg, "ever-present subordinates quickly usurped it." No wonder the executive's work time has been characterized as "the interrupt-driven day" and that many managers—such as the late Mary Kay Ash, head of the Mary Kay Cosmetics company—get up as early as 5 a.m. so that they will have a quiet period in which to work undisturbed. No wonder that finding balance between work and family lives is an ongoing concern. No wonder that many managers—such as Dawn Lepore, executive vice president of discount broker Charles Schwab & Co.—have become "much less tolerant of activities that aren't a good use of my time" and so have become better delegators. It is clear from Mintzberg's work that time and task management are major challenges for every manager. The Practical Action box, "Executive Functioning: How Good Are You at Focusing Your Thoughts, Controlling Your Impulses, & Avoiding Distractions?" examines this challenge further. The box "Getting Control of Your Time: Dealing with the Information Deluge in College & in Your Career" at the end of this chapter also offers some important suggestions.

Decisional role

1. Entrepreneur 2. Disturbance handler 3. Resource allocator 4. Negotiator

Elements or uncertainty

1. Environmental change 2. Environmental complexity 3. Resource scarcity

Leaders must be able to manage

1. Environmental change 2. Environmental complexity 3. Resource scarcity 4. Uncertainty

Responsibilities of team leaders

1. Facilitating team activities toward goal achievement 2. Plan and schedule work 3. Learn to solve problems 4. Work efficiently with others

Team leaders

1. Facilitation 2. External relationships 3. Internal relationships

Interpersonal role

1. Figurehead 2. Leader 3. Liaison

How Co. Expand

1. Global Outsourcing -A common practice of many companies, outsourcing is defined as using suppliers outside the company to provide goods and services. For example, airlines farm out a lot of aircraft maintenance to other companies. -Management philosopher Peter Drucker believed that in the near future organizations might be outsourcing all work that is "support"—such as information systems—rather than revenue producing. -Global outsourcing extends this technique outside the United States. Global outsourcing, or offshoring, is defined as using suppliers outside the United States to provide labor, goods, or services. The reason may be that the foreign supplier has resources not available in the United States, such as Italian marble. Or the supplier may have special expertise, as do Pakistani weavers. -Or—more likely these days—the supplier's labor is cheaper than American labor. As a manager, your first business trip outside the United States might be to inspect the production lines of one of your outsourcing suppliers. 2. Importing, Exporting, & Countertrading -When importing, a company buys goods outside the country and resells them domestically. Nothing might seem to be more American than Caterpillar tractors, but they are made not only in the United States but also in Canada (where, interestingly, workers may be paid higher wage and benefit costs), from which they are imported and made available for sale in the United States. Many of the products we use are imported, ranging from Heineken beer (Netherlands) to Texaco gasoline (Saudi Arabia) to Honda snowblowers (Japan). When exporting, a company produces goods domestically and sells them outside the country. -The United States was ranked the number 3 exporter in the world in 2009, down from number 1 a decade earlier. One of the greatest U.S. exports is American pop culture, in the form of movies, music, and fashion. The United States is also a leader in exporting computers and other information technology. -Sometimes other countries may wish to import American goods but lack the currency to pay for them. In that case, the exporting U.S. company may resort to countertrading—that is, bartering goods for goods. When the Russian ruble plunged in value in 1998, some goods became a better medium of exchange than currency. 3. Licensing & Franchising -Licensing and franchising are two aspects of the same thing, although licensing is used by manufacturing companies and franchising is used more frequently by service companies. -In licensing, a company allows a foreign company to pay it a fee to make or distribute the first company's product or service. For example, the DuPont chemical company might license a company in Brazil to make Teflon, the nonstick substance that is found on some frying pans. Thus, DuPont, the licensor, can make money without having to invest large sums to conduct business directly in a foreign company. Moreover, the Brazilian firm, the licensee, knows the local market better than DuPont probably would. -Franchising is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services. For example, Burger King, Hertz, and Hilton Hotels, which are all well-known brands, might provide the use of their names plus their operating know-how (facility design, equipment, recipes, management systems) to companies in the Philippines in return for an up-front fee plus a percentage of the profits. -By now Americans traveling throughout the world have become accustomed to seeing so-called U.S. stores everywhere. Some recently active companies: Toys R Us opened a store in Poland. Starbucks is looking to do the same in India. Gap is opening an Old Navy store in Japan and a Banana Republic store in Paris. Wendy's is returning to Japan with a burger that features goose-liver pâté and truffles. 4. Joint Ventures Strategic allies are two organizations that have joined forces to realize strategic advantages that neither would have if operating alone. A U.S. firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country. -For instance, General Motors operates a joint venture with Shanghai Automotive Industry -Group to build Buicks in China. Sometimes a joint venture is the only way an American company can have a presence in a certain country, whose laws may forbid foreigners from ownership. Indeed, in China, this is the only way foreign cars may be sold in that country. 5. Wholly Owned Subsidiaries -A wholly owned subsidiary is a foreign subsidiary that is totally owned and controlled by an organization. -The foreign subsidiary may be an existing company that is purchased outright. -A greenfield venture is a foreign subsidiary that the owning organization has built from scratch. General Motors owns majority stakes in Adam Opel AG in Germany and Vauxhall Motor Cars Ltd. in the United Kingdom, both wholly owned GM subsidaries.

Competitive advantage through people High wages contingent on organizational performance

1. High remuneration helps an organization attract talented employees and retain existing employees 2. Indicate organization values their employee

Production deviance (Minor and organizational)

1. Leaving early 2. Excessive breaks 3. Working slowly 4. Wasting resources

Stakeholder model

1. Managements most important responsibility is long term survival 2. Achieved by satisfying the interests of multiple corporate stakeholders

Environmental scanning

1. Managers scan environment to reduce uncertainty 2. Organizational strategies affect environmental scanning 3. Environmental scanning contributes to organizational performance

Cognitive map

1. Models of external environments 2. Depicts how managers believe environmental factors relate to possible organizational actions

Informational role

1. Monster 2. Disseminator 3. Spokesperson

Seat-of-the-pants management

1. No standardized procedures 2. No follow up on improvements

Informational MGMT

1. Paper and typewriters revolutionized the business use of info

Moral deveopment of a manager Phases

1. Preconventional level of moral development 2. Conventional level of moral development 3. Post conventional level of moral deveopment

Middle managers

1. Resources 2. Objectives 3. Coordination 4. Subunit performance 5. Strategy implementation

Responsibilities of middle managers

1. Setting objectives consistent with top managers goals 2. Planning and implementing subunit strategies for achieving the objectives

First line managers responsibilities

1.Train and supervise the performance for no managerial employees who are responsible for producing a company's goods and services 2. Monitoring, teaching, and short term planning

A problem with the classical viewpoint is that it does not consider overall company and global problems and goals. 1) True 2) False

2) False

A system is an organization's method of determining if employees succeed. 1) True 2) False

2) False

A-Plus Manufacturing has a policy of using statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run. This strategy of minimizing errors is known as synergy. 1) True 2) False

2) False

Sal, a production manager, knows that some of his employees are upset with the new corporate policy, and as a result, are participating in soldiering. To eliminate soldiering Sal can ___. 1) reduce the use of scientific principles in planning work methods 2) carefully select workers according to their abilities and give workers training 3) reduce training, but increase MBO 4) place workers in any task available, focusing on their interests and not their abilities 5) increase diversity and MBO

2) carefully select workers according to their abilities and give workers training

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n) ____. 1) focused organization 2) learning organization 3) evolving atmosphere 4) customer-focused organization 5) 360-degree training structure

2) learning organization

Mary Parker Follett anticipated some of today's concepts, such as _____. 1) worker empowerment and scientific management 2) self-managed teams and worker empowerment 3) quality assurance and transformation processes 4) management-lead teams and diversity 5) synergy and MBO

2) self-managed teams and worker empowerment

To gain a competitive edge this year, the upper management of a global IT company has decided to focus on customer service, employee training, and continuous quality improvement. This approach is known as _____. 1) customer focus 2) total quality management (TQM) 3)evidence-based management 4)competitive edging 5)constancy of purpose

2)total quality management (TQM)

George, who owns a small grocery store, has a reputation in the community as a tough manager. Many customers have heard George yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. George is a(n) ____ manager. 1) Theory Z 2) hierarchy 3) Theory X 4) accountable 5) Theory Y

3) Theory X

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals; therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint. 1) synergy 2) attitude 3) behavioral 4) classical 5) scientific

3) behavioral

The example in the textbook of Paul English of Kayak.com altering an existing open-office seating arrangement by using new employees to change existing seating patterns is an example of ____. 1) the hostility effect 2) the office politics approach 3) behavioral science research 4) synergy research 5) a Theory X method

3) behavioral science research

Thomas has been studying Hugo Munsterberg's suggestions, and like Munsterberg, Thomas believes that psychologists can contribute to industry by _____. 1) developing strategies to influence employees to follow their interests 2) encouraging employees to develop new products 3) devising management strategies to influence employees to follow management's interests 4) helping organizations increase diversity 5) helping companies increase efficiency and productivity

3) devising management strategies to influence employees to follow management's interests

Communication

3. Communication For small companies doing business abroad, "the important thing to remember is that you don't know what you don't know," says the head of a U.S. firm that advises clients on cross-cultural matters. For instance, an American who had lived in Brazil and was fluent in Portuguese was angling to make a deal in São Paulo and thought his pitch was going well. "It was picture-perfect until my client suggested I stay for the weekend to go to a soccer game" and enjoy the local food with him. The American diplomatically declined the invitation, but the next day found the prospective clients not as receptive, saying they liked the program but would need more time to decide. On the plane home, he analyzed what had gone wrong and realized he had given them a "task" reason instead of a "relationship" reason for declining the invitation. "It's a relationship culture, and I could just as easily and more successfully [have said], 'There are people back home who are expecting me to be with them.'" But the reason he gave "sent the message that I was not as Brazilian as they initially thought—and it came out of my profit." Even single words and sounds can pose difficulties: Promoters of Apple's iPad might encounter difficulties in Ireland, where the sound is indistinguishable from "iPod," or in Japan, where the language doesn't even have a sound for the "a" in iPad. If you, like a growing number of young Americans, head to China for employment, you need to recall that you were brought up in a commercial environment, but younger Chinese were raised at a time when China was evolving from a government-regulated economy to a more free-market system, and so they may have less understanding of business concepts and client services. "In the West, there is such a premium on getting things done quickly," says an American manager, "but when you come to work in China, you need to work on listening and being more patient and understanding of local ways of doing business." In particular, Americans have to be careful about giving criticism directly, which the Chinese consider rude and inconsiderate.

