Principles of Management Final

Systematic Management

A classical management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans.

Development Project

A focused organizational effort to create a new product or process via technological advances.

Be able to use the principle of exception in an everyday scenario

A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standards.

Disruptive Innovation

A process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves "up market," eventually displacing established competitors.

Corporate Strategy

A strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.

Organizational Development

A system wide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness.

SWOT Analysis

A technique that helps managers summarize relevant and important facts from the internal and external analyses of an organization in order to formulate strategy.

Universalism

An ethical system, individual self-interest is the actual motive of all conscious action.

Lean Manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Emerging Technologies

Are technologies that are under development and thus do not require managers to invest in them.

What are the drawbacks of using education and communication to manage resistance to change?

Can be very time consuming if there are a lot of people involved

Barriers to Entry

Conditions that prevent new companies from setting foot in an industry

What are the responsibilities of the Chief Information Officer?

Coordinate technological efforts of various business units and determine how technology can support the company's strategy

Environmental Scanning

Emphasizes identifying and monitoring the sources of new technologies for an industry by involving in activities like reading cutting-edge research journals and attending conferences and seminars.

Henri Fayol's 14 principles of management: Initiative

Encouraging the employees to act of their own free will in the company's benefit. Work to achieve the organization's objectives

What is the first step in strategy implementation?

Establishing a mission, vision and goals

What are the two ethical ideals of the Caux Principles for Business?

Ethical principles established by Japanese, American, European, and Swiss business executives i. Kyosei 1. Living and working together for the common good, allowing for cooperation and mutual prosperity to coexist with healthy and fair competition ii. Human Dignity 1. Concerns the value of all people as an end, not a means to fulfill other's purposes.

Oral Communication

Examples of oral communication are face-to-face discussions, telephone conversations, and formal presentations.

What is a disadvantage of acquiring new technology through internal development?

Expensive, time consuming to develop

Four types of boundaries

Floors and Ceilings Separate organizational levels Walls in rooms Separate units and departments External walls Separate organization from stakeholders Global Separate domestic from global operations

What behavior does supervisory leadership provide?

Guidance, support, and corrective feedback for day to day activities

What makes a world class organization?

Having the best and latest knowledge and ideas and having the ability to be the best around, anywhere

What is the leader-member exchange theory?

Highlights the importance of the leader's attitudes, on the group and individuals

Cohesiveness

How attractive the team is to its members, how motivated members are to remain in the team, and the degree to which team members influence one another.

Path Goal theory

How leaders influence subordinate's perceptions of goals and the paths they follow to attain these goals i. Characteristics of followers ii. Environmental factors 1. Determine appropriateness of leader behaviors a. Directive b. Supportive c. Participative d. Achievement i. Help their employees reach a higher level of job satisfaction and performance

Autonomy

In the context of the Hackman and Oldham model, is the independence and discretion in making decisions.

Conflict

Is a process in which one party perceives that its interests are being opposed or negatively affected by another party.

Control

Is a process in which one party perceives that its interests are being opposed or negatively affected by another party.

Balance Sheet

Is a report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity.

One Way Communication

Is known as the process in which information flows in a single direction, from a sender to a receiver, with no feedback loop.

Perception

Is known as the process of receiving and interpreting information.

Structured Interview

Is known as the selection technique that involves asking each applicant the same questions and comparing their responses to a standardized set of answers.

Bureaucratic Control

Is known as the use of rules, regulations, and authority to guide performance.

Upward Communication

Is the communication that travels from lower to higher ranks in the hierarchy of an organization.

Competitive Environment

Is the immediate environment surrounding a firm including suppliers, customers, and rivals.

Employment at Will

Is the legal concept that an employee may be terminated for any reason.

Ethics

Is the moral principles and standards that guide the behavior of an individual or group.

What is the Hershey and Blanchard situational theory?

