Management Exam 1

Represents the degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair

Humane orientation

To create a learning organization, managers must perform three key functions or roles:

(1) build a commitment to learning (2) work to generate ideas with impact (3) work to generalize ideas with impact

Gaps in career readiness

1) critical/analytical thinking 2) written communication 3) locating, organizing, evaluating information

Why do companies expand internationally?

1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to finance capital 5. Avoidance of tariffs & import quotas

5 ways of expanding internationally (from low risk to high risk)

1. Global Outsourcing 2. Importing, Exporting, and Counter-Trading 3. Licensing and Franchising 4. Joint Ventures 5. Wholly-Owned Subsidiaries

To make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems

4 components of total quality management (TQM)

To help maintain a competitive advantage, the emphasis for most companies is on a) production efficiency b) employee happiness c) employee longevity d) company synergy e) employee training

A

When building a new residential development or mall, a national real estate organization typically does not remove many trees, basing its decision on the belief that natural resources are limited, and we need to not compromise the ability of future generations to meet their own needs. This management philosophy is known as a) sustainability b) natural ethics c) green values d) enviroethics e) social captial

A

Group of 21 Pacific Rim countries, most with a Pacific coastline

APEC

Trading bloc of 10 countries in Southeast Asia

ASEAN

Setting goals and deciding how to achieve them

Planning

Fayol's major functions of management

Planning, organizing, leading, controlling, coordinating

A systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals

Social audit

Influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization or industry

Sociocultural forces

A firm's theory about how to gain competitive advantage

Strategy

Sees organizations as a system, either open or closed, with inputs, outputs, transformation processes, and feedback

Systems viewpoint

The Contemporary Perspective

Systems, contingency, quality-management viewpoint

Consists of 11 groups: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

Task environment

The father of scientific management who suggested employers institute a differential rate system, in which more efficient workers earned higher wages

Taylor

Responsible for facilitating team activities toward achieving key results

Team leader

New developments in methods for transforming resources into goods and services

Technological forces

A complete ban on the import or export of certain products

embargo

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

high-context culture

When a company buys goods outside the country and resells them domestically

importing

Mintzberg's Managerial Roles

interpersonal, informational, decisional

Charles Spaulding's 8 necessities of management

need for authority, division of labor, adequate capital, proper budgeting, cooperation, teamwork

Kohlberg's 3 Levels of Moral Development

preconventional, conventional, postconventional

Four Levels of Management

top, middle, first-line, team leaders

Consist of employees, owners, and the board of directors

Internal stakeholders

Designed to assist in smoothing the flow of money between nations

International Monetary Fund (IMF)

Interact with people inside and outside their work units; Figurehead, leader, liaison

Interpersonal roles

Implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them

Middle managers

Information about the reaction of the environment to the outputs, which affects the inputs

Feedback

Make short-term operating decisions, directing the daily tasks of nonmanagerial personnel

First-line managers

Motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals

Leading

After a customer buys a computer or receives service from Tech Geek, a service representative contacts each customer to conduct a survey. The survey information is a form of output. T/F

False

Behavioral science includes the fields of psychology, marketing, accounting, and geology. T/F

False

Efficiency and effectiveness mean using resources—people, money, raw materials, and the like—wisely and cost-effectively. T/F

False

Employees elect a company's board of directors. T/F

False

Max Weber believed that a company that is a bureaucracy never achieves a competitive advantage because it is inefficient and is plagued with management problems. T/F

False

Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical. T/F

False

Mintzberg proposed that managers utilize written communication more than verbal communication. T/F

False

The managers of a car dealership have decided to utilize the Hawthorne effect to increase productivity, which means using cameras to film employees at work in order to isolate the parts of a job. T/F

False

The term learning organization is used to describe organizations in the educational and nonprofit industries. T/F

False

When Juanita meets regularly with her workers to provide encouraging words so that they work hard to achieve the company's goals, she is engaged in the management function of controlling. T/F

