MGMT 309 Exam 1

Organization's External Environment

- General Environment (Economic, legal, political, socio-cultural, international, and technical forces; broad) - Task Environment ( Specific groups and organizations that affect the firm; people) -Everything outside an organizations boundaries

International Political and legal Enviroment Concepts

- Government stability - Property rights - Trade incentives, relations, and controls

Corporate Social Audit

- Evaluating social Responsibility - Catalyst for change - Analysis of the effectiveness of social performance conducted by a task force of high-level managers for within the firm - Requires the organization to clearly define its social goals, analyze resources, determine how well goals are being met....

Processes of Globalization (5)

- Exporting - Importing - Licensing - Strategic Alliance and Joint Ventures - Direct Investment (builds a headquarters or building in another country; most extreme)

Determinants of Organizational Culture

- Founder (values and beliefs) - Symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirt of the organization - Shared experiences that bond organizational members together

Managing Organizational Culture

- Fully understand it (weaknesses and strengths) - Articulate the culture in organizational activities - Reward and promote people who demonstrate it

Organization's Areas of Social Responsibility (3)

- Stakeholders - The natural environment (recycling, etc.) - The general social welfare (human rights, etc.)

Models of Organizational Effectiveness (4 models)

- Systems resource approach - Internal processes approach (production efficiencies) - Goal approach - Strategic Constituencies approach (satisfying stake holders)

Key International Concepts

- Tariffs - Quotas (most common) - Export restraint agreements

Contingency Perspective

- Think that every organization is unique and that the best managerial behavior for managing that organization changes -Suggests that appropriate managerial behavior in a given situation depends on or is contingent on, a wide variety of elements

Communication Skill

- To convey ideas and information effectively to others and to receive the same effectively from others

Multinational Business

- Transcends national boundaries and buys raw materials, borrows money, and manufactures and sells its products in a world-wide marketplace

Global Business

- Transecnds national boundaries by having headquarters in every country

Individual Strategies for Managing Diversity

- Understand what diversity and multiculturalism means - Have empathy (greatest of them all***) - Have a tolerance of fundamental cultural differences - A willingness to communicate and discuss diversity (questions)

Global Economy management Challenges

- Understanding of both environmental issues and competitive issues (planning) - Addressing issues of creating and managing operations on a world-wide scale (Organizing) - Learning to interact with and motivate persons of different cultural, social, and economic backgrounds (Leading) - Integrating operations across time-zones, cultural factors, and varying communication methods (Controlling)

Key points to Ethical Decisions

- Utility (what is best for the constituencies) - Rights ( respect the rights of others) - Justice (fair?) - Caring

International Cultrual Environment Concepts

- Values, symbols, beliefs, language, individual behaviors

Managing Ethical Behavior

- When the top management establishes the organization's culture they define what is the acceptable behavior - Training - Written code of ethics - Individual issues

Stability is viewed in what 2 ways

-Ability of a given government to stay in power against opposing factions -Permanence of government policies toward business

Limitation of Organizational Behavior

-Behavior is difficult to predict -Managers are reluctant to adopt concepts -Research ineffectively communicated to managers

Disadvantages of Direct Investment

-Complexity -Greater economic and political risk -Greater uncertainty

Economic Environment

-Economic system -Natural Resources -Infrastructure

Advantages of Direct investment

-Enhanced control -Existing infrastructure

What are the 3 basic perspectives

-Environmental change and complexity -Competitive forces -Environmental Turbulence

3 steps for applying ethical judgement

-Gather the relevant factual information -Determine the most appropriate moral values -Make an ethical judgement based on the rightness or wrongness of activity or policy

Contributions of Organizational behavior

-Gave insights into interpersonal processes such as motivation and group dynamics -Focused managerial attention on these processes -Viewed employees as resources

Politcal-Legal Environment

-Government Stability -Incentives for international Trade -Contols a international trade -Economic Communities

4 Important aspects of political-legal environment

-Government Stability -Incentives for multinational Trade -Controls on international trade -Influence of economic communities on international trade

2 Advantages of licensing

-Increased Profitability -Extended profitability

Conceptual Skill

-Manager's ability to think in the abstract

Charles Babbage

-Mathematically focused on efficiency of production. -Believed in division of labor.

Assumptions of Theory Y

-People do not naturally dislike work -people are internally motivated to reach objectives -People are committed to goals when they receive personal rewards for reaching objectives -People have capacity to be innovated in solving problems -People are bright, but their potential is underutilized

Businesses' influence on Government (4)

-Personal contacts -Lobbying -Political Action Committees -favors and other influence tactics

Theory Y

-Positive view of workers; it represents assumptions that human relations advocates make - Work is a part of your life - Work is an identifier for people - Share power & responsibilities People do not naturally dislike work

3 goals of WTO

-Promote trade flows by encouraging nations to adopt nondiscriminatory and predictable trade policies -Reduce remaining trade barriers through multilateral negotiating -Establish impartial procedures for resolving trade disputes among its members

Advantages of importing and exporting

-Small cash outlay -Little risk -No adaptation

Disadvantages of importing and exporting

-Tariffs & Taxes -High Transport costs -Government Restrictions

How government influences organizations

-Through regulation -Indirect Regulation

natural resources

-Vary by country -Access to and use of natural resources

2 Challenges business must face

-When organization chooses to change its level of international involvement -When organization has achieved its desired level of international involvement and must function effectively with that environment

Employee Issues include:

-Workforce becoming increasingly diverse in: Gender,ethnicity, age, and other dimensions -Increased reliance on "Temp" Workers -Labor unions add a complex layer

Human Relations movement

-argued that workers respond primarily to the social context of the workplace -Basic assumption is that a managers concern for workers will lead to increased satisfaction and improved performance

Physical Work environment Issues include:

-location,design, and layout

Advantages of Strategic Alliances/Joint ventures

-quick market entry, -access to materials and technology

Market Systems

Clusters of countries that engage in high level trade with one another.

