Management Ch. 1 General Nature of Management

Three levels of managers

(1) first line managers, (2) middle managers, (3) top managers

Five essential concepts of managment

(1) working with and through people, (2) utilizing specific resources, (3) to achieve specific goals, (4) in an efficient and effective manner, (5) in a changing environment

By the late 1990s Microsoft's office suite consisting of Word, Excel and other programs had become the industry standard adopted by virtually all business organizations. This was a classic manifestation of (a) competitive advantage, (b) planning, (c) decisional roles, (d) conceptual roles

(a) competitive advantage; this refers to the ability of an organization to outperform competing organizations by producing desired goods or services more efficiently and effectively than those of others, and thereby providing greater value for customers.

A company president is photographed during a ground breaking ceremony with city officials digging the first shovel of soil on the site where a new plant is about to be constructed. This would be an example of which category of managerial roles? (a) interpersonal, (b) informational, (c) decisional

(a) interpersonal. The interpersonal roles govern how a manager interacts with other people

in management the term_________refers to the belief that organizations have a duty to behave ethically, in a manner that benefits employees and the larger society as well as the organization (a)social responsibility, (b) multiculturalism, (c) competitive advantage, (d) ethical dilemma

(a) social responsibility

which of the following would not be considered a regional trading zone? (a) NAFTA, (b) WTO, (c) EU, (d) ASEAN

(b) The WTO is a global, rather than regional alliance. Countries that are members in the WTO agree to limit tariffs on imports from all other member countries

the position of team leader is an example of a ___________ position that is found in many contemporary organizations (a) operative, (b) first-line manager, (c) middle manager, (d) top manager

(b) first-line manager; The team leader title is used in various ways in different organizations. Typically, it involves an individual who facilitates team activities toward goal accomplishment.

The term _____________refers to the ongoing process by which resources, markets and organizations are becoming interdependent and competitive throughout the world (a) World Trade Organization, (b) globalization, (c) global sourcing, (d) international business

(b) globalization; The WTO is a global trading alliance designed to promote free trade among member nations. Global sourcing is where materials or jobs are obtained from less expensive countries. International business refers to commercial transactions across national borders

Which of the following would not be considered a component of the internal environment of an organization (a) organizational structure, (b) regulators, (c) employees, (d) production technology

(b) regulators; Regulators would be part of the external environment of the organization. The internal environment includes employees, organizational structure, corporate culture, as well as technology and physical facilities

Identify which of the three managerial skills tend to be primarily focused on this managerial level: top management (a) conceptual, human and technical, (b) human and technical, (c) conceptual and human

(c) Conceptual and Human

A manager is trying to maximize efficiency. Therefore, he or she should minimize all of the following except: (a) the amount of resources consumed in the project (b) the duration of work on the project, (c) the quality of work on the project

(c) The quality of work on the project; quality of work is related to effectiveness, not efficiency

the general environment of an organization consists of a set of wider conditions and forces that form the overall context of the organization, but influence it only indirectly. All of the following would be considered among the conditions or forces of the general environment except: (a)technological dimensions, (b) sociocultural, (c) competitive, (d) economic, (e) legal-political, (f) global-international

(c) competitive. Competitors are part of the task environment of the organization. The general environment consists of broader economic, sociocultural, technological, political-legal and global forces that may affect the organization and its task environment

All of the following would typically be considered to involve significant ethical issues or ethical dilemmas for managers except (a) managing workforce diversity and multiculturalism, (b) eliminating the glass ceiling through hiring preferences, (c) determining a revised organization structure, (d) developing a whistle blower protection policy

(c) determining a revised organization structure; An ethical dilemma is a situation in which an individual must make a decision that might be construed as unethical. Since issues of legality and fairness are less important that issues of whether the structure facilitates that achievement of organizational goals, this alternative is least likely to involve significant ethical issues and is therefore the best answer.