False

Designed to monitor and enforce trade agreements

World Trade Organization (WTO)

Costco has started its operations in China through an e-commerce partnership with Alibaba. Which method of expanding internationally does this exhibit? a) joint ventures b) importing, exporting, and countertrading c) licensing and franchising d) wholly-owned subsidiaries e) global outsourcing

A

If Costco plans on continued success in Japan, whose citizens tend to take pride in being members of their family, circle of close friends, and their work organization, the warehouse club should focus on the _______________ cultural dimension. a) in-group collectivism b) assertiveness c) humane orientation d) institutional collectivism e) gender egalitarianism

A

If a social audit was done on Blue Bell during the recall crisis, which area of the triple bottom line would most likely receive a low measurement based on what we know in the case? a) people b) production c) planet d) position e) profit

A

Omar works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Omar is a) managing b) vision planning c) entrepreneuring d) delegating e) developing synergy

A

One of Uber's new norms under CEO Khosrowshahi is "We do the right thing. Period." Which of the following would have the least impact in assisting Khosrowshahi in living up to this norm? When answering, keep in mind that Uber is currently a private company. a) Sarbanes-Oxley Act of 2002 b) whistle-blower protection policy c) code of ethics d) screening prospective employees e) corporate social responsibility training

A

One of Uber's values under CEO Khosrowshahi is that all employees, regardless of their background, need to feel welcomed, to be open to different approaches, and to come together to execute the best ideas. This is most closely related to which of the following? a) Total Quality Management b) Theory X management c) management science d) systems viewpoint e) bureaucracy

A

Siobhan often watches YouTube videos and is on Facebook while at work. She does not think it is an issue as she gets all her work done. After all, it does not cost the company to have her on the Internet, right? Siobhan is a) violating corporate internet policies b) being abusive to her supervisor c) misusing company time d) cheating in the workplace e) stealing from her company

A

Assume Costco is opening a location in Kenya and believes that native Kenyan managers best understand native personnel and practices, so the home office leaves them alone. What type of management would Costco be practicing? a) regional b) polycentric c) parochial d) ethnocentric e) geocentric

B

At Flat Rock Real Estate, employees work together to achieve the company goals and purposes. This group of employees a) are leading b) is an organization c) form an ad hoc team d) are visionaries e) stretches goals

B

Best Buy uses sales-performance data to develop methods for improving in-store employee performance. This is an example of following the _______________ viewpoint of management. a) classical b) contingency c) systems d) quality-management e) behavioral

B

CEO Khosrowshahi spent his first two months as CEO meeting with Uber teams and employees across the globe to seek their input on what the company needed to repair itself and move forward. Assume Khosrowshahi did not decide on what management style to utilize until after these observations. In this case, he would be utilizing the ______ viewpoint. a) quantitative b) contingent c) systems d) behavioral e) classical

B

Uber stores every single ride it has provided and uses this data for other purposes, including surge pricing, driver notices, and so on. To which of the seven challenges to being an exceptional manager is this activity most closely related? a) Challenge 6 b) Challenge 2 c) Challenge 7 d) Challenge 4 e) Challenge 3

B

Which of the following Uber cultural norms does not align with the expectations of a learning organization? a) The act of Uber employees submitting thousands of ideas to help repair the company's image b) All of the mentioned norms are aligned with the expectations of a learning organization c) Uber wants its employees to look for problems and to solve them together, to help each other, and to be accountable for mistakes d) Uber wants all employees, regardless of their backgrounds, to feel welcomed, to be open to different approaches, and to come together to execute the best ideas e) Uber employees "believe that the best ideas can come from anywhere, both inside and outside our company ..."

B

Which of the following is not one of the questions Hamel suggests be asked to identify what are the core beliefs that people have about an organization? a) How does this belief serve the interests of its adherents? b) Are the visions of high-level management reflected in this belief? c) Have choices and assumptions conspired to make this belief self-fulfilling? d) Is this a belief universally valid? e) Is this a belief worth challenging?

