Everything over 30 - Test 1

The classical viewpoint of management emphasized ways to ___. 1) manage work more efficiently 2) build more synergy 3) vary according to the environment 4) include MBO 5) increase diversity

1) manage work more efficiently

Right Motors calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Right and the dealer's service. This is an example of a(n) ___ system. 1) open 2) closed 3) open-door 4) environmental 5) ongoing

1) open

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____. 1) operations management 2) scientific management 3) production management 4) inventory oversight 5) inventory analysis

1) operations management

Managers can influence ethical behavior by?

1. Resources for business only 2. Handling info confidentially 3. Not influencing others to engage in unethical behavior 4. Not creating polices that reward unethical behavior 5. Setting reasonable goals

Property deviance (Serious and organizational)

1. Sabatoging equipment 2. Accepting kickbacks 3. Lying about hours worked 4. Stealing from company

The control process

1. Set standards to achieve goals 2. Compare actual performance to goals 3. Make changes to return performance to standards 4. Repeat

Personal aggression (Interpersonal and serious)

1. Sexual harassment 2. Verbal abuse 3. Stealing from coworkers 4. Endangering coworkers

Quantitative management is the sales management theory related to determining if a prospective customer really qualifies for the company's product or service. 1) True 2) False

2) False

When thinking about interpersonal space, which country has the smallest social distance in feet?

United States

Francois pays a lot of attention to the environment outside his company, staying alert for a long-run opportunities and problems and devising strategies for dealing with them. Francois is A(n)

Upper-level manager

With regard to boards of directors, and in particular their oversight of the CEO, the board of directors' _______ is the biggest complaint.

lack of independence from the CEO

To maintain a competitive advantage, the top management of a nation furniture store made the decision to increase employee training, add rewards that motivate employees, and look at improving procedures related to discipling workers. These decisions are made by managers who play a ( ) role

leadership

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach _____.

provides clues to the meaning of your managers' decisions

A supplier is an external stakeholder that

provides raw materials, services, equipment, labor, or energy.

Which disciplines does the field of behavioral science include?

psychology, sociology, anthropology, and economics

Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination. It should have adopted a more rigorous ________ goal.

quality

Gray, a supervisor, is known by her managers to be sharp in her decisions and has a good track record of meeting her goals; Gray is a(n) ____ manager.

Effective

Effectiveness

Effectiveness—the ends. Effectiveness is the organization's ends, the goals. To be effective means to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals.

Ethics

Ethics are the moral principles and values that govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

When a pharmaceutical company wants to sell a newly tested drug to the public, it must first meet the ground rules established by

Government regulators

Green Marketing

Green marketing—marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms

Management

Getting work done through others efficiently and effectively

Efficiency

Getting work done with a minimum of effort, expense, or waste

Middle managers

1. Resources 2. Objectives 3. Coordination 4. Subunit performance 5. Strategy implementation

Effectiveness

Accomplishing tasks that help fulfil organizational objectives

Motion study

Breaking each task or job into its separate motion and then eliminating those the are unnecessary

Human resources management

Efficiency is not enough to produce organizational success. Success also depends on treating workers well

Competitive advantage through people Employee security

Employees can innovate and increase the profitability of an organization without fear of losing their job

Gaspard monge

Explained techniques for drawing 3d objects on paper

Competitive advantage through people Sharing information

Helps employees participate in the decision making process

Leading

Inspiring and motivating workers to to work hard to achieve organizational goals

Negotiator role

Negotiate schedules,, projects, resources, and empployee raises

4 functions of management

Planning, organizing, leading, and controlling

Chester bernard

Proposed comprehensive theory of cooperation in formal organizations

Organization

System of consciously coordinated activities or forces created by two or more people

Taylor's 4 principles of management First

Develop a science for each element of a mans work,

Henry Gantt

Developed Gantt chart

The systems viewpoint of management regards the organization as systems of interrelated parts that operate together to achieve a common purpose. 1) True 2) False

1) True

Many times when working with a new manager, Amy, a successful small-business owner, asks the manager, "What management method do you think will work best in this situation?" In this situation, Amy is utilizing the scientific management approach. 1) True 2) False

2) False

Paul, an MBA student and small-business owner, is interested in implementing the administrative management approach because this method of management focuses on improving employee morale. 1) True 2) False

2) False

The five ingredients of a learning organization are acquiring knowledge, training, studying knowledge, pondering, and monitoring employees. 1) True 2) False

2) False

The human relations movement proposed that better rules and procedures could increase worker productivity. 1) True 2) False

2) False

When managing her company, Priya, the owner of ABC Manufacturing, utilizes the behavioral viewpoint of management, which emphasizes ways to manage work more efficiently. 1) True 2) False

2) False

Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves ____. 1) doing time-motion studies 2) focusing on unprofitable parts of an organization 3) increasing synergy 4) managing the total organization 5) implementing MBO

4) managing the total organization

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a ____. 1) rational, efficient, cost-cutting tool based on principles of behaviorism 2) sales-generating tool 3) rational, efficient method of increasing diversity 4) rational, efficient, ideal organization based on principles of logic 5) rational, cost-cutting, efficient organization based on principles of synergy

4) rational, efficient, ideal organization based on principles of logic

Responses to demands for social responsibility Proactive strategy

Company anticipates a problem before it occurs and does more than society's expectations

Profit Responsibility

Profit responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders. This view is expressed by Nobel Laureate Milton Friedman, who said, "There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.

The general manager of a clothing store recently gave a motivational PowerPoint presentation to his employees on the value of being courteous to each customer. The manager's behavior is an example of

leading

______ are two of the primary challenges facing managers today

managing for a competitive advantage and diversity

Hiro, the manager of a convenience store, is interested in implementing the principles of administrative management, which involves

managing the total organization

Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves

managing the total organization

The systems viewpoint regards parts making up the whole system as ____. 1) microsystems 2) macrosystems 3) subsystems 4) management collections 5) organizational sets

3) subsystems

Outputs are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. 1) True 2) False

1) True

Right Office Equipment continually talks with customers after they purchase their products, and Right Office managers regularly visit customers to gather feedback on new products, product improvements, and how Right Office can better serve their customers. This is an example of an open system. 1) True 2) False

1) True

Scientific management emphasized the scientific study of work methods to improve the productivity of individual workers. 1) True 2) False

1) True

Cognitive map

1. Models of external environments 2. Depicts how managers believe environmental factors relate to possible organizational actions

Informational role

1. Monster 2. Disseminator 3. Spokesperson

Political deviance (Minor and interpersonal)

1. Showing favoritism 2. Gossiping 3. Blaming coworkers 4. Competing nonbenificially

According to Fayol, the major functions of management are planning, monitoring, leading, and motivating. 1) True 2) False

2) False

Management science focuses on using behavioral techniques to aid in problem solving and decision making. 1) True 2) False

2) False

Mary Parker Follett believed that organizations should be under heavy management control, with managers resolving conflicts and controlling the work process. 1) True 2) False

2) False

Peter Drucker, a famous 19th-century socialist, opposed capitalism and many current business theories. 1) True 2) False

2) False

To gain a competitive edge this year, the upper management of a global IT company has decided to focus on customer service, employee training, and continuous quality improvement. This approach is known as _____. 1) customer focus 2) total quality management (TQM) 3)evidence-based management 4)competitive edging 5)constancy of purpose

2)total quality management (TQM)

Managing for Globalization

"In Japan it is considered rude to look directly in the eye for more than a few seconds," says a report about teaching Americans how to behave abroad, "and in Greece the hand-waving gesture commonly used in America for good-bye is considered an insult." The point: Gestures and symbols don't have the same meaning to everyone throughout the world. Not understanding such differences can affect how well organizations manage globally. American firms have been going out into the world in a major way, even as the world has been coming to us—leading to what New York Times columnist Thomas Friedman has called, in The World Is Flat, a phenomenon in which globalization has leveled (made "flat") the competitive playing fields between industrial and emerging-market countries.

Technology philosopher Nicholas Negroponte proposed that the global market driven by electronic information

"forces things to get bigger and smaller at the same time"

Technology philosopher Nicholas Negroponte proposed that the global market driven by electronic information

"forces things to get bigger and smaller at the same time."

Social responsibility

A business's obligation to... - pursue policies, make decisions, take actions that benefit society

Licensing

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

Functional Managers

A functional manager is responsible for just one organizational activity.

Human skills

Ability to work well with others

Whistle Blowers

Employees who report unethical or illegal actions of their employers.

Individual rights

Never take any action that infringes on others agreed upon rights

Government requirments

Never take any action that violates the law, for the law represents the minimal moral standard

Operations Management

Operations management focuses on managing the production and delivery of an organization's products or services more effectively. Operations management is concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels. Why Operations Management Is Important: Through the rational management of resources and distribution of goods and services, operations management helps ensure that business operations are efficient and effective.

Culture sustained by?

Organizational stories

Which of the following statements is FALSE?

The United States was the most competitive economy in 2017

First-Line Managers

The job titles at the bottom of the managerial pyramid tend to be on the order of "department head," "foreman" or "forewoman," "team leader," or "supervisor"—clerical supervisor, production supervisor, research supervisor, and so on. Indeed, supervisor is the name often given to first-line managers as a whole. Their salaries may run from $35,000 to $65,000 a year. Following the plans of middle and top managers, first-line managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel, who are, of course, all those people who work directly at their jobs but don't oversee the work of others. No doubt the job of first-line manager will be the place where you would start your managerial career. This can be a valuable experience because it will be the training and testing ground for your management ideas.

Complexity Theory: The Ultimate Open System

The systems viewpoint has led to the development of complexity theory, the study of how order and pattern arise from very complicated, apparently chaotic systems. Complexity theory recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules. Used in strategic management and organizational studies, the discipline seeks to understand how organizations, considered as relatively simple and partly connected structures, adapt to their environments. Why the Systems Viewpoint—Particularly the Concept of Open Systems—Is Important: History is full of accounts of products that failed (such as the 1959 Ford Edsel) because they were developed in closed systems and didn't have sufficient feedback. Open systems stress multiple feedback from both inside and outside the organization, resulting in a continuous learning process to try to correct old mistakes and avoid new ones.

Which of the following is a key benefit of studying theoretical perspectives on management?

They serve as a guide to action and a source of new ideas

Human Skills

This may well be the most difficult set of skills to master. Human skills consist of the ability to work well in cooperation with other people to get things done—especially with people in teams, an important part of today's organizations. Often these are thought of as "soft skills." These skills—the ability to motivate, to inspire trust, to communicate with others—are necessary for managers of all levels. But because of the range of people, tasks, and problems in an organization, developing your human-interacting skills may turn out to be an ongoing, lifelong effort.

U.S. sentencing commission guidelines

Total fine is calculated by multiplying the base famine by the culpability fine

The management approach that emphasized ways to manage work more efficiently is the ___ approach.

classical

In exchange for $1,000 of office supplies, Anthony's IT Services uses ________ to install new network computers and printers at no cost to Quality Office Supply.

countertrading

Which type of funding raises small amounts of money from many people to finance a new venture?

crowdfunding

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as

diversification analysis.

free trade

movement of products between countries without political or economic obstruction.

Lisa's Pizza is trying to compete with the larger Domino's Pizza down the street for customers. She feels she can deliver a better tasting product, faster, and cheaper. She has given all the drivers GPS systems; she has ordered in bulk; and she has surveyed customers about what type of pizzas they want. She is practicing

operations management

According to the GLOBE project, in-group collectivism refers to

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

According to the GLOBE project, in-group collectivism refers to

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

Hugo Munsterberg is known as

the father of industrial psychology

Innovators at 3M developed Scotchbrite Greener Clean scrub sponges made from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example of

the societal marketing concept.

While in Italy, Tony was able to communicate important information to George, his business partner, via e-mail. Later that day, Tony remarked to George about how helpful it was that he was able to return to their office in New York in less than nine hours. The ___________ refers to this "shrinking" of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another.

"global village"

Susan, a department manager, believes that ever since the corporate office eliminated certain benefits to reduce costs, her employees have not been working as hard as in the past. This reduction in effort is known as

"soldiering"

Ann, an industrial psychologist, has been studying Hugo Munsterberg's beliefs of human behavior in the workplace because she feels his principles could contribute to her industry, namely to determine which people are best suited to specific jobs, to identify the psychological conditions under which employees do their best work, and devise management strategies to influence employees to follow management's interests. 1) True 2) False

1) True

Why Learn About International Management

-You May Deal with Foreign Customers or Partners While working for a U.S. company you may have to deal with foreign customers. Or you may have to work with a foreign company in some sort of joint venture. The people you're dealing with may be outside the United States or visitors to it. Either way you would hate to blow a deal—and maybe all future deals—because you were ignorant of some cultural aspects you could have known about. Examples are legion. One American executive inadvertently insulted or embarrassed Thai businessmen by starting gatherings talking about business. "That's a no-no," he says. "I quickly figured out that I was creating problems by talking business before eating lunch and by initiating the talks." -You May Deal with Foreign Employees or Suppliers While working for an American company you may have to purchase important components, raw materials, or services from a foreign supplier. And you never know where foreign practices may diverge from what you're accustomed to. Many software developer jobs, for instance, have been moved outside the United States—to places such as India, New Zealand, and Eastern Europe. A lot of U.S. software companies—Microsoft, IBM, Oracle, Motorola, Novell, Hewlett-Packard, and Texas Instruments—have opened offices in India to take advantage of high-quality labor. General Electric, Caterpillar, and 3M have spent millions expanding their overseas research labs. -You May Work for a Foreign Firm in the United States You may sometime take a job with a foreign firm doing business in the United States, such as an electronics, pharmaceutical, or car company. And you'll have to deal with managers above and below you whose outlook is different from yours. For instance, Japanese companies, with their emphasis on correctness and face saving, operate in significantly different ways from American companies. Sometimes it is even hard to know that an ostensibly U.S. company actually has foreign ownership. For example, some American book publishers (though not McGraw-Hill) are British or German owned. -You May Work for an American Firm Outside the United States—or for a Foreign One You might easily find yourself working abroad in the foreign operation of a U.S. company. Most big American corporations have overseas subsidiaries or divisions. On the other hand, you might also well work for a foreign firm in a foreign country, such as a big Indian company in Bangalore or Mumbai.

To develop a learning organization, managers must build a commitment to learning, work to generate ideas with impact, and work to generalize ideas with impact. 1) True 2) False

1) True

Understanding theoretical perspectives of management will help you understand why some practices are still favored, whether for right or wrong reasons. 1) True 2) False

1) True

W. Edwards Deming and Joseph M. Juran were pioneers of the quality-management movement. 1) True 2) False

1) True

The just-in-time approach, which comes under the term lean management, allows organizations to obtain supplies from vendors only as they are needed in the factory. 1) True 2) False

1)true

Practical steps to ethical decision making-1

1. Selective hiring ethical employees ---- overt and personality- based integrity tests 2. Establishing a specific code of ethics 3. Training employees to make ethical decisions

5 Practical Reasons for Studying This Chapter

1. Understanding of the present. "Sound theories help us interpret the present, to understand what is happening and why," say Christensen and Raynor. Understanding history will help you understand why some practices are still favored, whether for right or wrong reasons. 2. Guide to action. Good theories help you make predictions and enable you to develop a set of principles that will guide your actions. 3. Source of new ideas. They can also provide new ideas that may be useful to you when you come up against new situations. 4. Clues to meaning of your managers' decisions. They can help you understand your firm's focus, where the top managers are "coming from." 5. Clues to meaning of outside events. Finally, they may allow you to understand events outside the organization that could affect it or you.

Frederick w taylor

1.Father of scientific management 2. Rest breaks throughout the day 3. Developed 4 principles of scientific management 4. Introduced time study

North West Jacket Company has a policy that each employee volunteer at the local elementary school reading or helping with math for 2 hours a month. They also donate coats for all children who need them in the winter and give a financial contribution to the school. North West is demonstrating its social responsibility through

1/1/1 charitable giving

In 2014, approximately what percentage of the U.S. population was foreign-born?

13 percent

A problem with the classical viewpoint is that it does not consider overall company and global problems and goals. 1) True 2) False

2) False

A system is an organization's method of determining if employees succeed. 1) True 2) False

2) False

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n) ____. 1) focused organization 2) learning organization 3) evolving atmosphere 4) customer-focused organization 5) 360-degree training structure

2) learning organization

The management of XYZ Manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each area of the production facility to develop a plan and then monitor their area to ensure the reduction of errors. This is an example of ____. 1) efficiency monitoring 2) quality control 3) innovative planning 4) the minimal defect approach 5) JIT

2) quality control

A pay structure, in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) _____ system. 1) scale 2) increasing wage 3) differential rate 4) wide wage 5) merited pay

3) differential rate

Communication

3. Communication For small companies doing business abroad, "the important thing to remember is that you don't know what you don't know," says the head of a U.S. firm that advises clients on cross-cultural matters. For instance, an American who had lived in Brazil and was fluent in Portuguese was angling to make a deal in São Paulo and thought his pitch was going well. "It was picture-perfect until my client suggested I stay for the weekend to go to a soccer game" and enjoy the local food with him. The American diplomatically declined the invitation, but the next day found the prospective clients not as receptive, saying they liked the program but would need more time to decide. On the plane home, he analyzed what had gone wrong and realized he had given them a "task" reason instead of a "relationship" reason for declining the invitation. "It's a relationship culture, and I could just as easily and more successfully [have said], 'There are people back home who are expecting me to be with them.'" But the reason he gave "sent the message that I was not as Brazilian as they initially thought—and it came out of my profit." Even single words and sounds can pose difficulties: Promoters of Apple's iPad might encounter difficulties in Ireland, where the sound is indistinguishable from "iPod," or in Japan, where the language doesn't even have a sound for the "a" in iPad. If you, like a growing number of young Americans, head to China for employment, you need to recall that you were brought up in a commercial environment, but younger Chinese were raised at a time when China was evolving from a government-regulated economy to a more free-market system, and so they may have less understanding of business concepts and client services. "In the West, there is such a premium on getting things done quickly," says an American manager, "but when you come to work in China, you need to work on listening and being more patient and understanding of local ways of doing business." In particular, Americans have to be careful about giving criticism directly, which the Chinese consider rude and inconsiderate.

That organizations should be operated as "communities," with managers and subordinates working together in harmony, is one of the proposals of ____. 1) Adam Smith 2) Frank Gilbreth 3) Hugo Munsterberg 4) Mary Parker Follett 5) Max Weber

4) Mary Parker Follett

Hugo Munsterberg was known as ____. 1) the father of scientific management 2) a pioneer of scientific management 3) the father of MBO 4) the father of industrial psychology 5) the originator of sociology

4) the father of industrial psychology

The father of scientific management is _____. 1) Frank Gilbreth 2) Tom Gallagher 3) Abraham Maslow 4) Peter Drucker 5) Frederick Taylor

5) Frederick Taylor

A local farmer grows and sells tomatoes and beans to the local grocers. Using the systems viewpoint, The tomatoes, beans and profits that are earned from the sales are known as a(n) _____. 1) input 2) therblig 3) transformational process 4) result 5) output

5) output

To better meet corporate goals this year, Donna, a CEO, is encouraging her managers to focus on the major functions of management, which include ______. 1) planning, organizing, recruiting, monitoring, delegating 2) recruiting, monitoring, delegating, coordinating 3) planning, organizing, leading, controlling, arbitrating 4) recruiting, planning, organizing, leading 5) planning, organizing, leading, controlling

5) planning, organizing, leading, controlling

Which of the following statements about 3M's marketing program for Post-it® Flag Highlighters and Post-it® Flag Pens is most accurate?

??David Windorski, a 3M inventor, developed the Post-it® Flag Pen for the office worker segment.

Importing

A company buys goods outside the country and resells them domestically

General Managers

A general manager is responsible for several organizational activities.

Multinational Corporations

A multinational corporation, or multinational enterprise, is a business firm with operations in several countries.

Multinational Organizations

A multinational organization is a nonprofit organization with operations in several countries.

________ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For example, some cities in the United States (including New York and San Francisco) have set the minimum wage far above the federally mandated minimum wage. A) Political-legal B) Sociocultural C) Technological D) Demographic E) Financial

A) Political-legal

What is a synonym for the macroenvironment? A) general environment B) economic environment C) task environment D) microenvironment E) ethical environment

A) general environment

Resource scarcity

Abundance or shortage of critical organizational resources in an external environment

Small Business CEO

According to recent research, the beginning median salary for a small business chief executive was $233,500. (A small business was classified as a company with up to 500 full-time employees.)

Factors that influence successful cultures

Adaptability, involvement, clear mission, consistency

Patsy, a registered nurse, has decided to start a home healthcare service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; in these efforts, she is involved with the ________ environment A) task B) strategic allies C) general D) internal E) natural capital

C) general

( ) employs state-of-the-art computer software and hardware to help people work better together

Collaborative computing

________ employs state-of-the-art computer software and hardware to help people work better together.

Collaborative computing

Oppurtunity

Consider strategic alternatives for taking advantage of those events to improve performance

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are ________ to ABC. A) community allies B) suppliers C) partners D) customers E) competitors

D) customers

After identifying the knowledge, skills, attitudes, and other characteristics that impact your current performance, what is the next step?

Determine which concepts are relevant for developing your KSAOs.

Stages of moral development (Instrumental exchange) stage 2

Do those things that directly advance your wants and needs

Today, companies emphasize _________ with production.

Efficiency

________ is based on the belief that facing the hard facts about what works and what doesn't will help organizations perform better.

Evidence-based management

Which of the following is NOT true about the concept of traveling for business?

Exported services include travel, transportation, and computer services, valued at just over $500 billion

Over half of millennials believe that companies operate to meet society's needs first and their own agenda second.

False

Over half of millennials believe that companies operate to meet society's needs first and their own agenda second. (T/F)

False

Right to be Heard

Finally, the right to be heard means that consumers should have access to public-policy makers regarding complaints about products and services. This right is illustrated in limitations put on telemarketing practices.

Geocentric Managers

Geocentric Managers—"What's Best Is What's Effective, Regardless of Origin" Geocentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective. Clearly, being an ethno- or polycentric manager takes less work. But the payoff for being a geocentric manager can be far greater.

The Multiplier Effect

Good managers create value. The reason is that in being a manager you have a multiplier effect: Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.

Responsibility Matters Campaign

In 2004, the brewer began a new chapter in its awareness and education efforts with the launch of its "Responsibility Matters" campaign. This effort emphasizes and implements effective education and awareness programs that promote responsibility and responsible behaviors, such as parents talking with their children about underage drinking, adults being designated drivers, retailers checking IDs to prevent sales to minors, and more. Anheuser-Busch believes these efforts are partly responsible for the decline in drunk-driving accidents, underage drinking, and other forms of alcohol abuse since 1982.

Informational Roles

Informational Roles—Monitor, Disseminator, and Spokesperson The most important part of a manager's job, Mintzberg believed, is information handling, because accurate information is vital for making intelligent decisions. In their three informational roles—as monitor, disseminator, and spokesperson—managers receive and communicate information with other people inside and outside the organization.

Jillian will be relocating to Singapore in the next six months. Although many people speak English, what would be a good use of her time in the next six months?

Learn the local Language

Leader role

Managers motivate and encourage workers to accomplish organizational objectives

Political/legislation

Managers must be aware of the laws, regulations, and potential lawsuits that could affect their business

_______ are two of the primary challenges facing managers today.

Managing for a competitive advantage and diversity

That organizations should be operated as "communities," with managers and subordinates working together in harmony, is one of the proposals of ____.

Mary Parker Follett

Controlling

Monitoring progress toward goal achievement and taking corrective action when progress isn't being made

Personal virtue

Never do anything that is not honest, open, and truthful, and that you would not be glad to see reported in the newspapers or TV

Global Outsourcing

Or offshoring, is defined as using suppliers outside the United States to provide labor, goods, or services

What are the four principal functions of management

Planning, organizing, leading, and controlling

Positive/Negative Effects

Positive Effects: Is a global economy really good for the United States? "Ultimately, the medium- to long-term benefits of globalization are positive for everybody," says the CEO of Infosys Technologies in India. "Let me give you an example. As our industry has increased economic activity in India, it's becoming a bigger market for American exports... Today you can't find any soft drinks in India except Coke or Pepsi." In addition, foreign firms are building plants in the United States, revitalizing parts of industrial America. Indeed, foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services). Companies based overseas provide jobs for approximately 10% of the U.S. workforce. When the recession ends, suggests Gregg Easterbrook, author of Sonic Boom: Globalization at Mach Speed, worldwide economic growth will pick up, "creating rising prosperity and higher living standards.... The world will be far more interconnected, leading to better and more affordable products, as well as ever better communication among nations." Negative Effects: However, global economic interdependency can also be dangerous. Financial crises throughout the world resulted in vast surplus funds from global investments flowing into the United States and being invested badly in a housing-and-credit bubble that burst (the so-called subprime mortgages meltdown), leading to the 2007-2009 Great Recession that hurt so many people. Another negative effect is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs, particularly in manufacturing. Soaring new U.S. skyscrapers, for example, are more apt to have windows made in China than in Ohio, a glassmaking state. Some economists fear that many jobs lost through the recession and offshoring may simply never come back. Indeed, while "the horizon has never been brighter," says Easterbrook, "we may not feel particularly happy about it." The reasons: "Job instability, economic insecurity, a sense of turmoil, the fear that even when things seem good a hammer is about to fall—these are also part of the larger trend. As world economies become ever more linked by computers, job stress will become a 24/7 affair. Frequent shakeups in industries will cause increasing uncertainty." But the global economy isn't going to go away just because we don't like some of its destabilizing aspects.

Environmental change

Rate at which a company's general and specific environments change

Systems MGMT

Segmented hierarchical view of MGMT. inter connectivity is important

Societal Values

Societal values and attitudes also affect ethical and legal relationships among individuals, groups, and business institutions and organizations. Consider the copying of another's copyright, trademark, or patent. These are viewed as intellectual property. Unauthorized use, reproduction, or distribution of intellectual property is illegal in the United States and most countries, which can result in fines and prison terms for perpetrators. The owners of intellectual property also lose.

Technical skills

Specialized procedures, techniques, and knowledge required to get the job done

The three contemporary management perspectives are the ( ) viewpoints

Systems, contingency, and quality management

_____ forces lead to new developments in methods for transforming resources into goods or services. For example, a new technique called hydraulic fracturing (or fracking) has been developed to harvest natural gas trapped below the earth's surface.

Technological

Countertrading

That is, bartering goods for goods

According to Rosabeth Moss Kantor of the Harvard Business School, which three events of the 1980s paved the way for the global economy?

The Berlin Wall came down, Asian countries opened their economies to foreign investors, and there was a worldwide trend of governments deregulating their economies.

Minifirms

The Internet and the World Wide Web allow almost anyone to be global, which Kevin Maney points out has two important results: Small companies can get started more easily. Because anyone can put goods or services on a website and sell worldwide, this wipes out the former competitive advantages of distribution and scope that large companies used to have. Small companies can maneuver faster. Little companies can change direction faster, which gives them an advantage in terms of time and distance over large companies.

Ethics of Exchange

The exchange process is central to the marketing concept. Ethical exchanges between sellers and buyers should result in both parties being better off after a transaction.

Uncertainty

The extent to which managers can predict which external changes and trends will affect their businesses

Organizations Promoting International Trade

The three principal organizations designed to facilitate international trade are the World Trade Organization, the World Bank, and the International Monetary Fund.

Which of the following jobs in a high-tech company would be considered a "high-touch job"?

Traveling sales reps who meet with the owners or managers of electronics stores

Jorge is developing a new employee schedule for his landscaping business due to the increase in customer calls during the summer. While doing this, Jorge is involved in organizing

True

Telecommuting has been found to enhance employee satisfaction and performance. (T/F)

True

When Mr. Anderson, the owner of a local hardware store, asks one of his paint suppliers about the total ability of their product to meet customer needs, he is questioning the quality of that paint. (T/F)

True

When the Young Minds Child Care Center looks at the recent increase in the number of working mothers in its neighborhood to determine how many employees to hire, its managers are studying demographic forces. (T/F)

True

While in Italy, Sam was able to communicate important information to Fred, his business partner, via e-mail. Later that day, Sam remarked to Fred about how helpful it was that he was able to return to their office in New York in less than nine hours. The "global village" refers to this "shrinking" of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another.

True

Workplace deviance

Unethical behavior that violates organizational norms and right and wrong

To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals. The benefits of closing the stores outweigh the benefits of keeping them open. Keeping the stores open would be advantageous for many fewer people than closing the stores. This logic is an example of the ___ approach to deciding ethical dilemmas.

Utilitarian

Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger chains. The top executives have decided to close all the stores in the Northeast and Texas, as that will give them an additional one million dollars to put into marketing. This executive is practicing t

Utilitarian approach

______ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. These beliefs may include the idea that employees should be promoted solely on the basis of merit, that no bribes will be paid to foreign officials to obtain business licenses, and that companies should offer extended maternity leave upon the employee's request.

Values

Management Process "4 MGT Functions"

What do you as a manager do to "get things done"—that is, achieve the stated goals of the organization you work for? You perform what is known as the management process, also called the four management functions: planning, organizing, leading, and controlling. (The acronym "POLC" may help you to remember them.)

Planning

You set goals & decide how to achieve them

Kendra decided to leave her job in the city and move to the country where she plans to start her own business selling homemade preserves, soaps, lotions, and candles. Kendra's business would be

a sole proprietorship

Diversification analysis refers to

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of Warm Hearts is called the

board of regents

The clear, broad, underlying industry or market sector of an organization's offerings is referred to as its

business

Marie and Marti are partners who solely own M and M Florist. As owners, they can

claim the organization as their legal property

Tia and Sam are partners who solely own T and S Florist. As owners, they can

claim the organization as their legal property.

Which management viewpoint saw humans as cogs within a machine?

classical

Samir does not understand how his manager, Betsy always knows how much of what product to order and how to schedule employee shifts. Which approach would help him?

clues to meaning of your managers' decisions

Because upper management must deal with problems that are ambiguous but that could have far-reaching consequences, ( ) skills are particularly important for managers

conceptual

Because upper management must deal with problems that are ambiguous but that could have far-reaching consequences, ____ skills are particularly important for top managers.

conceptual

When Clay, A general manager of a nation retailer, moved to a different store in his company that was having difficulty, he knew that sales were low and after talking to his employees, he found moral was also low. at first clay thought attitudes were poor due to low sales, but after working closely with employees, he realized that the poor attitudes were actually the cause of poor sales. Clay was able to discover the cause of the problem by utilizing ( ) skills

conceptual

You work as the sales manager for a company that sells office supplies to businesses of all sizes. Because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, Post-It Notes, and other office supplies from the manufacturers. When reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. When you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?

controlling

Mackenzie, a successful store manager, leads her employees by encouraging them and showing that she genuinely believes in them. She also encourages group and team efforts. Mackenzie manages at Kohlberg's _____ level of personal moral development.

conventional

Using ________, Don's Carpet installed carpet at no cost for City Office Supply, in exchange for $1,000 of office supplies.

countertrading

Employers find that many college graduates have large gaps in ( ), skills that employers are looking for

critical thinking, written communication, and evaluating information

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are _____ to ABC.

customers

A pay structure in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) _____ system.

differential rate

Joe, a plant manager, wants to institute a compensation system in which more efficient workers earn higher wages. Joe is proposing to institute a _________

differential rate system

The vice president of human resources for a national electronics retailer is betting with employees of several stores to present information to workers that their stores are closing and how the company will help employees in the future. Here, the vice president of HR is playing a(n) ( ) role

disseminator

If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States, it would be using a ________ strategy.

diversification

Angela wants to sell her business. Sadie has expressed an interest in purchasing it, but is worried about whether or not she will qualify a loan with the interest rates going up. Sadie is worried about a/an

economic force

which forces are part of the microenvironment

economic, technological, sociocultural, demographic, political-legal, and international

Management is defined as the pursuit of organizational goals

efficiently and effectively

Cheyanne, the regional manager of global sales organization, gives freedom to the sales representatives on the amount spent on gifts for prospective Asian and European customers. Cheyanne is managing for

ethical standards

Pablo, a construction manager with employees working in Puerto Rico, is having a hard time with employee turnover. While speaking with his human resources manager, Avery, he says he does not understand why the workers come to work late, take longer lunches, and yet still punch out at five o'clock. He feels they should want to work to get the country back on its feet and do what it takes to get the job done. Based on this example, Pablo is most likely a(n) ________ manager.

ethnocentric

Olde Manufacturing, a parts supplier to the auto industry, has been using the behavioral approach to management for over 100 years. However, since that method of management is too simplistic for practical use, Olde should begin implementing the newer and more sophisticated human relations movement approach to management, which is the most contemporary approach to management.

false

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of

feedback

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of ____.

feedback

Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the ________ level.

functional

Which of the following describes the system of corporate governance?

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

Which of the following is not an example of an industry?

government agencies

In marketing, thoughts about concepts, actions, or causes are referred to as

ideas.

In researching a company while preparing for an interview, what would be a red flag?

inconsistencies in current news stories with the company mission and vision

Studies show that dealing with excessive and unimportant e-mail and text messages in the workplace can lead to

increased employee conflict and stress

Donna, a chef in a fine restaurant, utilizes top-of-the-line equipment as she prepares meals for customers. Donna and her equipment are a(n) ______ in the restaurant's system.

input

The systems viewpoint sees organizations as entities made up of interrelated parts known as ____.

inputs, outputs, transformation processes, feedback

Greg, the president of an IT company, is friends with Jack, the CEO of HyperTech, a company that develops and manufactures computer hardware. Jack tells Greg that HyperTech is about to announce the creation of a revolutionary new computer processor that will quadruple processing capacity and cause HyperTech's sales and profits to skyrocket. Greg then purchases a large number of shares of HyperTech company stock before the news of the new computer processor is made public. In which illegal activity has Greg engaged?

insider trading

Martina recently met with her manager, Omari, who spent time motivating her by showing Martina how important she is to the company's success. Martina is now excited to do her part to help the company achieve its goals. Omari was performing the management function known as __________

leading

Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves ____.

managing the total organization

Medtronic, a company that makes heart pacemakers, introduced a new product at medical conventions across Asia to demonstrate its many beneficial features. The convention presentations are an example of its

market segmentation and targeting strategy.

You are a senior manager at a large consumer goods company. The company president has noticed that recent college graduates and junior-level employees tend to gravitate toward you. They come to you for advice and ask for your opinion on important matters, even though you are not their direct supervisor. The president realizes that you are acting as a(n) _____ to junior employees.

mentor

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation ____.

ongoing and systematic

Which of the following is an example of possession utility?

phone company that offers six-month financing, same as cash

Unilever distributes its Lipton tea products in part through independent brokers, agents, and distributors to chain, wholesale, co-operative, and independent grocery accounts and food service. This is an example of a firm's

place strategy.

When the manager of a local restaurant sets goals and then develops a blueprint for how to achieve them, she is

planning

Don has managed several restaurants for over 50 years and is close to retirement. With his maturity and business experience, his decisions are sound, based on solid, proven values. Don tends to be an independent thinker who focuses on empowering his employees. Don manages at Kohlberg's ______ level of personal moral development.

postconventional

The Sarbanes-Oxley Act of 2002 established requirements for ____. Noncompliance can result in penalties of

proper financial record keeping for public companies; as much as 25 years in prison.

Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____.

quantitative techniques

An entrepreneur is best described as

someone who takes risks to try to create a new enterprise

A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you doubt you'll see real results and decide not to vote for her. Marketing will not occur in this situation because

something to exchange is missing.

Joe, a lobbyist who represents the oil industry, is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers' election campaigns. Joe also is involved in a letter-writing campaign to promote his cause. Joe is working on behalf of a

special-interest group

Maria, the public relations manager of a local library, is meeting with the news media regarding a new reading program for children. Maria is performing the _______ role.

spokesperson

Ethics are defined as

standards of right and wrong that influence behavior

ethics are

standards of right and wrong that influence behavior.

The purpose of the introduction of 3M Post-it® Flag Highlighters was to

stay ahead of trends and focus its marketing program on expanding distribution.

_______ is a trading bloc consisting of 28 trading partners in Europe.

the european union

Frank and Lillian Gilbreth identified 17 basic units of motion that they called

therbligs

Which of the following is a key benefit of studying theoretical perspectives on management?

they serve as a guide to action and a source of new ideas

The United States uses government regulations, such as tariffs, embargoes, and import quotas, to limit the import of goods and services and to protect U.S. industries against foreign competition. ______ is the use of these regulations.

trade protectionism

When a line cook in a restaurant cooks a raw hamburger to become part of the Super Burger Special, this is an example of a ____.

transformation process

Which of the following jobs in a high-tech company would be considered a "high-touch job"?

traveling sales reps who meet with the owners or managers of electronics stores

Customers' perceptions are often central to an organization's goals. Customer ________ can be measured with surveys or by the number of customer complaints an organization receives.

value

_____ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. These beliefs may include the idea that employees should be promoted solely on the basis of merit, that no bribes will be paid to foreign officials to obtain business licenses, and that companies should offer extended maternity leave upon the employee's request.

values

Seat-of-the-pants management

1. No standardized procedures 2. No follow up on improvements

Contingency approach

1. No universal mgmt theories 2. Effective mgmt theories depend on situations

Informational MGMT

1. Paper and typewriters revolutionized the business use of info

Leaders must be able to manage

1. Environmental change 2. Environmental complexity 3. Resource scarcity 4. Uncertainty

Bureaucracy

Exercise of control on the basis of knowledge, expertise, and experience

Taylor's 4 principles of management Second

Scientifically select and the train, teach and develop,

Time study

Time for good worker to complete a task

First-line managers

1. Nonmanagerial worker supervision 2. Teaching and training 3. Scheduling 4. Facilitation

Max Weber felt that bureaucracy is irrational, inefficient, and not ideal for organizations. 1) True 2) False

2) False

Franchising

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

Ethics of Competition

Business culture also affects ethical behavior in competition. Two kinds of unethical behavior are most common: (1) economic espionage and (2) bribery.

Craig owns an international grocery store in New York, the World Market. He has benefited highly from the trading bloc that allows him to purchase food products from Central American nations at a nice discount. With many of his customers from Costa Rica, the Dominican Republic, and Guatemala, he is particularly grateful for ________, a trading bloc.

CAFTA-DR

For years Print and Copy, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its nearest competitor. However, over the years, Print and Copy seldom asked customers for feedback. So when some of Print and Copy's competition responded to customers' needs and started offering copiers with new features (such as wireless printing from laptop and tablet computers), Print and Copy lost much of its market share. Print and Copy's system is best described as

Closed System

Organizing

Deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company

Planning

Determining organizational goals and a means for achieving them

Max weber

Developed bureaucratic management to overcome problems associated with monarchies and patriarchies

Elon Musk was involved in the inception of all of the following companies except which?

Facebook

The father of scientific management is _____.

Frederick Taylor

High-Context Culture

High-context culture in which 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.

Figurehead role

Managers perform ceremonial duties

Disseminator role

Managers share collected information with their subordinates and others in the company

Utilitarian benefits

Never take any action that does not result in greater good for sciety

Subsystem

Smaller systems that operate within the context of a larger system

Managing for Your Own Happiness & Life Goals

Some employment experts counsel that the lesson of today is that you're working for yourself—that employees should identify themselves with the job, not the company. Regardless of how well paid you are, then, you have to consider whether in meeting the organization's challenges you are also meeting the challenge of realizing your own happiness. Many people simply don't find being a manager fulfilling. They may complain that they have to go to too many meetings, that they can't do enough for their employees, that they are caught in the middle between bosses and subordinates. They may feel, at a time when Dilbert cartoons have created such an unflattering portrayal of managers, that they lack respect. They may decide that, despite the greater income, money cannot buy happiness, as the adage goes. Some feel the Great Recession forced them to miss the economic lifestyle they had hoped for. (But most are happier anyway.) In the end, however, recall what Odette Pollar said: "If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job." And it helps to know, as she points out, that "one's experience in management is greatly affected by the company's culture."