That organizations should be operated as "communities," with managers and subordinates working together in harmony, is one of the proposals of ____. 1) Adam Smith 2) Frank Gilbreth 3) Hugo Munsterberg 4) Mary Parker Follett 5) Max Weber

4) Mary Parker Follett

Management science stresses the use of rational, science-based techniques and mathematical models to improve _____. 1) decision making and goal setting 2) synergy 3) cost-cutting and planning 4) decision making and strategic planning 5) sales and customer relationships

4) decision making and strategic planning

The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions; this is an example of _____. 1) statistical management 2) scientific management 3) behavioral science 4) management science 5) goal management

4) management science

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a ____. 1) rational, efficient, cost-cutting tool based on principles of behaviorism 2) sales-generating tool 3) rational, efficient method of increasing diversity 4) rational, efficient, ideal organization based on principles of logic 5) rational, cost-cutting, efficient organization based on principles of synergy

4) rational, efficient, ideal organization based on principles of logic

When Cheyanne, the manager, was discussing a difficult competitive problem with the owner, she asked, "What management approach do you think will work best in this situation?" Asking this question to determine a solution is utilizing ____. 1) the devil's advocate method 2) scientific management 3) the synergy method 4) the contingency viewpoint 5) the diversity viewpoint

4) the contingency viewpoint

Hugo Munsterberg was known as ____. 1) the father of scientific management 2) a pioneer of scientific management 3) the father of MBO 4) the father of industrial psychology 5) the originator of sociology

4) the father of industrial psychology

Behavioral science relies on scientific research for developing theories about human behavior that can be ____. 1) used to provide sales tools 2) used in behavioral science research 3) helpful when looking at competitive products 4) used to provide practical tools for managers 5) used to establish MBO goals

4) used to provide practical tools for managers

Time Orientation

4. Time Orientation Time orientation is different in many cultures. For example, Americans are accustomed to calling ahead for appointments, but South Koreans believe in spontaneity. Thus, when Seoul erupted in protests over tainted American beef, Korean legislators simply hopped on a plane to the United States, saying they would negotiate with the U.S. government. "But since they failed to inform the Americans ahead of time," says one report, "they were unable to meet with anyone of importance." Anthropologist Hall makes a useful distinction between monochronic time and polychronic time: -Monochronic time. This kind of time is standard American business practice—at least until recently. That is, monochronic time is a preference for doing one thing at a time. In this perception, time is viewed as being limited, precisely segmented, and schedule driven. This perception of time prevails, for example, when you schedule a meeting with someone and then give the visitor your undivided attention during the allotted time. Indeed, you probably practice monochronic time when you're in a job interview. You work hard at listening to what the interviewer says. You may well take careful notes. You certainly don't answer your cellphone or gaze repeatedly out the window. -Polychronic time. This outlook on time is the kind that prevails in Mediterranean, Latin American, and especially Arab cultures. Polychronic time is a preference for doing more than one thing at a time. Here time is viewed as being flexible and multidimensional. This perception of time prevails when you visit a Latin American client, find yourself sitting in the waiting room for 45 minutes, and then learn in the meeting that the client is dealing with three other people at the same time.

Top Ten Mistakes Managers Make-2

4. overly ambitious: thinking of next job, playing politics 5. specific performance problems with the business 6. Overmanaging: unable to delegate or build a team

The father of scientific management is _____. 1) Frank Gilbreth 2) Tom Gallagher 3) Abraham Maslow 4) Peter Drucker 5) Frederick Taylor

5) Frederick Taylor

Olivia, the general manager of a bowling center, believes in her workers and that they are responsible and capable employees, so that they can be trusted when given responsibility. Olivia is an example of a(n) ___ manager. 1) Theory Z 2) hierarchy 3) Theory X 4) accountable 5) Theory Y

5) Theory Y

The belief that quality stemmed from "constancy of purpose," and that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions was proposed by _____. 1) Frank and Lillian Gilbreth 2) Henri Fayol 3) Max Weber 4) Mary Parker Follett 5) W. Edwards Deming

5) W. Edwards Deming

To better meet corporate goals this year, Donna, a CEO, is encouraging her managers to focus on the major functions of management, which include ______. 1) planning, organizing, recruiting, monitoring, delegating 2) recruiting, monitoring, delegating, coordinating 3) planning, organizing, leading, controlling, arbitrating 4) recruiting, planning, organizing, leading 5) planning, organizing, leading, controlling

5) planning, organizing, leading, controlling

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach _____. 1) is an effective cost-reduction tool 2) emphasizes diversity 3) is an effective synergy-building approach 4) builds a strong family-type culture 5) provides clues to the meaning of your managers' decisions

5) provides clues to the meaning of your managers' decisions

Top Ten Mistakes Managers Make-3

7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor

Which of the following statements about 3M's marketing program for Post-it® Flag Highlighters and Post-it® Flag Pens is most accurate?

??David Windorski, a 3M inventor, developed the Post-it® Flag Pen for the office worker segment.

Social responsibility

A business's obligation to... - pursue policies, make decisions, take actions that benefit society

Licensing

A company allows a foreign company to pay it a fee to make or distribute the first company's product or service

Importing

A company buys goods outside the country and resells them domestically

Exporting

A company produces goods domestically and sells them outside the country

Franchising

A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services

Functional Managers

A functional manager is responsible for just one organizational activity.

General Managers

A general manager is responsible for several organizational activities.

Multinational Corporations

A multinational corporation, or multinational enterprise, is a business firm with operations in several countries.

Multinational Organizations

A multinational organization is a nonprofit organization with operations in several countries.

________ is committed to using business concepts to change the world for good, using a variety of organizational models to address social needs that inspire passion.

A social entrepreneur

Tariffs

A tariff is a trade barrier in the form of a customs duty, or tax, levied mainly on imports. At one time, for instance, to protect the American shoe industry, the United States imposed a tariff on Italian shoes. There are two types of tariffs: One is designed simply to raise money for the government (revenue tariff). The other, which concerns us more, is to raise the price of imported goods to make the prices of domestic products more competitive (protective tariff). In late 2011, seven U.S. makers of solar panels sought from the U.S. Commerce Department trade tariffs of more than 100% on solar panels made in China, on the grounds that the Chinese manufacturers used billions of dollars in government subsidies to help gain sales in the American market. A couple of months later, four U.S. makers of steel towers for wind turbines also filed a trade complaint against China and Vietnam seeking tariffs of 60% for the same reasons. For its part, China raised tariffs on foreign luxury auto brands, including Cadillac, presumably to protect its own domestic car industry.

APEC

APEC—21 Countries of the Pacific Rim Founded in 1989, the Asia-Pacific Economic Cooperation (APEC) is a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties. Most countries with a coastline on the Pacific Ocean are members of the organization, as highlighted below, although there are a number of exceptions. APEC members, which include the United States, Canada, and China, work to reduce tariffs and other trade barriers across the Asia-Pacific region.

ASEAN

ASEAN—11 Countries of the Association of Southeast Asian Nations The Association of Southeast Asian Nations (ASEAN) is a trading bloc consisting of 11 countries in Asia: Brunei, Cambodia, China, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. Like other trading blocs, ASEAN is working on reducing trade barriers among member countries. When China was admitted at the beginning of 2010, ASEAN became one of the largest free-trade zones, encompassing 1.9 billion people.

Human skills

Ability to work well with others

Resource scarcity

Abundance or shortage of critical organizational resources in an external environment

Effectiveness

Accomplishing tasks that help fulfil organizational objectives

Small Business CEO

According to recent research, the beginning median salary for a small business chief executive was $233,500. (A small business was classified as a company with up to 500 full-time employees.)

Expatriates

According to the State Department, there are about 6.3 million Americans (not including military) who are living outside American borders—a class of people known as expatriates—people living or working in a foreign country.

Entepreneur role

Adapt themselves, their subordinates, and their units to change

Factors that influence successful cultures

Adaptability, involvement, clear mission, consistency

Organization

Agroup of people who work together to achieve some specific purpose.

Competitive advantage through people Decentralization

Allows employees closest to problems, production, and clients make timely decisions

Joint Ventures "Strategic Alliance"

Also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Most Valued Traits in Managers

Among the chief skills companies seek in top managers are the following: -The ability to motivate and engage others. -The ability to communicate. -Work experience outside the United States. -High energy levels to meet the demands of global travel and a 24/7 world.

Import Quotas

An import quota is a trade barrier in the form of a limit on the numbers of a product that can be imported. Its intent is to protect domestic industry by restricting the availability of foreign products. As a condition of being allowed into the World Trade Organization, China agreed, starting in 2005, to cancel car import quotas, which it had used to protect its domestic car manufacturing industry against imported vehicles from the United States, Japan, and Germany. Since then, however, it has decided to stop encouraging growth among foreign auto firms in China, removing preferential tax treatment and streamlined approval processes. Although this is not the reimposition of import quotas, it is "a move that appears to give [Chinese] car companies greater protection from outside rivals," says a Wall Street Journal report. Quotas are designed to prevent dumping, the practice of a foreign company's exporting products abroad at a lower price than the price in the home market—or even below the costs of production—in order to drive down the price of the domestic product. In 2009, the U.S. International Trade Commission imposed antidumping duties of 10%-16% more on Chinese government-subsidized steel imported into the United States that damaged the American steel industry.

All of the following are examples of ideas that can be marketed except which?

Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.)

Interactive conflict resolution

Approach to deal with conflict that satisfies both parties

Motivation to managers

Assessment of how enthusiastic employees are about managing the work of others

Bureaucratic and administrative management

At same time and scientific study in U.S., was taken place in Germany Sociologist Max weber ideas in bureaucratic Henry fayol developed administrative

Stages of moral development (Punishment and obedience) stage 1

Avoid trouble for yourself

Most Favored Nation Trading Status

Besides joining together in trade blocs, countries will also extend special, "most favored nation" trading privileges to one another. Most favored nation trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties. The purpose is to promote stronger and more stable ties between companies in the two countries.

Motion study

Breaking each task or job into its separate motion and then eliminating those the are unnecessary

Believed

Buried deep below the surface Rarely discussed or thought about

CAFTA-DR

CAFTA-DR—Seven Countries of Central America The Central America Free Trade Agreement (CAFTA-DR), which involves the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua—is intended to reduce tariffs and other barriers to free trade.

Human relations management

Chester Bernard- president of NJ bell, functions of the executive,

Managing for Diversity

Clearly, however, the challenge to the manager of the near future is to maximize the contributions of employees Today nearly one in six American workers is foreign-born, the highest proportion since the 1920s.26 But greater changes are yet to come. By mid-century, the mix of American racial or ethnic groups will change considerably, with the United States becoming half (54%) racial or ethnic minority. Non-Hispanic whites are projected to decrease from 66% of the population in 2008 to 46% in 2050. African Americans will increase from 14% to 15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics (who may be of any race) from 15% to 30%. In addition, in the coming years there will be a different mix of women, immigrants, and older people in the general population, as well as in the workforce. For instance, in 2030, nearly one in five U.S. residents is expected to be 65 and older. This age group is projected to increase to 88.5 million in 2050, more than doubling the number in 2010 (40.3 million).

Competitive advantage through people Selective hiring

Companies need to hire the best talent due to the presence of employee security

Competitive advantage through people Training and skill development

Companies need to invest resources in the training employees to ensure skill development

Responses to demands for social responsibility Accommodative strategy

Company accepts responsibility for a problem and does all that society expects to solve that problem

Responses to demands for social responsibility Defensive startegy

Company admits responsibility for a problem but does the least required to meet social expectations

Responses to demands for social responsibility Proactive strategy

Company anticipates a problem before it occurs and does more than society's expectations

Responses to demands for social responsibility Reactive strategy

Company does less than society expects

Supplie dependence

Company relies heavily on the supplier

Conceptual Skills

Conceptual skills consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together. Conceptual skills are particularly important for top managers, who must deal with problems that are ambiguous but that could have far-reaching consequences.