Life cycle theory that manager should consider the employee's psychological and job experience maturity before deciding if task performance or relationship performance is more pertinent for this employee to be focused on

Boundary-less organization

No barriers to information flow; allows for the company as a whole to move more quickly and easily

Hawthorne Effect

People's actions change when being observed, you get superficial or swayed results

Equal Pay Act (EPA) of 1963

Prohibits gender based pay discrimination between two jobs of similar skill, responsibility

Web 2.0

Refers to a set of Internet-based applications that encourage user-provided content and collaboration.

Management Myopia

Refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

Interpersonal Skills

Skills that influence a manager's ability to work well with people.

Affirmative Action

Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.

Refreezing

Strengthening the new behaviors that support the change.

Virtual Teams

Teams that are physically dispersed and communicate electronically more than face-to-face.

Genius of the 'and'

The ability to achieve multiple objectives at the same time.

What does Alderfer's ERG theory focus on?

The belief that there are three human needs that can be active simultaneously i. Existence needs 1. All materials and physiological needs ii. Relatedness needs 1. Accomplished through mutually sharing thoughts and feelings iii. Growth needs 1. Motivate people to creatively change themselves or their environment

Concurrent Control

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

Right to Work

The legislation that allows employees to work without having to join a union.

Standard

The level of expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.

Explicit and Implicit Coercion

The most effective method of managing resistance to change when speed is essential, and the change initiators possess considerable power?

Span of Control

The number of subordinates who report directly to an executive or supervisor.

What is the Theory Y perspective?

The theory that people are self motivated and thrive on responsibility

Highest level of management in a large organization

Top Level i. In charge of overall management and effectiveness of organization ii. Strategic

What is the part of Herzberg's theory that describes hygiene and motivator factors that affect people's work motivation and satisfaction known as?

Two factors theory

What is Geert Hofstede's model for collectivist societies?

Views of cultural differences i. Power distance ii. Uncertainty avoidance 1. The extent to which people in a culture feel an aversion to unknown iii. Individualism vs collectivism iv. Masculinity vs femininity 1. Quantity of life vs quality of life

What is the goal of QWL (Quality Work Life) programs?

a. Create workplace that enhances employee wellbeing i. Adequate and fair compensation ii. Safe and healthy environment iii. Jobs that develop human capacities iv. Chance for personal growth and security v. Social environment that supports individuality and personal growth vi. Constitutionalism, or the right of personal privacy vii. Minimize infringement on personal leisure time viii. Socially responsible practices

How does a matrix organization work?

a. Dual reporting relationships, some people report to two different supervisors b. There is a functional manager as well as a divisional one. c. It leads to more creative, better informed decisions, better information distribution, better resource utilization, and a less overloaded upper management force d. Downsides include confusion, superiors jockeying for higher range of control, and slower decision making.

Motivation refers to forces that?

a. Energize b. Direct c. Sustain efforts i. Managers must motivate to 1. Join the organization 2. Remain in the organization 3. Come to work regularly 4. Perform 5. Exhibit good citizenship

What is the Vroom model of leadership?

a. Focus on participative dimension. Steps include: b. Decide i. Make a choice and either announce it or 'sell' it to the group c. One-on-one consultation i. Meet individually with group members to get their opinions, make the decision yourself d. Consult the group i. Get group's opinions and feedback, then make the decision e. Facilitate i. Present the problem and the parameters, and then let the group members allow for a consensus to be reached f. Delegate i. Group identifies the problem, evaluate, and solve the problem themselves

What are the 6 stages of formal decision making?

a. Identify and diagnose the problem b. Generate alternatives c. Evaluating alternatives d. Making the choice e. Implementing the decision

Be able to use managing informal communication in a situation

a. If a manager hears a story that could get out of hand, he should talk to the key people involved to get the facts and their perspectives b. Dispel uncertainties by providing facts; and establish open communications and trust over time c. A manager should neutralize rumors once they have started

What are the different uses for external audits?

a. Investigates company for potential merger or acquisition or determines soundness of company that will be used as a major supplier b. Discovers strengths and weaknesses of competitors to increase competitive advantage

What is JIT and how does it work?

a. Just in time i. Requires small, immediate batches of product to be delivered usually half a day to a day before the next stage of manufacturing needs it.