2 Types of property/ownership

Complete private ownership and complete public ownership

Operations Management

Concerned with helping the organization more efficiently produce its products or services

Board of directors

Governing body elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests.

Regulation

Government's attempts to influence business by establishing laws and rules that dictate what businesses can and cannot do

World Trade Organization (WTO)

International organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes it free trade around the world.

What does effective mean?

Making the right decisions and successfully implementing them

Outputs into the environment

Products/Services, profit/losses, employee behaviors,and information outputs

Power Orientation

The appropriateness of power/authority within organizations

Philanthropic Compliance

The awarding of funds to other gifts to charities or other social programs

(T/F) Google's founders and top managers create goals and plans that articulate what they want the company to become.

True

(T/F) Human, financial, physical, and information resources are obtained from the organization's environment.

True

(T/F) Munsterberg suggested that psychologists could make valuable contributions to managers in the areas of employee selection and motivation.

True

(T/F) The basic purpose of management is to ensure that an organization's goals are achieved in an efficient and effective manner.

True

(T/F) The marketing argument suggests that organizations with a diverse and multicultural workforce are better able to understand different market segments than are less diverse organizations.

True

(T/F) The task environment is complex, but it provides information more readily than does the general environment because the manager can identify environmental factors of specific interest to the organization.

True

(T/F) The technological dimension of the general environment refers to the methods available for converting resources into products or services.

True

(T/F) The third step in applying ethical judgments to business situations is making an ethical judgment based on the rightness or wrongness of the proposed activity.

True

T/F) Culture determines the "feel" of the organization.

True

What does efficient mean?

Using resources wisely and in a cost-effective way

passive goal behavior

Value social relevance, quality of life, and the welfare of others

cultural environment

Values, symbols, beliefs, and language differ from one country to another.

Figurehead

Visitors to dinner, ceremonial actions

Entrepreneur

Voluntary initiator of change

Holacracy

Where bosses quit being bosses and all employees authorized to do whatever they want until they screw up

Caring

Whether the act is consistent with people's responsibility's to one another

(T/F) It is not necessary for organizations to fashion an approach to social responsibility in the same way that they develop any other business strategy.

false

Obstructionist Stance

firms do as little as possible to solve social or environmental problems

Technical skills are very important for ________ managers. A) first-line B) second-shift C) liaison D) senior

first-line

Generation X, Y and millennial desire?

flexibility and individuality

Procedural justice

individual perceptions of the fairness used to determine various outcomes

power tolerance

individuals assess authority in view of its perceived rightness or their own personal interests

Disadvantage of licensing

inflexibility, licensees can take the knowledge and skill to which they have been given access for a foreign market and exploit them

Two types of regulators

regulatory agencies and interest groups

Social Orientation

relative importance of the interests of the individual vs. the interests of the group

Incentives for multinational trade

include tax cuts, low interest rates, or other subsidies

3 Mintzberg Managerial Roles

- Interpersonal - Informational - Decisional

Financial Managers

- Manage financial resources and processes -Responsible for activities such as accounting, cash management, and investments "Keep Money in"

The 2 sides of Quantitative Managment

- Management Science (development of math models) - Operations Management (application of management science)

Time-Management Skill

- Manager's ability to prioritize work, work efficiently and delegate appropriately

Human Resources

- Managerial talent and labor - Hiring and firing

Informational Roles

- Monitor, disseminator, and spokesperson roles involve the processing of information - Gathering data

Two Types of Systems

- Open (interacts with its external environment) - Closed (operates within itself)

Administrative Management

- Organizational efficiency - Focuses on managing the total organization rather than individuals

Concept of Entropy

- Organizational system declines due to it's failing to adjust to change in its environment - Entropy can be avoided through organizational change and renewal

Hugo Munsterberg

applied psychology to the industrial setting, founding the field of industrial psychology

Alliance

Firm undertakes a new vulture with another firm

Management Systems

Focuses specifically on the development of mathematical models

Merger

occurs when two or more organizations combine to become one

Robert own

one of the first managers to recognize the importance of human resources - He raised working age for children, reduced hours, and supplied meals

General Social Welfare

organizations contribute to charities, philanthropic organizations, and not-for-profit foundations, among other ways

Distributive Justice

peoples perceptions of the fairness with which rewards are distributed within the organization

Customers

those who pay to use an organization's goods or services

Arguments for Social Responsibility

(1) business creates problems, and should therefore help solve them; (2) corporations are citizens in our society; (3) business often has the resources necessary to solve problems; (4) business is a partner in our society, along with the government and the general population.