Competitive Advantage

Competitive advantage is the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them. This means an organization must stay ahead in four areas: (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency. 1. Being Responsive to Customers The first law of business is Take care of the customer. Without customers—buyers, clients, consumers, shoppers, users, patrons, guests, investors, or whatever they're called—sooner or later there will be no organization. Nonprofit organizations are well advised to be responsive to their "customers," too, whether they're called citizens, members, students, patients, voters, rate-payers, or whatever, since they are the justification for the organizations' existence. 2. Innovation Finding ways to deliver new or better goods or services is called innovation. No organization, for-profit or nonprofit, can allow itself to become complacent—especially when rivals are coming up with creative ideas. "Innovate or die" is an important adage for any manager. We discuss innovation in Chapter 3. 3. Quality If your organization is the only one of its kind, customers may put up with products or services that are less than stellar (as they have with some airlines whose hub systems give them a near monopoly on flights out of certain cities), but only because they have no choice. But if another organization comes along and offers a better-quality travel experience, TV program, cut of meat, computer software, or whatever, you may find your company falling behind. Making improvements in quality has become an important management idea in recent times, as we shall discuss. 4. Efficiency A generation ago, organizations rewarded employees for their length of service. Today, however, the emphasis is on efficiency: Companies strive to produce goods or services as quickly as possible using as few employees (and raw materials) as possible. Although a strategy that downgrades the value of employees might ultimately backfire—resulting in the loss of essential experience and skills and even customers—an organization that is overstaffed may not be able to compete with leaner, meaner rivals. This is the reason why, for instance, today many companies rely so much on temp (temporary) workers.

Oppurtunity

Consider strategic alternatives for taking advantage of those events to improve performance

Trade Protectionism

Countries often use trade protectionism—the use of government regulations to limit the import of goods and services—to protect their domestic industries against foreign competition. The justification they often use is that this saves jobs. Actually, protectionism is not considered beneficial, mainly because of what it does to the overall trading atmosphere. The three devices by which countries try to exert protectionism consist of tariffs, import quotas, and embargoes.

Resource allocator role

Decide who gets what resources and in what amounts

Organizing

Deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company

Decisional Roles

Decisional Roles—Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator In their decisional roles, managers use information to make decisions to solve problems or take advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler, resource allocator, and negotiator.

Planning

Determining organizational goals and a means for achieving them

Taylor's 4 principles of management First

Develop a science for each element of a mans work,

Henry Gantt

Developed Gantt chart

Max weber

Developed bureaucratic management to overcome problems associated with monarchies and patriarchies

Stages of moral development (Instrumental exchange) stage 2

Do those things that directly advance your wants and needs

E-Commerce

E-commerce, or electronic commerce, the buying and selling of products and services through computer networks

Effectiveness

Effectiveness—the ends. Effectiveness is the organization's ends, the goals. To be effective means to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals.

Human resources management

Efficiency is not enough to produce organizational success. Success also depends on treating workers well

Efficiency

Efficiency—the means. Efficiency is the means of attaining the organization's goals. To be efficient means to use resources—people, money, raw materials, and the like—wisely and cost-effectively.

Embargoes

Ever seen a real Cuban cigar? They're difficult for Americans to get, since they're embargoed. An embargo is a complete ban on the import or export of certain products. It has been years since anyone was allowed to import Cuban cigars and sugar into the United States or for an American firm to do business in Cuba. In early 2012, European countries agreed to embargo—refuse to import—any oil from Iran, amounting to about a fifth of Iran's total exports, if that country did not agree to allow continued sea traffic through the Gulf of Hormuz.

Bureaucracy

Exercise of control on the basis of knowledge, expertise, and experience

Gaspard monge

Explained techniques for drawing 3d objects on paper

Chester Bernard authority

Extent to which people willingly cooperate in an organization depends on how works perceive executive authority and whether they're willing to accept it

Elon Musk was involved in the inception of all of the following companies except which?

Facebook

Far-Ranging E-Management & E-Communication

Far-ranging e-management and e-communication. Using wired and wireless telephones, fax machines, electronic mail, or e-mail—text messages and documents transmitted over a computer network—as well as project management software—programs for planning and scheduling the people, costs, and resources to complete a project on time—21st-century managers will find themselves responsible for creating, motivating, and leading teams of specialists all over the world. This will require them to be masters of organizational communication, able to create concise, powerful e-mail and voice-mail messages.

Managers for Three Types of Organizations

For-Profit Non-Profit Mutual Benefit

For-Profit Organizations

For-profit, or business, organizations are formed to make money, or profits, by offering products or services. When most people think of "management," they think of business organizations, ranging from Allstate to Zenith, from Amway to Zagat.

External environment

Forces and events outside of the company that have potential to affect and influence it

3 Types of Managerial Roles

From his observations and other research, Mintzberg concluded that managers play three broad types of roles or "organized sets of behavior": interpersonal, informational, and decisional.

Geocentric Managers

Geocentric Managers—"What's Best Is What's Effective, Regardless of Origin" Geocentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective. Clearly, being an ethno- or polycentric manager takes less work. But the payoff for being a geocentric manager can be far greater.

Management

Getting work done through others efficiently and effectively

Efficiency

Getting work done with a minimum of effort, expense, or waste

The Multiplier Effect

Good managers create value. The reason is that in being a manager you have a multiplier effect: Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.

Taylor's 4 principles of management Third

Heatedly cooperate with the he men to ensure all of the work being done in accordion ace with the principles of the science that has been developed

Competitive advantage through people Sharing information

Helps employees participate in the decision making process

High-Context Culture

High-context culture in which people rely heavily on situational cues for meaning when communicating with others, relying on nonverbal cues as to another person's official position, status, or family connections.

Heard (expressed values or beliefs)

How decisions are made and explained 2. Widely shared assumptions and beliefs

Other Cultural Variations

How do you go about bridging cross-cultural gaps? It begins with understanding. Let's consider variations in five basic culture areas: (1) language, (2) interpersonal space, (3) communication, (4) time orientation, and (5) religion.

Financial Rewards

How well compensated are managers? According to the U.S. Bureau of Labor Statistics, the median weekly wage in 2011 for American workers of all sorts was $758, or $39,416 a year.14 Education pays: The median 2011 yearly income for full-time workers with at least a bachelor's degree was $59,904, compared to $33,072 for high-school graduates.

Managers Manage Differently?

If you become a manager, would you be doing the same types of things regardless of the type of organization? Generally you would be; that is, you would be performing the four management functions—planning, organizing, leading, and controlling The single biggest difference, however, is that in a for-profit organization, the measure of its success is how much profit (or loss) it generates. In the other two types of organization, although income and expenditures are very important concerns, the measure of success is usually the effectiveness of the services delivered—how many students were graduated, if you're a college administrator, or how many crimes were prevented or solved, if you're a police chief.

Large-Size Business CEO

In 2007, CEOs earned a median of $849,375 at companies with more than 5,000 employees.

Which of the following statements about the marketing concept is most accurate?

In using the marketing concept, both companies and consumers are able to satisfy needs simultaneously.

Gantt chart

Indicates what tasks must be completed at which times in order to complete a project

Informational Roles

Informational Roles—Monitor, Disseminator, and Spokesperson The most important part of a manager's job, Mintzberg believed, is information handling, because accurate information is vital for making intelligent decisions. In their three informational roles—as monitor, disseminator, and spokesperson—managers receive and communicate information with other people inside and outside the organization.

Leading

Inspiring and motivating workers to to work hard to achieve organizational goals

Interpersonal Roles

Interpersonal Roles—Figurehead, Leader, and Liaison In their interpersonal roles, managers interact with people inside and outside their work units. The three interpersonal roles include figurehead, leader, and liaison activities.

Oldsmobile motor work

Invented just in time inventory

Wholly Owned Subsidiaries

Is a foreign subsidiary that is totally owned and controlled by an organization

Greenfield Venture

Is a foreign subsidiary that the owning organization has built from scratch

Polychronic Time

Is a preference for doing more than one thing at a time

Monochronic Time

Is a preference for doing one thing at a time

Outsourcing

Is defined as using suppliers outside the company to provide goods and services

All of the following are aspects of Trader Joe's customer experience except which?

It has a large and expensive research and development facility.

Globalization

It's clear that we are living in a world being rapidly changed by globalization—the trend of the world economy toward becoming a more interdependent system. Time and distance, which have been under assault for 150 years, have now virtually collapsed, as reflected in three important developments we discuss. -The rise of the global village and electronic commerce. -The world's becoming one market instead of many national ones. -The rise of both megafirms and Internet-enabled minifirms worldwide.

Henry fayol

Just as important as Taylor Rescued failing steel company Developed 5 functions of management and 14 principles of management

Competitive advantage through people Reduction and status differences

Leads to employees concentrating on work related issues rather than biases and prejudices of the management

Punctuated equilibrium theory

Long periods of stability, followed by short period of dynamic, fundamental change, then a new equilibrium

Liaison role

Managers deal with people outside their units

Nonprofit Organizations

Managers in nonprofit organizations are often known as "administrators." Nonprofit organizations may be either in the public sector, such as the University of California, or in the private sector, such as Stanford University. Either way, their purpose is to offer services to some clients, not to make a profit. Examples of such organizations are hospitals, colleges, and social-welfare agencies (the Salvation Army, the Red Cross). One particular type of nonprofit organization is called the commonweal organization. Unlike nonprofit service organizations, which offer services to some clients, commonweal organizations offer services to all clients within their jurisdictions. Examples are the military services, the U.S. Postal Service, and your local fire and police departments.

Competitive advantage through people-2

Managers in top performing companies develop work forces that are smarter, better trained, more motivated, and more committed than their competitors work forces

Leader role

Managers motivate and encourage workers to accomplish organizational objectives

Political/legislation

Managers must be aware of the laws, regulations, and potential lawsuits that could affect their business

Figurehead role

Managers perform ceremonial duties

Mercosur

Mercosur—10 Countries of Latin America The Mercosur is the largest trade bloc in Latin America and has four core members—Argentina, Brazil, Paraguay, and Uruguay, with Venezuela scheduled to become a full member upon ratification by the other countries—and five associate members: Bolivia, Chile, Colombia, Ecuador, and Peru. Besides reducing tariffs by 75%, Mercosur nations are striving for full economic integration, and the alliance is also negotiating trade agreements with NAFTA, the EU, and Japan.

Middle Managers

Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them. Titles might include "plant manager," "district manager," and "regional manager," among others. In the nonprofit world, middle managers may have titles such as "clinic director," "dean of student services," and the like. Their salaries may range from under $45,000 up to $120,000 a year. Middle managers are critical for organizational success because they implement the strategic plans created by CEOs and top managers. (Strategic planning is discussed in Chapter 6.) In other words, these managers have the type of "high-touch" jobs that can directly affect employees, customers, and suppliers.

Low-Context Culture

Misunderstandings and miscommunications often arise in international business relationships because people don't understand the expectations of the other side. A person from North America, Great Britain, Scandinavia, Germany, or Switzerland, for example, comes from a low-context culture in which shared meanings are primarily derived from written and spoken words.

Controlling

Monitoring progress toward goal achievement and taking corrective action when progress isn't being made

Management

More formally, management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization's resources. Management, said one pioneer of management ideas, is "the art of getting things done through people."

Mutual Benefit Organizations

Mutual-benefit organizations are voluntary collections of members—political parties, farm cooperatives, labor unions, trade associations, and clubs—whose purpose is to advance members' interests.