B

5 major emerging economies

Brazil, Russia, India, China, South Africa

"Greyball," Uber's tool to evade legal authorities attempting to crack down on the company for violating local laws, most significantly affects which general environment force? a) sociocultural b) international c) political-legal d) technological e) economic

C

As part of the original "Renew Blue" strategy, Best Buy increased its investment in stores and redesigned them to be roomier, airier and staffed with well-trained employees. This is an example of sound ______________ practices. a) human relations b) evidence-based management c) operations management d) quality control e) administrative management

C

Gamma Manufacturing employs some of the top professionals in its field, and because of their skills and experience, Gamma is highly efficient and outperforms its competitors. Gamma Manufacturing has a(n) ____ over its competition. a) collaborative advantage b) effectiveness advantage c) competitive advantage d) synergistic advantage e) quality mark

C

If a company is using a ______ pay structure, then more efficient workers earn higher wages. a) merited pay b) sliding wage c) differential rate d) biased wage e) scaled rate

C

In April 2015, Blue Bell laid off 37% of its 3,900 employees while also furloughing 1,400 more. If the justification was that a "cost-benefit" analysis shows the company's bottom line will be improved in the short run, which approach to deciding ethical dilemmas has been utilized? a) equity b) justice c) utilitarian d) moral-rights e) individual

C

In Mexico people tend to rely on situational cues, such as a handshake, for meaning when communicating with others. If a manager from one of Costco's U.S. locations is traveling to one of Mexico's warehouses, she should be aware that Mexico has a(n) _______ culture. a) collectivistic b) low-context c) high-context d) individualistic e) mid-context

C

Jameson's Furniture in Tennessee produces high-quality furniture and ships its products to customers in over 40 countries. Jameson's Furniture is ______ its products. a) dumping b) countermarketing c) exporting d) importing e) bartering

C

The United States has prohibited the import of products from Iran due to the political situation in that nation. This complete ban is an example of a(n) a) protective accord b) sanction c) embargo d) import limit e) tariff

C

Travis Kalanick is known as an entrepreneur. Based on what you've learned about entrepreneurs, which of the following is most likely true about Kalanick? a) He has an external locus of control b) He has low self-confidence c) He has a low level of action orientation d) He has a high tolerance for ambiguity e) He has high ethical standards

C

Uber's first challenge is managing for competitive advantage. What function of management is most closely related to setting goals to remain competitive? a) leading b) operating c) planning d) organizing e) controlling

C

The Historical Perspective

Classical, behavioral, quantitative viewpoint

Organizations that have little interaction w/ their environment

Closed systems

Recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules

Complexity theory

Emphasizes that a manager's approach should vary according to the individual and environmental situation

Contingency viewpoint

Defined as monitoring performance, comparing it with goals, and taking corrective action as needed

Controlling

The system of governing a company so that the interests of corporate owners and other stakeholders are protected

Corporate governance

An ethical dilemma is a situation a) you review standards of right and wrong that influence behavior b) you must emphasize social performance c) in which you need to decrease costs d) in which you must decide whether to pursue a course of action that may benefit you or your organization but is unethical or even illegal e) you must emphasize economic performance

D

Analyze Uber under former-CEO Kalanick utilizing the systems viewpoint. The pitting of workers against each other, ignorance of bad behavior that led to high performance, and discouragement of risk taking would fall under what part of Uber's system? a) feedback b) hygiene c) inputs d) transformational processes e) outputs

D

As part of the original "Renew Blue" strategy, Best Buy committed to increasing its ability to ship products directly from stores to its online customers. Based on Figure 2.4, this reflects which part of a system? a) outputs b) inputs c) logistics d) transformational processes e) feedback

D

Quilt and Dye Fabrics buys products for its customers from over 30 countries. Quilt and Dye Fabrics is an example of a company that a) exports b) outsources c) offshores d) imports e) barters