Organization's Culture

- A powerful force that can shape the firm's overall effectiveness and long-term success - Determines the overall "feel" of the organization (can vary across different parts of the organization) -Set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization

Contemporary Issues and Challenges

- A sluggish and worrisome economy that limits growth - Management of an increasingly divers workforce - Employee Privacy - Technology that promotes telecommuting (working remote) - The role of the internet in business strategy - Operating and competing in diverse global markets - Ethics in corporate governance and social responsibility - Quality as the basis for competition, increased productivity, and lower costs - The shift toward a service economy

Domestic Business

- Acquires all of its resources and sells all of it's products or services within a single country

Changing Organizational Culture

- Adopt new slogans, stories, ceremonies, and purposely break with tradition - Make sure that you have a clear idea of what king of culture you want to create before proceeding -Bring in outsiders

The 3 Dimensions of Diversity and Multiculturalism

- Age Distributions - Gender (Glass celling; Glass elevator) - Ethnicity

Globalization

- All organizations are affected by competition in the global economy - Firms are reshaping themselves for international competition and discovering new ways to exploit markets - Failure to take a global perspective is one of the biggest mistakes managers can make (most companies start domestically)

Ethics

- An individual's personal beliefs regarding what is right and wrong or good and bad - Ethical Behavior is judged by the "eye of the beholder" and/or conforms to generally accepted social norms

The 2 Environmental Change Factors

- Change (is the company dynamic) - Complexity

External Environment (5 Specific Groups)

- Competitors - Customers - Suppliers - Regulators - Strategic Partners (allies)

Internal Environment

- Conditions and stakeholders forces within an organization that have direct control over it

Diversity Arguments for Competitiveness

- Cost Argument (As Diversity increases --> Productivity increases and turnover decreases) - Resource Acquisition Argument - Marketing Argument - Creativity Argument - Problem-Solving Argument - Systems Flexibility Argument

The 4 Organizational Justice Perspectives

- Distributive - Procedural - Interpersonal - Informational

International Economic Environment Concepts

- Economic system - Natural resources - Infrastructure

Ways Organizations respond to their Enviroments

- Information Management - Strategic Response - Mergers, Acquisitions, alliances Organizational Design and Flexibility - Direct Influence (new relationships, etc.)

International Business

- Is based in a single country yet acquires a meaningful share of its resources and / or revenues form other countries

Formal Organizational Dimensions of Social Responsibility

- Legal Complacence - Ethical Compliance - Philanthropic Giving

The 4 Social Responsibility Approaches

- Obstructionist Stance (Do as little as possible) - Defensive Stance (Do what is legally required) - Accommodative Stance (Meet legal standards and go beyond that in select cases) - Proactive Stance

Informal Organizational Dimensions of Social Responsibility

- Organization leadership and culture - Whistle blowing

Internal Environment (4 Specific Groups)

- Owners (can be an employee) - Board of Directors - Employees - Physical work environment

Sources of Conflict with Diversity and Multiculturalism

- Personnel actions being attributed to diversity status - Misunderstood, misinterpreted, or inappropriate actions between people - Cultural differences in work habits / styles - Fear, distrust, individual prejudice

Goals to become a Successful Multicultural Organization

- Pluralism - Full structured integration - Full integration - Absence of prejudice and discrimination - No gap in organizational identification based on cultural identity group - Low levels of intergroup conflict

The 4 Organizational Approaches to Managing Diversity and Multiculturalism

- Policies (EOE) - Practices - Training - Incorporating variation of diversity into the Organization's culture

Individual Differences Across Cultures (5 Orientations)

- Social Orientation - Power Orientation - Uncertainty Orientation - Goal Orientation - Time Orientation

Steps in scientific management

1) Develop a science for each element of the job to replace old rule of thumb methods. 2) scientifically select employees and then train them to do the job as described in step 1. 3) Supervise employees to make sure they follow the prescribed methods for performing their jobs. 4) continue to plan the work, but use workers to get the work done.

The 4 Determinants of Individual Ethics

1) Family 2) Friends / Peers 3) Values and Morals 4) Individual Experiances

3 Scientific Management Pioneers

1) Frank and Lillian Gilbreth (Reduced the number of movements in bricklaying, resulting in increased output of 200%) 2) Henry Gantt (Developed the Gantt chart to improve working efficiency through planning and scheduling) 3) Harrington Emerson (Advocated job specialization in both managerial and operating jobs)

6 Kinds of Managers (by Area)

1) Marketing 2) Financial 3) Operations 4) Human Resources 5) Administrative 6) Specialist / Other

Porter's Five Competitive Forces

1) Threat of new entrants (ease of which competitors enter market) 2) Competitive Rivalry 3) Threat of substitute products (alternative products / services that can serve as replacements) 4) Power of Buyers 5) Power of Suppliers

The government influences business through:

1. Environmental protection legislation 2. Consumer protection legislation 3. Employee protection legislation 4. Securities legislation 5. Tax codes

Arguments against social responsibility

1. The purpose of business in US society is to generate profit for owners. 2. Involvement in social programs gives business too much power. 3. There is potential for conflicts of interest. 4. Business lacks the expertise to manage social programs.

Theory

A conceptual framework organizing knowledge and providing a blueprint for action

Tariff

A government tax on imports or exports

Pacific Asia

A market system located in southeast asia

Most favored Nation (MFN)

A principle by which one state, by granting another state MFN status, promises to give it the same treatment given to the first state's most-favored trading partner.

Economic Community

A set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system)

Regulators

A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices

Managers in the new workplace face: A) a rapidly changing workplace B) increased hiring C) a decreased number of Hispanics and African Americans in the workplace D) a stable unchanging environment

A) a rapidly changing workplace

Southwest Airlines maintains a ________ that stresses fun and excitement. A) culture B) political-legal dimension C) task environment D) competitive rivalry

A) culture

The five competitive forces include all EXCEPT: A) globalization B) competitive rivalry C) the threat of new entrants D) the power of suppliers

A) globalization

Country A limits the number of refrigerators that can be imported from Country B. Country B thus builds a refrigerator-manufacturing plant in Country A. Country B has thus avoided a(n) ________ established by Country A. A) quota B) embargo C) tariff D) uncertainty orientation

A) quota

Which is the MOST relevant to managers who lead people in international organizations? A) understanding cultural differences among employees B) maintaining effective control systems C) having a broad-based understanding of both environmental and competitive issues D) understanding the distribution of wealth

A) understanding cultural differences among employees

North American Free Trade Agreement (NAFTA)

Agreement signed by the United States, Canada, and Mexico in 1992 to form the largest free trade zone in the world.

