Exam 4 Mgmt 300

10. What are the four basic components of emotional intelligence?

-Self-awareness: being aware of what you are feeling. -Self-management: the ability to control disruptive or harmful emotions and balance one's moods so that worry, anxiety, fear, and anger do not cloud thinking and get in the way of what needs to be done. -Social awareness: the ability to understand others and practice empathy. -Relationship management: the ability to connect to others, build positive relationships, respond to the emotions of others, and influence others.

The two principles associated with chain of command (page 324)

-Unity of command means that each employee is held accountable to only one supervisor. -The scalar principle refers to a clearly defined line of authority in the organization that includes all employees.

8. What is balance sheet and what is income statement?

The balance sheet shows the firm's financial position with respect to assets and liabilities at a specific point in time. The income statement (sometimes called a profit-and-loss statement) summarizes the firm's financial performance for a given time interval, usually one year.

What is a capital budget?

The capital budget lists planned investments in major assets such as buildings, heavy machinery, or complex information technology systems, often involving expenditures over more than a year.

What is accountability, and delegation?

Accountability means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. Delegation is the process that managers use to transfer authority and responsibility to positions below them in the hierarchy.

What is an expense budget?

Expense budget, includes anticipated and actual expense for each responsibility center and for the total organization. -When actual expenses exceed budgeted amount, the difference signals the need for managers to identify possible problems and take corrective actions if needed. -Expense below budget may signal exceptional efficiency or possibly the failure to meet some other standards.

11. The difference between challenge stress and threat stress

Challenge stress fires you up, whereas threat stress burns you out.

5. What is stereotyping and what is halo effect? see some textbook examples

Stereotyping: the tendency to assign an individual to a group or broad category (e.g., female, black, elderly; or male, white, disabled) and then to attribute widely held generalization about the group to the individual. Halo effect occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. e.g., a person with an outstanding attendance record may be assessed as responsible, industrious, and highly productive.

What is Top-down budget and Bottom-up budget?

Top-down budget means that the budgeted amounts for the coming year are literally imposed on middle- and lower-level managers. --These managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top executives. Bottom-up budget is a process in which lower-level managers anticipate their departments' resource needs and pass them up to top management for approval. --"Nobody knows that side of the business better than they do."

5. What is TQM philosophy?

Total quality management (TQM), an organization-wide effort to infuse quality into every activity in a company through continuous improvement.

The consequence of too much responsibility or authority (page 325)

When managers have authority exceeding responsibility, they may become tyrant's, using authority authority to achieve frivolous outcomes.

What are work specialization and chain of command?

Work Specialization is the degree to which organizational tasks are subdivided into individual jobs; also called division of labor -Extensive work specialization leads to efficiency -Specialization creates separation and hinders coordination Chain of Command is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom

What is zero-based budgeting?

Zero-based budget is an approach to planning and decision making that requires a complete justification for every line item in a budget instead of carrying forward a prior budget and applying a percentage change.

The concept of ABC inventory.

• ABC analysis categorizes inventory items into three groups according to their total annual dollar usage. • A item - Account for a large dollar value but a relatively small percentage of total items o Example, 10% to 30 % of items, yet 60% to 80% of total dollar value o Require close control by operations manager • C items - Account for a small dollar value but a large percentage of total items o Example, about 50% of items, yet about 5% to 15% of total dollar value o Needs not be closely controlled and can be managed using automated computer systems. • B items - Items between A and C o In between A and C

Fixed-quantity versus fixed-period inventory system, understand the difference between the two.

• Fixed-Quantity System (FQS) (Continuous Review System): Order quantity or lot size is fixed; that is, the same amount, Q, is ordered every time. o Order quantity (Q) can be any quantity of product o Does not have to be economically determined • Fixed-Period System (FPS): Sometimes called a periodic review system- in which the inventory position is checked inly at fixed intervals of time, T, rather than on a continuous basis o Principal decisions in an FPS o Time interval between reviews (T) o Replenishment level (M) (sometimes called "order-up-to" level)

The concept of reorder point

• Reorder point: Value of the inventory position that triggers a new order.

Factors associated with larger span of control (page 328)

• Work performed by subordinates is stable and routine. • Subordinates perform similar work tasks. • Subordinates are concentrated in a single location. • Subordinates are highly trained and need little direction in performing tasks. -Rules and procedures defining task activities are available. • Support systems and personnel are available for the manager. • Little time is required in nonsupervisory activities, such as coordination with other departments or planning. -Managers' personal preferences and styles favor a large span.

What is organizational structure (3 components)

(1) The set of formal tasks assigned to individuals and departments; (2) Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and (3) The design of systems to ensure effective coordination of employees across departments.