Managing for Information Technology

The challenge of managing for information technology, not to mention other technologies affecting your business, will require your unflagging attention. Most important is the Internet, the global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

The Contingency Viewpoint

The contingency viewpoint emphasizes that a manager's approach should vary according to—that is, be contingent on—the individual and the environmental situation. Why the Contingency Viewpoint Is Important: The contingency viewpoint would seem to be the most practical of the viewpoints discussed so far because it addresses problems on a case-by-case basis and varies the solution accordingly.

Entrepreneur

The entrepreneur. An entrepreneur is someone who sees a new opportunity for a product or service and launches a business to try to realize it. Most entrepreneurs run small businesses with fewer than 100 employees.

Bribery

The second form of unethical competitive behavior is giving and receiving bribes and kickbacks. Bribes and kickbacks are often disguised as gifts, consultant fees, and favors. This practice is more common in business-to-business and government marketing than in consumer marketing. In general, bribery is most evident in industries experiencing intense competition and in countries in the earlier stages of economic development. According to a United Nations study, 15 percent of all companies in industrialized countries have to pay bribes to win or retain business.

Stages of moral development (Law and order) stage 4

You do what the law permits

Which of the following statements about marketing is most accurate?

You have significant marketing expertise since you make marketing-related decisions every day.

Suppose L.L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would most likely have set ________ goal.

a customer satisfaction

Sanjay is the top executive at a hospital. He is known for being the first person at work in the mornings and the last to leave. Some even say that he seems to live there. He is always accessible by phone, even when on vacation. Last year, he worked meetings to be standing meetings that lasted only 15 minutes. Using Mintzberg's findings, how would you characterize Sanjay?

a manager whose work is characterized by fragmentation, brevity and variety

Which of the following is the best example of an organizational buyer?

a store owner buying hand-woven tablecloths to sell in her store

Mostly Murder Press is a small publisher that specializes in publishing mystery and suspense novels. Mostly Murder Press does not maintain an office. Rather, its four employees work from their homes. One lives in New York, one lives in Chicago, one lives in San Antonio, and one lives in Portland, Oregon. The staff collaborate using Skype, Google Hangouts, WebEx, phone conference calls, and other business applications that allow them to meet in real time. Mostly Murder Press is an example of

a virtual organization

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals; therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint.

behavioral

The example in the textbook of Paul English of Kayak.com altering an existing open-office seating arrangement by using new employees to change existing seating patterns is an example of ____.

behavioral science research

Arthur, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are reducing their productivity. According to Taylor's principles to improve workers' productivity, to eliminate this behavior, Arthur should

carefully select workers according to their abilities and give workers training

Sal, a production manager, knows that some of his employees are upset with the new corporate policy, and as a result, are participating in soldiering. To eliminate soldiering Sal can ___.

carefully select workers according to their abilities and give workers training

Great systems of _____ are the hallmark of great civilizations.

communications

Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as

cross-functional teams.

Management science stresses the use of rational, science-based techniques and mathematical models to improve

decision making and strategic planning

Which of the following describes the system of corporate governance?

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

_______ are regulatory agencies, such as the SEC (Securities and Exchange Commission), that establish ground rules under which organizations may operate.

government regulators

Quadrant D in Figure 2-5 represents the marketing strategy of

market penetration.

Maslow's hierarchy of human needs included

physiological, safety, love, esteem, and self-actualization

The four Ps of the marketing mix are

product, price, promotion, and place.

Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as

stars.

An example of a nonprofit organization is

the American Red Cross.

Dick's Sporting Goods carries baseballs year-round. The same is true for footballs and tennis equipment. With this strategy, Dick's Sporting Goods offers ________ utility for these products.

time

Carmakers have broken down automobile manufacturing into its basic tasks, such as on an assembly line, because the application of scientific methods and job specialization boosts productivity. 1) True 2) False

1) True

Jeffrey Pfeffer and Robert Sutton believed that evidence-based management is based on the belief that facing the hard facts about what works and having to accept the nonsense that passes for sound advice will help organizations perform better. 1) True 2) False

2) False

The historical perspective includes three viewpoints: _______. 1) systems, contingency, quality management 2) classical, scientific, quantitative 3) classical, operations, scientific 4) contemporary, historical, scientific 5) classical, behavioral, quantitative

5) classical, behavioral, quantitative

Which of the following is an example of a disruptive innovation?

A small hamburger stand located in the parking lot of a gas station becomes so popular that it takes over a large building and takes most of the customers that used to patronize the local McDonald's, Wendy's, and Burger King.

Open & Closed Systems

An open system continually interacts with its environment. A closed system has little interaction with its environment; that is, it receives very little feedback from the outside. The classical management viewpoint often considered an organization a closed system.

________ guides the justice approach to deciding ethical dilemmas. A) The individual's best long-term interest B) Respect for impartial standards of fairness and equity C) Respect for society and the environment D) Increasing profits and workplace diversity E) Respect for the fundamental rights of human beings

B) Respect for impartial standards of fairness and equity

Frank & Lillian Gilbreth

Bet you've never heard of a "therblig," although it may describe some physical motions you perform from time to time—as when you have to wash dishes, say. A made-up word you won't find in most dictionaries, therblig was coined by Frank Gilbreth and is, in fact, "Gilbreth" spelled backward, with the "t" and the "h" reversed. It refers to 1 of 17 basic motions. By identifying the therbligs in a job, as in the tasks of a bricklayer (which he had once been), Frank and his wife, Lillian, were able to eliminate motions while simultaneously reducing fatigue. The Gilbreths were a husband-and-wife team of industrial engineers who were pioneers in one of the classical approaches to management, part of the historical perspective. As we mentioned, there are three historical management viewpoints or approaches

Culture

Culture refers to the set of values, ideas, and attitudes that are learned and shared among the members of a group. Culture also serves as a socializing force that dictates what is morally right and just. This means that moral standards are relative to particular societies. These standards often reflect the laws and regulations that affect social and economic behavior, which can create ethical dilemmas. Companies that compete in the global marketplace recognize this fact.

Every Saturday Mrs. Luo and hundreds of other shoppers visit Zion Market, a grocery store, to buy food for their home or business. These shoppers are _____ of Zion.

Customers

________ are regulatory agencies, such as the SEC (Securities and Exchange Commission), that establish ground rules under which organizations may operate. A) Watchdogs B) Interest groups C) Government moderators D) Whistle-blowers E) Government regulators

E) Government regulators

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is examining the ________ forces at work in the southern United States. A) political B) technological C) economic D) legal E) demographic

E) demographic

E-Commerce

E-commerce, or electronic commerce, the buying and selling of products and services through computer networks

Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of sandwich shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.

Economic

Evidence Based Management

Evidence-based management, described in the Manager's Toolbox, while not invented by Drucker, is very much in the spirit of his rational approach to management. As mentioned, evidence-based management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.

Sully is a top executive, but he has a troublesome manager. He has heard that this manager is constantly changing his mind about how he wants reports written, what priorities the team is to work on and when they are to submit deliverables. Sully has heard him described as a "flavor of the day" kind of boss. Sully has known this manager for a long time and feels that this manager just needs some guidance and redirection. What should Sully do?

Focus on TQM by listening to and learning from customers and employees to support continuous quality improvement

For-Profit Organizations

For-profit, or business, organizations are formed to make money, or profits, by offering products or services. When most people think of "management," they think of business organizations, ranging from Allstate to Zenith, from Amway to Zagat.

The ________ is the law that 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

_______ was the father of scientific management.

Frederick Taylor

Historical Perspective

Historical. The historical perspective includes three viewpoints—classical, behavioral, and quantitative.

Being a manager can be one of the greatest avenues to a meaningful life, particularly if the manage

Is working within a supportive or interesting organizational culture

Noah's Ark is a successful child care center. It focuses on actively developing, finding, and communicating new knowledge to its employees so that workers can modify their behavior to reflect this new knowledge. Noah's Ark is an example of a(n) _______ organization.

Learning

Nonprofit Organizations

Managers in nonprofit organizations are often known as "administrators." Nonprofit organizations may be either in the public sector, such as the University of California, or in the private sector, such as Stanford University. Either way, their purpose is to offer services to some clients, not to make a profit. Examples of such organizations are hospitals, colleges, and social-welfare agencies (the Salvation Army, the Red Cross). One particular type of nonprofit organization is called the commonweal organization. Unlike nonprofit service organizations, which offer services to some clients, commonweal organizations offer services to all clients within their jurisdictions. Examples are the military services, the U.S. Postal Service, and your local fire and police departments.

Low-Context Culture

Misunderstandings and miscommunications often arise in international business relationships because people don't understand the expectations of the other side. A person from North America, Great Britain, Scandinavia, Germany, or Switzerland, for example, comes from a low-context culture in which shared meanings are primarily derived from written and spoken words.

Mr. Liang, a wealthy businessman who made his fortune in the oil industry, understands the importance of a college education, so he has donated over $10 million over the last several years to colleges and universities. Mr. Liang's actions are an example of

Philanthropy

Discretionary responsibilities

Social roles that a company fulfills beyond its economic, legal, and ethical responsibilities

Just before introduction of a new revolutionary laptop, the Top205 by Top Computers, Greg, the CEO of Top, was informed that a problem with a part inside the Top205 may cause reliability issues. Greg knows that correcting the problem will delay the introduction of the product, and be expensive due to possible order cancelations and added advertising costs. But he also knows that allowing the new flawed computer into the market will affect Top Computers' reputation. Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an ethical dilemma. T F

TRUE (ethical dilemma: situation where you have to decide whether to pursue a course of action that may benefit you or your org, but is unethical and can be illegal)

As the owner of a small business, Sally would like to move the sale of her candles from storefronts to the Internet. Why is it possible for her to so easily make that move for the success of her business?

The internet and the World Wide Web allow almost anyone to be global, with two important results: Small companies can get started more easily and can maneuver faster

Current Perceptions of Ethical Behavior

There has been a public outcry about the ethical practices of businesspeople. Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business executives as only "fair" or "poor"; 76 percent say the lack of ethics in businesspeople contributes to tumbling societal moral standards; and advertising practitioners and car salespeople are thought to be among the least ethical occupations. Surveys of corporate employees generally confirm this public perception. When asked if they are aware of ethical misconduct in their companies, 49 percent say "yes."

E-Commerce/E-Business

This kind of e-commerce, or electronic commerce—the buying and selling of goods or services over computer networks—is reshaping entire industries and revamping the very otion of what a company is. More important than e-commerce, information technology has facilitated e-business, using the Internet to facilitate every aspect of running a business. As one article puts it, "[A]t bottom, the Internet is a tool that dramatically lowers the cost of communication. That means it can radically alter any industry or activity that depends heavily on the flow of information.

To gain a competitive edge this year, the upper management of a global IT company has decided to focus on customer service, employee training, and continuous quality improvement. This approach is known as

Total Quality Management (TQM)

Sunset Oil is a large oil drilling company off the Gulf Coast. They want to expand their drilling area and are receiving a great deal of push back from the local community. It will now be on the ballot at the next election. Sunset Oil is concerned about how all of this will impact their bottom line. Which of the following should be a consideration for Sunset Oil?

Triple bottom line

Jorge is developing a new employee schedule for his landscaping business due to the increase in customer calls during the summer. While doing this, Jorge is involved in organizing. (T/F)

True

Stages of moral development (good boy, nice girl) stage 3

You do what the right people are doing

The _______ approach to management focuses on scientific methods, time and motion studies, and job specialization with the goal of increasing productivity.

classical

While discussing approaches to boost organization productivity, Rene, the president of an auto manufacturer, was interested in a rational approach that through the application of scientific methods, time and motion studies, and job specialization found it is possible to increase productivity. This is the essence of the ____ viewpoint.

classical

For years Print and Copy, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its nearest competitor. However, over the years, Print and Copy seldom asked customers for feedback. So when some of Print and Copy's competition responded to customers' needs and started offering copiers with new features (such as wireless printing from laptop and tablet computers), Print and Copy lost much of its market share. Print and Copy's system is best described as

closed

Rosemarie and Dominique, owners of Sugarplum Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rosemarie and Dominique know that Panera will be offering similar products; therefore, Panera Bread will be a(n) ________ of Rosemarie and Dominique.

competitor

The company that Layton owns, the Music Box, is a family-owned company that has been in business for more than 100 years. Layton wants to give back to the people of the community to acknowledge their role in the store's success. He decides to donate a significant portion of the store's profits to a charity every year. Layton's decision is an example of ___ in action.

corporate social responsibility

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called

customer value.

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is examining the ____ forces at work in the southern United States.

demographic

The vice president of human resources for a national electronics retailer is meeting with employees of several stores to present information to workers that their stores are closing and how the company will help employees in the future. Here, the vice president of HR is playing a(n) _______ role.

disseminator

Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of sandwich shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.

economic

Deshawn started a new type of business that provides new and unique services that did not exist before his efforts. Deshawn is acting as a(n)

entrepreneur

Just before introduction of a new revolutionary laptop, the Top205 by Top Computers, Greg, the CEO of Top, was informed that a problem with a part inside the Top205 may cause reliability issues. Greg knows that correcting the problem will delay the introduction of the product, and be expensive due to possible order cancelations and added advertising costs. But he also knows that allowing the new flawed computer into the market will affect Top Computers' reputation. Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an _________

ethical dilemma

The strategic marketing process involves three phases: planning, implementation, and

evaluation.

When faced with a business problem, Sally, a young grocery store owner, discusses business problems with Don, the assistant manager and an employee for over 30 years. Sally believes Don "has seen it all" and knows there are few really new ideas; plus the business has done many simple things, such as offering friendly service, to create and maintain a competitive edge. Sally's management style is best described as

evidence-based

________ holds that there are few really new ideas and that "true is better" than new.

evidence-based management

Over the last two years, an American computer manufacturer has partnered with a technology organization in Japan to develop and produce computers and printers. The partnership benefits both organizations and is an example of countertrading.

false

two managers from an Electronics Mart were talking to Ty, their district manager, about Harriet, the unpopular store manager. Susan, the assistant manager, said, "I believe I speak for other managers and employees when I say that Harriet acts like she knows it all. We all feel that Harriet does not listen to any of us because she always thinks her way is right and does not want to consider any other opinion." Harriet is an example of a geocentric or parochial manager.

false

Roberto, the vice president of marketing, is talking to Francis, a sales manager in a foreign office, about several local situations that Francis's reps are facing in their territory. Roberto tells Francis that he believes there are differences and similarities between home and foreign personnel and practices, and that Francis should use whatever techniques are most effective. Roberto is a(n) ____ manager.

geocentric

In researching a company while preparing for an interview, what would be a red flag?

inconsistencies in current news stories with the company's mission and vision

Consider the following situation: Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because polluting the stream helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because doing so is also in the farmer's best long-term interests. This type of thinking reflects the _____ approach to deciding ethical dilemmas.

individual

The systems viewpoint sees organizations as entities made up of four interrelated parts known as

inputs, outputs, transformation processes, and feedback

On an organization's board of directors, A) inside directors must work for the organization and outside directors are paid members of the organization. B) inside directors must work for the company and outside directors are also members of the firm. C) inside directors are supposed to be elected from outside the organization and outside directors may be members of the firm. D) inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm. E) inside directors are always retired executives and outside directors typically are employees.

inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm.

Changes in the economic, political, legal, and technological global system that may affect an organization are ______ forces. For example, stresses within the European Union (including the United Kingdom's recent decision to exit the EU) may have global ramifications.

international

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having

low market growth rates and low relative market shares.

The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions. The CIO is using

management science

The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions; this is an example of _____.

management science

In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the vertical axis reflects

market growth rate.

In a marketing context, goal setting involves specifying measurable ________ to be achieved.

marketing objectives

A ________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

marketing program

By understanding its core values, an organization can take steps to define its ________, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies.

mission

Greg, the marketing manager, is constantly seeking information about his competition while looking online or speaking to people. Greg is playing the ___ role.

monitor

With recent reports of identity theft, Mr. Adams, the CEO of a construction company, is concerned about his employees' privacy, and because of recent accidents on the job, he is also worried about the safety of his workers. Mr. Adams' concerns with privacy and health and safety are key elements in the _____ approach to deciding ethical dilemmas.

moral-rights

Operations management focuses on managing the production and delivery of an organization's products or services

more effectively

Sox for All is a global nonprofit organization that works with schools and various companies to donate socks and shoes to poor children throughout the world. Sox for All is an example of a

multinational organization

A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives—cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers' ________ for sustenance to satisfy their hunger and attempts to shape their ________ for the advertised product.

needs; wants

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation

ongoing and systematic.

Right Motors calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Right and the dealer's service. This is an example of a(n) ___ system.

open

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. These plans are an example of ____ in action.

operations management

At ABC Manufacturing, employees work together to achieve the company goals and purposes. ABC Manufacturing is a(n)

organization

At XYZ Manufacturing, employees work together to achieve the company goals and purposes. XYZ Manufacturing is a(n)

organization

George is developing a new employee schedule for his lawn care service due to the increase in business during the summer. While doing this, George is involved in _______

organizing

A local farmer grows and sells tomatoes and beans to the local grocers. Using the systems viewpoint, the tomatoes, beans, and profits that are earned from the sales are known as a(n) _____.

output

Quality Air, a company that builds airplanes, typically orders parts for its airplanes from other companies. _______ is the practice Quality Air is using.

outsourcing

George, a regional manager for a global corporation, is meeting with several upset managers from the Rome plant about Steve, who is originally from Florida but moved to Italy to manage the Rome facility. Phillipe, the assistant manager, tells George, "We all feel that Steve sees things only one way—his—and very seldom considers our perspective on things." Steve is employing a ______ management style.

parochial

Henry, a regional manager for a global corporation, is meeting with several upset managers from the Rome plant about Michael, who is originally from Texas but moved to Italy to manage the Rome facility. Antonio, the assistant manager, tells Henry, "We all feel that Michael sees things only one way—his—and very seldom considers our perspective on things." Michael is employing a ________ management style.

parochial

Maslow's hierarchy of human needs included

physiological, safety, love, esteem, and self-actualization.

To better meet corporate goals this year, Yumiko, a CEO, is encouraging her managers to focus on the major functions of management, which are

planning, organizing, leading, and controlling

Bernard (Bernie) Madoff used money from newer investors to pay off older investors. Which type of scam was Madoff running?

ponzi scheme

Blake has managed several restaurants for over 50 years and is close to retirement. With his maturity and business experience, his decisions are sound, based on solid, proven values. Blake tends to be an independent thinker who focuses on empowering his employees. Blake manages at Kohlberg's ______ level of personal moral development.

postconventional

Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?

price

The Parvizians own several oriental rug stores in and around the Washington, DC, metropolitan area. It is expected that as each of the brothers have children they will grow up and take part in the business too. The members of the family are considered

private investors

Most firms have a goal to maximize their long-run ________, achieving as high a financial return on investment as possible.

profits

The management of XYZ Manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each area of the production facility to develop a plan and then monitor their area to ensure the reduction of errors. This is an example of ____.

quality control

When the Americans entered World War II in 1941, they used the British model to form operations research teams to determine how to deploy troops, submarines, and equipment most effectively. These techniques have evolved into

quantitative management.

When Mr. Jones, the owner of a local hardware store, asks one of his lawnmower suppliers about the total ability of their product to meet customer needs, he is

questioning the quality of that mower

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a ____.

rational, efficient, ideal organization based on principles of logic

Spark, Inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the Fourth of July, moved most of its manufacturing operations from the United States to China a decade ago. Now, Spark is moving production back to the United States because the company's managers are uncomfortable with many Chinese business practices. Spark, Inc. engages in __________ when it moves its operations back to the United States.

reshoring

______ guides the justice approach to deciding ethical dilemmas.

respect for impartial standards of fairness and equity

Amy is a package delivery service manager. She is interested in implementing ___________, the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers. In this particular case, Amy will study the routes that drivers take through a congested to city in order to identify ways that delivery staff can make the most deliveries in each two-hour period.

scientific management

Chenglei, an IT manager, has been studying the actions that his workers perform in an attempt to improve their productivity. Chenglei is utilizing

scientific management

Mary Parker Follett anticipated some of today's workplace trends, such as

self-managed teams and worker empowerment.