D

Upon taking over the company, CEO Khosrowshahi said, "Rather than ditching everything, I'm focused on preserving what works while quickly changing what doesn't." What type of management is this most closely related to? a) management science b) administrative-based c) behavioral-based d) evidence-based e) systems-based

D

Victoria, a restaurant general manager, carefully watches her restaurant costs by reusing some items that in the past were immediately thrown away. Victoria is an example of a(n) _____ manager. a) effective b) mentoring c) visionary d) efficient e) diverse

D

______ is the notion that corporations are expected to go above and beyond following the law and making a profit to help society. a) Corporate morality b) Green business practice c) Societal responsibility d) Corporate social responsibility e) Corporate sustainability

D

Use information to make decisions to solve problems or take advantage of opportunities; Entrepreneur, disturbance handler, resource allocator, negotiator

Decisional roles

Influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

Demographic forces

The practice of a foreign company exporting products abroad at a lower price than the price in the home market, or even below the costs of production, to drive down the price of the domestic product

Dumping

CEO Hubert Joly implemented employee empowerment at all organizational levels. He believed that this management practice enabled employees to make better and timelier decisions at the point of customer interactions. Which of the following concepts best supports Joly's decision? a) quality control b) administrative management c) operations management d) management science e) human relations movement

E

How will you close skill gaps between what you feel you possess and what employers perceive you have? a) believe in personal control of destiny b) share diverse experiences c) seek high levels of achievement d) have a high level of energy and an orientation towards action e) be motivated to learn

E

Managers in a home improvement company have been having problems with employees starting cliques. To develop more of a team culture, the CEO suggested utilizing Mary Parker Follett's belief: companies should a) strive to cut costs and increase efficiency b) utilize time-motion studies c) increase diversity d) implement a more rigid environment e) operate as a community, with employees working in harmony

E

The case mentions that Uber's valuation has recently dropped. If a manager at Uber is tracking the company's performance and comparing it to goals, this person would be performing the ______ managerial function. a) auditing b) leading c) planning d) organizing e) controlling

E

Uber has faced a host of ethical and financial challenges ever since it started in 2011. Which of Mintzberg's roles is most closely related to Uber's senior leadership's responsibility to fix problems the company is facing? a) figurehead b) monitor c) spokesperson d) resource allocator e) disturbance handler

E

Uber's employees are part of ______, while government regulators are part of ______. a) task environment; internal stakeholders b) general environment; internal stakeholders c) general environment; task environment d) task environment; general environment e) internal stakeholders; task environment

E

While setting up their corporation, Hiro and Mea implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. Hiro and Mea have set up a) a business plan b) a JIT system c) a TQM system d) a code of ethics e) a system of corporate governance

E

Within her company, Nadine utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production. She has also set up a system with inputs, outputs, transformation processes, and feedback. Nadine's management perspective is best described as a) classical b) quantitative c) historical d) behavioral e) contemporary

E

The buying and selling of products and services through computer networks

E-commerce

28 "borderless" trading partners in Europe

EU

Consist of the general economic conditions and trends: unemployment, inflation, interest rates, economic growth

Economic forces

To achieve results, to make the right decisions, and to successfully carry them out so they achieve the organization's goals

Effective

To use resources like people, money, and raw materials wisely and cost-effectively

Efficient

Hugo Munsterberg

Father of Industrial Psychology

Typically have a high tolerance for ambiguity, internal locus of control, and high levels of action orientation and self-confidence

Entrepreneurs

Translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process

Evidence-based management

When a company produces goods domestically and sells them outside the country

Exporting

Includes suppliers, customers, distributors, and the community

External Stakeholders

Makes it illegal for employees of U.S. companies to make "questionable" or "dubious" contributions to political decision makers in foreign nations

Foreign Corrupt Practices Act

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

Franchising

Responsible for just one organizational activity; ex: director of finance, vice president of production

Functional manager

Includes six forces: economic, technological, sociocultural, demographic, political-legal, and international