2. What are the four steps of feedback control?

-Establish Standards of Performance Within the organization's overall strategic plan, managers define goals for organizational departments in specific, operational terms that include a standard of performance against which to compare organizational activities. -Measure Actual Performance Prepare formal reports of quantitative performance measurements that managers review daily, weekly, or monthly. -Compare Performance to Standards Compare actual activities to performance standards -Take Corrective Action Determine what changes, if any, are needed

6. What techniques are included in TQM? Some key information with each technique.

-Quality circle is a group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems that affect the quality of their work. Benchmarking is defined as "the continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders to identify areas for improvement." Six Sigma, is a highly ambitious quality standard that specifies a goal of no more 3.4 defects per million parts. Quality partnering, involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process. Continuous improvement (or Kaizen), is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

What is revenue budget?

A revenue budget, lists forecasted and actual revenues of the organization. -Revenues below the budgeted amount signal a need to investigate the problem -Revenue above the budget would require determining whether the organization can obtain the necessary resources to meet the higher-than-expected demand for its products and services.

6. What is fundamental attribution error and self-serving bias? See some textbook examples

Attribution are judgments about the cause of a person's behavior-something about the person or something about the situation. e.g., Susan missed the deadline because she was careless and lazy or because she couldn't get the information she needed in a timely manner. -Fundamental attribution error - Underestimating the influence of external factors and overestimating the influence of internal factors -Self-serving bias - giving too much credit for oneself when a job is done well, and blaming external factors for failure to perform

what is authority and responsibility?

Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcome. -Authority is vested in organizational positions, not people -Authority flows down the vertical hierarchy -Authority is accepted by subordinates Responsibility is the duty to perform the task or activity as assigned.

3. What is balanced scorecard and what areas are included in a balanced scorecard?

Balanced scorecard is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factor. -Financial Performance-, which reflects a concern that the organization's activities contribute to improving short- and long-term financial performance. -Customer Service-, which measures information such as how customers view the organization and customer retention and satisfaction. -Internal Business Process-, which focuses on production and operating statistics. Potential for Learning and Growth, which looks at the organization's potential for learning and growth, focusing on how well resources and human capital are being managed for the company's future.

22. What is coordination and collaboration?

Coordination refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments. Collaboration means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.

7. The big five personality factors

Extroversion: the degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships. Agreeableness: the degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting. Conscientiousness: the degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement-oriented. Emotional stability: the degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure. Openness to experience: the degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas.

9. Read the second paragraph on page 489

Good managers pay attention to people's emotions because positive emotions are typically linked to higher productivity and greater effectiveness. A Gallup Management Journal survey found that managers, especially front-line supervisors, have a lot to do with whether employees have positive or negative emotions associated with their work lives.53

3. What is job satisfaction? About job satisfaction, read the last paragraph on 475 and the first paragraph on page 476

Job satisfaction reflects the degree to which a person finds fulfillment in his or her job. In general, people experience job satisfaction when -Work matches needs and interests. -Working conditions and rewards are satisfactory -Like their coworkers -Have positive relationships with supervisors

Line department versus staff department (typical examples),

Line Departments perform tasks that reflect the organization's primary goal and mission, e.g., produce and sell products and services. Staff Departments include all those that provide specialized skills in support of line departments, e.g., marketing, labor relations, research, accounting, and HR.

Line authority versus staff authority

Line authority means that people in management positions have formal authority to direct and control immediate subordinates. Staff departments include all those that provide specialized skills in support of line departments.

8. What is locus of control, authoritarianism, and Machiavellianism? How people are different in these three aspects (page 484, 485)

Locus of control: how people perceive the cause of life events-whether they place the primary responsibilities within themselves or on outside forces. Authoritarianism: the belief that power and status differences should exist within the organization. If a manager and employees differ in their degree of authoritarianism, the manager may have difficulty leading effectively. Machiavellianism: characterized by the acquisition of power and the manipulation of other people for purely personal gain. Low Machs thrive in a highly structured situation while high Machs perform in a detached, disinterested way. High Machs are particularly good in jobs that require bargaining skills or that involve substantial rewards for winning

EOQ model, identify three input parameters, calculating EOQ, ordering cost, holding cost and total cost, and reorder point. Understand the tradeoff (remember the graphs with three lines)

Model is a classic economic model developed in the early 1900s that minimizes the total cost, which is the sum of the inventory-holding cost and the ordering cost. Key assumptions -Only a single item (SKU) is considered -The entire order quantity (Q) arrives in the inventory at one time Types of costs that are relevant Order/setup Inventory holding -No stockouts are allowed -Demand for the item is deterministic and continuous over time -Lead time is constant

The definition of an organizational chart

Organization chart is the visual representation of an organization's structure

1. What is organizational control?

Organizational control refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance.