Despite recent pressure from stockholders to increase profits, World Extraction Corp., a global petroleum organization, has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration when making decisions, and obeying the laws of host countries as well as international law. World Extraction Corp. provides an example of a company acting in a _________

socially responsible way.

Susan, a movie theater manager, has observed that as workers feel some company policies are not fair, the employees have not been working as hard as in the past. This reduction in effort is known as ____.

soldiering

Susan, a movie theater manager, recently implemented a policy stating that workers who call in sick on Friday or Saturday nights will have their free movie privileges revoked for one month. In observing her workers, she has noticed that some of them feel that the new policy is not fair, and they have not been working as hard as they did in the past. What are Susan's employees doing?

soldiering

Since the 1950s, the percentage of the U.S. labor force represented by unions has

steadily declined

Paul English of Kayak.com uses new employees as an excuse for altering an existing open-office seating arrangement. English's action is an application of ____ to management.

the behavioral science approach

An organization's internal stakeholders consist of

the board of directors, employees, and owners.

Relationship marketing refers to

the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

A marketing strategy refers to

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

According to the theory that ______, first noted by New York Times columnist Thomas Friedman, globalization has leveled the competitive playing fields between industrial and emerging-market countries.

the world is flat

Ali, a CEO of a large IT organization, understands that many challenges are coming in his industry; therefore, he tells his upper-level management that it's helpful to look at _______________ to help make predictions and develop principles to guide future company strategies and actions.

theoretical perspectives of management

Business scholar Archie Carroll suggested that ________ is the first and primary responsibility of an organization in the global economy.

to make a profit consistent with expectations for international business

To gain a competitive edge this year, the upper management of a global IT company has decided to focus on customer service, employee training, and continuous quality improvement. This approach is known as

total quality management (TQM)

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are located in which quadrant of the BCG growth-share matrix?

upper left quadrant

what are the four principal functions of management

planning, organizing, leading, and controlling

All of the following are departments within a typical organization except which?

shareholders

You have just taken a job as an entry-level manager for a company that provides rug-cleaning services. The company has a large national presence, with offices in 40 U.S. states. You know you are starting at the bottom of the management ladder, but you hope to grow and rise through the ranks to become a senior manager. What is your likely salary range when you first take the job?

$35,000-$60,000

4 Reasons for Unethical Behavior

-First, there is increased pressure on businesspeople to make decisions in a society characterized by diverse value systems. -Second, there is a growing tendency for business decisions to be judged publicly by groups with different values and interests. -Third, the public's expectations of ethical business behavior have increased. -Finally, and most disturbing, ethical business conduct may have declined.

With TQM, it is vital that organizations listen to and learn from their customers and employees and make continuous improvement a priority. 1) True 2) False

1) True

A local furniture retailer routinely develops and acquires new knowledge, and the employees communicate what they learn to other employees, so the company is able to modify its behavior to reflect what they have learned. This organization is an example of a learning organization. 1) True 2) False

1) True

Ali, a CEO of a large IT organization, understands that many challenges are coming in his industry; therefore, he tells his upper-level management that it's helpful to look at theoretical perspectives of management to help make predictions and develop principles to guide future company strategies and actions. 1) True 2) False

1) True

An open system continually interacts with its environment, so it receives feedback from the outside environment. 1) True 2) False

1) True

The management approach that emphasized ways to manage work more efficiently is the ___ viewpoint. 1) classical 2) quality-management 3) systems 4) contingency 5) MBO

1) classical

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they market, current events, and markets such as housing. All of these independent factors often behave as a single unit based on events and economic news, and respond to the environment and affect the stock market. This is an example of ___. 1) complexity theory 2) a closed market system 3) a market web 4) contingency theory 5) behavioral theory

1) complexity theory

Abraham Maslow proposed the ____. 1) hierarchy of human needs 2) Hawthorne effect 3) hierarchy of production 4) self-managed teams 5) worker empowerment theory

1) hierarchy of human needs

3 Concepts of Social Responsibility

1) profit responsibility 2) stakeholder responsibility 3) societal responsibility

After returning home from a trade show, Mr. Jones, the president of a manufacturing company, spoke to his employees in a production meeting about a new approach that should increase their production bonus by improving their performance. To do so, Mr. Jones discussed a goal of "zero defects." This is an example of ____. 1) quality assurance 2) constancy of purpose 3) redesign 4) scientific management 5) the total quality movement

1) quality assurance

The behavioral viewpoint of management emphasized the importance of encouraging employees to work more efficiently. 1) True 2) False

1)false

Motion studies broke down each worker's job into basic physical motions and then trained workers to use the methods of their best-performing coworkers. 1) True 2) False

1)true

Quality is seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. 1) True 2) False

1)true

When Mr. Jones, the owner of a local hardware store, asks one of his lawnmower suppliers about the total ability of their product to meet customer needs, he is questioning the quality of that mower. 1) True 2) False

1)true

4 Rules of Success

1. Attend every class 2. Don't postpone 3. Read or review lectures and readings more than once 4. Learn how to use this book

Initial transition to managerial duties

1. Be the boss 2. Formal authority 3. Manage tasks 4. Job is not managing people

Top managers

1. Change 2. Commitment 3. Culture 4. Environment

Managers Roles

1. A Manager Relies More on Verbal Than on Written Communication Writing letters, memos, and reports takes time. Most managers in Mintzberg's research tended to get and transmit information through telephone conversations and meetings. No doubt this is still true, although the technologies of e-mail, texting, and Twitter now makes it possible to communicate almost as rapidly in writing as with the spoken word. 2. A Manager Works Long Hours at an Intense Pace "A true break seldom occurred," wrote Mintzberg about his subjects. "Coffee was taken during meetings, and lunchtime was almost always devoted to formal or informal meetings." Long hours at work are standard, he found, with 50 hours being typical and up to 90 hours not unheard of. A 1999 survey by John P. Kotter of the Harvard Business School found that the general managers he studied worked just under 60 hours per week. Are such hours really necessary? Three decades following the Mintzberg research, Linda Stroh, Director of Workplace Studies at Loyola University Chicago, did a study that found that people who work more also earn more. "Those managers who worked 61 hours or more per week had earned, on average, about two promotions over the past five years," she reported.61 Prior to the 2007-2009 Great Recession, researchers at Purdue and McGill universities found that more companies were allowing managers to reduce their working hours and spend more time with their families yet still advance their high-powered careers. However, during economic hard times, top managers may be more apt to see subordinates' work-life flexibility as a luxury they can no longer afford. 3. A Manager's Work Is Characterized by Fragmentation, Brevity, & Variety Only about a tenth of the managerial activities observed by Mintzberg took more than an hour; about half were completed in under 9 minutes. Phone calls averaged 6 minutes, informal meetings 10 minutes, and desk-work sessions 15 minutes. "When free time appeared," wrote Mintzberg, "ever-present subordinates quickly usurped it." No wonder the executive's work time has been characterized as "the interrupt-driven day" and that many managers—such as the late Mary Kay Ash, head of the Mary Kay Cosmetics company—get up as early as 5 a.m. so that they will have a quiet period in which to work undisturbed. No wonder that finding balance between work and family lives is an ongoing concern. No wonder that many managers—such as Dawn Lepore, executive vice president of discount broker Charles Schwab & Co.—have become "much less tolerant of activities that aren't a good use of my time" and so have become better delegators. It is clear from Mintzberg's work that time and task management are major challenges for every manager. The Practical Action box, "Executive Functioning: How Good Are You at Focusing Your Thoughts, Controlling Your Impulses, & Avoiding Distractions?" examines this challenge further. The box "Getting Control of Your Time: Dealing with the Information Deluge in College & in Your Career" at the end of this chapter also offers some important suggestions.

How Co. Expand

1. Global Outsourcing -A common practice of many companies, outsourcing is defined as using suppliers outside the company to provide goods and services. For example, airlines farm out a lot of aircraft maintenance to other companies. -Management philosopher Peter Drucker believed that in the near future organizations might be outsourcing all work that is "support"—such as information systems—rather than revenue producing. -Global outsourcing extends this technique outside the United States. Global outsourcing, or offshoring, is defined as using suppliers outside the United States to provide labor, goods, or services. The reason may be that the foreign supplier has resources not available in the United States, such as Italian marble. Or the supplier may have special expertise, as do Pakistani weavers. -Or—more likely these days—the supplier's labor is cheaper than American labor. As a manager, your first business trip outside the United States might be to inspect the production lines of one of your outsourcing suppliers. 2. Importing, Exporting, & Countertrading -When importing, a company buys goods outside the country and resells them domestically. Nothing might seem to be more American than Caterpillar tractors, but they are made not only in the United States but also in Canada (where, interestingly, workers may be paid higher wage and benefit costs), from which they are imported and made available for sale in the United States. Many of the products we use are imported, ranging from Heineken beer (Netherlands) to Texaco gasoline (Saudi Arabia) to Honda snowblowers (Japan). When exporting, a company produces goods domestically and sells them outside the country. -The United States was ranked the number 3 exporter in the world in 2009, down from number 1 a decade earlier. One of the greatest U.S. exports is American pop culture, in the form of movies, music, and fashion. The United States is also a leader in exporting computers and other information technology. -Sometimes other countries may wish to import American goods but lack the currency to pay for them. In that case, the exporting U.S. company may resort to countertrading—that is, bartering goods for goods. When the Russian ruble plunged in value in 1998, some goods became a better medium of exchange than currency. 3. Licensing & Franchising -Licensing and franchising are two aspects of the same thing, although licensing is used by manufacturing companies and franchising is used more frequently by service companies. -In licensing, a company allows a foreign company to pay it a fee to make or distribute the first company's product or service. For example, the DuPont chemical company might license a company in Brazil to make Teflon, the nonstick substance that is found on some frying pans. Thus, DuPont, the licensor, can make money without having to invest large sums to conduct business directly in a foreign company. Moreover, the Brazilian firm, the licensee, knows the local market better than DuPont probably would. -Franchising is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services. For example, Burger King, Hertz, and Hilton Hotels, which are all well-known brands, might provide the use of their names plus their operating know-how (facility design, equipment, recipes, management systems) to companies in the Philippines in return for an up-front fee plus a percentage of the profits. -By now Americans traveling throughout the world have become accustomed to seeing so-called U.S. stores everywhere. Some recently active companies: Toys R Us opened a store in Poland. Starbucks is looking to do the same in India. Gap is opening an Old Navy store in Japan and a Banana Republic store in Paris. Wendy's is returning to Japan with a burger that features goose-liver pâté and truffles. 4. Joint Ventures Strategic allies are two organizations that have joined forces to realize strategic advantages that neither would have if operating alone. A U.S. firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country. -For instance, General Motors operates a joint venture with Shanghai Automotive Industry -Group to build Buicks in China. Sometimes a joint venture is the only way an American company can have a presence in a certain country, whose laws may forbid foreigners from ownership. Indeed, in China, this is the only way foreign cars may be sold in that country. 5. Wholly Owned Subsidiaries -A wholly owned subsidiary is a foreign subsidiary that is totally owned and controlled by an organization. -The foreign subsidiary may be an existing company that is purchased outright. -A greenfield venture is a foreign subsidiary that the owning organization has built from scratch. General Motors owns majority stakes in Adam Opel AG in Germany and Vauxhall Motor Cars Ltd. in the United Kingdom, both wholly owned GM subsidaries.

6 months transition to managerial duties

1. Initial was wrong 2. Fast paced 3. Heavy workload 4. Job is to be problem solver and troubleshooter for subordinates

Top Ten Mistakes Managers Make-1

1. Insensitive to others: abrasive, intimidating, bullying style 2. cold, aloof, arrogant 3. Betray trust

Production deviance (Minor and organizational)

1. Leaving early 2. Excessive breaks 3. Working slowly 4. Wasting resources

Stakeholder model

1. Managements most important responsibility is long term survival 2. Achieved by satisfying the interests of multiple corporate stakeholders

Environmental scanning

1. Managers scan environment to reduce uncertainty 2. Organizational strategies affect environmental scanning 3. Environmental scanning contributes to organizational performance

Shareholder model

1. Organization's overriding goal should be to make a profit and benefit of shareholders 2. Milton Friedman

Moral deveopment of a manager Phases

1. Preconventional level of moral development 2. Conventional level of moral development 3. Post conventional level of moral deveopment

Quality assurance focuses on the performance of workers, urging employees to strive for "minimal defects." 1) True 2) False

2) False

Three levels of organizational culture Surface level (seen)

1. Symbolic artifacts such as dress code 2. Workers and managers behavior 3. What people say

3 Contemporary Viewpoints

1. The Systems Viewpoint -Quality Control = Regards the organization as systems of interrelated parts that operate together to achieve a common purpose 2. The Contingency Viewpoint = Emphasizes that a managers approach should vary accordingly to be continent on the individual & environmental situation -Quality Assurance 3. The Quality Management Viewpoint = Three approaches -Total Quality Management

Zone of indifference

1. Understood 2. Consistent with organizations purpose 3. Comparable with people's personal interest 4. Can be carried out

Frank and Lillian gilbreth

1.Employed motion study to simplify work and improve productivity 2. Family as guinea pigs 3. Cheaper by the dozen

The 17 basic units of motion, identified by Frank and Lillian Gilbreth, were named _____. 1) gilbreths 2) time frames 3) therbligs 4) units 5) action works

3) therbligs

Operations management focuses on managing the production and delivery of an organization's products or services _____. 1) more economically 2) by utilizing motion studies 3) with a more diverse workforce 4) more effectively 5) to more customers

4) more effectively

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ____. 1) process 2) stepped process 3) input-output structure 4) structure 5) system

5)system

Top Ten Mistakes Managers Make-3

7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor

Problem w/ Classical Viewpoint

A flaw in the classical viewpoint is that it is mechanistic: It tends to view humans as cogs within a machine, not taking into account the importance of human needs. Behavioral theory addressed this problem, as we explain next. Why the Classical Viewpoint Is Important: The essence of the classical viewpoint was that work activity was amenable to a rational approach, that through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity.

________ is committed to using business concepts to change the world for good, using a variety of organizational models to address social needs that inspire passion.

A social entrepreneur

Management theorist Peter Drucker compared the workplace of the future to

A symphony orchestra

APEC

APEC—21 Countries of the Pacific Rim Founded in 1989, the Asia-Pacific Economic Cooperation (APEC) is a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties. Most countries with a coastline on the Pacific Ocean are members of the organization, as highlighted below, although there are a number of exceptions. APEC members, which include the United States, Canada, and China, work to reduce tariffs and other trade barriers across the Asia-Pacific region.

Entepreneur role

Adapt themselves, their subordinates, and their units to change

Organization

Agroup of people who work together to achieve some specific purpose.

Competitive advantage through people Decentralization

Allows employees closest to problems, production, and clients make timely decisions

Joint Ventures "Strategic Alliance"

Also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Most Valued Traits in Managers

Among the chief skills companies seek in top managers are the following: -The ability to motivate and engage others. -The ability to communicate. -Work experience outside the United States. -High energy levels to meet the demands of global travel and a 24/7 world.

Utilitarianism

An alternative perspective on moral philosophy is utilitarianism, which is a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the costs, then the behavior is ethical. If not, then the behavior is unethical. This philosophy underlies the economic tenets of capitalism and, not surprisingly, is embraced by many business executives and students

Societal Responsibility

An even broader concept of social responsibility has emerged in recent years. Societal responsibility refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public.

All of the following are examples of ideas that can be marketed except which?

Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.)

Interactive conflict resolution

Approach to deal with conflict that satisfies both parties

________ is the discipline concerned with creating computer systems that simulate human reasoning and sensation.

Artificial Intelligence

Jeffrey Pfeffer & Robert Sutton

As its two principal proponents, Stanford business scholars Jeffrey Pfeffer and Robert Sutton, put it, evidence-based management is based on the belief that "facing the hard facts about what works and what doesn't, understanding the dangerous half-truths that constitute so much conventional wisdom about management, and rejecting the total nonsense that too often passes for sound advice will help organizations perform better."

Motivation to managers

Assessment of how enthusiastic employees are about managing the work of others

Bureaucratic and administrative management

At same time and scientific study in U.S., was taken place in Germany Sociologist Max weber ideas in bureaucratic Henry fayol developed administrative

Stages of moral development (Punishment and obedience) stage 1

Avoid trouble for yourself

Since the 1950s, the percentage of the U.S. labor force represented by unions has A) steadily increased. B) steadily declined. C) rapidly increased. D) remained unchanged. E) fallen to nearly zero.

B) steadily declined.

Why is willingness at the center of the process when it comes to managing your career readiness?

Because it is up to you to shape your future

Caveat Emptor

Before the 1960s, the legal concept of caveat emptor—let the buyer beware—was pervasive in the American business culture.

Most Favored Nation Trading Status

Besides joining together in trade blocs, countries will also extend special, "most favored nation" trading privileges to one another. Most favored nation trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties. The purpose is to promote stronger and more stable ties between companies in the two countries.

Believed

Buried deep below the surface Rarely discussed or thought about

Ben learns that the company was going to be laying off several employees over the next several months. He knew that the rumor mill was going to start, and he wanted to head off misinformation and get ahead of the curve. Which of the following options should he take?

Call an all staff-meeting and give everyone the news at once

Human relations management

Chester Bernard- president of NJ bell, functions of the executive,

The United States granted most favored nation trading status to China, which means that

China receives favorable trading treatment, such as the reduction of import duties

The United States granted most favored nation trading status to China, which means that

China receives favorable trading treatment, such as the reduction of import duties.

Which of the following is an example of a green policy or action?

Coca-cola has pledged to replenish (return to nature) all the water it uses to make its beverages

A(n) ____ is a formal written set of ethical standards guiding an organization's actions.

Code of Ethics

Responses to demands for social responsibility Accommodative strategy

Company accepts responsibility for a problem and does all that society expects to solve that problem

Responses to demands for social responsibility Defensive startegy

Company admits responsibility for a problem but does the least required to meet social expectations

Responses to demands for social responsibility Reactive strategy

Company does less than society expects

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they sell, current events, and markets (for example, the housing market and the stock market). According to ________, all of these independent factors interact with one another according to certain simple rules.

Complexity Theory

Because upper management must deal with problems that are ambiguous but that could have far-reaching consequences, ________ skills are particularly important for top managers.

Conceptual

"Green Products"

Consumer purchase, use, and disposition of environmentally sensitive products relate to consumer social responsibility. Research indicates that consumers are sensitive to ecological issues. For example, a recent survey of U.S. consumers indicated that 50 percent were personally willing to change their lifestyle to improve the environment. However, only 28 percent could identify their own shopping or living habits over the past five years that help protect the environment. Related research shows that consumers (1) may be unwilling to sacrifice convenience and pay higher prices to protect the environment and (2) lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products. Consumer confusion over which products are environmentally safe is also apparent, given marketers' rush to offer "green products." For example, few consumers realize that nonaerosol "pump" hair sprays are the second-largest cause of air pollution, after drying paint.

Contemporary Perspective

Contemporary. The contemporary perspective also includes three viewpoints—systems, contingency, and quality-management.

Social Audit

Converting socially responsible ideas into actions involves careful planning and monitoring of programs. Many companies develop, implement, and evaluate their social responsibility efforts by means of a social audit, which is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. Frequently, marketing and social responsibility programs are integrated.

Stakeholder Responsibility

Criticism of the profit view has led to a broader concept of social responsibility. Stakeholder responsibility focuses on the obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors

Resource allocator role

Decide who gets what resources and in what amounts

Ethical intensity of a decision

Degree of concern people have about an ethical behavior

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is examining the ____ forces at work in the southern United States.

Demographic

Entrepreneurship

Entrepreneurship is the process of taking risks to try to create a new enterprise. There are two types of entrepreneurship.