NAFTA

NAFTA—the Three Countries of the North American Free Trade Agreement Formed in 1994, the North American Free Trade Agreement (NAFTA) is a trading bloc consisting of the United States, Canada, and Mexico, encompassing 435 million people. The agreement is supposed to eliminate 99% of the tariffs and quotas among these countries, allowing for freer flow of goods, services, and capital in North America. Trade with Canada and Mexico now accounts for one-third of the U.S. total, up from one-quarter in 1989. Is NAFTA a job killer, as some have complained? In Mexico, it has failed to generate substantial job growth and has hurt hundreds of thousands of subsistence farmers, so that illegal immigration to the United States remains a problem. As for the United States, over 682,000 workers lost or were displaced from their jobs because of NAFTA's shifting of jobs south of the border. It also spurred a U.S. trade deficit—$60 billion with Mexico and $31.7 billion with Canada in 2011. However, supporters insist NAFTA ultimately will result in more jobs and a higher standard of living among all trading partners.

Negotiator role

Negotiate schedules,, projects, resources, and empployee raises

Personal virtue

Never do anything that is not honest, open, and truthful, and that you would not be glad to see reported in the newspapers or TV

Distributive justice

Never take and action that harms the least among us: the poor, uneducated, and unemployed

Long term self interest

Never take any action not in your organizations long term self interest

Utilitarian benefits

Never take any action that does not result in greater good for sciety

Individual rights

Never take any action that infringes on others agreed upon rights

Religious injunctions

Never take any action that is not kind or compassionate and that does not build a sense of community

Government requirments

Never take any action that violates the law, for the law represents the minimal moral standard

3 Levels of Management

Not everyone who works in an organization is a manager, of course, but those who are may be classified into three levels—top, middle, and first-line.

Environmental complexity

Number and intensity of external factors in the environment that affect organizations

Global Outsourcing

Or offshoring, is defined as using suppliers outside the United States to provide labor, goods, or services

Culture sustained by?

Organizational stories

Responsibilities of top managers

Overall direction of the organization

4 functions of management

Planning, organizing, leading, and controlling

Polycentric Managers

Polycentric Managers—"They Know Best" Polycentric managers take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone. Thus, the attitude of polycentric managers is nearly the opposite of that of ethnocentric managers.

Competitive advantage through people Self-managed teams

Produce high producivity through increased commitment and creativity

Positive/Negative Effects

Positive Effects: Is a global economy really good for the United States? "Ultimately, the medium- to long-term benefits of globalization are positive for everybody," says the CEO of Infosys Technologies in India. "Let me give you an example. As our industry has increased economic activity in India, it's becoming a bigger market for American exports... Today you can't find any soft drinks in India except Coke or Pepsi." In addition, foreign firms are building plants in the United States, revitalizing parts of industrial America. Indeed, foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services). Companies based overseas provide jobs for approximately 10% of the U.S. workforce. When the recession ends, suggests Gregg Easterbrook, author of Sonic Boom: Globalization at Mach Speed, worldwide economic growth will pick up, "creating rising prosperity and higher living standards.... The world will be far more interconnected, leading to better and more affordable products, as well as ever better communication among nations." Negative Effects: However, global economic interdependency can also be dangerous. Financial crises throughout the world resulted in vast surplus funds from global investments flowing into the United States and being invested badly in a housing-and-credit bubble that burst (the so-called subprime mortgages meltdown), leading to the 2007-2009 Great Recession that hurt so many people. Another negative effect is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs, particularly in manufacturing. Soaring new U.S. skyscrapers, for example, are more apt to have windows made in China than in Ohio, a glassmaking state. Some economists fear that many jobs lost through the recession and offshoring may simply never come back. Indeed, while "the horizon has never been brighter," says Easterbrook, "we may not feel particularly happy about it." The reasons: "Job instability, economic insecurity, a sense of turmoil, the fear that even when things seem good a hammer is about to fall—these are also part of the larger trend. As world economies become ever more linked by computers, job stress will become a 24/7 affair. Frequent shakeups in industries will cause increasing uncertainty." But the global economy isn't going to go away just because we don't like some of its destabilizing aspects.

Chester bernard

Proposed comprehensive theory of cooperation in formal organizations

Environmental change

Rate at which a company's general and specific environments change

Which of the following statements about relationship marketing is most accurate?

Relationship marketing provides benefits for both customers and the organization.

Disturbance handler

Respond to pressures and problems that demand immediate action and attention

Monitor role

Scan environment for information

Taylor's 4 principles of management Second

Scientifically select and the train, teach and develop,

Systems MGMT

Segmented hierarchical view of MGMT. inter connectivity is important

System

Set of interrelated elements or parts that function as a whole

Spokesperson role

Share information with people outside their departments and companies

Business confidence indices

Shows managers' level of confidence about future business growth

Subsystem

Smaller systems that operate within the context of a larger system

Discretionary responsibilities

Social roles that a company fulfills beyond its economic, legal, and ethical responsibilities

Managing for Your Own Happiness & Life Goals

Some employment experts counsel that the lesson of today is that you're working for yourself—that employees should identify themselves with the job, not the company. Regardless of how well paid you are, then, you have to consider whether in meeting the organization's challenges you are also meeting the challenge of realizing your own happiness. Many people simply don't find being a manager fulfilling. They may complain that they have to go to too many meetings, that they can't do enough for their employees, that they are caught in the middle between bosses and subordinates. They may feel, at a time when Dilbert cartoons have created such an unflattering portrayal of managers, that they lack respect. They may decide that, despite the greater income, money cannot buy happiness, as the adage goes. Some feel the Great Recession forced them to miss the economic lifestyle they had hoped for. (But most are happier anyway.) In the end, however, recall what Odette Pollar said: "If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job." And it helps to know, as she points out, that "one's experience in management is greatly affected by the company's culture."

Technical skills

Specialized procedures, techniques, and knowledge required to get the job done

Competitive advantage through people-1

Stanford professor contends that what separates top-performing companies from competition is the way they treat their work forces- in others words their management

Scientific management

Studies and tests methods to identify the best, most efficient ways

Buyer dependence

Supplier relies heavily on the buyer

Managing for Sustainability

Sustainability is defined as economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. An apparently changing climate, bringing increased damage from hurricanes, floods, and fires throughout the United States and the world, has brought the issue of "being green" to increased prominence. Former U.S. Vice President Al Gore's documentary film An Inconvenient Truth, along with his book by the same name, further popularized the concepts of global climate change and the idea of sustainability as a business model. Our economic system has brought prosperity, but it has also led to unsustainable business practices because it has assumed that natural resources are limitless, which they are not. Pacific Gas & Electric, PNM Resources, and Mohawk Fine Papers—resigned from the Chamber in protest. Perhaps, then, business can begin to take the lead. After years of being slow to address climate change, major corporations—including industrial giants that make products ranging from electricity to chemicals to bulldozers—have begun to call for limits on global warming emissions.

Organization

System of consciously coordinated activities or forces created by two or more people

Countertrading

That is, bartering goods for goods

The EU

The EU—the 27 Countries of the European Union Formed in 1957, the European Union (EU) consists of 27 trading partners in Europe, covering nearly 500 million consumers. (It will be 28 members in July 2013, with the addition of Croatia.) Nearly all internal trade barriers have been eliminated (including movement of labor between countries), making the EU a union of borderless neighbors and the world's largest free market, with a gross domestic product of more than $17 trillion, larger than that of the United States. By 2002, such national symbols as the franc, the mark, the lira, the peseta, and the guilder had been replaced with the EU currency, the euro. There was even speculation that someday the euro could replace the U.S. dollar as the dominant world currency. However, in 2010-2012, the shaky finances and massive government debts of Portugal, Ireland, Italy, Greece, and Spain (so-called PIIGS) revealed an inherent weakness of the union—that both weak and strong economies were expected to coexist. This affected the euro's exchange rate—the rate at which the currency of one area or country can be exchanged for the currency of another's—so that the euro began to decline in worth compared to the U.S. dollar. In early 2012, the EU was in full-blown crisis, and it was not clear whether stronger countries such as Germany and the Netherlands would back the rescue of PIIGS or whether some of the latter would actually be expelled from the EU, a path with possibly dire worldwide economic consequences.

Recognizing Cultural Tendencies to Gain Competitive Advantage

The GLOBE dimensions show a great deal of cultural diversity around the world, but they also show how cultural patterns vary. For example: -The U.S. managerial sample scored high on assertiveness and performance orientation—which is why Americans are widely perceived as being pushy and hardworking. -Switzerland's high scores on uncertainty avoidance and future orientation help explain its centuries of political neutrality and its world-renowned banking industry. -Singapore is known as a great place to do business because it is clean and safe and its people are well educated and hardworking—no surprise, considering the country's high scores on social collectivism, future orientation, and performance orientation. -By contrast, Russia's low scores on future orientation and performance orientation could foreshadow a slower-than-hoped-for transition from a centrally planned economy to free-enterprise capitalism. The practical lesson to draw from all this: Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage. GLOBE researchers also set out to find which, if any, attributes of leadership were universally liked or disliked, the results of which are shown in the table on the next page. Throughout the world, visionary and inspirational leaders who are good team builders generally do the best; self-centered leaders seen as loners or face-savers received a poor reception.

IMF

The International Monetary Fund Founded in 1945 and now affiliated with the United Nations, the International Monetary Fund is the second pillar supporting the international financial community. Consisting of 187 member nations, the International Monetary Fund (IMF) is designed to assist in smoothing the flow of money between nations. The IMF operates as a last-resort lender that makes short-term loans to countries suffering from unfavorable balance of payments (roughly the difference between money coming into a country and money leaving the country, because of imports, exports, and other matters). In recent times, the IMF has become more high profile because of its role in trying to shore up some weaker European economies, including making loans to Greece, Portugal, and Ireland and considering how to assist Italy and Spain.

Minifirms

The Internet and the World Wide Web allow almost anyone to be global, which Kevin Maney points out has two important results: Small companies can get started more easily. Because anyone can put goods or services on a website and sell worldwide, this wipes out the former competitive advantages of distribution and scope that large companies used to have. Small companies can maneuver faster. Little companies can change direction faster, which gives them an advantage in terms of time and distance over large companies.

Accelerated Decision Making, Conflict & Stress

The Internet not only speeds everything up, it also, with its huge, interconnected databases—computerized collections of interrelated files—can overwhelm us with information, much of it useful, much of it not. For example, studies show that employees lose valuable time and productivity when dealing with excessive and unimportant e-mail volume and increasing amounts of cellphone spam (junk messages). Among the unfortunate by-products are loss of privacy and increased conflict and stress.

WTO

The World Trade Organization Consisting of 153 member countries, the World Trade Organization (WTO) is designed to monitor and enforce trade agreements. The agreements are based on the General Agreement on Tariffs and Trade (GATT), an international accord first signed by 23 nations in 1947, which helped to reduce worldwide tariffs and other barriers. Out of GATT came a series of "rounds," or negotiations, that resulted in the lowering of barriers; for instance, the Uruguay Round, implemented in 1996, cut tariffs by one-third. The current round of negotiations, the Doha Round, which began in Doha, Qatar, is aimed at helping the world's poor by, among other things, reducing trade barriers. Founded in 1995 and headquartered in Geneva, Switzerland, WTO succeeded GATT as the world forum for trade negotiations and has the formal legal structure for deciding trade disputes. WTO also encompasses areas not previously covered by GATT, such as services and intellectual property rights. A particularly interesting area of responsibility covers telecommunications—cellphones, pagers, data transmission, satellite communications, and the like—with half of the WTO members agreeing in 1998 to open their markets to foreign telecommunications companies.