Which of the following would NOT be considered a component of the external environment of an organization (a) task environment, (b) specific environment, (c) managerial environment, (d) general environment

(c) managerial environment. While the term "managerial environment" has not been formally defined in this chapter, it clearly has more in common with the concepts of organizational culture and the internal environment of an organization than it does with the external environment

All of the following skills are part of a sets of skills are generally recognized as critical for managerial success except (a) conceptual, (b) human, (c) political, (d) technical

(c) political; political skills (which refer to a manager's ability to effectively use the various sources of power in organizations through a network of connections), are not traditionally recognized among the three skills required for success in management, but are suggested by some contemporary management writers as worthy of addition to the traditional list.

organizational performance will be maximized when which of the following occur: (a) resource utilization is minimized, (b) time to completion is minimized, (c) customer satisfaction is maximized, (d) all of the above are required to maximize organizational performance

(d) all of the above

In management, the social and ethical environment can include manifestations in which of the following aspects of the organization's environment (a) internal environment, (b) external task environment, (c) external general environment, (d) all of the above

(d) all of the above; The social and ethical environment includes dimensions focused on the internal environment, such as the treatment of whistle blowers, along with dimensions affecting the task environment, such as competitors that lose market share because of changes in federal laws that provide an advantage to their products.

The company president's activity during this ground breaking ceremony would be considered an example of which of the following roles (a) entrepreneur, (b) spokesperson, (c) leader, (d) figurehead

(d) figurehead. In the interpersonal role of figurehead, the manager performs ceremonial or symbolic duties, which is exactly the function of a ground breaking ceremony

environmental change is an ongoing and constant challenge to organizations. Managers need to understand how such change can influence the_________environment of the organization (a)internal, (b) external, (c) task, (d) internal and external

(d) internal and external. Changes in the environment can influence both the internal and environment (as when changes in laws or regulations result in increased lawsuits by employees), and external environment (as when a new lower cost competitor reduces a company's market share) In order to be effective, managers must monitor effects at both levels.

The term ___________ refers to the set of values, beliefs and normative behaviors that are accepted and approved in a given society (a) multiculturalism, (b) general environment, (c)organizational culture, (d) national culture

(d) national culture

Specific individuals or groups in the task environment that are directly affected by, or have an interest in the organization's performance are frequently referred to as (a) stockholders, (b)strategic partners, (c)owners, (d)stakeholders

(d)stakeholders

Match the example with the appropriate managerial role: Interpersonal- figure head (a) departmental manager resolves a personnel dispute between two subordinates, (b) public relations manager speaks to the media to explain how a controversial company decision was reached, (c) coach provides the team with a pep talk and review of the strategy for winning the game, (d) marketing manager develops a weblog to promote a new product to customers who don't see other media promotions, (e) presents a company scholarship check to a student during university convocation

(e) presents company scholarship

Ethnocentrism is an effective management practice in international business T/F

False; Ethnocentrism refers to the belief that one's own cultural beliefs and practices are better than those of other cultures. It is not an effective management practice, because it precludes examination of newer and more effective ways of doing business. However, due to its worldwide prevalence, management practices must be tailored to the cultural context in which an organization is operating. Thus, openness to, and acceptance of other cultural beliefs and practices is associated with success in international business. This is the opposite of ethnocentrism.

The GLOBE study demonstrated the limited importance of national culture to the management of international business T/F

False; The Global Leadership Organizational Behavior Effectiveness research demonstrated the validity of the classical five dimensions of national culture and added several dimensions to clarify national differences. In addition, it demonstrated that national cultures change over time. All of this reinforced the importance of tailoring management practices to the cultural context in which the organization is operating in order to gain a competitive advantage in the global marketplace

The task environment consists of broader economic, sociocultural, technological, political -legal, and global forces that may affect the organization and its general environment T/F

False; The task environment consists of the actual groups and resulting conditions that directly affect the organization's operations and performance, such as customers, competitors, and regulators. The general environment consists of broader economic, sociocultural, technological, political-legal, and global forces that may affect the organization and its task environment