Steps to understand organizational environments

Environmental scanning, interpreting environmental factors, and acting on threats and opportunities

Taylor's 4 principles of management Fourth

Equal division in the work place,

When faced with a business problem, Lauren, a young shoe store owner, discusses business problems with Kurt, the assistant manager and an employee for over 30 years. Lauren believes Kurt "has seen it all" and knows there are few really new ideas; plus the business has done many simple things, such as offering friendly service, to create and maintain a competitive edge. Lauren's management style is best described as

Evidence-based

After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

False

Its your responsibility to manage your career, but others can also make it happen

False

NAFTA is a trading bloc consisting of the United States, Canada, Panama, and Mexico.

False

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of

Feedback

Loree manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Loree also oversees the daily tasks of the cashiers and front desk employees. Loree is a(n)

First-line manager

Managers for Three Types of Organizations

For-Profit Non-Profit Mutual Benefit

External environment

Forces and events outside of the company that have potential to affect and influence it

The _________ succeeded in drawing attention to the importance of "social man" and how managers using good human relations could improve worker productivity.

Hawthorne studies

Taylor's 4 principles of management Third

Heatedly cooperate with the he men to ensure all of the work being done in accordion ace with the principles of the science that has been developed

The IMF has

Helped supports some weaker European countries during the recent financial crisis

Abraham Maslow proposed the

Hierarchy of human needs

Heard (expressed values or beliefs)

How decisions are made and explained 2. Widely shared assumptions and beliefs

Consumer Bill of Rights

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right (1) to safety, (2) to be informed, (3) to choose, and (4) to be heard. Consumers expect and often demand that these rights be protected, as have American businesses.

Large-Size Business CEO

In 2007, CEOs earned a median of $849,375 at companies with more than 5,000 employees.

Which of the following statements about the marketing concept is most accurate?

In using the marketing concept, both companies and consumers are able to satisfy needs simultaneously.

Eloise, an engineer for an oil company, is interested in working overseas at this stage of her life because she knows that foreign work experience demonstrates ________ to potential employers.

Independence, resourcefulness, and entrepreneurship

Gantt chart

Indicates what tasks must be completed at which times in order to complete a project

Which of the following is NOT one of the BRICS countries?

Indonesia

Interpersonal Roles

Interpersonal Roles—Figurehead, Leader, and Liaison In their interpersonal roles, managers interact with people inside and outside their work units. The three interpersonal roles include figurehead, leader, and liaison activities.

Oldsmobile motor work

Invented just in time inventory

Wholly Owned Subsidiaries

Is a foreign subsidiary that is totally owned and controlled by an organization

Greenfield Venture

Is a foreign subsidiary that the owning organization has built from scratch

All of the following are aspects of Trader Joe's customer experience except which?

It has a large and expensive research and development facility.

Globalization

It's clear that we are living in a world being rapidly changed by globalization—the trend of the world economy toward becoming a more interdependent system. Time and distance, which have been under assault for 150 years, have now virtually collapsed, as reflected in three important developments we discuss. -The rise of the global village and electronic commerce. -The world's becoming one market instead of many national ones. -The rise of both megafirms and Internet-enabled minifirms worldwide.

Henry fayol

Just as important as Taylor Rescued failing steel company Developed 5 functions of management and 14 principles of management

A national sales organization has implemented a set of training courses on its intranet, with a link that allows employees to find and share answers to questions that arise with customers. ________ is the system that allows the sharing of knowledge and information throughout an organization.

Knowledge Management

Punctuated equilibrium theory

Long periods of stability, followed by short period of dynamic, fundamental change, then a new equilibrium

What research on a company will help you determine if you might be a good fit?

Looking for statements about how the company treats its employees, under its core values.

The new chief information officer of a national fast food chain is using mathematical tools to aid in product ordering and scheduling decisions. The CIO is using

Management science

Management Science

Management science is not the same as Taylor's scientific management. Management science focuses on using mathematics to aid in problem solving and decision making. Sometimes management science is called operations research. Why Management Science Is Important: Management science stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning. Its use is consistent with the practice of evidence-based management already discussed.

Liaison role

Managers deal with people outside their units

Competitive advantage through people-2

Managers in top performing companies develop work forces that are smarter, better trained, more motivated, and more committed than their competitors work forces

Operations management focuses on managing the production and delivery of an organization's products or services

More effectively

The mass media are part of an organization's

NOT GENERAL ENVIRONMENT

Tutors for Students (TFS) is an organization with the purpose of offering free tutoring to older students. TFS does NOT expect to earn any money through its operations. Therefore, TFS is an example of a ________ organization.

Non-profit

3 Levels of Management

Not everyone who works in an organization is a manager, of course, but those who are may be classified into three levels—top, middle, and first-line.

Environmental complexity

Number and intensity of external factors in the environment that affect organizations

A local farmer grows and sells corn and pumpkins to the local grocers. Look at the farmer's business as a system. In which category do the corn and pumpkins, profits, and losses fall?

Output

Which theorist said, "there is no business without a customer"?

Peter Drucker

When the manager of a local bakery sets goals and then develops a blueprint for how to achieve them, she is

Planning

Competitive advantage through people Self-managed teams

Produce high producivity through increased commitment and creativity

_____ has NOT been as successful because employees do not have control over the design of the work process.

Quality assurance

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each production run to locate errors, with the ultimate goal of minimizing errors by managing each stage of production. This process is an example of the ______ technique.

Quality control

Right to Choose

Relating to the right to choose, today many supermarket chains demand "slotting allowances" from manufacturers, in the form of cash or free goods, to stock new products. This practice could limit the number of new products available to consumers and interfere with their right to choose. One critic of this practice remarked, "If we had had slotting allowances a few years ago, we might not have had granola, herbal tea, or yogurt."

Which of the following statements about relationship marketing is most accurate?

Relationship marketing provides benefits for both customers and the organization.

Motivation of Unethical Consumers

Research on unethical consumer behavior indicates that these acts are rarely motivated by economic need. This behavior appears to be influenced by (1) a belief that a consumer can get away with the act and it is worth doing and (2) the rationalization that the act is justified or driven by forces outside the individual—"everybody does it."

______ guides the justice approach to deciding ethical dilemmas.

Respect for impartial standards of fairness and equity

Disturbance handler

Respond to pressures and problems that demand immediate action and attention

Monitor role

Scan environment for information

Administrative Management

Scientific management is concerned with the jobs of individuals. Administrative management is concerned with managing the total organization. Among the pioneering theorists were Henri Fayol and Max Weber.

System

Set of interrelated elements or parts that function as a whole

Spokesperson role

Share information with people outside their departments and companies

______ in a low-context culture.

Shared meanings are derived primarily from written and spoken words

Business confidence indices

Shows managers' level of confidence about future business growth

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs, often based on predefined goals?

Social Audit

Competitive advantage through people-1

Stanford professor contends that what separates top-performing companies from competition is the way they treat their work forces- in others words their management

Scientific management

Studies and tests methods to identify the best, most efficient ways

The systems viewpoint regards the various parts making up the whole system as

Subsystems

Buyer dependence

Supplier relies heavily on the buyer

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 the company must not compromise the ability of future generations to meet its own needs. To which philosophy is the company adhering?

Sustainability

Shay wanted to motivate her employees to perform at a higher rate. She has heard that you can pay employees for being more efficient. She begins to offer bonuses, yet she starts to see a decline in productivity and people living in fear of losing of their jobs. Why might that happen?

Taylorism

Threat

Take steps to protect company from further harm

Technical Skills

Technical skills consist of the job-specific knowledge needed to perform well in a specialized field. Having the requisite technical skills seems to be most important at the lower levels of management—that is, among employees in their first professional job and first-line managers.

WTO

The World Trade Organization Consisting of 153 member countries, the World Trade Organization (WTO) is designed to monitor and enforce trade agreements. The agreements are based on the General Agreement on Tariffs and Trade (GATT), an international accord first signed by 23 nations in 1947, which helped to reduce worldwide tariffs and other barriers. Out of GATT came a series of "rounds," or negotiations, that resulted in the lowering of barriers; for instance, the Uruguay Round, implemented in 1996, cut tariffs by one-third. The current round of negotiations, the Doha Round, which began in Doha, Qatar, is aimed at helping the world's poor by, among other things, reducing trade barriers. Founded in 1995 and headquartered in Geneva, Switzerland, WTO succeeded GATT as the world forum for trade negotiations and has the formal legal structure for deciding trade disputes. WTO also encompasses areas not previously covered by GATT, such as services and intellectual property rights. A particularly interesting area of responsibility covers telecommunications—cellphones, pagers, data transmission, satellite communications, and the like—with half of the WTO members agreeing in 1998 to open their markets to foreign telecommunications companies.

Quantitative Management

The application to management of quantitative techniques, such as statistics and computer simulations. Two branches of quantitative management are management science and operations management.

Which one of the following is one way to think about management?

The art of getting things done through people

Medium-Size Business CEO

The beginning median salary for a CEO with 500 to 5,000 employees was $500,000.

Cross-Border Business

The global market driven by electronic information "forces things to get bigger and smaller at the same time," suggests technology philosopher Nicholas Negroponte. "And that's so ironic, when things want to do both but not stay in the middle. There will be an increasing absence of things that aren't either very local or very global." If Negroponte is correct, this means we will see more and more of two opposite kinds of businesses: mergers of huge companies into even larger companies, and small, fast-moving startup companies.

Internet

The global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

The Behavioral Science Approach

The human relations movement was a necessary correction to the sterile approach used within scientific management, but its optimism came to be considered too simplistic for practical use. More recently, the human relations view has been superseded by the behavioral science approach to management. Behavioral science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. The disciplines of behavioral science include psychology, sociology, anthropology, and economics.

Free Trade

The movement of goods and services among nations without political or economic obstruction

Greenwashing

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice

Scientific Management

The problem for which scientific management emerged as a solution was this: In the expansive days of the early 20th century, labor was in such short supply that managers were hard-pressed to raise the productivity of workers. Scientific management emphasized the scientific study of work methods to improve the productivity of individual workers. Two of its chief proponents were Frederick W. Taylor and the team of Frank and Lillian Gilbreth.

Right to Be Informed/Federal Trade Commission

The right to be informed means that marketers have an obligation to give consumers complete and accurate information about products and services. This right also applies to the solicitation of personal information over the Internet and its subsequent use by marketers. An FTC survey of websites indicated that 92 percent collect personal information such as consumer e-mail addresses, telephone numbers, shopping habits, and financial data. Yet, only two-thirds of websites inform consumers of what is done with this information once obtained. The FTC wants more than posted privacy notices that merely inform consumers of a company's data-use policy, which critics say are often vague, confusing, or too legalistic to be understood. This view is shared by two-thirds of consumers who worry about protecting their personal information online. The consumer right to be informed has spawned much federal legislation, such as the Children's Online Privacy Protection Act (1998) and self-regulation initiatives restricting disclosure of personal information.

A nation's culture is

The shared set of beliefs, values, knowledge, and patterns of behavior common to its people

Social Responsibility

The societal marketing concept stresses marketing's social responsibility by not only satisfying the needs of consumers but also providing for society's welfare. Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. Like ethics, agreement on the nature and scope of social responsibility is often difficult to come by, given the diversity of values present in different societal, business, and corporate cultures.

According to management scholar Henry Mintzberg, which of the following is true of managers?

They have work that is characterized by fragmentation, brevity, and variety.

Interpreting environmental factors

Threat or oppurtunity?

"Good" boards have balanced gender representation. (T/F)

True

_______ believed that quality stemmed from "constancy of purpose," and that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions.

W. Edwards Deming

Megamergers

Walt Disney + Pixar. Kmart + Sears. Union Pacific + Southern Pacific. Whole Foods + Wild Oats. Bank of America + Merrill Lynch. Chrysler + Fiat. Roche + Genentech. Ticketmaster + Live Nation. Kraft + Cadbury. Comcast + NBC Universal. Mattel (maker of Barbie Doll) + Hit Entertainment (Bob the Builder). The last 20 years have seen a surge in mergers. Certain industries—oil, telecommunications, automobiles, financial services, and pharmaceuticals, for instance—aren't suited to being midsize, let alone small and local, so companies in these industries are trying to become bigger and cross-border. The means for doing so is to merge with other big companies. In telecommunications, for instance, AT&T targeted T-Mobile and in automobiles Porsche targeted Volkswagen (and then, in turn, VW tried to acquire Porsche), but ultimately both deals fell through. Oil companies, already gigantic from earlier mergers (Exxon + Mobil, Conoco + Phillips), were expected to begin another wave of acquisitions in the near future, and utilities also turned to mergers as power demands slowed (despite the increase in tablet computers, Internet data centers, and electric vehicles).

Abraham Maslow & Hierarchy of Needs

What motivates you to perform: Food? Security? Love? Recognition? Self-fulfillment? Probably all of these, Abraham Maslow would say, although some needs must be satisfied before others. The chairman of the psychology department at Brandeis University and one of the earliest researchers to study motivation, in 1943 Maslow proposed his famous hierarchy of human needs: physiological, safety, love, esteem, and self-actualization.

Laws

Whereas ethics deal with personal moral principles and values, laws are society's values and standards that are enforceable in the courts. This distinction can sometimes lead to the rationalization that if a behavior is within reasonable ethical and legal limits, then it is not really illegal or unethical.

How do Entrepreneurs & Managers Differ

While the entrepreneur is not necessarily an inventor, he or she "always searches for change, responds to it, and exploits it as an opportunity," Peter Drucker pointed out. How does this differ from being a manager? Being an entrepreneur is what it takes to start a business; being a manager is what it takes to grow or maintain a business. As an entrepreneur/intrapreneur, you initiate new goods or services; as a manager you coordinate the resources to produce the goods or services. Entrepreneurial companies have been called "gazelles" for the two attributes that make the African antelope successful: speed and agility. "Gazelles have mastered the art of the quick," says Alan Webber, founding editor of Fast Company magazine. "They have internal approaches and fast decision-making approaches that let them move with maximum agility in a fast-changing business environment."

management Management theorist Peter Drucker compared the workplace of the future to

a symphony orchestra

Why Co. Expand Internationally

Why, then, do companies expand internationally? There are at least five reasons, all of which have to do with making or saving money. 1. Availability of Supplies Antique and art dealers, mining companies, banana growers, sellers of hard woods—all have to go where their basic supplies or raw materials are located. For years oil companies, for example, have expanded their activities outside the United States in seeking cheaper or more plentiful sources of oil. 2. New Markets Sometimes a company will find, as cigarette makers have, that the demand for their product has declined domestically but that they can still make money overseas. Or sometimes a company will steal a march on its competitors by aggressively expanding into foreign markets, as did Coca-Cola over PepsiCo under the leadership of legendary CEO Robert Goizueta. From 2000 to 2010, exports of American goods jumped 66%; the export of services increased even more—84%. 3. Lower Labor Costs The decline in manufacturing jobs in the United States is directly attributable to the fact that American companies have found it cheaper to do their manufacturing outside the States. For example, the rationale for using maquiladoras—manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens—is that they provide less expensive labor for assembling everything from appliances to cars. Even professional or service kinds of jobs, such as computer programming, may be shipped overseas. (However, a countertrend, called "deglobalization," is that some companies are moving production back home, because long supply chains can be easily affected by the whims of geopolitics and energy prices, and the United States remains a manufacturing power for higher value products.) 4. Access to Finance Capital Companies may be enticed into going abroad by the prospects of capital being put up by foreign companies or subsidies from foreign governments. For example, producers of the $100 million movie Cloud Atlas (starring Tom Hanks and Halle Berry) received $35 million in financing from investors in China, Korea, Singapore, and beyond. 5. Avoidance of Tariffs & Import Quotas Countries place tariffs (fees) on imported goods or impose import quotas—limitations on the numbers of products allowed in—for the purpose of protecting their own domestic industries. For example, Japan imposes tariffs on agricultural products, such as rice, imported from the United States. To avoid these penalties, a company might create a subsidiary to produce the product in the foreign country. General Electric and Whirlpool, for example, have foreign subsidiaries to produce appliances overseas.

Organizing

You arrange tasks, people, and other resources to accomplish the work

Stages of moral development (Social contact) stage 5

You consider the effects of your decision on others

Origins of Yelp

Yelp is the 2004 brainchild of Jeremy Stoppelman and Russel Simmons, two engineers in their twenties working for PayPal, the online payments firm in California's Silicon Valley, who wanted to make it easier for consumers to find good businesses and avoid bad ones. "What they created," says one account, "was an online yellow pages with attitude. Yelp lets anyone critique any business and grade it, with ratings from one star to five stars." All kinds of businesses are rated, from restaurants to mechanics to dentists. While the idea of rating businesses is not new, Yelp uses a special algorithm (step-by-step problem-solving procedure) that determines which reviews are deleted, which featured prominently, and which displayed inconspicuously. And the company keeps the algorithm a closely guarded secret. The idea for Yelp came to Stoppelman and Simmons over lunch one fall, when they talked about building a website for people to e-mail friends questions such as "Who knows a good auto mechanic in San Francisco?" and then posting the results online. But, as sometimes happens with new enterprises, the core idea—allowing people to publish reviews without being prompted—was an afterthought. Nevertheless, after lunch the pair went back to the office and successfully pitched their boss (who had made tens of millions on PayPal) to invest $1 million. With this initial help, the Yelp founders were hoping to build momentum and launch a national company, but the idea failed to catch fire. After a few months, without any additional funding, the two decided they had to stay local. "If we just create a cool city guide to San Francisco and it's worth $10 or $20 million, that would be a win," Stoppelman said. To focus on making Yelp famous locally, they selected a few dozen of the most active reviewers on the site and invited them to an open-bar party; 100 people showed up. Yelp threw more parties for prolific reviewers, which gave casual users a reason to use the site more. By mid-2005, Yelp had 12,000 reviewers. With additional funding, it hired more party planners in New York, Chicago, and Boston. As the Yelp influence grew, bars and restaurants became more willing to host (for free) the parties in the hopes that crowds would come back and write favorable reviews. The company also began setting up call centers to sell advertising to businesses that had been reviewed. Yelp is not without controversy. By encouraging consumers to be unsparing in their critiques, it helps good businesses to thrive, but it also empowers users to be unnecessarily cruel and to hurt small mom-and-pop businesses already struggling with economic hard times and strong competition. Still, the company seems to have achieved success, earning $27.4 million in the first three months of 2012, reflecting 66% growth from a year earlier.