Medium-Size Business CEO

The beginning median salary for a CEO with 500 to 5,000 employees was $500,000.

Entrepreneur

The entrepreneur. An entrepreneur is someone who sees a new opportunity for a product or service and launches a business to try to realize it. Most entrepreneurs run small businesses with fewer than 100 employees.

Uncertainty

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

The Global Economy

The global economy refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.

Cross-Border Business

The global market driven by electronic information "forces things to get bigger and smaller at the same time," suggests technology philosopher Nicholas Negroponte. "And that's so ironic, when things want to do both but not stay in the middle. There will be an increasing absence of things that aren't either very local or very global." If Negroponte is correct, this means we will see more and more of two opposite kinds of businesses: mergers of huge companies into even larger companies, and small, fast-moving startup companies.

Internet

The global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

Intrapreneur

The intrapreneur. An intrapreneur is someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it. This person might be a researcher or a scientist but could also be a manager who sees an opportunity to create a new venture that could be profitable.

First-Line Managers

The job titles at the bottom of the managerial pyramid tend to be on the order of "department head," "foreman" or "forewoman," "team leader," or "supervisor"—clerical supervisor, production supervisor, research supervisor, and so on. Indeed, supervisor is the name often given to first-line managers as a whole. Their salaries may run from $35,000 to $65,000 a year. Following the plans of middle and top managers, first-line managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel, who are, of course, all those people who work directly at their jobs but don't oversee the work of others. No doubt the job of first-line manager will be the place where you would start your managerial career. This can be a valuable experience because it will be the training and testing ground for your management ideas.

Free Trade

The movement of goods and services among nations without political or economic obstruction

Organizations Promoting International Trade

The three principal organizations designed to facilitate international trade are the World Trade Organization, the World Bank, and the International Monetary Fund.

E-Commerce/E-Business

This kind of e-commerce, or electronic commerce—the buying and selling of goods or services over computer networks—is reshaping entire industries and revamping the very otion of what a company is. More important than e-commerce, information technology has facilitated e-business, using the Internet to facilitate every aspect of running a business. As one article puts it, "[A]t bottom, the Internet is a tool that dramatically lowers the cost of communication. That means it can radically alter any industry or activity that depends heavily on the flow of information.

Human Skills

This may well be the most difficult set of skills to master. Human skills consist of the ability to work well in cooperation with other people to get things done—especially with people in teams, an important part of today's organizations. Often these are thought of as "soft skills." These skills—the ability to motivate, to inspire trust, to communicate with others—are necessary for managers of all levels. But because of the range of people, tasks, and problems in an organization, developing your human-interacting skills may turn out to be an ongoing, lifelong effort.

Interpreting environmental factors

Threat or oppurtunity?

Time study

Time for good worker to complete a task

Top Managers

Top managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it. They need to pay a lot of attention to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them. Thus, executives at this level must be future oriented, dealing with uncertain, highly competitive conditions. These people stand at the summit of the management pyramid. But the nature of a pyramid is that the farther you climb, the less space remains at the top. Thus, most pyramid climbers never get to the apex. However, that doesn't mean that you shouldn't try. Indeed, you might end up atop a much smaller pyramid of some other organization than the one you started out in—and happier with the result.

U.S. sentencing commission guidelines

Total fine is calculated by multiplying the base famine by the culpability fine

Workplace deviance

Unethical behavior that violates organizational norms and right and wrong

Operations management

Use of quantitative or math approach to find ways to increase productivity

Management Process "4 MGT Functions"

What do you as a manager do to "get things done"—that is, achieve the stated goals of the organization you work for? You perform what is known as the management process, also called the four management functions: planning, organizing, leading, and controlling. (The acronym "POLC" may help you to remember them.)

How do Entrepreneurs & Managers Differ

While the entrepreneur is not necessarily an inventor, he or she "always searches for change, responds to it, and exploits it as an opportunity," Peter Drucker pointed out. How does this differ from being a manager? Being an entrepreneur is what it takes to start a business; being a manager is what it takes to grow or maintain a business. As an entrepreneur/intrapreneur, you initiate new goods or services; as a manager you coordinate the resources to produce the goods or services. Entrepreneurial companies have been called "gazelles" for the two attributes that make the African antelope successful: speed and agility. "Gazelles have mastered the art of the quick," says Alan Webber, founding editor of Fast Company magazine. "They have internal approaches and fast decision-making approaches that let them move with maximum agility in a fast-changing business environment."

Why Co. Expand Internationally

Why, then, do companies expand internationally? There are at least five reasons, all of which have to do with making or saving money. 1. Availability of Supplies Antique and art dealers, mining companies, banana growers, sellers of hard woods—all have to go where their basic supplies or raw materials are located. For years oil companies, for example, have expanded their activities outside the United States in seeking cheaper or more plentiful sources of oil. 2. New Markets Sometimes a company will find, as cigarette makers have, that the demand for their product has declined domestically but that they can still make money overseas. Or sometimes a company will steal a march on its competitors by aggressively expanding into foreign markets, as did Coca-Cola over PepsiCo under the leadership of legendary CEO Robert Goizueta. From 2000 to 2010, exports of American goods jumped 66%; the export of services increased even more—84%. 3. Lower Labor Costs The decline in manufacturing jobs in the United States is directly attributable to the fact that American companies have found it cheaper to do their manufacturing outside the States. For example, the rationale for using maquiladoras—manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens—is that they provide less expensive labor for assembling everything from appliances to cars. Even professional or service kinds of jobs, such as computer programming, may be shipped overseas. (However, a countertrend, called "deglobalization," is that some companies are moving production back home, because long supply chains can be easily affected by the whims of geopolitics and energy prices, and the United States remains a manufacturing power for higher value products.) 4. Access to Finance Capital Companies may be enticed into going abroad by the prospects of capital being put up by foreign companies or subsidies from foreign governments. For example, producers of the $100 million movie Cloud Atlas (starring Tom Hanks and Halle Berry) received $35 million in financing from investors in China, Korea, Singapore, and beyond. 5. Avoidance of Tariffs & Import Quotas Countries place tariffs (fees) on imported goods or impose import quotas—limitations on the numbers of products allowed in—for the purpose of protecting their own domestic industries. For example, Japan imposes tariffs on agricultural products, such as rice, imported from the United States. To avoid these penalties, a company might create a subsidiary to produce the product in the foreign country. General Electric and Whirlpool, for example, have foreign subsidiaries to produce appliances overseas.

Origins of Yelp

Yelp is the 2004 brainchild of Jeremy Stoppelman and Russel Simmons, two engineers in their twenties working for PayPal, the online payments firm in California's Silicon Valley, who wanted to make it easier for consumers to find good businesses and avoid bad ones. "What they created," says one account, "was an online yellow pages with attitude. Yelp lets anyone critique any business and grade it, with ratings from one star to five stars." All kinds of businesses are rated, from restaurants to mechanics to dentists. While the idea of rating businesses is not new, Yelp uses a special algorithm (step-by-step problem-solving procedure) that determines which reviews are deleted, which featured prominently, and which displayed inconspicuously. And the company keeps the algorithm a closely guarded secret. The idea for Yelp came to Stoppelman and Simmons over lunch one fall, when they talked about building a website for people to e-mail friends questions such as "Who knows a good auto mechanic in San Francisco?" and then posting the results online. But, as sometimes happens with new enterprises, the core idea—allowing people to publish reviews without being prompted—was an afterthought. Nevertheless, after lunch the pair went back to the office and successfully pitched their boss (who had made tens of millions on PayPal) to invest $1 million. With this initial help, the Yelp founders were hoping to build momentum and launch a national company, but the idea failed to catch fire. After a few months, without any additional funding, the two decided they had to stay local. "If we just create a cool city guide to San Francisco and it's worth $10 or $20 million, that would be a win," Stoppelman said. To focus on making Yelp famous locally, they selected a few dozen of the most active reviewers on the site and invited them to an open-bar party; 100 people showed up. Yelp threw more parties for prolific reviewers, which gave casual users a reason to use the site more. By mid-2005, Yelp had 12,000 reviewers. With additional funding, it hired more party planners in New York, Chicago, and Boston. As the Yelp influence grew, bars and restaurants became more willing to host (for free) the parties in the hopes that crowds would come back and write favorable reviews. The company also began setting up call centers to sell advertising to businesses that had been reviewed. Yelp is not without controversy. By encouraging consumers to be unsparing in their critiques, it helps good businesses to thrive, but it also empowers users to be unnecessarily cruel and to hurt small mom-and-pop businesses already struggling with economic hard times and strong competition. Still, the company seems to have achieved success, earning $27.4 million in the first three months of 2012, reflecting 66% growth from a year earlier.

Organizing

You arrange tasks, people, and other resources to accomplish the work

Stages of moral development (Social contact) stage 5

You consider the effects of your decision on others

Stages of moral development (Law and order) stage 4

You do what the law permits

Stages of moral development (good boy, nice girl) stage 3

You do what the right people are doing

Which of the following statements about marketing is most accurate?

You have significant marketing expertise since you make marketing-related decisions every day.

Stages of moral development (Universal (individual) principle) stage 6

You make the right decisions based on deeply held principles or right and wrong

Controlling

You monitor performance, compare it with goals, and take corrective actions as needed

Leading

You motivate, direct and otherwise influence people to work hard to achieve the organizations goals

Planning

You set goals & decide how to achieve them

Suppose L.L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would most likely have set ________ goal.

a customer satisfaction

Which of the following statements is an example of place utility?

a service station that adds a diesel fuel pump to its three unleaded gasoline pumps

Which of the following is the best example of an organizational buyer?

a store owner buying hand-woven tablecloths to sell in her store

Diversification analysis refers to

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team?

all people in the Indianapolis and surrounding areas interested in football

The clear, broad, underlying industry or market sector of an organization's offerings is referred to as its

business

Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as

cross-functional teams.

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called

customer value.

To serve both buyers and sellers, marketing seeks to ________ and satisfy the needs and wants of prospective customers.

discover

If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States, it would be using a ________ strategy.

diversification

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as

diversification analysis.

The strategic marketing process involves three phases: planning, implementation, and

evaluation.

Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the ________ level.

functional

Which of the following is not an example of an industry?

government agencies

In marketing, thoughts about concepts, actions, or causes are referred to as

ideas.

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having

low market growth rates and low relative market shares.

In a marketing context, goal setting involves specifying measurable ________ to be achieved.

marketing objectives

A ________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

marketing program

By understanding its core values, an organization can take steps to define its ________, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies.

mission

A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives—cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers' ________ for sustenance to satisfy their hunger and attempts to shape their ________ for the advertised product.

needs; wants

Which of the following is an example of possession utility?

phone company that offers six-month financing, same as cash

Unilever distributes its Lipton tea products in part through independent brokers, agents, and distributors to chain, wholesale, co-operative, and independent grocery accounts and food service. This is an example of a firm's

place strategy.

Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?

price

The four Ps of the marketing mix are

product, price, promotion, and place.

All of the following are departments within a typical organization except which?

shareholders

A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you doubt you'll see real results and decide not to vote for her. Marketing will not occur in this situation because

something to exchange is missing.

Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as

stars.

The purpose of the introduction of 3M Post-it® Flag Highlighters was to

stay ahead of trends and focus its marketing program on expanding distribution.