4. What is perception and what are the three steps in perception process?

Perception is the cognitive process that people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment.

What is a responsibility center?

Responsibility Center: is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity.

13. What is role ambiguity and role conflict?

Role ambiguity: which means that people are unclear about what task behaviors are expected of them. Role conflict occurs when an individual perceives incompatible demands from others.

2. What is self-awareness and what are the approaches to enhancing self-awareness

Self-awareness means being aware of the internal aspects of one's nature, such as personality traits, beliefs, emotions, and perceptions, and appreciating how your patterns affect other people. Two important approaches to enhancing self-awareness are: -Soliciting Feedback: seeking feedback to enhance self-awareness improves performance and job satisfaction -Self-Assessment: reflection to gain insights into oneself from the results of self-assessment instruments (e.g., Development Dimensions International)

1. The definition of self-efficacy and self-confidence

Self-efficacy is an individual's strong belief that he or she can accomplish a specific task or outcome successfully. Self-confidence refers to general assurance in one's own ideas, judgement, and capability.

23. What is a task force, cross functional team, and project manager, page 346

Task Force - a temporary team or committee formed to solve a specific short-term problem involving several departments Cross-functional Team - furthers horizontal coordination by including members across the organization. It meets regularly and works with continuing rather than temporary problems Project Manager - person responsible for coordinating activities of several departments for the completion of a specific project

What is a cash budget?

The cash budget estimates receipts and expenditures of money on a daily basis to ensure that an organization has sufficient cash to meet its obligation. -If the cash budget shows that the firm has more cash than necessary to meet short-term needs, the company can arrange to invest the excess to earn interest income. -If the cash budget shows a payroll expenditure of $20,000 coming at the end of the week but only $10,000 in the bank, the organization must borrow cash to meet the payroll.

12. The difference between Type A and Type B behavior, page 495-496

Type A: Pattern characterized by extreme competitiveness, impatience, aggressiveness, and devotion to work Type B:Pattern that lacks Type A characteristics and includes more balanced, relaxed lifestyle

Independent versus dependent demand, deterministic versus stochastic demand, static versus dynamic demand

• Independent demand: Demand for an SKU that is unrelated to the demand for other SKUs and needs to be forecasted. • Dependent demand: Demand directly related to the demand for other SKUs and can be calculated without needing to be forecasted. • Deterministic Demand: Demand is constant (or certain, known) over some period of time. • Stochastic Demand: Demand is uncertain (follow stochastic distribution). • Static Demand: Demand that is stable in nature (does not fluctuate over time). • Dynamic Demand: Demand that varies over time (e.g., seasonality).

What is inventory position (simple calculation)

• Inventory position (IP): On-hand quantity (OH) plus any orders placed but which have not arrived (scheduled receipts, or SR), minus any backorders (BO), or • IP = OH + SR - BO

What is lead time and what affects lead time?

• Lead Time: Time between placement of an order and its receipt. o Lead time is affected by: o Transportation carriers o Buyer order frequency and size o Supplier production schedules

Four types of inventory costs (see textbook page 250), in particular, pay attention to the examples for holding costs.

• Ordering Cost/ Setup Cost: Result of the work involved in placing purchase orders with suppliers or configuring tools, equipment, and machines within a factory to produce an item. • Inventory-Holding Costs: Are the expenses associated with carrying inventory. • Shortages Costs: Associated with inventory being unavailable when needed to meet demand • Unit Cost: Price paid for purchased goods or the internal cost of producing them.

What is safety stock inventory?

• Safety Stock Inventory: Is an additional account that is kept over and above the average amount required to meet demand.

What is stock-keeping-unit?

• Stock-keeping unit (SKU): Single item or asset stored at a particular location.

. What is stockout and the two possible outcomes associated with stockout?

• Stockout: Inability to satisfy demand for an item o Backorder: Occurs when a customer is willing to wait for an item o Lost sale: Occurs when the customer is unwilling to wait and purchases the item elsewhere

Single-period versus multi-period models, what is the applicable situation to use each model?

• The type of approach used to analyze "single-period" inventory problems is different from the approach needed for the "multiple period" inventory situation. o The single period inventory model applies to inventory situations in which one order is laced for a good in anticipation of a future selling season where demand is uncertain. At the end of the period the product has either sold out, or there is a surplus of unsold items to sell for a salvage value. Single period models are used in situations involving seasonal or perishable items that cannot be carried in inventory and sold in future periods. o Example Christmas trees and newspapers are single period

When demand is uncertain, what affects the safety stock level?

• When demand is uncertain, using EOQ based on the average demand will result in a high probability of a stockout.

What are the two fundamental decisions in inventory management?

• When to order from a supplier or when to initiate production runs if the firm makes its own items? • How much to order or produce each time a supplier or production order is placed?