Diversity and multiculturalism mean the same thing in management T/F

False; The term diversity refers to similarities and differences among employees across a variety of dimensions, such as gender, race, age, ethnicity, religion, sexual orientation, socio-economic background, and ability/diversity. Multiculturalism is a different but related concept that focuses on broader issues of differences in customs, attitudes, values, beliefs, and behaviors across members of different national cultures. Thus, the essential difference is one of degree of emphasis on the global dimension

Two sets of skills is generally recognized as a critical for managerial success, conceptual skills and human skills T/F

False; The tree sets of skills are conceptual, human and technical

Top, middle, and first-line managers all tend to engage in the same relative emphasis on managerial skills and functions T/F

False; There are typically significant differences between top, middle and first-line managers in the relative focus on specific skills and fucntions. Top managers tend to primarily use conceptual and human skills, and generally focus on planning and organizing. Middle managers tend to use a balance of all three types of skills and all four functions. First-line managers, however, tend to emphasize technical and human skills, and will normally focus on leading and controlling to effectively perform their supervisory jobs

Management is a process of satisfying customer expectations T/F

False; management refers to a process of working with and through people to efficiently and effectively use an organization's resources to achieve organizational goals in a changing environment. Organizational performance, on the other hand, is measured of how efficiently and effectively the management process is able to satisfy customer expectations with the quality of the goods or services produced

the four critical management functions are planning, conceptualizing, relating and controlling T/F

False; the four critical management functions are planning, organizing, leading and controlling

International business refers to the ongoing process by which resources, markets, and organizations are becoming interdependent and competitive throughout the world. T/F

Fasle; International business involves conducting commercial transactions across national borders. Globalization refers to the ongoing process by which resources, markets, and organizations (basic components of both the general and task environments) are becoming interdependent and competitive throughout the world

exporting

LenTex Corp., a NH company based manufacturer of high quality wall covering materials, sells 40% or more of its products outside of the U.S.

Joint Venture

Nestle and General Mills created a new company called CPW to produce and market breakfast cereals

The most effective organizations focus on dimensions beyond legal compliance (with anti-discrimination laws and regulations) in promoting diversity and multiculturalism in their workforces T/F

True; Companies are increasingly realizing that the effective management of diversity can increase competitive advantage since increasingly their customer base consists of women, people of color, and other ethnic minorities, especially in the context of the global marketplace

Specific individuals or groups in the task environment that are directly affected by, or have an interest in the organization's performance are frequently referred to as stakeholders T/F

True; Organizational stakeholders are those individuals and organizations who are directly affected by the practices of an organization and have a stake in its performance. Examples of stakeholders would include customers, creditors, local government and community, suppliers, employees, interest groups, owners/investors, and others

The external environment of a business is composed of two sectors: the specific environment and the general environment T/F

True; The external environment consists of two components: the task (specific) and the general environment. That is, the term specific environment is frequently used to refer to the task environment of an organizations, so it is important to realize that these terms (task or specific) may be used interchangeably

As an aspect of the task and general environments, the social and ethical environment includes a variety of social forces (such as behavioral expectations) and conditions (such as characteristics of he workforce) that influence the effectiveness of managerial actions, and thereby can affect competitive advantage T/F

True; The socia and ethical environment may be considered to be part of the task and/or general environments of an organization, and it includes a variety of social forces and conditions that can influence the effectiveness of managerial actions, thereby affecting competitive advantage. Customers and other organizations increasingly expect firms to demonstrate social responsibility, and may refuse to do business with firms that violate social expectations for fair treatment and diverse groups of employees or with firms that violate generally accepted ethical standards for good behavior.