The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is referred to as the

strategic business unit level.

An example of a nonprofit organization is

the American Red Cross.

Relationship marketing refers to

the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

A marketing strategy refers to

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

Innovators at 3M developed Scotchbrite Greener Clean scrub sponges made from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example of

the societal marketing concept.

Dick's Sporting Goods carries baseballs year-round. The same is true for footballs and tennis equipment. With this strategy, Dick's Sporting Goods offers ________ utility for these products.

time

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are located in which quadrant of the BCG growth-share matrix?

upper left quadrant

The benefits or customer value received by users of a product is called

utility.

To develop a learning organization, managers must build a commitment to learning, work to generate ideas with impact, and work to generalize ideas with impact. 1) True 2) False

1) True

The Rewards of Practicing Management

-You and your employees can experience a sense of accomplishment. Every successful goal accomplished provides you not only with personal satisfaction but also with the satisfaction of all those employees you directed who helped you accomplish it. -You can stretch your abilities and magnify your range. Every promotion up the hierarchy of an organization stretches your abilities, challenges your talents and skills, and magnifies the range of your accomplishments. -You can build a catalog of successful products or services. Every product or service you provide—the personal Eiffel Tower or Empire State Building you build, as it were—becomes a monument to your accomplishments. Indeed, studying management may well help you in running your own business. Finally, productivity-improvement expert Odette Pollar of Oakland, California, concludes that "This is an opportunity to counsel, motivate, advise, guide, empower, and influence large groups of people. These important skills can be used in business as well as in personal and volunteer activities. If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job."

An open system continually interacts with its environment, so it receives feedback from the outside environment. 1) True 2) False

1) True

Ann, an industrial psychologist, has been studying Hugo Munsterberg's beliefs of human behavior in the workplace because she feels his principles could contribute to her industry, namely to determine which people are best suited to specific jobs, to identify the psychological conditions under which employees do their best work, and devise management strategies to influence employees to follow management's interests. 1) True 2) False

1) True

Operations management focuses on managing the production and delivery of an organization's products or services more effectively. 1) True 2) False

1) True

Outputs are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. 1) True 2) False

1) True

Right Office Equipment continually talks with customers after they purchase their products, and Right Office managers regularly visit customers to gather feedback on new products, product improvements, and how Right Office can better serve their customers. This is an example of an open system. 1) True 2) False

1) True

The Hawthorne studies succeeded in drawing attention to the importance of "social man" and how managers using good human relations could improve worker productivity. 1) True 2) False

1) True

The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. 1) True 2) False

1) True

The contemporary perspective of management includes three viewpoints: systems, contingency, and quality management. 1) True 2) False

1) True

The customers of Best Auto Sales complete an online survey after purchasing an automobile from Best. The information from the customer survey is a form of feedback. 1) True 2) False

1) True

The systems viewpoint of management regards the organization as systems of interrelated parts that operate together to achieve a common purpose. 1) True 2) False

1) True

With TQM, it is vital that organizations listen to and learn from their customers and employees and make continuous improvement a priority. 1) True 2) False

1) True

The management approach that emphasized ways to manage work more efficiently is the ___ viewpoint. 1) classical 2) quality-management 3) systems 4) contingency 5) MBO

1) classical

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they market, current events, and markets such as housing. All of these independent factors often behave as a single unit based on events and economic news, and respond to the environment and affect the stock market. This is an example of ___. 1) complexity theory 2) a closed market system 3) a market web 4) contingency theory 5) behavioral theory

1) complexity theory

Abraham Maslow proposed the ____. 1) hierarchy of human needs 2) Hawthorne effect 3) hierarchy of production 4) self-managed teams 5) worker empowerment theory

1) hierarchy of human needs

The classical viewpoint of management emphasized ways to ___. 1) manage work more efficiently 2) build more synergy 3) vary according to the environment 4) include MBO 5) increase diversity

1) manage work more efficiently

Right Motors calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Right and the dealer's service. This is an example of a(n) ___ system. 1) open 2) closed 3) open-door 4) environmental 5) ongoing

1) open

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____. 1) operations management 2) scientific management 3) production management 4) inventory oversight 5) inventory analysis

1) operations management

After returning home from a trade show, Mr. Jones, the president of a manufacturing company, spoke to his employees in a production meeting about a new approach that should increase their production bonus by improving their performance. To do so, Mr. Jones discussed a goal of "zero defects." This is an example of ____. 1) quality assurance 2) constancy of purpose 3) redesign 4) scientific management 5) the total quality movement

1) quality assurance

The behavioral viewpoint of management emphasized the importance of encouraging employees to work more efficiently. 1) True 2) False

1)false

The just-in-time approach, which comes under the term lean management, allows organizations to obtain supplies from vendors only as they are needed in the factory. 1) True 2) False

1)true

Umar, a general manager in a fast-food chain, has employees all under the age of 25, and most of his workers are good employees. However, Umar still believes his workers are irresponsible and lack ambition. Umar is a Theory X manager. 1) True 2) False

1)true

When Mr. Jones, the owner of a local hardware store, asks one of his lawnmower suppliers about the total ability of their product to meet customer needs, he is questioning the quality of that mower. 1) True 2) False

1)true

4 Rules of Success

1. Attend every class 2. Don't postpone 3. Read or review lectures and readings more than once 4. Learn how to use this book

Initial transition to managerial duties

1. Be the boss 2. Formal authority 3. Manage tasks 4. Job is not managing people

Top managers

1. Change 2. Commitment 3. Culture 4. Environment

Practical steps to ethical decisions-2

1. Creating ethical climate - managers should act ethically - top managers should be active and committed to the company's ethics program - establish a reporting system

Components of the general environment

1. Customers 2. Competitors 3. Suppliers 4. Industry regulation 5. Advocacy groups

Sociocultural general environment

1. Demographics,general behavior, attitudes, and beliefs of people in a society

Hawthorne studies: Elton Mayo

1. Human factors more important than physical conditions 2. Workers not extensions of machines, bonuses not enough 3. Managers better understood effect of social group interactions, employee satisfaction, and attitudes and group performance.

6 months transition to managerial duties

1. Initial was wrong 2. Fast paced 3. Heavy workload 4. Job is to be problem solver and troubleshooter for subordinates

Top Ten Mistakes Managers Make-1

1. Insensitive to others: abrasive, intimidating, bullying style 2. cold, aloof, arrogant 3. Betray trust

The control process

1. Set standards to achieve goals 2. Compare actual performance to goals 3. Make changes to return performance to standards 4. Repeat

Language

1. Language More than 3,000 different languages are spoken throughout the world. However, even if you are operating in the English language, there are nuances between cultures that can lead to misperceptions. For instance, in Asia, a "yes" answer to a question "simply means the question is understood," says one well-traveled writer. "It's the beginning of negotiations." In communicating across cultures you have four options: (a) You can speak your own language. (The average American believes that about half the world can speak English, when actually it's about 20%.) (b) You can use a translator. (Try to get one who will be loyal to you rather than to your overseas host.) (c) You can try using a translation app, such as Google Translate, that turns a smartphone into an interpreter, although this can be cumbersome. (4) You can learn the local language—by far the best option (as reflected in the USA Today headline: "U.S. Firms Becoming Tongue-Tied. Global Trade Requires Foreign Language Skills") Although 93% of U.S. public middle and high schools with language programs offer Spanish, certainly a widely spoken international language, and 46% offer French, unfortunately only 4% offer Chinese (Mandarin), today one of the world's most important languages.

Mary Parker follet

1. Mother of scientific management 2. Ideas of negitiations, conflict resolution, and power sharing 3. Developed the approach of interacting conflict resolution

1 year transition to managerial duties

1. No longer a doer 2. Communication, listening,, and positive reinforcement 3. Learning to adapt to control stress 4. Job is people development

Contingency approach

1. No universal mgmt theories 2. Effective mgmt theories depend on situations

First-line managers

1. Nonmanagerial worker supervision 2. Teaching and training 3. Scheduling 4. Facilitation

Shareholder model

1. Organization's overriding goal should be to make a profit and benefit of shareholders 2. Milton Friedman

Elements of bureaucracy

1. Qualification hiring and promotion 2. Chain of command and division of labor 3. Impartial application of rules and procedures 4. Records in writing 5. Managers separate from owners

Managers can influence ethical behavior by?

1. Resources for business only 2. Handling info confidentially 3. Not influencing others to engage in unethical behavior 4. Not creating polices that reward unethical behavior 5. Setting reasonable goals

Property deviance (Serious and organizational)

1. Sabatoging equipment 2. Accepting kickbacks 3. Lying about hours worked 4. Stealing from company

Zone of indifference Gain cooperation

1. Securing essential services from individuals 2. Unifying people by clearly formulating an organizations purpose and objectives 3. Providing a system of effective communication

Conceptual skills

1. See organization as a whole, understand how the different parts affect each other 2. Recognize how the company fits into or is affected by its environment

Practical steps to ethical decision making-1

1. Selective hiring ethical employees ---- overt and personality- based integrity tests 2. Establishing a specific code of ethics 3. Training employees to make ethical decisions

Frank and Lillian gilbreth

1.Employed motion study to simplify work and improve productivity 2. Family as guinea pigs 3. Cheaper by the dozen

Frederick w taylor

1.Father of scientific management 2. Rest breaks throughout the day 3. Developed 4 principles of scientific management 4. Introduced time study

Culture

1.Key set of values, beliefs, and attitudes shared by organizational members 2. Most important part of an organization's internal environment

Abraham Maslow said that all needs are equal in importance and need to be satisfied daily. 1) True 2) False

2) False

According to Fayol, the major functions of management are planning, monitoring, leading, and motivating. 1) True 2) False

2) False

Behavioral science relies on data from past sales to determine forecasts regarding human behavior to develop strategic plans and goals. 1) True 2) False

2) False

By identifying the "therbligs" in a job, such as the supplies of a bricklayer, Frank and Lillian Gilbreth were able to eliminate costs while simultaneously reducing supplies wasted. 1) True 2) False

2) False

Don, a production manager, has decided to utilize the Hawthorne effect in his facility because studies have shown that this theory will increase production by giving more independence to employees as they receive less attention. 1) True 2) False

2) False

Donna, the president of a national restaurant chain, believes that studying theoretical perspectives of management seldom gives clues to the meaning of outside events that could affect her company. 1) True 2) False

2) False

In a fixed-learning system, company employees typically will participate in continuous learning, such as workshops on product improvements, more often than in organizations with an open system. 1) True 2) False

2) False

Jeffrey Pfeffer and Robert Sutton believed that evidence-based management is based on the belief that facing the hard facts about what works and having to accept the nonsense that passes for sound advice will help organizations perform better. 1) True 2) False

2) False

Joe, a plant manager, was interested in utilizing the differential rate system of scientific management in his factory because it suggested paying workers less to cut costs when production first increased. 1) True 2) False

2) False

Management science focuses on using behavioral techniques to aid in problem solving and decision making. 1) True 2) False

2) False

Many times when working with a new manager, Amy, a successful small-business owner, asks the manager, "What management method do you think will work best in this situation?" In this situation, Amy is utilizing the scientific management approach. 1) True 2) False

2) False

Mary Parker Follett believed that organizations should be under heavy management control, with managers resolving conflicts and controlling the work process. 1) True 2) False

2) False

Max Weber felt that bureaucracy is irrational, inefficient, and not ideal for organizations. 1) True 2) False