Maryparker Follett

An early pioneer of this theory

Competitors

An organization that competes with other organizations for resources

Managers must create an ___ environment for today's worker

Attractive

Power Respect

Authority is inherent in one's position within a hierarchy

________ is behavior that conforms to generally accepted social norms. A) Interpersonal justice B) Ethical behavior C) Ethics D) Distributive justice

B) Ethical behavior

The Hawthorne Studies showed that: A) higher pay increased productivity. B) individual and social processes played major roles in shaping worker attitudes and behavior. C) lighting played a major role in productivity. D) workers should use the most efficient way of doing each task.

B) individual and social processes played major roles in shaping worker attitudes and behavior

The major policy through which an organization can reflect its stance on diversity and multiculturalism is its ________. A) top executives strategies B) mission statement C) standard operating policies D) organizational training policies

B) mission statement

The contingency perspective suggests that: A) two or more subsystems working together produce more than the total of what they might produce working alone B) universal theories cannot be applied to organizations because each organization is unique C) there is "one best way" to manage organizations D) people prefer to be directed and avoid responsibility

B) universal theories cannot be applied to organizations because each organization is unique

Productivity emerged in the 1900's as?

Business Challenge

Comparing the organization's progress with its goals is part of: A) organizing. B) leading C) controlling D) planning

C) Controlling

________ are created by the government to protect the public from certain business practices or to protect organizations from one another. A) Interest groups B) Buyers C) Regulatory agencies D) Suppliers

C) Regulatory agencies

Diversity is reflected in: A) gender B) physical disabilities C) all of these choices D) age

C) all of these choices

The marketing, production, and finance functions within Mattel are systems in their own right but are also ________ within the overall organization. A) techniques B) entropy C) subsystems D) units

C) subsystems

Intel and Apple face high levels of ________ because of the rapid rate of technological innovation and change in consumer markets. A) certainty B) stability C) uncertainty D) decline

C) uncertainty

Organizational leadership & Culture:

Can define the social responsibility stance adopted by an organization

Classical Management (Contributions & Limitations)

Contributions: - Foundation for other theoretical developments - Identified management as a valid subject of scientific inquiry -Identified key processes,functions, and skills Limitations: - More appropriate approach for in traditional, stable, simple organizations - Prescribed universal procedures that are not appropriate in some settings -Employees not viewed as resources

Liasion

Coordinator or link among people

What is the most common form of turbulence

Crisis

Three main groups companies focus on with social responsibility

Customers Employees Investors

________ is the use of persons or groups to formally represent an organization or group of organizations before political bodies. A) A favor B) A legislative committee C) A Political action committee D) Lobbying

D) Lobbying

Organizations attempt to adapt to their environments through: A) social responsibility B) mergers, acquisitions, and alliances C) information management D) all of these choices

D) all of these choices

The challenges contemporary managers face include: A) globalization B) the management of diversity. C) employee privacy. D) all of these choices

D) all of these choices

A truly multicultural organization is characterized by ________—a level of diversity that completely and accurately reflects its external labor market at all levels. A) internal identification B) indiscriminate recruiting C) pluralism D) full structural integration

D) full structural integration

Which of the following is an example of a manager's decisional role? A) transmitting relevant information back to others B) taking visitors to dinner C) relaying information to people outside the unit. D) initiating and overseeing new projects

D) initiating and overseeing new projects

The human relations movement argued that: A) a system is an interrelated set of elements functioning as a whole. B) people do not like work, and managers have to coerce employees to get them to work. C) quantitative techniques can be applied to management. D) workers respond primarily to the social context of the workplace.

D) workers respond primarily to the social context of the workplace

(T/F) Scientific Management draws from an interdisciplinary base and recognizes the complexities of human behavior in organizational settings.

False

Closed System

Does not interact with its environment

What are some powerful regulatory agencies:

EPA, SEC, FDA, EEOC

The general environment of an organization consists of?

Economic, Technological, Sociocultural, Political-legal, and international dimensions

Diversity

Exists in a group or organization when its members differ from one another, along one or more important dimensions, such as age, gender, or ethnicity

The role of experience

Experience matters and most companies have management training progreams

Rate of change

Extent to which the environment is relatively stable or dynamic

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

(T/F) Barnard was the first to identify the specific managerial functions of planning, organizing, leading, and controlling

False

(T/F) Diagnostic skills refer to the manager's abilities both to effectively convey ideas and information to others and receive ideas and information from others.

False

(T/F) Ethical behavior is behavior that does not conform to generally acceptable social norms.

False

(T/F) In market economies, governments determine where consumers may purchase goods and services.

False

(T/F) One technique for a strategic response is relying on boundary spanners, employees who are in contact with others outside the organization.

False

(T/F) The manager's job is predictable with few challenges.

False

Leader

Hiring, training, and motivate employees

Organizational behavior take on what view?

Holistic and addresses individual, group, and organizational processes

Resource Allocator

How resources are allocated

What are the 4 types of resources?