Five forms of international business that have become increasingly common are global sourcing, importing/exporting, licensing/franchising, joint ventures and wholly owned subsidiaries T/F

True; These five forms of international business have become increasingly common, and are widely recognized as basic ways in which firms can enter the global marketplace

of the three different levels of managers, only first line managers typically supervise large numbers of operative employees T/F

True; first line managers are responsible for the daily supervision of operatives (employees who personally perform the tasks involved in producing or delivering goods and/or services). Middle managers occupy positions between first line managers and top managers.

While issues of ethics may focus on either the internal or the external environment of the organization, issues of social responsibility typically have broader, more external focus T/F

True; the concept of ethics refers to the oral principles, values or beliefs that are used to make decisions about what is right or wrong in behavior, actions, or decisions. This may involve components of either the internal environment (discriminating against minority employees) or external environment (exploiting child labor in developing countries). The term social responsibility refers to the belief that organizations have a duty to behave ethically, in a manner that benefits employees and larger society as well as the organization. This emphasis on benefiting the larger society clearly demonstrates a broader, external focus.

A manager who effectively initiates innovative changes in his/her unit is demonstrating entrepreneurial behavior within the decisional roles of management T/F

True;Decisional roles are carried out through making choices and taking actions in varying circumstances. These roles include entrepreneur, disturbance handler, resource allocator, and negotiator

management

a behavioral function performed by some employees, which facilitates the achievement of an organization's common purpose

The term ethnocentrism refers to

a belief that one's own cultural beliefs and practices are better than those of other cultures

organizational structure

a formal system of tasks and reporting relationships among employees that coordinates their efforts to achieve organizational goals

organizational performance

a measure of how efficiently and effectively the management process is able to satisfy customer expectations with the quality of the goods or services produced

role

a set of expectations for behavior in a particular setting

Organization

a structured grouping of people performing interrelated tasks to achieve a common purpose, or overarching goal

Managers t what level typically perform all three categories of managerial roles (interpersonal, informational, and decisional)

all three levels of management ( top, middle and first-line)

middle manager

between the first line and top manager. Typically responsible for implementing policies and plans developed by top managers and for supervising the work of lower level managers aka general manager, division manager, dept. head, project lead, plant manager; typically use a balance of all three skills and all four functions

decisional role

carried out through making choices and taking actions in varying circumstances

conceptual skills

cognitive, analytic and abstract reasoning skills, including the ability to diagnose problems and identify solutions.

3 skills of successful managers

conceptual, human and technical

Three managerial skills

conceptual, human and technical

internal environment

consists of the conditions and forces that exist within the boundaries of the organization, such as company culture and characteristics of employees and management that affect its activities or performance Includes organizational structure and job design, corporate culture, characteristics of employees and other stakeholders as well as technology and physical facilities.

The term _______refers to the process of monitoring performance towards goals and taking corrective action when performance deficiencies occur

controlling

managers

employees who direct, support, and are responsible for the work of others

informational roles

focus on gathering and sharing information to facilitate performance (monitor, dissemination, and spokesperson)

informal role

focuses on gathering and sharing information to facilitate performance

strategic alliance

form of business in which two or more firms jointly cooperate for mutual gain, such as the joint venture, in which companies work together to combine resources, costs risks, technology, and people to form a third jointly owned company

Refers to planning, organizing, leading, and controlling

four functions of management

Determine which environment the following would be considered a part of: health of the economy (growth vs. recession) (a) general, (b)task, (c) internal

general environment

5 forms of international business

global sourcing, importing/exporting, licensing/ franchising, strategic alliances, and direct investment

Interpersonal roles

governs how a manager interacts with other people (figurehead, leader, and liaison)

interpersonal role

governs how a manager interacts with others (includes figurehead, leader, and liaison)

Match the example to the specific type of resource that it represents: equipment operators

human resources

Resources

human, financial, physical, and informational

organizing

identifying specific tasks needed to achieve goals, grouping them into jobs and allocating authority, responsibility, and resources

five cultural dimensions

individualism-collectivism, power distance, uncertainty avoidance, masculinity-femininity, time orientation

stakeholders

individuals or groups in the environment that are directly affected by, or have an interest in the organization's performance

which of the following resources were not properly utilized in this example

information resources; The company owner failed to keep abreast of changes in laws and regulations governing his activities. This caused a failure of his project, and a significant problem for overall organizational performance