Joseph Juran defined quality as "fitness for use," which means that

a product or service should satisfy a customer's real needs

Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team?

all people in the Indianapolis and surrounding areas interested in football

Samuel, a marketing manager, recently attended a management workshop where he learned of Mihaly Csikzentmihalyi's view that the ideal state that many people seek is

an emotional zone somewhere between boredom and anxiety

Ethnocentric managers believe that their native country, culture, language, and behavior

are superior to all others

Countertrading is ___ goods for goods.

bartering

Why is willingness at the center of the process when it comes to managing your career readiness

because it is up to you to shape your shape your future

Aleksei, the IT manager, feels that his employees lack the motivation to consistently meet department goals. To better understand human actions and to motivate his employees toward achievement, Aleksei and his supervisors need to adopt the ____ viewpoint.

behavioral

For years ABC Copier, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its competition. However, over the years, ABC seldom asked customers for feedback. So when some of ABC's competition responded to what customers need and started offering copiers with new technology, ABC lost much of its market share. ABC utilizes a(n) ____ system.

closed

Samir does not understand how his manager, Betsy always knows how much of what product to order and how to schedule employee shifts. Which approach would help him?

clues to meaning of your managers decisions

Pleasant Resort, a successful 100-year-old hotel and resort, entered into a co-marketing arrangement with A-Plus Hotels, a five-star hotel chain. Both companies benefit from the new relationship. Pleasant is now able to market its facility and services through A-Plus's marketing team, and A-Plus Hotels now offers access to an upscale resort that it can recommend to its customers who are looking for a resort experience. A-Plus Hotels and Pleasant Resort can be ________

considered strategic allies

Within his company, Greg has set up a system with inputs, outputs, transformation processes, and feedback. Within his organization, he 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. Greg is utilizing a _______ perspective.

contemporary

Within his company, Vernon has set up a system with inputs, outputs, transformation processes, and feedback. He 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. Vernon is utilizing a _______ perspective.

contemporary

As you prepare to work in a global economy, what will help you to more effectively communicate with and influence others?

context

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ____ viewpoint.

contingency

The district manager of a national fast-food restaurant watches the sales reports for each restaurant daily to compare actual sales with projected sales goals, and then takes corrective action if needed. In which part of the management process is she participating?

controlling

When the Kiddie Village Daycare Center looks at the recent increase in the number of working mothers in its neighborhood to determine how many employees to hire, its managers are studying _________

demographic forces

Blue Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Clean Supply's janitorial supply and equipment store. Blue Brothers' relies heavily on Clean Supply to help sell its goods and services to customers. Clean Supply is a(n) ____ of Blue Brothers' products.

distributor

Thomas has been studying Hugo Munsterberg's suggestions, and like Munsterberg, Thomas believes that psychologists can contribute to industry by _____.

devising management strategies to influence employees to follow management's interests

To serve both buyers and sellers, marketing seeks to ________ and satisfy the needs and wants of prospective customers.

discover

A greenfield venture is a strategic alliance with individuals and organizations in developing nations; the venture's goals are to assist, educate, and share the risks and rewards of starting a new nonprofit organization in the developing country.

false

After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

false

in 1999, the top exporting nation was the United States, but in 2015 the world's top exporting nation was China.

false

Imagination Museum is holding nominations for its board of directors. It is the first time that over half of the positions are vacant, due to either retirements or term expirations. The new CEO wants to be sure that the board is representative of the community, as well as the patrons who attend most of the events. ,Which of the following considerations are important for a good board?

gender balance

The macroenvironment, also known as the _____ includes six forces.

general environment

A large production company has been utilizing the Hawthorne effect in its 12 international factories, and it has seen great success from implementing the Hawthorne principles that propose that ____.

giving more attention to employees increases worker productivity, if they think managers care about them

The multiplier effect states that a manager's influence on the organization

has implications far beyond the results that can be achieved by one person acting alone.

the IMF has

helped support some weaker European countries during the recent financial crisis.

Abraham Maslow proposed the

hierarchy of human needs

Shane, a sales manager, remarked that typically, her employees sincerely and positively overstate their job performance and abilities. This is an example of the ____ effect.

holier-than-thou

Donna, the office manager, spends a large part of her day working closely with those whom she supervises to successfully accomplish the many tasks she is responsible for. She also works well with other departments to get things done. Which type of managerial skill is Donna exhibiting?

human

The United States limits the amount of cheese purchased from other countries; this is a(n) ____ policy .

import quota

The United States limits the amount of cheese purchased from other countries; this is a(n) ________ policy.

import quota

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that

imports

A successful daycare center continuously focuses on actively developing, finding, and then communicating to its employees any new information and approaches related to its business of child care so that workers can modify their behavior to reflect this new knowledge. These types of companies are called _______ organizations.

learning

Bradley, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in his field, where he learned numerous ways his restaurant and hotel can better serve customers. Bradley is excited that management asked him to present this information to the hotel staff so that the restaurant and hotel can make needed improvements. Bradley's hotel is a(n) _____ organization.

learning

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n) ____.

learning organization

Paula, a plant manager, received an e-mail from the CEO stating that the company will now be focusing on customer service. The e-mail also stated that all plant managers need to implement this policy and coordinate the activities related to this strategy for their lowest-level managers. Paula is a(n)

middle manager

the WTO

monitors and enforces trade agreements

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____.

operations management

____ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For example, some cities in the United States (including New York and San Francisco) have set the minimum wage far above the federally mandated minimum wage.

political-legal

Maria, the vice president of sales for an international organization, believes that employees in her foreign offices understand best how to handle the personnel and practices in their offices. So when the corporate HR manager approached Maria about reprimanding Robert, a native Parisian who is the Paris office manager, for not doing things according to corporate policy, Maria backed Robert and said, "I believe that the home office should leave Robert alone because he best understands the local culture." Maria is a(n) ___ manager.

polycentric

Monochronic time is a

preference for doing one things at a time

Local communities are stakeholders of organizations because communities

rely on the tax base from companies and the jobs the company provides. C

Besides generating ideas with impact, you can also generalize them—that is, reduce the barriers to learning among employees and within your organization. You can

reward risk taking

Amy is a package delivery service manager. She is interested in implementing the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers, known as ____.

scientific management

Don, the owner of a bait and tackle shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance.

social, environmental, and financial

Julian, the owner of a t-shirt shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance.

social, environmental, and financial

refers to the ability to motivate, to inspire trust, and to communicate with others.

soft skills

Kentucky Derby, a successful farm equipment supply company in the South, has joined forces with Hammer and Nail, a national hardware and home retailer. As a result of this new relationship, Kentucky Derby can open stores in other regions and Hammer and Nail can now offer a high-quality product in the farm community. Kentucky Derby and Hammer and Nail are now

strategic allies

The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is referred to as the

strategic business unit level.

The systems viewpoint regards the various parts making up the whole system as

subsystems

According to the theory of ( ), noted by The New York Times columnist Thomas Friedman, there is an urge to address the crises of destabilizing climate change and rising competition for energy

sustainability and geo-greenism

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ____.

system

The contemporary perspective consists of three viewpoints: ____.

systems, contingency, quality management

Prior to 1990, the United States imposed a tax, known as a(n) ________, on automobiles imported from Mexico.

tariff

Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town next month, and the demand for hotel rooms is expected to skyrocket. In a conversation with the owner, she asked, "What should our approach to pricing be for the week of the convention? Should we require payment in full at the time of the reservation?" Which management method is Nikita using?

the contingency viewpoint

When Cheyanne, the manager, was discussing a difficult competitive problem with the owner, she asked, "What management approach do you think will work best in this situation?" Asking this question to determine a solution is utilizing ____.

the contingency viewpoint

NAFTA and the EU are both

trading blocs

The benefits or customer value received by users of a product is called

utility.

A mission statement tells you

what the company wants to become or achieve over time.

Roberto was recently promoted, and his salary increase includes retirement investment options, so he has decided to take part in an ESOP. This means that Roberto

will be buying or receiving shares of his company's stock. Correct

Don, a restaurant manager and MBA student, was reflecting on a how he can apply the classical management viewpoint in his store from a recent class, which supposes his employees are rational in their decisions. 1) True 2) False

1) True

Gary Hamel of the Management Innovation Lab suggests that core beliefs about an organization can be rooted out by repeatedly asking the right questions, such as, "Is this a belief worth challenging?" or "Is this belief universally valid?" 1) True 2) False

1) True

Operations management focuses on managing the production and delivery of an organization's products or services more effectively. 1) True 2) False

1) True

Zone of indifference Gain cooperation

1. Securing essential services from individuals 2. Unifying people by clearly formulating an organizations purpose and objectives 3. Providing a system of effective communication

Responsibilities of middle managers

1. Setting objectives consistent with top managers goals 2. Planning and implementing subunit strategies for achieving the objectives

Far-Ranging E-Management & E-Communication

Far-ranging e-management and e-communication. Using wired and wireless telephones, fax machines, electronic mail, or e-mail—text messages and documents transmitted over a computer network—as well as project management software—programs for planning and scheduling the people, costs, and resources to complete a project on time—21st-century managers will find themselves responsible for creating, motivating, and leading teams of specialists all over the world. This will require them to be masters of organizational communication, able to create concise, powerful e-mail and voice-mail messages.

3 Types of Managerial Roles

From his observations and other research, Mintzberg concluded that managers play three broad types of roles or "organized sets of behavior": interpersonal, informational, and decisional.

Other Cultural Variations

How do you go about bridging cross-cultural gaps? It begins with understanding. Let's consider variations in five basic culture areas: (1) language, (2) interpersonal space, (3) communication, (4) time orientation, and (5) religion.

Financial Rewards

How well compensated are managers? According to the U.S. Bureau of Labor Statistics, the median weekly wage in 2011 for American workers of all sorts was $758, or $39,416 a year.14 Education pays: The median 2011 yearly income for full-time workers with at least a bachelor's degree was $59,904, compared to $33,072 for high-school graduates.

Charles, the president of an IT company, is friends with Levi, the CEO of Cyber Industries, a company that develops and manufactures computer hardware. Levi tells Charles that Cyber Industries is about to announce the creation of a revolutionary new computer processor that will quadruple processing capacity and cause Cyber Industries' sales and profits to skyrocket. Charles then purchases a large number of shares of Cyber Industries company stock before the news of the new computer processor is made public. In which illegal activity has Charles engaged?

Insider Trading

Polychronic Time

Is a preference for doing more than one thing at a time

Monochronic Time

Is a preference for doing one thing at a time

Outsourcing

Is defined as using suppliers outside the company to provide goods and services

Bradley, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in his field, where he learned numerous ways his restaurant and hotel can better serve customers. Bradley is excited that management asked him to present this information to the hotel staff so that the restaurant and hotel can make needed improvements. Bradley's hotel is a(n) _____ organization.

Learning

Which trading bloc has the goal to reduce tariffs by 75 percent and achieve full economic integration?

Mercosur

Operations management

Use of quantitative or math approach to find ways to increase productivity

Sally has seen such great interest in her scented candles that she has decided to start her own small business selling them. Sally's company can use the Internet and the World Wide Web to operate globally, helping her get a global business started more easily because she can put products on a website and sell worldwide. So, in a sense, the Internet wipes out the former advantages of distribution and scope that large companies used to have.

true

Beau said to a close friend, "I am fed up with my company's continual disregard for the environment. They secretly dispose of hazardous chemicals into a nearby stream constantly. I don't know how they get away with it! I am going to call a reporter at the local newspaper and reveal what my company is doing." Beau's decision to tell somebody about his company's actions is an example of

whistle-blowing

Phillip said to a close friend, "I am fed up with my company's continual disregard for the environment. They secretly dispose of hazardous chemicals into a nearby stream constantly. I don't know how they get away with it! I am going to call a reporter at the local newspaper and reveal what my company is doing." Phillip's decision to tell somebody about his company's actions is an example of

whistle-blowing

Dominique, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in his field, where he learned numerous ways his restaurant and hotel can better serve customers. Dominique is excited that management asked him to present this information to the hotel staff so the restaurant and hotel can make needed improvements. Dominique's hotel is a(n) _____ organization. 1) focused 2) learning 3) evolving 4) customer-focused 5) 360-degree

2) learning

Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____. 1) the design approach 2) quantitative techniques 3) MBO 4) scientific management 5) behavioral management

2) quantitative techniques

Amy is a package delivery service manager. She is interested in implementing the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers, known as ____. 1) human relations management 2) scientific management 3) quantitative management 4) contingency management 5) management science

2) scientific management

Mary Parker Follett anticipated some of today's concepts, such as _____. 1) worker empowerment and scientific management 2) self-managed teams and worker empowerment 3) quality assurance and transformation processes 4) management-lead teams and diversity 5) synergy and MBO

2) self-managed teams and worker empowerment

Susan, a movie theater manager, has observed that as workers feel some company policies are not fair, the employees have not been working as hard as in the past. This reduction in effort is known as ____. 1) sliding 2) soldiering 3) skimming 4) entitling 5) slipping

2) soldiering

During a manager's meeting, Paula, a district manager, discussed how to handle sensitive employee issues, and indicated correctly that management is really just an art. 1) True 2) False

2)false

Maslow's hierarchy of human needs included ______. 1) physiological, financial, love, esteem, self-actualization 2) financial, love, friends, self-actualization 3) food and shelter, companionship, ego, self-actualization 4) physiological, safety, love, esteem, self-actualization 5) physiological, financial, love, empowerment,

4) physiological, safety, love, esteem, self-actualization

When Cheyanne, the manager, was discussing a difficult competitive problem with the owner, she asked, "What management approach do you think will work best in this situation?" Asking this question to determine a solution is utilizing ____. 1) the devil's advocate method 2) scientific management 3) the synergy method 4) the contingency viewpoint 5) the diversity viewpoint

4) the contingency viewpoint

Tariffs

A tariff is a trade barrier in the form of a customs duty, or tax, levied mainly on imports. At one time, for instance, to protect the American shoe industry, the United States imposed a tariff on Italian shoes. There are two types of tariffs: One is designed simply to raise money for the government (revenue tariff). The other, which concerns us more, is to raise the price of imported goods to make the prices of domestic products more competitive (protective tariff). In late 2011, seven U.S. makers of solar panels sought from the U.S. Commerce Department trade tariffs of more than 100% on solar panels made in China, on the grounds that the Chinese manufacturers used billions of dollars in government subsidies to help gain sales in the American market. A couple of months later, four U.S. makers of steel towers for wind turbines also filed a trade complaint against China and Vietnam seeking tariffs of 60% for the same reasons. For its part, China raised tariffs on foreign luxury auto brands, including Cadillac, presumably to protect its own domestic car industry.

Don, the owner of a bait and tackle shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ________ performance. A) social, environmental, and financial B) marketing, profit, and efficiency C) financial, diversity, and environmental D) social, effectiveness, and financial E) social, synergy, and diversity

A) social, environmental, and financial

A supplier is an external stakeholder that A) helps a company sell its goods and services to customers. B) provides raw materials, services, equipment, labor, or energy. C) joins forces with another company to achieve advantages that neither can achieve on its own. D) competes for customers or resources. E) rescinds tax breaks when firms don't deliver promised jobs.

B) provides raw materials, services, equipment, labor, or energy.

Sociocultural general environment

1. Demographics,general behavior, attitudes, and beliefs of people in a society

Decisional role

1. Entrepreneur 2. Disturbance handler 3. Resource allocator 4. Negotiator

Elements or uncertainty

1. Environmental change 2. Environmental complexity 3. Resource scarcity

Top Ten Mistakes Managers Make-2

4. overly ambitious: thinking of next job, playing politics 5. specific performance problems with the business 6. Overmanaging: unable to delegate or build a team

Components of the general environment

1. Customers 2. Competitors 3. Suppliers 4. Industry regulation 5. Advocacy groups

Team leaders

1. Facilitation 2. External relationships 3. Internal relationships

Mary Parker follet

1. Mother of scientific management 2. Ideas of negitiations, conflict resolution, and power sharing 3. Developed the approach of interacting conflict resolution

1 year transition to managerial duties

1. No longer a doer 2. Communication, listening,, and positive reinforcement 3. Learning to adapt to control stress 4. Job is people development

The city fire department offers its services to any individual within its city limits, so even Ken, who is driving through the city on vacation, received assistance with a car fire. The fire department is an example of a ( ) organization

commonweal

Interpersonal role

1. Figurehead 2. Leader 3. Liaison

Conceptual skills

1. See organization as a whole, understand how the different parts affect each other 2. Recognize how the company fits into or is affected by its environment

Competitive advantage through people Selective hiring

Companies need to hire the best talent due to the presence of employee security

Competitive advantage through people Training and skill development

Companies need to invest resources in the training employees to ensure skill development

Competitive advantage through people Reduction and status differences

Leads to employees concentrating on work related issues rather than biases and prejudices of the management

Import Quotas

An import quota is a trade barrier in the form of a limit on the numbers of a product that can be imported. Its intent is to protect domestic industry by restricting the availability of foreign products. As a condition of being allowed into the World Trade Organization, China agreed, starting in 2005, to cancel car import quotas, which it had used to protect its domestic car manufacturing industry against imported vehicles from the United States, Japan, and Germany. Since then, however, it has decided to stop encouraging growth among foreign auto firms in China, removing preferential tax treatment and streamlined approval processes. Although this is not the reimposition of import quotas, it is "a move that appears to give [Chinese] car companies greater protection from outside rivals," says a Wall Street Journal report. Quotas are designed to prevent dumping, the practice of a foreign company's exporting products abroad at a lower price than the price in the home market—or even below the costs of production—in order to drive down the price of the domestic product. In 2009, the U.S. International Trade Commission imposed antidumping duties of 10%-16% more on Chinese government-subsidized steel imported into the United States that damaged the American steel industry.

Anheuser-Busch

Anheuser-Busch has been an advocate for responsible drinking for nearly three decades. The company began an aggressive campaign to fight alcohol abuse and underage drinking with its landmark "Know When to Say When" campaign in 1982. In 1989, a Consumer Awareness and Education Department was established within the company. This department, now called the Corporate Social Responsibility (CSR) Department, is charged with developing and implementing programs, advertising, and partnerships that promote responsible drinking; helping prevent alcohol abuse; and helping curb underage drinking before it starts.

Joseph M Duran

Another pioneer with Deming in Japan's quality revolution was Joseph M. Juran, who defined quality as "fitness for use." By this he meant that a product or service should satisfy a customer's real needs. Thus, the best way to focus a company's efforts, Juran suggested, was to concentrate on the real needs of customers.

Donna, vice president of finance, and Bob, vice president of human resources, are

functional managers

The contemporary perspective of management includes three viewpoints: systems, contingency, and quality management. 1) True 2) False

1) True

The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. 1) True 2) False

1) True

3 Historical Viewpoints

1. Classical Viewpoint = Emphasis on ways to manage work more efficiently -Scientific Management -Administrative Management 2. Behavioral Viewpoint = Emphasis on important of understanding human behavior and motivating and encouraging employees & achievement -Early Behaviorists -Human Relations Movement 3. Quantitative Viewpoint = Applies quantitative techniques to management -Management Science -Operations Management

Practical steps to ethical decisions-2

1. Creating ethical climate - managers should act ethically - top managers should be active and committed to the company's ethics program - establish a reporting system

A-Plus Manufacturing has a policy of using statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run. This strategy of minimizing errors is known as synergy. 1) True 2) False

2) False

Abraham Maslow said that all needs are equal in importance and need to be satisfied daily. 1) True 2) False

2) False

Exporting

A company produces goods domestically and sells them outside the country

What does being a manager offer to an employee?

Many rewards apart from money and status

Distributive justice

Never take and action that harms the least among us: the poor, uneducated, and unemployed

Changes in Organizational Structure

With computers and telecommunications technology, organizations and teams become "virtual"; they are no longer as bound by time zones and locations. Employees, for instance, may telecommute, or work from home or remote locations using a variety of information technologies. Meetings may be conducted via videoconferencing, using video and audio links along with computers to let people in different locations see, hear, and talk with one another. In addition, collaborative computing, using state-of-the-art computer software and hardware, will help people work better together. Goal setting and feedback will be conducted via Web-based software programs such as eWorkbench, which enables managers to create and track employee goals. All such forms of interaction will require managers and employees to be more flexible, and there will be an increased emphasis on knowledge management—the implementing of systems and practices to increase the sharing of knowledge and information throughout an organization.

Stages of moral development (Universal (individual) principle) stage 6

You make the right decisions based on deeply held principles or right and wrong

Controlling

You monitor performance, compare it with goals, and take corrective actions as needed

Responsibilities of team leaders

1. Facilitating team activities toward goal achievement 2. Plan and schedule work 3. Learn to solve problems 4. Work efficiently with others

Competitive advantage through people High wages contingent on organizational performance

1. High remuneration helps an organization attract talented employees and retain existing employees 2. Indicate organization values their employee

Hawthorne studies: Elton Mayo

1. Human factors more important than physical conditions 2. Workers not extensions of machines, bonuses not enough 3. Managers better understood effect of social group interactions, employee satisfaction, and attitudes and group performance.

Elements of bureaucracy

1. Qualification hiring and promotion 2. Chain of command and division of labor 3. Impartial application of rules and procedures 4. Records in writing 5. Managers separate from owners

Chester Bernard authority

Extent to which people willingly cooperate in an organization depends on how works perceive executive authority and whether they're willing to accept it

Responsibilities of top managers

Overall direction of the organization

Olivia, the general manager of a bowling center, believes in her workers and that they are responsible and capable employees, so that they can be trusted when given responsibility. Olivia is an example of a(n) ___ manager. 1) Theory Z 2) hierarchy 3) Theory X 4) accountable 5) Theory Y

5) Theory Y

Code of Ethics & AMA

A formal statement of ethical principles and rules of conduct. It is estimated that 86 percent of U.S. companies have some sort of ethics code and one of every four large companies has corporate ethics officers. Ethics codes typically address contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping. -Lack of specificity is a major reason for the violation of ethics codes. Employees must often judge whether a specific behavior is unethical. The American Marketing Association has addressed this issue by providing a detailed statement of ethics, which all members agree to follow. -A second reason for violating ethics codes rests in the perceived behavior of top management and co-workers. Observing peers and top management and gauging responses to unethical behavior play an important role in individual actions.