Human, Financial, Physical, Information

Government Stability

Includes the ability to stay in power or as the performance of policies toward business

Complete Private ownership

Individuals and organization -not the gov- own and operate the companies that conduct business

Temporary Workers

Individuals hired for short periods of time with no expectation of permanent employment

Lyndall Urwick

Integrated scientific and administrative management

Byrd Amendment

Law that calls for antidumping revenues to be paid to U.S. companies harmed by imported goods sold at below-market prices.

The Natural Environment

Laws now regulate how businesses treat the natural environment

Inputs into the environment

Material, human, financial, and information inputs

Managers make?

Mistakes -They must admit and reflect upon them

The role of education

Most CEO's have an MBA

Economic System

Most countries are moving toward a market economy

What are some powerful interest groups

National organization for women (NOW), Mothers against drunk driving (MADD), NRA, League of womens votes, BBB

Negotiator

Negotiates with other groups or organizations

What is one challenge management faces everyday

New technology

Open System

One that interacts with its environment

Organizations are ___ systems and interact with various dimensions in many different ways

Open

Theories are used to build ____ and guide them toward their goals

Organizations

Strategic Partners (Strategic Allies)

Organizations that work together with one or more other organizations in a joint venture or similar arrangement

What is PIQET

Packaging Impact Quick Evaluation Tool -Allows for analysis of life-cycle performance

Organizational Stakeholders

Person or organization who is directly affected by the practices of an organization and has a stake in its performance

Management theories are grounded in?

Reality

Spokesperson

Relay info to people outside the unit

Sarbances-Oxley Act of 2002

Requires CEO's and CFO's to vouch for the truthfulness of their firms financial disclosures

Monitor

Seeks information of value, stay informed

What do managers have to do in a crisis

Set the narrative

Disadvantages of Strategic Alliances/Joint Ventures

Shared Ownership (Limits control & Profits)

Disturbance Handler

Strikes, Copyright infringement, problems in PR

Max Weber

Studied efficient organizational structure: Bureaucracy

International Dimension

The extent to which an organization is involved in or affected by business in other countries

Ethical Compliance

The extent to which the firm and its members follow basic ethical standards of behavior

European Union (EU)

The first and most important international market system

Complete Public Ownership

The government directly owns the companies that manufacture and sell products

Collectivism

The interests of the group take precedence

Individualism

The interests of the individual take precendence

infrastructure

The schools, hospitals, power plants, railroads, highways, ports, airfields, and distribution systems

Disseminator

Transmitting relevant information back to others

(T/F) A Theory Y assumption is that people are committed to goals to the degree that they receive personal rewards when they reach their objectives.

True

Chester Barnard

Wrote about acceptance of authority

Nationalized

a company is taken over by the government

Interest Group

a group organized by its members to attempt to influence business

Quota

a limit on the number or value of goods that can be traded

Glass Ceiling

a perceived barrier in some organizations that keeps women from advancing to top management positions

Apartheid

a policy or system of segregation or discrimination on grounds of race.

Joint Venture

a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose

General Agreement on Tariffs and Trade (GATT)

a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements

Which of the following is NOT a reason for using a licensing agreement as a means of entering international business? a) low levels of risk b) high domestic production costs c) government regulation d) increased/extended profitability of technology e) excessive transportation costs

a) low levels of risk

US managers have the least difficultly operating in _____ economies. a) market b) communist c) industrializing d) developing e) pure competition

a) market

Which of the following is the type of economy most countries in the world are striving to attain? a) mature market economy b) industrializing economy c) communist economy d) developing market economy e) command economy

a) mature market economy

Dimensions of Diversity and Multiculturalism

age, gender, ethnicity

Regulatory Agencies

an agency created by the government to regulate business activities

Licensing

an arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales

Uncertainty Orientation

an emotional response to uncertainty and change

Suppliers

an organization that provides resources for other organizations

market economy

based on the private ownership of business that allows market factors such as supply and demand to determine business strategy

What is the most fundamental trend for all organizations?

becoming more diverse and multicultural

Ethical Behavior

behavior that conforms to generally accepted social norms

unethical behavior

behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions

Export restraint agreement

between governments sets voluntary limits on goods exported or imported from each other.

Organizational behavior

contemporary field focusing on behavioral perspectives on management

Organizing

determining how activities and resources are to be grouped

Defensive Stance

does only what is legally required, nothing more.

_____ is a device that can help protect domestic producers by directly adding to the cost of foreign goods. a) import quota b) export restraint c) buy domestic law d) export tariff e) import tariff

e) import tariff

Boundary Spanner

employees who have regular opportunities for interaction with people outside the company

An unpredictable economy, limits

growth

Companies can use daylight and artificial light to

impact circadian cycle

Information Management

important when forming an initial understanding of the environments and when monitoring the environments for signs of change

Information Technology

involves operating computer networks that can store and process data

exporting

involves producing goods at home and then shipping them to the receiving country for sale

System

is an interrelated set of elements functioning as a whole

Ethical Leadership

leader behaviors that reflect high ethical standards

Acquisition

occurs when one firm buys another, sometimes against its will

Strategic Response

maintaining the status quo, altering the current strategy, or adopting a new strategy

Areas of Management

managers can be differentiated into marketing, financial, operations, human resource, administration, and other areas

importing

means that a good, service, or capital is brought into the home country from abroad

Accommodative stance

meets legal requirements and goes beyond sometimes.