2) False

Olde Manufacturing, a parts supplier to the auto industry, has been using the behavioral approach to management for over 100 years. However, since that method of management is too simplistic for practical use, Olde should begin implementing the newer and more sophisticated human relations movement approach to management. 1) True 2) False

2) False

Paul, an MBA student and small-business owner, is interested in implementing the administrative management approach because this method of management focuses on improving employee morale. 1) True 2) False

2) False

Peter Drucker, a famous 19th-century socialist, opposed capitalism and many current business theories. 1) True 2) False

2) False

Quality assurance focuses on the performance of workers, urging employees to strive for "minimal defects." 1) True 2) False

2) False

Quantitative management is the sales management theory related to determining if a prospective customer really qualifies for the company's product or service. 1) True 2) False

2) False

Scientific management focused on ways to improve worker morale. 1) True 2) False

2) False

Studying theoretical perspectives of management can help a manager in many ways, but seldom provides new ideas in new situations. 1) True 2) False

2) False

Supporters of evidence-based management would say there are many really new ideas. 1) True 2) False

2) False

The contingency viewpoint emphasizes that a manager's approach should vary according to—that is, be contingent on—costs and competition. 1) True 2) False

2) False

The five ingredients of a learning organization are acquiring knowledge, training, studying knowledge, pondering, and monitoring employees. 1) True 2) False

2) False

The five parts of a system are inputs, outputs, transformational processes, monitoring, and feedback. 1) True 2) False

2) False

The human relations movement proposed that better rules and procedures could increase worker productivity. 1) True 2) False

2) False

When managing her company, Priya, the owner of ABC Manufacturing, utilizes the behavioral viewpoint of management, which emphasizes ways to manage work more efficiently. 1) True 2) False

2) False

Dominique, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in his field, where he learned numerous ways his restaurant and hotel can better serve customers. Dominique is excited that management asked him to present this information to the hotel staff so the restaurant and hotel can make needed improvements. Dominique's hotel is a(n) _____ organization. 1) focused 2) learning 3) evolving 4) customer-focused 5) 360-degree

2) learning

The management of XYZ Manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each area of the production facility to develop a plan and then monitor their area to ensure the reduction of errors. This is an example of ____. 1) efficiency monitoring 2) quality control 3) innovative planning 4) the minimal defect approach 5) JIT

2) quality control

Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____. 1) the design approach 2) quantitative techniques 3) MBO 4) scientific management 5) behavioral management

2) quantitative techniques

Amy is a package delivery service manager. She is interested in implementing the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers, known as ____. 1) human relations management 2) scientific management 3) quantitative management 4) contingency management 5) management science

2) scientific management

Susan, a movie theater manager, has observed that as workers feel some company policies are not fair, the employees have not been working as hard as in the past. This reduction in effort is known as ____. 1) sliding 2) soldiering 3) skimming 4) entitling 5) slipping

2) soldiering

During a manager's meeting, Paula, a district manager, discussed how to handle sensitive employee issues, and indicated correctly that management is really just an art. 1) True 2) False

2)false

Evidence-based management is based on the belief that understanding the sound complete truths of conventional managerial wisdom and accepting much of the nonsense that often passes for sound advice can at times help organizations perform better. 1) True 2) False

2)false

The historical perspective of management includes three viewpoints—systems, contingency, and quality management. 1) True 2) False

2)false

Through the rational management of resources and distribution of goods and services, scientific management helps ensure that business operations are efficient and effective. 1) True 2) False

2)false

A successful daycare center continuously focuses on actively developing, finding, and then communicating to its employees any new information and approaches related to its business of child care so that workers can modify their behavior to reflect this new knowledge. These types of companies are called _______ organizations. 1) customer-focused 2) learning 3) research 4) evolving 5) 360-degree

2)learning

Interpersonal Space

2. Interpersonal Space Men holding hands may raise eyebrows among most Americans, but it is common in the Middle East and does not carry any sexual connotation. "Holding hands is the warmest expression of affection between men," says one Lebanese sociologist. "It's a sign of solidarity and friendship." People of different cultures have different ideas about what is acceptable interpersonal space—that is, how close or far away one should be when communicating with another person. For instance, the people of North America and northern Europe tend to conduct business conversations at a range of 3-4 feet. For people in Latin American and Asian cultures, the range is about 1 foot. For Arabs, it is even closer. This can lead to cross-cultural misunderstandings. "Arabs tend to get very close and breathe on you," says anthropologist Hall. "The American on the receiving end can't identify all the sources of his discomfort but feels that the Arab is pushy. The Arab comes close, the American backs up. The Arab follows, because he can only interact at certain distances." However, once the American understands that Arabs handle interpersonal space differently and that "breathing on people is a form of communication," says Hall, the situation can sometimes be redefined so that the American feels more comfortable.

A pay structure, in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) _____ system. 1) scale 2) increasing wage 3) differential rate 4) wide wage 5) merited pay

3) differential rate

The behavioral viewpoint developed over the following phases: _____. 1) early behaviorism, human relations movement, scientific management 2) operations management, human relations movement, MBO phase 3) early behaviorism, human relations movement, behavioral science 4) early behaviorism, industrial, human relations movement 5) early behaviorism, human relations movement, administrative phase

3) early behaviorism, human relations movement, behavioral science

The beliefs that there are few really new ideas and that true is better than new are two of the foundational principles of ___. 1) scientific management 2) the quality-management viewpoint 3)evidence-based management 4)behavioral management 5) MBO

3) evidence-based management

The systems viewpoint sees organizations as entities made up of interrelated parts known as ____. 1) planning, design, monitoring, production, feedback 2) planning, inputs, monitoring, outputs, feedback 3) inputs, outputs, transformation processes, feedback 4) planning, design, inputs, monitoring, outputs, follow-up feedback 5)vision, planning, design, production, monitoring, follow-up feedback

3) inputs, outputs, transformation processes, feedback

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation ____. 1) intuitively 2) only if it results in synergy 3) ongoing and systematic 4) only if it saves money 5) occasionally

3) ongoing and systematic

The systems viewpoint regards parts making up the whole system as ____. 1) microsystems 2) macrosystems 3) subsystems 4) management collections 5) organizational sets

3) subsystems

The contemporary perspective consists of three viewpoints: ____. 1) quality management, behavioral, customer 2) systems, scientific, contingency 3) systems, contingency, quality management 4) diversity, quantitative, qualitative 5) contemporary, non-contemporary, behavioral

3) systems, contingency, quality management

The 17 basic units of motion, identified by Frank and Lillian Gilbreth, were named _____. 1) gilbreths 2) time frames 3) therbligs 4) units 5) action works

3) therbligs

Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves ____. 1) doing time-motion studies 2) focusing on unprofitable parts of an organization 3) increasing synergy 4) managing the total organization 5) implementing MBO

4) managing the total organization

Operations management focuses on managing the production and delivery of an organization's products or services _____. 1) more economically 2) by utilizing motion studies 3) with a more diverse workforce 4) more effectively 5) to more customers

4) more effectively

Maslow's hierarchy of human needs included ______. 1) physiological, financial, love, esteem, self-actualization 2) financial, love, friends, self-actualization 3) food and shelter, companionship, ego, self-actualization 4) physiological, safety, love, esteem, self-actualization 5) physiological, financial, love, empowerment,

4) physiological, safety, love, esteem, self-actualization

Joseph Juran defined quality as "fitness for use," which meant that ____. 1) a product or service should be priced competitively 2) an organization should produce products that will help customers stay healthy 3) companies should focus on products that help the community 4) products should be very durable 5) a product or service should satisfy a customer's real needs

5) a product or service should satisfy a customer's real needs

While discussing approaches to boost organization productivity, Rene, the president of an auto manufacturer, was interested in a rational approach that through the application of scientific methods, time and motion studies, and job specialization found it is possible to increase productivity. This is the essence of the ____ viewpoint. 1) contingency 2) behavioral 3) MBO 4) systems 5) classical

5) classical

The historical perspective includes three viewpoints: _______. 1) systems, contingency, quality management 2) classical, scientific, quantitative 3) classical, operations, scientific 4) contemporary, historical, scientific 5) classical, behavioral, quantitative

5) classical, behavioral, quantitative

For years ABC Copier, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its competition. However, over the years, ABC seldom asked customers for feedback. So when some of ABC's competition responded to what customers need and started offering copiers with new technology, ABC lost much of its market share. ABC utilizes a(n) ____ system. 1) open 2) isolated 3) blind 4) internal 5) closed

5) closed

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ____ viewpoint. 1) behavioral 2) systems 3) scientific 4) flexibility 5) contingency

5) contingency

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of ____. 1) Big Data 2) input 3) quality control 4) outcry 5) feedback

5) feedback

A large production company has been utilizing the Hawthorne effect in its 12 international factories, and it has seen great success from implementing the Hawthorne principles that propose that ____. 1) giving less attention to employees increases worker productivity 2) increasing diversity results in increases in worker productivity 3) increasing synergy increases worker productivity 4) cutting costs through outsourcing harms employee morale and productivity 5) giving more attention to employees increases worker productivity, if they think managers care about them

5) giving more attention to employees increases worker productivity, if they think managers care about them

Donna, a chef in a fine restaurant, utilizes top-of-the-line equipment as she prepares meals for customers. Donna and her equipment are a(n) ______ in the restaurant's system. 1) cog 2) piece 3) output-participant 4) output 5) input

5) input

A local farmer grows and sells tomatoes and beans to the local grocers. Using the systems viewpoint, The tomatoes, beans and profits that are earned from the sales are known as a(n) _____. 1) input 2) therblig 3) transformational process 4) result 5) output

5) output

The field of behavioral science includes _____. 1) psychology, sociology, forensic science, economics 2) psychology, forensic science, sociology, anthropology, economics 3) psychiatry, technology, environmental science, forensic science 4) chemistry, biology, earth science, management 5) psychology, sociology, anthropology, economics

5) psychology, sociology, anthropology, economics

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each production run to locate errors. This is an example of the ______ technique. 1) zero defects 2) minimal defects 3) JIT 4) quality focus 5) quality control

5) quality control

Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ____. 1) synergy 2) management science 3) behaviorism 4) the Hawthorne effect 5) scientific management

5) scientific management

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ____. 1) process 2) stepped process 3) input-output structure 4) structure 5) system

5)system

Religion

5. Religion Trying to get wealthy Muslim investors in Dubai to buy some of your bank's financial products? Then you need to know that any investment vehicle needs to "conform to the spirit of the Koran, which forbids any investments that pay interest," as one writer puts it. "No mortgages. No bonds." Are you a Protestant doing business in a predominantly Catholic country? Or a Muslim in a Buddhist country? How, then, does religion influence the work-related values of the people with whom you're dealing? A study of 484 international students at a midwestern university uncovered wide variations in the work-related values for different religious affiliations. For example, among Catholics, the primary work-related value was found to be consideration. For Protestants, it was employer effectiveness; for Buddhists, social responsibility; for Muslims, continuity. There was, in fact, virtually no agreement among religions as to what is the most important work-related value. This led the researchers to conclude: "Employers might be wise to consider the impact that religious differences (and more broadly, cultural factors) appear to have on the values of employee groups."