Rochelle, the CEO of a Fortune 500 company, met with business leaders from the local community. Afterwards, she spent time informally answering their questions about the company. In answering these questions, which managerial role was Rochelle playing?

Leadership figurehead

At XYZ Manufacturing, employees work together to achieve the company goals and purposes. XYZ Manufacturing is a(n)

Organization

Accelerated Decision Making, Conflict & Stress

The Internet not only speeds everything up, it also, with its huge, interconnected databases—computerized collections of interrelated files—can overwhelm us with information, much of it useful, much of it not. For example, studies show that employees lose valuable time and productivity when dealing with excessive and unimportant e-mail volume and increasing amounts of cellphone spam (junk messages). Among the unfortunate by-products are loss of privacy and increased conflict and stress.

Early Behaviorism

The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. The behavioral viewpoint developed over three phases: (1) early behaviorism (2) the human relations movement (3) behavioral science. The three people who pioneered behavioral theory were Hugo Munsterberg, Mary Parker Follett, and Elton Mayo.

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they market, current events, and markets such as housing. All of these independent factors often behave as a single unit based on events and economic news, and respond to the environment and affect the stock market. This is an example of ___.

complexity theory

Leading

You motivate, direct and otherwise influence people to work hard to achieve the organizations goals

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they sell, current events, and markets (for example, the housing market and the stock market). According to ________, all of these independent factors interact with one another according to certain simple rules.

complexity theory

Peter Drucker

"The best way to predict the future is to create it," Peter Drucker said. The purpose of this book is, to the extent possible, to give you the tools to create your own future as a manager. Who is Peter Drucker? "He was the creator and inventor of modern management," says management guru Tom Peters (author of In Search of Excellence). "In the early 1950s, nobody had a tool kit to manage these incredibly complex organizations that had gone out of control. Drucker was the first person to give us a handbook for that." An Austrian trained in economics and international law, Drucker came to the United States in 1937, where he worked as a correspondent for British newspapers and later became a college professor. In 1954, he published his famous text, The Practice of Management, in which he proposed that management was one of the major social innovations of the 20th century and that it should be treated as a profession, like medicine or law. In this and other books, he introduced several ideas that now underlie the organization and practice of management—that workers should be treated as assets, that the corporation could be considered a human community, that there is "no business without a customer," that institutionalized management practices were preferable to charismatic, cult leaders. Many ideas that you will encounter in this book—decentralization, management by objectives, knowledge workers—are directly traceable to Drucker's pen. "Without his analysis," says one writer, "it's almost impossible to imagine the rise of dispersed, globe-spanning corporations.

7 Challenges to Being An Exceptional Manager

-Managing for Competitive Advantage -Managing for Diversity -Managing for Globalization -Managing for Information Technology -Managing for Ethical Standards -Managing for Sustainability -Managing Your Own Happiness & Life Goals

The Rewards of Practicing Management

-You and your employees can experience a sense of accomplishment. Every successful goal accomplished provides you not only with personal satisfaction but also with the satisfaction of all those employees you directed who helped you accomplish it. -You can stretch your abilities and magnify your range. Every promotion up the hierarchy of an organization stretches your abilities, challenges your talents and skills, and magnifies the range of your accomplishments. -You can build a catalog of successful products or services. Every product or service you provide—the personal Eiffel Tower or Empire State Building you build, as it were—becomes a monument to your accomplishments. Indeed, studying management may well help you in running your own business. Finally, productivity-improvement expert Odette Pollar of Oakland, California, concludes that "This is an opportunity to counsel, motivate, advise, guide, empower, and influence large groups of people. These important skills can be used in business as well as in personal and volunteer activities. If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job."

In our time, the word bureaucracy has come to have negative associations: impersonality, inflexibility, red tape, and a molasses-like response to problems. 1) True 2) False

1) True

Susan, a department manager, believes that since the corporate office eliminated certain benefits to reduce costs, her employees have not been working as hard as in the past. This reduction in effort is known as "soldiering." 1) True 2) False

1) True

The Hawthorne studies succeeded in drawing attention to the importance of "social man" and how managers using good human relations could improve worker productivity. 1) True 2) False

1) True

The classical viewpoint of management emphasized ways to manage work more efficiently. 1) True 2) False

1) True

The customers of Best Auto Sales complete an online survey after purchasing an automobile from Best. The information from the customer survey is a form of feedback. 1) True 2) False

1) True

When the Americans entered the war in 1941, they used the British model to form operations research teams to determine how to deploy troops, submarines, and equipment most effectively. These techniques have evolved into quantitative management. 1) True 2) False

1) True

Umar, a general manager in a fast-food chain, has employees all under the age of 25, and most of his workers are good employees. However, Umar still believes his workers are irresponsible and lack ambition. Umar is a Theory X manager. 1) True 2) False

1)true

Language

1. Language More than 3,000 different languages are spoken throughout the world. However, even if you are operating in the English language, there are nuances between cultures that can lead to misperceptions. For instance, in Asia, a "yes" answer to a question "simply means the question is understood," says one well-traveled writer. "It's the beginning of negotiations." In communicating across cultures you have four options: (a) You can speak your own language. (The average American believes that about half the world can speak English, when actually it's about 20%.) (b) You can use a translator. (Try to get one who will be loyal to you rather than to your overseas host.) (c) You can try using a translation app, such as Google Translate, that turns a smartphone into an interpreter, although this can be cumbersome. (4) You can learn the local language—by far the best option (as reflected in the USA Today headline: "U.S. Firms Becoming Tongue-Tied. Global Trade Requires Foreign Language Skills") Although 93% of U.S. public middle and high schools with language programs offer Spanish, certainly a widely spoken international language, and 46% offer French, unfortunately only 4% offer Chinese (Mandarin), today one of the world's most important languages.

Culture

1.Key set of values, beliefs, and attitudes shared by organizational members 2. Most important part of an organization's internal environment

First line managers responsibilities

1.Train and supervise the performance for no managerial employees who are responsible for producing a company's goods and services 2. Monitoring, teaching, and short term planning

Behavioral science relies on data from past sales to determine forecasts regarding human behavior to develop strategic plans and goals. 1) True 2) False

2) False

By identifying the "therbligs" in a job, such as the supplies of a bricklayer, Frank and Lillian Gilbreth were able to eliminate costs while simultaneously reducing supplies wasted. 1) True 2) False

2) False

Don, a production manager, has decided to utilize the Hawthorne effect in his facility because studies have shown that this theory will increase production by giving more independence to employees as they receive less attention. 1) True 2) False

2) False

Donna, the president of a national restaurant chain, believes that studying theoretical perspectives of management seldom gives clues to the meaning of outside events that could affect her company. 1) True 2) False

2) False

In a fixed-learning system, company employees typically will participate in continuous learning, such as workshops on product improvements, more often than in organizations with an open system. 1) True 2) False

2) False

Joe, a plant manager, was interested in utilizing the differential rate system of scientific management in his factory because it suggested paying workers less to cut costs when production first increased. 1) True 2) False

2) False

Olde Manufacturing, a parts supplier to the auto industry, has been using the behavioral approach to management for over 100 years. However, since that method of management is too simplistic for practical use, Olde should begin implementing the newer and more sophisticated human relations movement approach to management. 1) True 2) False

2) False

Scientific management focused on ways to improve worker morale. 1) True 2) False

2) False

Studying theoretical perspectives of management can help a manager in many ways, but seldom provides new ideas in new situations. 1) True 2) False

2) False

Supporters of evidence-based management would say there are many really new ideas. 1) True 2) False

2) False

The contingency viewpoint emphasizes that a manager's approach should vary according to—that is, be contingent on—costs and competition. 1) True 2) False

2) False

The five parts of a system are inputs, outputs, transformational processes, monitoring, and feedback. 1) True 2) False

2) False

Sal, a production manager, knows that some of his employees are upset with the new corporate policy, and as a result, are participating in soldiering. To eliminate soldiering Sal can ___. 1) reduce the use of scientific principles in planning work methods 2) carefully select workers according to their abilities and give workers training 3) reduce training, but increase MBO 4) place workers in any task available, focusing on their interests and not their abilities 5) increase diversity and MBO

2) carefully select workers according to their abilities and give workers training

Evidence-based management is based on the belief that understanding the sound complete truths of conventional managerial wisdom and accepting much of the nonsense that often passes for sound advice can at times help organizations perform better. 1) True 2) False

2)false

The historical perspective of management includes three viewpoints—systems, contingency, and quality management. 1) True 2) False

2)false

Through the rational management of resources and distribution of goods and services, scientific management helps ensure that business operations are efficient and effective. 1) True 2) False

2)false

A successful daycare center continuously focuses on actively developing, finding, and then communicating to its employees any new information and approaches related to its business of child care so that workers can modify their behavior to reflect this new knowledge. These types of companies are called _______ organizations. 1) customer-focused 2) learning 3) research 4) evolving 5) 360-degree

2)learning

Corporate Culture

A third influence on ethical practices is corporate culture. Corporate culture is the set of values, ideas, and attitudes that is learned and shared among the members of an organization. The culture of a company demonstrates itself in the dress ("We don't wear ties"), sayings ("The IBM Way"), and manner of work (team efforts) of employees. Culture is also apparent in the expectations for ethical behavior present in formal codes of ethics and the ethical actions of top management and co-workers.

Interpersonal Space

2. Interpersonal Space Men holding hands may raise eyebrows among most Americans, but it is common in the Middle East and does not carry any sexual connotation. "Holding hands is the warmest expression of affection between men," says one Lebanese sociologist. "It's a sign of solidarity and friendship." People of different cultures have different ideas about what is acceptable interpersonal space—that is, how close or far away one should be when communicating with another person. For instance, the people of North America and northern Europe tend to conduct business conversations at a range of 3-4 feet. For people in Latin American and Asian cultures, the range is about 1 foot. For Arabs, it is even closer. This can lead to cross-cultural misunderstandings. "Arabs tend to get very close and breathe on you," says anthropologist Hall. "The American on the receiving end can't identify all the sources of his discomfort but feels that the Arab is pushy. The Arab comes close, the American backs up. The Arab follows, because he can only interact at certain distances." However, once the American understands that Arabs handle interpersonal space differently and that "breathing on people is a form of communication," says Hall, the situation can sometimes be redefined so that the American feels more comfortable.

George, who owns a small grocery store, has a reputation in the community as a tough manager. Many customers have heard George yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. George is a(n) ____ manager. 1) Theory Z 2) hierarchy 3) Theory X 4) accountable 5) Theory Y

3) Theory X

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals; therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint. 1) synergy 2) attitude 3) behavioral 4) classical 5) scientific

3) behavioral

The example in the textbook of Paul English of Kayak.com altering an existing open-office seating arrangement by using new employees to change existing seating patterns is an example of ____. 1) the hostility effect 2) the office politics approach 3) behavioral science research 4) synergy research 5) a Theory X method

3) behavioral science research

Thomas has been studying Hugo Munsterberg's suggestions, and like Munsterberg, Thomas believes that psychologists can contribute to industry by _____. 1) developing strategies to influence employees to follow their interests 2) encouraging employees to develop new products 3) devising management strategies to influence employees to follow management's interests 4) helping organizations increase diversity 5) helping companies increase efficiency and productivity

3) devising management strategies to influence employees to follow management's interests

The behavioral viewpoint developed over the following phases: _____. 1) early behaviorism, human relations movement, scientific management 2) operations management, human relations movement, MBO phase 3) early behaviorism, human relations movement, behavioral science 4) early behaviorism, industrial, human relations movement 5) early behaviorism, human relations movement, administrative phase

3) early behaviorism, human relations movement, behavioral science

The beliefs that there are few really new ideas and that true is better than new are two of the foundational principles of ___. 1) scientific management 2) the quality-management viewpoint 3)evidence-based management 4)behavioral management 5) MBO

3) evidence-based management

The systems viewpoint sees organizations as entities made up of interrelated parts known as ____. 1) planning, design, monitoring, production, feedback 2) planning, inputs, monitoring, outputs, feedback 3) inputs, outputs, transformation processes, feedback 4) planning, design, inputs, monitoring, outputs, follow-up feedback 5)vision, planning, design, production, monitoring, follow-up feedback

3) inputs, outputs, transformation processes, feedback

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation ____. 1) intuitively 2) only if it results in synergy 3) ongoing and systematic 4) only if it saves money 5) occasionally

3) ongoing and systematic

The contemporary perspective consists of three viewpoints: ____. 1) quality management, behavioral, customer 2) systems, scientific, contingency 3) systems, contingency, quality management 4) diversity, quantitative, qualitative 5) contemporary, non-contemporary, behavioral

3) systems, contingency, quality management

Management science stresses the use of rational, science-based techniques and mathematical models to improve _____. 1) decision making and goal setting 2) synergy 3) cost-cutting and planning 4) decision making and strategic planning 5) sales and customer relationships

4) decision making and strategic planning

The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions; this is an example of _____. 1) statistical management 2) scientific management 3) behavioral science 4) management science 5) goal management

4) management science

Behavioral science relies on scientific research for developing theories about human behavior that can be ____. 1) used to provide sales tools 2) used in behavioral science research 3) helpful when looking at competitive products 4) used to provide practical tools for managers 5) used to establish MBO goals

4) used to provide practical tools for managers

Major Trading Blocs

A trading bloc, also known as an economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another. The six major trading blocs are the NAFTA nations, the European Union, the APEC countries, the ASEAN countries, the Mercosur, and CAFTA.

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ________ for ABC Brothers' products. A) distributor B) subsidiary C) competitor D) account ally E) customer

A) distributor

on an organization's board of directors, inside directors may be ____________ of the firm, and outside directors are supposed to be _____________ from outside the firm

A) members; elected

Time Orientation

4. Time Orientation Time orientation is different in many cultures. For example, Americans are accustomed to calling ahead for appointments, but South Koreans believe in spontaneity. Thus, when Seoul erupted in protests over tainted American beef, Korean legislators simply hopped on a plane to the United States, saying they would negotiate with the U.S. government. "But since they failed to inform the Americans ahead of time," says one report, "they were unable to meet with anyone of importance." Anthropologist Hall makes a useful distinction between monochronic time and polychronic time: -Monochronic time. This kind of time is standard American business practice—at least until recently. That is, monochronic time is a preference for doing one thing at a time. In this perception, time is viewed as being limited, precisely segmented, and schedule driven. This perception of time prevails, for example, when you schedule a meeting with someone and then give the visitor your undivided attention during the allotted time. Indeed, you probably practice monochronic time when you're in a job interview. You work hard at listening to what the interviewer says. You may well take careful notes. You certainly don't answer your cellphone or gaze repeatedly out the window. -Polychronic time. This outlook on time is the kind that prevails in Mediterranean, Latin American, and especially Arab cultures. Polychronic time is a preference for doing more than one thing at a time. Here time is viewed as being flexible and multidimensional. This perception of time prevails when you visit a Latin American client, find yourself sitting in the waiting room for 45 minutes, and then learn in the meeting that the client is dealing with three other people at the same time.

The belief that quality stemmed from "constancy of purpose," and that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions was proposed by _____. 1) Frank and Lillian Gilbreth 2) Henri Fayol 3) Max Weber 4) Mary Parker Follett 5) W. Edwards Deming

5) W. Edwards Deming

Joseph Juran defined quality as "fitness for use," which meant that ____. 1) a product or service should be priced competitively 2) an organization should produce products that will help customers stay healthy 3) companies should focus on products that help the community 4) products should be very durable 5) a product or service should satisfy a customer's real needs

5) a product or service should satisfy a customer's real needs

While discussing approaches to boost organization productivity, Rene, the president of an auto manufacturer, was interested in a rational approach that through the application of scientific methods, time and motion studies, and job specialization found it is possible to increase productivity. This is the essence of the ____ viewpoint. 1) contingency 2) behavioral 3) MBO 4) systems 5) classical

5) classical

For years ABC Copier, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its competition. However, over the years, ABC seldom asked customers for feedback. So when some of ABC's competition responded to what customers need and started offering copiers with new technology, ABC lost much of its market share. ABC utilizes a(n) ____ system. 1) open 2) isolated 3) blind 4) internal 5) closed

5) closed

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ____ viewpoint. 1) behavioral 2) systems 3) scientific 4) flexibility 5) contingency

5) contingency

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of ____. 1) Big Data 2) input 3) quality control 4) outcry 5) feedback

5) feedback

A large production company has been utilizing the Hawthorne effect in its 12 international factories, and it has seen great success from implementing the Hawthorne principles that propose that ____. 1) giving less attention to employees increases worker productivity 2) increasing diversity results in increases in worker productivity 3) increasing synergy increases worker productivity 4) cutting costs through outsourcing harms employee morale and productivity 5) giving more attention to employees increases worker productivity, if they think managers care about them

5) giving more attention to employees increases worker productivity, if they think managers care about them

Donna, a chef in a fine restaurant, utilizes top-of-the-line equipment as she prepares meals for customers. Donna and her equipment are a(n) ______ in the restaurant's system. 1) cog 2) piece 3) output-participant 4) output 5) input

5) input

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach _____. 1) is an effective cost-reduction tool 2) emphasizes diversity 3) is an effective synergy-building approach 4) builds a strong family-type culture 5) provides clues to the meaning of your managers' decisions

5) provides clues to the meaning of your managers' decisions

The field of behavioral science includes _____. 1) psychology, sociology, forensic science, economics 2) psychology, forensic science, sociology, anthropology, economics 3) psychiatry, technology, environmental science, forensic science 4) chemistry, biology, earth science, management 5) psychology, sociology, anthropology, economics

5) psychology, sociology, anthropology, economics

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each production run to locate errors. This is an example of the ______ technique. 1) zero defects 2) minimal defects 3) JIT 4) quality focus 5) quality control

5) quality control

Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ____. 1) synergy 2) management science 3) behaviorism 4) the Hawthorne effect 5) scientific management

5) scientific management

Justin, a college student, has become very interested in helping his community, so he is volunteering in a neighborhood improvement organization. This type of organization is an example of a(n) ________ organization.

Mutual-Benefit

Religion

5. Religion Trying to get wealthy Muslim investors in Dubai to buy some of your bank's financial products? Then you need to know that any investment vehicle needs to "conform to the spirit of the Koran, which forbids any investments that pay interest," as one writer puts it. "No mortgages. No bonds." Are you a Protestant doing business in a predominantly Catholic country? Or a Muslim in a Buddhist country? How, then, does religion influence the work-related values of the people with whom you're dealing? A study of 484 international students at a midwestern university uncovered wide variations in the work-related values for different religious affiliations. For example, among Catholics, the primary work-related value was found to be consideration. For Protestants, it was employer effectiveness; for Buddhists, social responsibility; for Muslims, continuity. There was, in fact, virtually no agreement among religions as to what is the most important work-related value. This led the researchers to conclude: "Employers might be wise to consider the impact that religious differences (and more broadly, cultural factors) appear to have on the values of employee groups."

Mary Parker Follett & Power Sharing

A Massachusetts social worker and social philosopher, Mary Parker Follett was lauded on her death in 1933 as "one of the most important women America has yet produced in the fields of civics and sociology." Instead of following the usual hierarchical arrangement of managers as order givers and employees as order takers, Follett thought organizations should become more democratic, with managers and employees working cooperatively. The following ideas were among her most important: -Organizations should be operated as "communities," with managers and subordinates working together in harmony. -Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties—a process she called integration. -The work process should be under the control of workers with the relevant knowledge, rather than of managers, who should act as facilitators. Why Follett Is Important: With these and other ideas, Follett anticipated some of today's concepts of "self-managed teams," "worker empowerment," and "interdepartmental teams"—that is, members of different departments working together on joint projects.

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to serve on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's A) overall strategic goals and approval of major decisions. B) oversight of sales and marketing. C) overall strategic goals and global HR management. D) daily specific company goals and management of a specific department. E) daily company management and employee supervision.