Controlling

monitoring the organizations progress toward's its goals

Direct Investment

occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country

whistle-blowing

occurs when an employee reports a perceived unethical and/or illegal activity to a third party such as government agencies, news media, or public-interest groups

Strategic Alliance

occurs when businesses in different countries agree to help each other produce and/or sell multiple products over time, which often centers around the marketing of a company's product by a foreign country; diminishes the risk of entering an unknown market, but reduces potential profit

What are the 4 managerial functions?

planning, organizing, leading, controlling

uncertainty acceptance

positive response to change and new opportunities

Industrial Psychology

practice of applying psychological concepts to industrial settings

short-term outlook

prefer more immediate rewards

uncertainty avoidance

prefer structure and a consistent routine

Environmental Scanning

process of actively monitoring the environments through activities such as observation and reading

Planning

setting an organization's goals and deciding how best to achieve them

Task Environment

specific organizations or groups that influence an organization

Transformation Process

technology, operating systems, administrative systems, and control systems

Multiculturalism

the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures

Sociocultural Dimension

the customs, mores, values, and demographic characteristics of the society in which the organization functions

Ethnicity

the ethnic composition of a group or organization, continues increasing

Time Orientation

the extent to which members of a culture adopt a long-term versus a short-term outlook on work, life, and other elements of society

Degree of homogeneity

the extent to which the environment is relatively simple (few elements, little segmentation) or relatively complex (many elements, much segmentation)

Legal Compliance

the extent to which the organization complies with local, state, federal, and international laws

Interpersonal Justice

the fairness people see in how they are treated by others

Political-Legal dimension

the government regulation of business and the relationship between business and government

Technological dimension

the methods available for converting resources into products or services

Economic Dimension

the overall health and vitality of the economic system in which the organization operates

Organizational Justice

the perceptions of people in an organization regarding fairness

General Environment

the set of broad dimensions and forces in an organization's surroundings that create its overall context

Social Responsibility

the set of obligations an organization has to protect and enhance the societal context in which it functions

Leading

the set of processes used to get members of the organization to work together to further the interests of the organization

Corporate Governance

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

(T/F) Political action committees are special organizations created to solicit money and then distribute it to political candidates.

true

Uncertainty

unpredictability created by environmental change and complexity

aggressive goal behavior

value material possessions, money, and assertiveness

Cultural Environment

values, symbols, beliefs, language, individual behaviors

Proactive stance

views itself as a citizen and seeks opportunities to contribute

Goal orientation

what motivates people to achieve different goals

Justice

whether the act is consistent with peoples view of fairness

Owners

whoever can claim property rights to an organization

long-term outlook

willing to work hard for many years

Code of Ethics

written statements of the values and ethical standards that guide the firms actions

Behavioral Management (Contributions & Limitations)

Contributions: - Insights into motivation, group dynamics, and other interpersonal processes - Challenged the view that employees are tools and furthered belief that employees are valuable resources Limitations: - Complexity of individuals makes behavior difficult to predict - Concepts are not used because managers are reluctant to adopt them - Research findings are not often communicated to practicing managers in an understandable form

Quantitative Management (Contributions & Limitations)

Contributions: - Sophisticated quantitative techniques can assist managers in decision making - Application of its models has increased awareness and understanding of complex processes and situations - It is useful in planning and controlling processes Limitations: - Mathematical sophistication may come at the expense of other managerial skills - Its models may require unrealistic or unfounded assumptions, limiting their general applicability

Frederick Taylor (1856 - 1915)

- "Father of Scientific Management" - Replaced rule of thumb methods with scientifically-based work methods to eliminate "soldiering". - Believed in selecting, training, teaching, and developing workers - Used time studies, standards planning, exception rule, slide-rules, instruction cards, and piece work pay systems to control and motivate employees

Organization

- A group of people working together in a structure and coordinated fashion to achieve a set of goals

Subsystems

- A self-contained system within a larger system - Their importance steams from their interdependence on each other within the organization

Management

- A set of activities (planning and decision making, organizing, leading, and controlling) directed at an organization's resources (human, finical, physical, and information) with the aim of achieving organizational goals in an "efficient and effective manner"

Top Managers

- A small group of executives who manage the overall organization - They create the organization's goals, overall strategy, and operating policies ex: President, VP, CEO,

Administrative Managers

- Are generalists familiar with all functional areas of management and are not associated with any particular management specialty - Broad overview of everything

Human Resources Managers

- Are involved in human resource activities such as hiring employees - Hiring, ethics, firing, culture development

Operations Managers

- Are involved with systems that create products and services that create organizations - production control, inventory, quality control, plant layout, site selection - Inputs --> Outputs

The Science of Management

- Assumes that problems can be approached using rational, logical, and systemic ways "Logic and reasoning of 'why'" -Requires the use of technical, diagnostic, and decision-making skills

Financial Resorces

- Capital investments to support ongoing and long-term operations

Scientific Management

- Concerned with improving the performance of individual workers - Grew out of the industrial revolution's labor shortage at the beginning of the twentieth century - "There is one best way to..."

Basic Purpose of Management

- Efficiently using resources wisely and in a cost-effective way - Effectively making the right decisions and successfully implementing them

Behavioral Management Perspective

- Emphasized individual attitudes and behaviors, and group processes - Recognized the importance of behavioral processes in the workplace

Decisional Roles

- Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions

Interpersonal Roles

- Figurehead, leader, and liaison roles involve dealing with other people

Quantitative Managment

- Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems

What Non-Profit Organizations look like

- Governmental organizations - local, state, and federal - Educational organizations - public and private schools, colleges, and universities - Healthcare Facilities - public hospitals and HMOs - Nontraditional settings - community, social, spiritual groups

Henri Fayol

- Helped to systematize the practice of management - Was first to identify the specific management functions of planning, organizing, leading, and controlling

Specialist / Other Managers

- Hold specialized managerial positions (e.g. public relations managers) directly related to the needs of the organization