National Culture

A nation's culture is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people. We begin learning our culture starting at an early age through everyday interaction with people around us. This is why, from the outside looking in, a nation's culture can seem so intangible and perplexing. As cultural anthropologist Edward T. Hall puts it, "Since much of culture operates outside our awareness, frequently we don't even know what we know.... We unconsciously learn what to notice and what not to notice, how to divide time and space, how to walk and talk and use our bodies, how to behave as men or women, how to relate to other people, how to handle responsibility." Indeed, says Hall, what we think of as "mind" is really internalized culture. And because a culture is made up of so many nuances, this is why visitors to another culture may experience culture shock—discomfort with being in an unfamiliar culture. According to anthropologists, culture shock involves anxiety and doubt caused by an overload of unfamiliar expectations and social cues.102

Major Trading Blocs

A trading bloc, also known as an economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another. The six major trading blocs are the NAFTA nations, the European Union, the APEC countries, the ASEAN countries, the Mercosur, and CAFTA.

Characteristics of Both

Characteristic of both—high need for achievement. Both entrepreneurs and managers have a high need for achievement. However, entrepreneurs certainly seem to be motivated to pursue moderately difficult goals through their own efforts in order to realize their ideas and, they hope, financial rewards. Managers, by contrast, are more motivated by promotions and organizational rewards of power and perks. Also characteristic of both—belief in personal control of destiny. If you believe "I am the captain of my fate, the master of my soul," you have what is known as internal locus of control, the belief that you control your own destiny, that external forces will have little influence. (External locus of control means the reverse—you believe you don't control your destiny, that external forces do.) Both entrepreneurs and managers like to think they have personal control over their lives. Characteristic of both, but especially of entrepreneurs—high energy level and action orientation. Rising to the top in an organization probably requires that a manager put in long hours. For entrepreneurs, however, creating a new enterprise may require an extraordinary investment of time and energy. In addition, while some managers may feel a sense of urgency, entrepreneurs are especially apt to be impatient and to want to get things done as quickly as possible, making them particularly action oriented. Characteristic of both, but especially of entrepreneurs—high tolerance for ambiguity. Every manager needs to be able to make decisions based on ambiguous—that is, unclear or incomplete—information. However, entrepreneurs must have more tolerance for ambiguity because they are trying to do things they haven't done before. More characteristic of entrepreneurs than managers—self-confidence and tolerance for risk. Managers must believe in themselves and be willing to make decisions; however, this statement applies even more to entrepreneurs. Precisely because they are willing to take risks in the pursuit of new opportunities—indeed, even risk personal financial failure—entrepreneurs need the confidence to act decisively. Of course, not all entrepreneurs have this kind of faith in themselves. So-called necessity entrepreneurs are people such as laid-off corporate workers, discharged military people, immigrants, and divorced homemakers who suddenly must earn a living and are simply trying to replace lost income and are hoping a job comes along. In the United States, these make up about 28% of entrepreneurs. However, 51% are so-called opportunity entrepreneurs—those who start their own business out of a burning desire rather than because they lost a job. Unlike necessity types, they tend to be more ambitious and to start firms that can lead to high-growth businesses.

Ethical intensity of a decision

Degree of concern people have about an ethical behavior

Competitive advantage through people Employee security

Employees can innovate and increase the profitability of an organization without fear of losing their job

Ethnocentric Managers

Ethnocentric Managers—"We Know Best" What do foreign executives fluent in English think when they hear Americans using an endless array of baseball, basketball, and football phrases (such as "out of left field" or "Hail Mary pass")? -Ethnocentric managers believe that their native country, culture, language, and behavior are superior to all others. Ethnocentric managers tend to believe that they can export the managers and practices of their home countries to anywhere in the world and that they will be more capable and reliable than the native managers. -Often the ethnocentric viewpoint is less attributable to prejudice than it is to ignorance, since such managers obviously know more about their home environment than the foreign environment. Ethnocentrism might also be called parochialism—that is, a narrow view in which people see things solely through their own perspective. -Is ethnocentrism bad for business? It seems so. A survey of 918 companies with home offices in the United States, Japan, and Europe found that ethnocentric policies were linked to such problems as recruiting difficulties, high turnover rates, and lawsuits over personnel policies.

Rewards of Studying Management

Here are just a few of the payoffs of studying management as a discipline: -You will understand how to deal with organizations from the outside. Since we all are in constant interaction with all kinds of organizations, it helps to understand how they work and how the people in them make decisions. Such knowledge may give you some defensive skills that you can use in dealing with organizations from the outside, as a customer or investor, for example. -You will understand how to relate to your supervisors. Since most of us work in organizations and most of us have bosses, studying management will enable you to understand the pressures managers deal with and how they will best respond to you. -You will understand how to interact with coworkers. The kinds of management policies in place can affect how your coworkers behave. Studying management can give you the understanding of teams and teamwork, cultural differences, conflict and stress, and negotiation and communication skills that will help you get along with fellow employees. -You will understand how to manage yourself in the workplace. Management courses in general, and this book in particular, give you the opportunity to realize insights about yourself—your personality, emotions, values, perceptions, needs, and goals. We help you build your skills in areas such as self-management, listening, handling change, managing stress, avoiding groupthink, and coping with organizational politics.

Disseminator role

Managers share collected information with their subordinates and others in the company

The GLOBE Projects 9 Cultural Dimensions

Started in 1993 by University of Pennsylvania professor Robert J. House, the GLOBE project is a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes.103 (GLOBE stands for Global Leadership and Organizational Behavior Effectiveness.) GLOBE has evolved into a network of more than 150 scholars from 62 societies, and most of the researchers are native to the particular cultures they study. The nine cultural dimensions are as follows: 1. Power distance—how much unequal distribution of power should there be in organizations and society? Power distance expresses the degree to which a society's members expect power to be unequally shared. 2. Uncertainty avoidance—how much should people rely on social norms and rules to avoid uncertainty? Uncertainty avoidance expresses the extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events. 3. Institutional collectivism—how much should leaders encourage and reward loyalty to the social unit? Institutional collectivism expresses the extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals. 4. In-group collectivism—how much pride and loyalty should people have for their family or organization? In contrast to individualism, in-group collectivism expresses the extent to which people should take pride in being members of their family, circle of close friends, and their work organization. 5. Gender egalitarianism—how much should society maximize gender role differences? Gender egalitarianism expresses the extent to which a society should minimize gender discrimination and role inequalities. 6. Assertiveness—how confrontational and dominant should individuals be in social relationships? Assertiveness represents the extent to which a society expects people to be confrontational and competitive as opposed to tender and modest. 7. Future orientation—how much should people delay gratification by planning and saving for the future? Future orientation expresses the extent to which a society encourages investment in the future, as by planning and saving. 8. Performance orientation—how much should individuals be rewarded for improvement and excellence? Performance orientation expresses the extent to which society encourages and rewards its members for performance improvement and excellence. 9. Humane orientation—how much should society encourage and reward people for being kind, fair, friendly, and generous? Humane orientation represents the degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair.

Threat

Take steps to protect company from further harm

Technical Skills

Technical skills consist of the job-specific knowledge needed to perform well in a specialized field. Having the requisite technical skills seems to be most important at the lower levels of management—that is, among employees in their first professional job and first-line managers.

World Bank

The World Bank The World Bank was founded after World War II to help European countries rebuild. Today the purpose of the World Bank is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications. The bank has 187 member nations, with most contributions coming from Britain, the United States, Japan, and Germany. In recent years, the World Bank has been the target of demonstrations in Seattle; Washington, DC; Ottawa; and elsewhere. Some protesters believe it finances projects that could damage the ecosystem, such as the Three Gorges Dam on China's Yangtze River. Others complain it supports countries that permit low-paying sweatshops or that suppress religious freedom. Still others think it has dragged its feet on getting affordable AIDS drugs to less-developed countries in Africa. Many of the same protests were leveled against the International Monetary Fund, discussed next. The World Bank has responded by trying to support projects that are not harmful to the environment and that are aimed at helping lift people out of poverty.

Managing for Information Technology

The challenge of managing for information technology, not to mention other technologies affecting your business, will require your unflagging attention. Most important is the Internet, the global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

Global Village

The hallmark of great civilizations has been their great systems of communications. In the beginning, communications were based on transportation: the Roman Empire had its network of roads, as did other ancient civilizations, such as the Incas. Later the great European powers had their far-flung navies. In the 19th century, the United States and Canada unified North America by building transcontinental railroads. Later the airplane reduced travel time between continents. From Transportation to Communication Transportation began to yield to the electronic exchange of information. Beginning in 1844, the telegraph ended the short existence of the Pony Express and, beginning in 1876, found itself in competition with the telephone. The amplifying vacuum tube, invented in 1906, led to commercial radio. Television came into being in England in 1925. During the 1950s and 1960s, as television exploded throughout the world, communications philosopher Marshall McLuhan posed the notion of a "global village," where we all share our hopes, dreams, and fears in a "worldpool" of information. The global village refers to the "shrinking" of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another. Then the world became even faster and smaller. Fifteen years ago, cellphones, pagers, fax, and voice-mail links barely existed. When AT&T launched the first cellular communications system in 1983, it predicted fewer than a million users by 2000. By the end of 1993, however, there were more than 16 million cellular phone subscribers in the United States. By 2011, there were 5.9 billion mobile-cellular subscriptions, with global penetration reaching 87%.14 The Net, the Web, & the World Then came the Internet, the worldwide computer-linked "network of networks." Today, of the 7 billion people in the world, 35% are Internet users. The Net might have remained the province of academicians had it not been for the contributions of Tim Berners-Lee, who came up with the coding system, linkages, and addressing scheme that debuted in 1991 as the World Wide Web. "He took a powerful communications system [the Internet] that only the elite could use," says one writer, "and turned it into a mass medium."16 The arrival of the Web quickly led to e-commerce, or electronic commerce, the buying and selling of products and services through computer networks. U.S. retail e-commerce sales were estimated at $48.2 billion in the third quarter of 2011.

Megamergers

Walt Disney + Pixar. Kmart + Sears. Union Pacific + Southern Pacific. Whole Foods + Wild Oats. Bank of America + Merrill Lynch. Chrysler + Fiat. Roche + Genentech. Ticketmaster + Live Nation. Kraft + Cadbury. Comcast + NBC Universal. Mattel (maker of Barbie Doll) + Hit Entertainment (Bob the Builder). The last 20 years have seen a surge in mergers. Certain industries—oil, telecommunications, automobiles, financial services, and pharmaceuticals, for instance—aren't suited to being midsize, let alone small and local, so companies in these industries are trying to become bigger and cross-border. The means for doing so is to merge with other big companies. In telecommunications, for instance, AT&T targeted T-Mobile and in automobiles Porsche targeted Volkswagen (and then, in turn, VW tried to acquire Porsche), but ultimately both deals fell through. Oil companies, already gigantic from earlier mergers (Exxon + Mobil, Conoco + Phillips), were expected to begin another wave of acquisitions in the near future, and utilities also turned to mergers as power demands slowed (despite the increase in tablet computers, Internet data centers, and electric vehicles).

Medtronic, a company that makes heart pacemakers, introduced a new product at medical conventions across Asia to demonstrate its many beneficial features. The convention presentations are an example of its

market segmentation and targeting strategy.

Most firms have a goal to maximize their long-run ________, achieving as high a financial return on investment as possible.

profits

Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination. It should have adopted a more rigorous ________ goal.

quality

Customers' perceptions are often central to an organization's goals. Customer ________ can be measured with surveys or by the number of customer complaints an organization receives.

value