General Environment

Responsible for several organizational activities; ex: executive vice president, executive director for a nonprofit

General manager

A foreign subsidiary that the owning organization has built from scratch

Greenfield venture

Elton Mayo

Hawthorne effect

Theorized that employees worked harder if they received added attention; if they thought that managers cared about their welfare and that supervisors paid special attention to them

Hawthorne effect

Expresses the extent to which people should take pride in being members of their family, circle of close friends, and their work organization

In-group collectivism

Guided by what will result in the individual's best long-term interest, which ultimately is in everyone's self- interest

Individual approach

Receive and communicate information; Monitor, disseminator, spokesperson

Informational roles

A strategic alliance with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Joint venture

Guided by respect for impartial standards of fairness and equity

Justice approach

Places "where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together

Learning organizations; Peter Senge

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

Licensing

Shared meanings are primarily derived from written and spoken words

Low-context culture

Focuses on using mathematics to aid in problem solving and decision making

Management science

Foreign-owned manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens

Maquiladoras

Believed organizations should be operated as "communities," with managers and subordinates working together in harmony

Mary Parker Follett

Believed that a bureaucracy was a rational, efficient, ideal organization based on principles of logic

Max Weber

Guided by respect for the fundamental rights of human beings: the right to life, liberty, privacy, health, safety, and due process

Moral-rights approach

Describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties

Most favored nation

Lillian and Frank Gilbreth

Motion studies

Business firm with operations in several countries

Multinational corporation

Nonprofit organization with operations in several countries

Multinational organization

Allows for freer flow of goods, services, and capital among the US, Canada, and Mexico

NAFTA

Organizations that continually interact with their environment; have the potential to produce synergy

Open systems

Focuses on managing the production and delivery of an organization's products or services more effectively; is concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels

Operations management

The arranging of jobs, people, and other resources to accomplish tasks and responsibilites

Organizing

Has two traditional approaches: quality control, the strategy for minimizing errors by managing each stage of production, and quality assurance, which focuses on the performance of workers, urging employees to strive for zero defects

Quality-management viewpoint

Established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance

Sarbanes-Oxley Act of 2002

A massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes

The GLOBE project

Who elects a company's board of directors?

The Stockholders

Douglas McGregor

Theory X and Y

Make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it

Top managers

Trade agreement among 11 Pacific Rim countries

Trans-Pacific Partnership (TPP)

The organization's capabilities in management, internal processes, and technology that are applied to converting inputs into outputs

Transformational processes

Represents people, planet, and profit; measures an organizations social, environmental, and financial performance

Triple bottom line

Eric, the owner of a struggling business that supplies fresh product to restaurants, is faced with a decision that will mean either the collapse of his business or perhaps the success of his business: Should he fill customer orders for produce with some older produce mixed in with the fresh produce? This will save him enough money to keep going. Eric is faced with an ethical dilemma. T/F

True

Julio is developing a new employee schedule for his pool care service due to the increase in business during the summer. While doing this, George is involved in organizing. T/F

True

Ricardo is a district manager who oversees several store managers in a national chain of department stores. Ricardo reports directly to the vice president of stores and marketing, a member of top management. Ricardo is a middle manager. T/F

True

The human relations movement proposed that better human relations could increase worker productivity. T/F

True

Theory X managers are pessimistic and have a negative view of employees. This type of manager believes that workers are irresponsible, lack ambition, and hate work. T/F

True

Total quality management (TQM) is a comprehensive approach led by top management and supported throughout the organization that is dedicated to continuous quality improvement, training, and customer satisfaction. T/F

True

When Pietro, a new restaurant owner, is determining which products to offer on his menu, he is involved in the management function of planning. T/F

True

The greatest good for the greatest number

Utilitarian approach

Foreign subsidiary that is totally owned and controlled by an organization

Wholly-owned subsidiary

Henri Fayol

concerned with managing the total organization