Managers have long been recognized as performing three interrelated sets of roles: interpersonal, informational and decisional. The roles of monitor, disseminator, and spokesperson are examples of ______ roles

informational

Three interrelated roles of managers

interpersonal, informational and decisional

three roles of managers

interpersonal, informational, and decisional

the managerial function that relies most strongly on the manager's interpersonal skills is

leading. Leading involves motivating employees to work together to perform well while directing and coordinating their activities. By demonstrating a clear vision and energizing employees, managers help them to focus on completing the tasks that will fulfill plans and accomplish objectives.

decisional roles

making choices and taking actions in varying circumstances (entrepreneur, disturbance handler, resource allocator and negotiator)

Refers to a process of working with and through people to efficiently and effectively use an organization's resources to achieve organizational goals in a changing environment

management

leading

motivating employees to work together and perform well while directing and coordinating their activities

Two levels of organizational culture

observable and unobservable

Refers to the process by which new members of an organization learn the values, norms, and expected ways of working necessary to perform their jobs effectively in that organization

organization socialization

When a manager identifies specific tasks needed to achieve goals, groups them into jobs, and allocates authority, responsibility, and resources to allow the tasks to be accomplished, he or she is performing the _______ function of management

organizing

Masulinity-femininity

people from Japan, Germany, and the US tend to value material possessions, money, competition, achievement and assertiveness while people from Norway, Sweeden and Denmark place a higher value on social relationships, quality of life, modesty and caring for the weak

critical management functions

planning, organizing, leading and controlling

the managerial function that is most closely related to the process of decision-making is

planning; Planning refers to selecting social goals and specific activities or courses of action needed to achieve them. Managers develop plans through a process of decision-making, in which they identify a set of alternatives and then select one of those alternatives for implementation

controlling

process of monitoring and performance towards goals and taking corrective action when performance deficiencies occur

Efficiency

resource costs associated with achieving organizational goals

first-line managers

responsible for the daily supervision of a small group of non-managerial (operative) employees aka first level managers, supervisors, team leaders, office managers, coaches, etc.; typically use technical and human skills and leading and controlling functions

planning

selecting goals and specific activities or courses of action needed to achieve them (decision making- set of alternatives)

external environment

set of conditions, events, and forces that exist outside of the boundaries of the organization and have the potential to influence or affect the organization (task - or specific- and general environment)

top manager

small group of executives who are responsible for setting the direction and establishing operating policy for the whole organization aka c level suite; typically use conceptual and human skills and focus on planning and organizing

organizatinal ___________describes the process by which new employees learn_________

socialization:Organizational culture; Organizational socialization refers to the process by which new members of an organization learn the values, norms, and expected ways of working necessary to perform their jobs effectively in that organization. Those values, norms, and expected ways of working are manifestations of organizational culture

competitive advantage

the ability of an organization to outperform competing organizations by producing desired goods or services more efficiently and effectively than others. This creates a greater value for customers

technical skills

the ability to use specific job-related methods and techniques to perform a task.

human skills

the interpersonal and communication skills needed to understand others, and to motivate and coordinate the efforts of individuals and teams

operatives

these employees work directly on a specific task with no responsibility of overseeing the work of anyone else

Charles is the director of human resources. He works directly with ______ in developing long range plans to ensure that the company is properly staffed to allow completion of all projects over the next three to five years

top manager

Winston is the owner of the company, who oversees all aspects of the organization. Identify his organizational level

top manager

unobservable level

values, beliefs and shared understandings that bind members of the organization together.

observable level

visible level, are physical artifacts and common behaviors, such as patterns of a dress, office layout and company solgans

management process

working with and through people to efficiently and effectively use an organization's resources to achieve organizational goals in a changing environment