Universal perspective

- Hold the more classical way of thinking in that they think that they is one best way to manage organizations

The Hawthorne Studies

- Intended as a group study of the effects of a piecework incentive plan on production workers - Illumination study (changing of lights in the workplace) - Interview program - Conclusion --> workers productivity increases when they feel that they are being paid attention to

What For-Profit Organizations look like

- Large businesses - Small businesses and stat-up businesses - International managment

The Art of Management

- Making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights - Using conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities "Ability and skills"

Theory X

- Pessimistic and negative views of workers consistent with the views of scientific management - Workers don't like to work (They reward attendance) - Control power (Type A personality-ish) -Managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals

Managment Proccess

- Planing --> Decision Making --> Organizing --> Leading --> Controlling --> Planing... (repeat)

Middle Managers

- Primarily responsible for implementing the policies and plans of top managers - They supervise and coordinate the activities of lower level managers -Largest Group ex: Plant manager, operations manager, division head

Physical Resorces

- Raw materials' office and production facilities, and equipment

A Manager

- Someone whose primary responsibility is to carry out the management process (plans and makes decisions, organizes, leads, and controls human, finical, physical, and information resources) - Plans and Makes Decisions (Determining goals and courses of action) - Organizes (Coordinating activities and resources) - Leads (Motivating and managing people) - Controls (Contains)

Concept of Synergy

- Subsystems are more successful in working together - The whole system is productive and efficient than the sum of its parts -2 or more subsystems working together

First - Line Managers

- Supervise and coordinate the activities of the operating employees - Most managers fall into this category (highest population of this type) EX: Supervisor, coordinator, Office Manager

The 2 System Perspective Concepts

- Synergy - Entropy

Behavioral Management Evolves (Key Events/People)

- The Human Relations Movement (Hawthorn studies) - Abraham Maslow (Hierarchy of needs) - Douglas McGregor (Theory X & Theory Y)

Technical Skill

- To accomplish or understand the specific kind of work being done in an organization - You have the most technical knowledge in your first 5 yrs. within the the company

Interpersonal Skill

- To communicate with, understand, and motivate both individuals and groups - Communicate, understand, and motivate

Decision - Making Skill

- To recognize and define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opporunities

Diagnostic Skill

- To visualize the appropriate response to a situation - Recognize problems

The 2 Management Perspectives

- Universal Perspective - Contingency Perspective

Marketing Managers

- Work in areas related to getting consumers and clients to buy the organization's products or services - new product development, promotion, and distribution - Work on "How to appeal to costumers..." "Sell the product"

Information resources

- usable data and information used by an organization. Examples of information resources are databases with customer purchase information

The Two view points of Classical Management

1) Scientific Management 2) Administrative Management

7 Managerial Skills

1) Technical 2) Interpersonal 3) Conceptual 4) Diagnostic 5) Communication 6) Decision Making 7) Time - Management

3 Types of Managers (by Level)

1) Top Managers 2) Middle Managers 3) First-Line Managers

People from which of the following countries are in the category of uncertainty acceptance? a) United States b) Israel c) Austria d) Japan e) Germany

a) United States

Which of the following describes one of the reasons for the establishment of the European Union? a) Eliminate trade barriers between member countries b) Decrease tariffs on products from nonmember countries c) Enhance movement of capital and labor between nonmember nations d) Increase the usage of member labor pools by nonmembers d) Gradually eliminate imports from nonmember nations

a) Eliminate trade barriers between member countries

Which of the following statements can be used to explain the growth of international business? a) Many countries in Europe and Asia were devastated after World War II and had to be rebuilt. b) The postwar population boom decreased demand for products. c) Changes in cultural traditions made the rest of the world open to all of the products made in the United States. d) Infrastructures in Europe and Asia remained sound in spite of World War II. e) All of these choices

a) Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.

_____ is the form of international business involvement in which two or more firms have an equity position in an operation. a) a joint venture b) direct investment c) maquiladoras arrangement d) strategic alliance e) international brokering

a) a joint venture

Which of the following is a problem associated with the implementation of a direct investment strategy? a) complexity of decision making b) sharing of profits c) loss of managerial control d) inability to purchase the brand identification of a product e) having to develop an organizational infrastructure

a) complexity of decision making - greater economic and political risk exposure - greater uncertainty of business risk

Compassion International is a children's charity that provides basic necessities, schooling, and job training for poverty-stricken children around the world. This not-for-profit organization would require which type of investment when it enters a new country? a) direct investment b) joint venture c) licensing d) importing/exporting e) franchising

a) direct investment when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country; HIGHEST level of involvement in international business

A nation's oil supply and cost of living is part of its... a) economic environment b) cultural heritage c) infrastructure d) technological environment e) political-legal environment

a) economic environment

A(n) _____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions. a) importing/exporting b) licensing c) joint venture d) global sourcing e) direct investment

a) importing/exporting

Which of the following is the least intense level and least risky of international business strategy? a) importing/exporting strategy b) joint venture c) licensing strategy d) direct investment e) global sourcing

a) importing/exporting strategy

Marks & Spencer is an upscale British department store that has a few stores in the United States and two stores in Paris. According to the classification scheme in the text, Marks & Spencer is a(n) ____ business. a) international b) domestic c) multinational d) intercontinental e) global

a) international a business that is based primarily in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries

_____ is an example of a high-potential/high-growth economy. a) The Philippines b) India c) South Korea d) Syria e) Kuwait

b) India

Which of the following describes what has occurred in international business during the past three decades? a) Although still increasing, international trade has grown at a slower rate since 1980. b) The volume of international trade increased more than 3000 percent. c) U.S. investment overseas has been on the decline for the past two decades. d) The majority of the world's largest firms are firms with headquarters inside the United States. e) All U.S. firms still earn the majority of their sales and profits in the United States.

b) The volume of international trade increased more than 3000 percent.