What are the five elements of an organization's Macro-Environment?

a. Law and Regulations b. Economy c. Technology d. Demographics e. Social Issues

How does an absence of policies affect a business?

a. Level 1 i. Government fines or penalties b. Level 2 i. Administrative and audit ii. Legal and investigative iii. Remedial education iv. Corrective actions v. Government oversight c. Level 3 i. Customer defections ii. Loss of reputation iii. Employee Cynicism iv. Lost employee morale v. Employee turnover vi. Government cynicism vii. Government regulation

What makes a leader ethical?

a. Moral awareness i. Realizing an issue has moral implications b. Moral judgement i. Knowing what actions are morally defensible c. Moral character i. The strength and determination to act on your beliefs despite challenges *Influence others to act ethically as well.

According to McClelland, what are the most important needs for managers?

a. Need for achievement i. Accomplishment, success and goal attainment b. Need for affiliation i. Need to be liked c. Need for power i. Influence or control

1.) What are the key management functions?

a. Planning b. Organizing c. Leading d. Controlling

Kohlberg's model of Cognitive Moral Development

a. Preconventional i. Make decisions solely off of self interest and immediate satisfaction b. Conventional i. Make decisions off of judgement of peers c. Principled i. Make decisions based on personal ethical standards

Porter

a. Rivalry among existing competitors b. Threat of new entrants c. The threat of substitute or complementary products d. Bargaining power of suppliers e. Bargaining power of buyers

What are the steps in a typical control system?

a. Set performance standards b. Measure performance c. Compare d. Determine deviation

First step in the formal planning process?

a. Situational analysis i. Gather, interpret, and summarize all pertinent information

What is Fiedler's contigency model?

a. Situational approach dependent upon the leader's personal style and the degree of control the leader has in the situation. b. Task motivated i. Primary emphasis on completing the task c. Relationship motivated i. Good interpersonal relations

What are the essential characteristics of enduringly great companies?

a. Strategies i. Continually fine tuned to the market changes and consumer needs b. Execution i. Good people with decision making authority on the front line doing quality work that cuts cost c. Culture i. One that motivates, empowers, and rewards people, as well as holding strong values and challenging people d. Structure i. Making the organization easy to work with, including cooperation and the exchange of information and knowledge throughout the company

Skills necessary to managers

a. Technical i. Ability to perform specific task by using a particular process b. Conceptual and Decision i. Ability to identify and solve problems with company's best interest in mind c. Interpersonal and Communication i. 'soft skills' d. Emotional Intelligence i. Understanding yourself ii. Knowing how to deal with people

Civil Rights Act of 1964

a. Title VII b. Prohibits discrimination based on race, sex, national origin, or religion in employment considerations

What is six sigma used for?

a. Used to ensure production errors are less than 3.4 defects per million b. Decreases production cost and time, and results in higher consumer satisfaction

Frederick Taylor's Scientific Management Approach

assuming there is one best way to achieve goals i. Management should develop a precise scientific approach for each element of work ii. Scientifically select, train, teach, and develop each employee iii. Cooperate with workers iv. Ensure an appropriate division of work and responsibilities

Second step in the formal planning process?

b. Generate alternatives and plans i. Creative ii. Goals 1. S.M.A.R.T.

Third step in formal planning process?

c. Evaluate goals and plans i. Prioritize and eliminate some goals

Fourth step in formal planning process?

d. Select goals and plans i. Most appropriate and feasible ii. Identify priorities and trade-offs of each option

Fifth step in formal planning process?

e. Implement plans and goals i. Managers and employees must understand the plan, and the company must have the resources to carry it out ii. Employees must be made aware of 'why it matters to me' iii. Should be linked to other systems in the organization, especially budgeting and rewards

Sixth step in formal planning process?

f. Monitor and control performance i. A measurement of success should be implemented to track progress and efficiency

Team Leader

i. Employee who is responsible for facilitating successful team performance

Frontline Manager

i. Operational leader ii. Link between management and nonmanagement

Middle manager in large company

i. Tactical ii. Translate strategic goals into specific attainable objectives