An example of the cultural system in China is... a) all postings on Qiangguo, the largest Internet bulletin board in China, are censored. b) bowling is the latest fad in China, with a new bowling alley opening weekly. c) calligraphy is viewed as a higher art form than painting and drama. d) one of China's greatest natural resources is its labor pool. e) the Chinese government has a one-child population control.

b) bowling is the latest fad in China, with a new bowling alley opening weekly.

Starbucks owns one third of its stores outside the US. Those stores are a(n)... a) joint venture b) direct investment c) licensing d) strategic alliance e) franchising

b) direct investment when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country; HIGHEST level of involvement in international business

Opponents to the maquiladoras concept are most critical of its... a) high production cost b) exploitation of human resources c) legality d) waste of raw materials e) high transportation costs

b) exploitation of human resources

A(n) _____ strategy involves a partnership with a long-term commitment that can be used to acquire new technology and information. a) direct investment b) joint venture c) licensing d) importing/exporting e) pure domestic

b) joint venture

Top executives at BBT Corporation set the strategic direction for the firm at corporate headquarters. BBT's local managers are then informed of these strategies and given complete freedom to implement them. Which of the following management functions best describes the freedom provided local managers? a) planning b) organizing c) decision making d) leading e) controlling

b) organizing

In the U.S. Starbucks does not franchise. It has a(n) _____ agreement with Barnes and Noble. a) importing b) exporting c) strategic d) global sourcing e) direct investment

c) strategic a cooperative arrangement between two or more firms for mutual gain

A tariff... a) cannot be collected by the exporting country b) can be collected by the importing country c) can be collected by countries through which goods pass d) cannot be used to raise money for a government e) cannot be used to increase the cost of foreign goods

c) can be collected by countries through which goods pass taxes collected on goods shipped across national boundaries

The advantage of direct investing is... a) access to materials and technology b) quick market entry c) enhanced control d) little risk e) small cash outlay

c) enhanced control - allows use of existing infrastructure - no adaption of in-country product or service is necessary

Which of the following is NOT a factor of the political-legal environment for international managers? a) no incentives for international trade b) the use of import quarts and tariffs c) infrastructure d) membership in an economic community e) government instability

c) infrastructure

Nokia sells phones in more than 150 countries and has employees in more than 120 countries. It is a(n) _____ business. a) international b) domestic c) multinational d) intercontinental e) global

c) multinational a business that has a world-wide marketplace from which it buys raw materials, borrows money, where it manufactures its products, and to which it subsequently sells its products

A(n) _____ is the most common form of trade restriction. a) import tariff b) export tariff c) quota d) embargo e) maquiladoras

c) quota limits placed on the number or value of goods that can be traded as exports or imports

A certain developing country in South American offers your firm a construction subsidy if you build your new plant there. This is an example of... a) an economic challenge for international managers. b) a control on international trade. c) a mature infrastructure. d) an incentive for international trade. e) a technological challenge for international managers.

d) an incentive for international trade

The US Department of Defense requires some weapon systems to be made by US companies for national defense reasons. This is an example of... a) a quota b) an export restraint agreement c) nationalization d) buy national legislation e) None of these

d) buy national legislation

American music and movie industries are the largest in the world. These industries use _____ to bring their product around the world. a) importing b) direct investment c) global sourcing d) exporting e) joint venture

d) exporting

The cultural challenges of international management include... a) natural resources b) the infrastructure c) government stability d) language e) all of the above

d) language

An example of the economic system in China is... a) all postings on Qiangguo, the largest Internet bulletin board in China, are censored. b) bowling is the latest fad in China, with a new bowling alley opening weekly. c) calligraphy is viewed as a higher art form than painting and drama. d) one of China's greatest natural resources is its labor pool. e) the Chinese government has a one-child population control.

d) one of China's greatest natural resources is its labor pool.

People who exhibit _____ tend to place a high premium on relationships, quality of life, and concern for others. a) aggressive goal behavior b) power respect orientation c) collectivism d) passive goal behavior e) long-term orientation

d) passive goal behavior

People in the US, Israel, and Ireland are likely to question their supervisors. This is referred to as a(n) _____ orientation. a) individualistic b) power respect c) aggressive goal behavior d) power tolerant e) collective

d) power tolerant

The US government limits how many cars can be imported into the country annually. This is a(n)... a) export restraint agreement b) import tariff c) embargo d) quota e) boycott

d) quota limits placed on the number or value of goods that can be traded as exports or imports

People in Pakistan and West African are more likely to want immediate gratification. This is an example of Hofstede's _____ orientation. a) power b) global c) social d) time e) uncertainty

d) time the extent to which members of a culture adopt long-term versus a short-term outlook on work, life, and other elements of society

Which of the following countries is NOT a member of the EU? a) Belgium b) Luxembourg c) Italy d) Ireland e) Ukraine

e) Ukraine

A manager concerned with time zones differences is worried about... a) planning b) organizing c) decision making d) leading e) controlling

e) controlling

Which management function do differences between domestic and international production quality standards fall under? a) planning b) organizing c) decision making d) leading e) controlling

e) controlling

_____ strategy is considered the highest level of involvement in international business. a) importing/exporting b) licensing c) joint venture/strategic alliance d) franchising e) direct investment

e) direct investment when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country