A) overall strategic goals and approval of major decisions.

Mutual Benefit Organizations

Mutual-benefit organizations are voluntary collections of members—political parties, farm cooperatives, labor unions, trade associations, and clubs—whose purpose is to advance members' interests.

National Culture

A nation's culture is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people. We begin learning our culture starting at an early age through everyday interaction with people around us. This is why, from the outside looking in, a nation's culture can seem so intangible and perplexing. As cultural anthropologist Edward T. Hall puts it, "Since much of culture operates outside our awareness, frequently we don't even know what we know.... We unconsciously learn what to notice and what not to notice, how to divide time and space, how to walk and talk and use our bodies, how to behave as men or women, how to relate to other people, how to handle responsibility." Indeed, says Hall, what we think of as "mind" is really internalized culture. And because a culture is made up of so many nuances, this is why visitors to another culture may experience culture shock—discomfort with being in an unfamiliar culture. According to anthropologists, culture shock involves anxiety and doubt caused by an overload of unfamiliar expectations and social cues.102

Which of the following is an example of a disruptive innovation?

A small pizza parlor located in the parking lot of a gas station becomes so popular that it takes over a large building and takes most of the customers that used to patronize the local Dominos and Pizza Hut.

5 Steps of A Social Audit

A social audit consists of five steps: 1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. 2. Identification of social responsibility causes or programs consistent with the company's mission. 3. Determination of organizational objectives and priorities for programs and activities it will undertake. 4. Specification of the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.

The Systems Viewpoint

A system is a set of interrelated parts that operate together to achieve a common purpose. Even though a system may not work very well—as in the inefficient way the Russian government collects taxes, for example—it is nevertheless still a system. The systems viewpoint regards the organization as a system of interrelated parts. By adopting this point of view, you can look at your organization both as (1) a collection of subsystems—parts making up the whole system—and (2) a part of the larger environment. A college, for example, is made up of a collection of academic departments, support staffs, students, and the like. But it also exists as a system within the environment of education, having to be responsive to parents, alumni, legislators, nearby townspeople, and so on.

ASEAN

ASEAN—11 Countries of the Association of Southeast Asian Nations The Association of Southeast Asian Nations (ASEAN) is a trading bloc consisting of 11 countries in Asia: Brunei, Cambodia, China, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. Like other trading blocs, ASEAN is working on reducing trade barriers among member countries. When China was admitted at the beginning of 2010, ASEAN became one of the largest free-trade zones, encompassing 1.9 billion people.

Conceptual skills consists of the

Ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together

Expatriates

According to the State Department, there are about 6.3 million Americans (not including military) who are living outside American borders—a class of people known as expatriates—people living or working in a foreign country.

Which of the following is an example of a green policy or action? A) A major publisher donates 10,000 books a year to national literacy groups. B) Coca-Cola has pledged to replenish (return to nature) all the water it uses to make its beverages. C) The owner of a sole proprietorship announces that she is taking on a business partner. D) 3M encourages employees to experiment with creating new products. E) A local factory pollutes the atmosphere via smokestacks that belch out carbon dioxide.

B) Coca-Cola has pledged to replenish (return to nature) all the water it uses to make its beverages.

The company that Don owns, the Ardmore General Store, is a family-owned company that has been in business for more than 100 years. Don wants to give back to the people of the community to acknowledge their role in the store's success. He decides to donate a significant portion of the store's profits to a charity every year. Don's decision is an example of ________ in action A) economic responsibility B) corporate social responsibility C) corporate governance D) legal responsibility E) a code of ethics

B) corporate social responsibility

The Sarbanes-Oxley Act of 2002 established requirements for ________. Noncompliance can result in penalties of A) all corporate financial records to be made public; as much as $5 million. B) proper financial record keeping for public companies; as much as 25 years in prison. C) codes of ethics guidelines for organizations; as much as $2 million. D) proper financial record keeping for private companies; as much as 25 years in prison. E) proper financial record keeping for government organizations; as much as 25 years in prison.

B) proper financial record keeping for public companies; as much as 25 years in prison.

An organization's internal stakeholders consist of A) the board of directors, employees, and suppliers. B) the board of directors, employees, and owners. C) the board of directors, customers, and owners. D) competitors, the community, and suppliers. E) customers, families of employees, and employees.

B) the board of directors, employees, and owners.

Joe, the owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to ignore his friend's actions and avoid bad publicity for ABC Electronics, or to have Paul arrested for embezzlement. Joe is facing A) a synergy factor. B) an issue of corporate governance. C) an ethical dilemma. D) a whistle-blower. E) a social audit.

C) an ethical dilemma.

Consider the following situation: Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because polluting the stream helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because doing so is also in the farmer's best long-term interests. This type of thinking reflects the ________ approach to deciding ethical dilemmas A) utilitarian B) justice C) individual D) moral-rights E) group

C) individual (for your greatest self interest in the long term, which also helps others)

Sustainable economic development A) produces greater diversity in the workforce. B) always generates greater profitability. C) meets present needs without compromising the ability of future generations to meet their needs. D) meets future needs without compromising present needs. E) is an idea proposed by Frank and Lillian Gilbreth to cut costs and increase efficiency.

C) meets present needs without compromising the ability of future generations to meet their needs.

The marketing director for Zap Games, a video game company, has informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products because the distributors are part of the ________ environment for Zap Games. He believes that a stronger relationship with distributors will lead to more market share, and higher profits, for both Zap Games and its distributors. A) external B) focused C) task D) outlying E) strategic

C) task

Phillip said to a close friend, "I am fed up with my company's continual disregard for the environment. They secretly dispose of hazardous chemicals into a nearby stream constantly. I don't know how they get away with it! I am going to call a reporter at the New York Times and reveal what my company is doing." Phillip's decision to tell somebody about his company's actions is an example of A) backstabbing his manager. B) violating a code of ethics. C) whistle-blowing. D) operating at a preconventional level. E) being guided by the invisible hand.

C) whistle-blowing.

CAFTA-DR

CAFTA-DR—Seven Countries of Central America The Central America Free Trade Agreement (CAFTA-DR), which involves the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua—is intended to reduce tariffs and other barriers to free trade.

Hugo Munsterburg & the 1st Application to Psychology to Industry

Called "the father of industrial psychology," German-born Hugo Munsterberg had a PhD in psychology and a medical degree and joined the faculty at Harvard University in 1892. Munsterberg suggested that psychologists could contribute to industry in three ways. They could: -Study jobs and determine which people are best suited to specific jobs. -Identify the psychological conditions under which employees do their best work. -Devise management strategies to influence employees to follow management's interests. Why Munsterberg Is Important: His ideas led to the field of industrial psychology, the study of human behavior in workplaces, which is still taught in colleges today.

Characteristics of Both

Characteristic of both—high need for achievement. Both entrepreneurs and managers have a high need for achievement. However, entrepreneurs certainly seem to be motivated to pursue moderately difficult goals through their own efforts in order to realize their ideas and, they hope, financial rewards. Managers, by contrast, are more motivated by promotions and organizational rewards of power and perks. Also characteristic of both—belief in personal control of destiny. If you believe "I am the captain of my fate, the master of my soul," you have what is known as internal locus of control, the belief that you control your own destiny, that external forces will have little influence. (External locus of control means the reverse—you believe you don't control your destiny, that external forces do.) Both entrepreneurs and managers like to think they have personal control over their lives. Characteristic of both, but especially of entrepreneurs—high energy level and action orientation. Rising to the top in an organization probably requires that a manager put in long hours. For entrepreneurs, however, creating a new enterprise may require an extraordinary investment of time and energy. In addition, while some managers may feel a sense of urgency, entrepreneurs are especially apt to be impatient and to want to get things done as quickly as possible, making them particularly action oriented. Characteristic of both, but especially of entrepreneurs—high tolerance for ambiguity. Every manager needs to be able to make decisions based on ambiguous—that is, unclear or incomplete—information. However, entrepreneurs must have more tolerance for ambiguity because they are trying to do things they haven't done before. More characteristic of entrepreneurs than managers—self-confidence and tolerance for risk. Managers must believe in themselves and be willing to make decisions; however, this statement applies even more to entrepreneurs. Precisely because they are willing to take risks in the pursuit of new opportunities—indeed, even risk personal financial failure—entrepreneurs need the confidence to act decisively. Of course, not all entrepreneurs have this kind of faith in themselves. So-called necessity entrepreneurs are people such as laid-off corporate workers, discharged military people, immigrants, and divorced homemakers who suddenly must earn a living and are simply trying to replace lost income and are hoping a job comes along. In the United States, these make up about 28% of entrepreneurs. However, 51% are so-called opportunity entrepreneurs—those who start their own business out of a burning desire rather than because they lost a job. Unlike necessity types, they tend to be more ambitious and to start firms that can lead to high-growth businesses.

Managing for Diversity

Clearly, however, the challenge to the manager of the near future is to maximize the contributions of employees Today nearly one in six American workers is foreign-born, the highest proportion since the 1920s.26 But greater changes are yet to come. By mid-century, the mix of American racial or ethnic groups will change considerably, with the United States becoming half (54%) racial or ethnic minority. Non-Hispanic whites are projected to decrease from 66% of the population in 2008 to 46% in 2050. African Americans will increase from 14% to 15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics (who may be of any race) from 15% to 30%. In addition, in the coming years there will be a different mix of women, immigrants, and older people in the general population, as well as in the workforce. For instance, in 2030, nearly one in five U.S. residents is expected to be 65 and older. This age group is projected to increase to 88.5 million in 2050, more than doubling the number in 2010 (40.3 million).

Supplie dependence

Company relies heavily on the supplier

Competitive Advantage

Competitive advantage is the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them. This means an organization must stay ahead in four areas: (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency. 1. Being Responsive to Customers The first law of business is Take care of the customer. Without customers—buyers, clients, consumers, shoppers, users, patrons, guests, investors, or whatever they're called—sooner or later there will be no organization. Nonprofit organizations are well advised to be responsive to their "customers," too, whether they're called citizens, members, students, patients, voters, rate-payers, or whatever, since they are the justification for the organizations' existence. 2. Innovation Finding ways to deliver new or better goods or services is called innovation. No organization, for-profit or nonprofit, can allow itself to become complacent—especially when rivals are coming up with creative ideas. "Innovate or die" is an important adage for any manager. We discuss innovation in Chapter 3. 3. Quality If your organization is the only one of its kind, customers may put up with products or services that are less than stellar (as they have with some airlines whose hub systems give them a near monopoly on flights out of certain cities), but only because they have no choice. But if another organization comes along and offers a better-quality travel experience, TV program, cut of meat, computer software, or whatever, you may find your company falling behind. Making improvements in quality has become an important management idea in recent times, as we shall discuss. 4. Efficiency A generation ago, organizations rewarded employees for their length of service. Today, however, the emphasis is on efficiency: Companies strive to produce goods or services as quickly as possible using as few employees (and raw materials) as possible. Although a strategy that downgrades the value of employees might ultimately backfire—resulting in the loss of essential experience and skills and even customers—an organization that is overstaffed may not be able to compete with leaner, meaner rivals. This is the reason why, for instance, today many companies rely so much on temp (temporary) workers.

Conceptual Skills

Conceptual skills consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together. Conceptual skills are particularly important for top managers, who must deal with problems that are ambiguous but that could have far-reaching consequences.

Trade Protectionism

Countries often use trade protectionism—the use of government regulations to limit the import of goods and services—to protect their domestic industries against foreign competition. The justification they often use is that this saves jobs. Actually, protectionism is not considered beneficial, mainly because of what it does to the overall trading atmosphere. The three devices by which countries try to exert protectionism consist of tariffs, import quotas, and embargoes.

Consumer Ethics & Social Responsibility

Consumers also have an obligation to act ethically and responsibly in the exchange process and in the use and disposition of products. Unfortunately, consumer behavior is spotty on both counts. Unethical practices of consumers are a serious concern to marketers.38 These practices include filing warranty claims after the claim period; misredeeming coupons; making fraudulent returns of merchandise; providing inaccurate information on credit applications; tampering with utility meters; tapping cable TV lines; pirating music, movies, and software from the Internet; and submitting phony insurance claims. The cost to marketers of such behavior in lost sales and prevention expenses is huge. For example, consumers who redeem coupons for unpurchased products or use coupons for other products cost manufacturers $1 billion each year. Fraudulent automobile insurance claims cost insurance companies more than $10 billion annually. In addition, retailers lose about $30 billion yearly from shoplifting and $9.6 billion annually from fraudulent returns of merchandise. Consumers also act unethically toward each other. According to the FBI, consumer complaints about online auction fraud, in which consumers misrepresent their goods to others, outnumber all other reports of online crime.

The district manager of a national fast-food restaurant watches the sales reports for each restaurant daily to compare actual sales with projected sales goals, and then takes corrective action if needed. In which part of the management process is he or she participating?

Controlling

You work as the sales manager for a company that sells paper supplies to businesses of all sizes. Because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on all paper supplies from the manufacturers. When reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. When you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?

Controlling

Corinne believed in solving issues between managers and employees by talking and finding solutions together, so when a group of employees brought the following problem to her, she was perplexed as to what to do. Read the problem and then decide which choice best fits her possible solution. "Employees came to Corinne to complain that their supervisor was making sexual advances towards them. He was offering to buy them drinks after work and has even commented on the clothes they are wearing. It has made them feel very uncomfortable."

Corinne would use the process of integration and sit everyone down together to talk it through

Sustainable Development

Corporate attention to social audits will increase as companies seek to achieve sustainable development and improve the quality of life in a global economy. Sustainable development involves conducting business in a way that protects the natural environment while making economic progress. Ecologically responsible initiatives such as green marketing represent one such initiative. Recent initiatives related to working conditions at offshore manufacturing sites that produce goods for U.S. companies focus on quality-of-life issues. Companies that evidence societal responsibility have been rewarded for their efforts. Research has shown that these companies (1) benefit from favorable word of mouth among consumers and (2) typically outperform less responsible companies in terms of financial performance

________ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. These beliefs may include the idea that employees should be promoted solely on the basis of merit, that no bribes will be paid to foreign officials to obtain business licenses, and that companies should offer extended maternity leave upon the employee's request. A) Norms B) Morals C) Ethical advantages D) Values E) Fairness factors

D) Values

Fewer children are interested in learning how to play a musical instrument, and young people having less interest in owning cars. These two trends are examples of ____ forces at work. A) diversity B) political C) financial D) sociocultural E) legal

D) sociocultural

Decisional Roles

Decisional Roles—Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator In their decisional roles, managers use information to make decisions to solve problems or take advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler, resource allocator, and negotiator.

Quality Assurance

Developed in the 1960s, quality assurance focuses on the performance of workers, urging employees to strive for "zero defects." Quality assurance has been less successful because often employees have no control over the design of the work process.

Gary Hammel

Discussion of the contingency viewpoint leads us naturally to the thoughts of Gary Hamel, cofounder of the Management Innovation Lab and ranked by The Wall Street Journal in 2008 as the most influential business thinker. "Over time," he says, "every great invention, management included, travels a road that leads from birth to maturity, and occasionally to senescence." Hamel holds that much of management theory is dated and doesn't fit the current realities of organizational life and that management innovation is essential to future organizational success. Indeed, he suggests, what we need to do is look at management as a process, and then make improvements and innovation ongoing and systematic. After all, if managers now innovate by creating new products or new business strategies, why can't they be equally innovative in how they manage their companies? How do forward-looking managers get the ball rolling in management innovation, particularly in a traditional, conventional company? Hamel believes that the answer can be found by identifying core beliefs that people have about the organization, especially those that detract from the pursuit of management innovation. He suggests that these beliefs can be rooted out by repeatedly asking the right questions—namely, the following: Is this a belief worth challenging? Is it debilitating? Does it get in the way of an important organizational attribute that we'd like to strengthen? Is this belief universally valid? Are there counterexamples? If so, what do we learn from those cases? How does this belief serve the interests of its adherents? Are there people who draw reassurance or comfort from this belief? Have our choices and assumptions conspired to make this belief self-fulfilling? Is this belief true simply because we have made it true—and, if so, can we imagine alternatives?

Rosario, a department manager, has been dealing with two workers in her department who do NOT get along. Due to family problems for both employees, today they had a loud argument in the break room. Rosario is meeting with both to resolve the issues. Which managerial role is Rosario playing?

Disturbance handler

Elton Mayo & Hawthorne Effect

Do you think workers would be more productive if they thought they were receiving special attention? This was the conclusion drawn by a Harvard research group in the late 1920s. Conducted by Elton Mayo and his associates at Western Electric's Hawthorne (Chicago) plant, what came to be called the Hawthorne studies began with an investigation into whether workplace lighting level affected worker productivity. (This was the type of study that Taylor or the Gilbreths might have done.) In later experiments, other variables were altered, such as wage levels, rest periods, and length of workday. Worker performance varied but tended to increase over time, leading Mayo and his colleagues to hypothesize what came to be known as the Hawthorne effect—namely, that employees worked harder if they received added attention, if they thought that managers cared about their welfare, and if supervisors paid special attention to them. However, later investigators found flaws in the studies, such as variations in ventilation and lighting or inadequate follow-through, that were overlooked by the original researchers. Critics also point out that it's doubtful that workers improved their productivity merely on the basis of receiving more attention rather than because of a particular instructional method or social innovation. Why the Hawthorne Studies Are Important: Ultimately, the Hawthorne studies were faulted for being poorly designed and not having enough empirical data to support the conclusions. Nevertheless, they succeeded in drawing attention to the importance of "social man" (social beings) and how managers using good human relations could improve worker productivity. This in turn led to the so-called human relations movement in the 1950s and 1960s.

Which forces are part of the macroenvironment? A) globalism, technological, sociocultural, demographic, and microenvironment B) economic, technological, sociocultural, and diversity C) international, demographic, diversity, family, culture, and technology D) diversity, microenvironment, sociocultural, demographic, and political-legal E) economic, technological, sociocultural, demographic, political-legal, and international

E) economic, technological, sociocultural, demographic, political-legal, and international

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs, often based on predefined goals? A) code of ethics B) diversity program C) sustainability program D) financial audit E) social audit

E) social audit

Economic Espionage

Economic espionage is the clandestine collection of trade secrets or proprietary information about a company's competitors. This practice is illegal and unethical and carries serious criminal penalties for the offending individual or business. Espionage activities include illegal trespassing, theft, fraud, misrepresentation, wiretapping, the search of a competitor's trash, and violations of written and implicit employment agreements with noncompete clauses Economic espionage is most prevalent in high-technology industries, such as electronics, specialty chemicals, industrial equipment, aerospace, and pharmaceuticals, where technical know-how and trade secrets separate industry leaders from followers.

Efficiency

Efficiency—the means. Efficiency is the means of attaining the organization's goals. To be efficient means to use resources—people, money, raw materials, and the like—wisely and cost-effectively.

29) Paul, who is normally an ethical person, has an opportunity to acquire what he feels is "easy" money in his job, and he believes it is safe to steal the money because nobody would know if he does take it. Paul rationalizes that it is fine to steal the money because he needs it more than the person whom the money belongs to. The psychological mechanism that causes Paul to want to steal the money is poor self-esteem. T F

FALSE (motivated blindness)

As businesses are going green today, sustainability programs have produced environmental benefits, but unfortunately, they have also resulted in higher costs and lower revenues, and at times, they have hurt organizations competitively. T F

FALSE (sustainability saves money and increases revenues)

_____ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For example, some cities in the United States (including New York and San Francisco) have set the minimum wage far above the federally mandated minimum wage.

Political-legal

Ethnocentric Managers

Ethnocentric Managers—"We Know Best" What do foreign executives fluent in English think when they hear Americans using an endless array of baseball, basketball, and football phrases (such as "out of left field" or "Hail Mary pass")? -Ethnocentric managers believe that their native country, culture, language, and behavior are superior to all others. Ethnocentric managers tend to believe that they can export the managers and practices of their home countries to anywhere in the world and that they will be more capable and reliable than the native managers. -Often the ethnocentric viewpoint is less attributable to prejudice than it is to ignorance, since such managers obviously know more about their home environment than the foreign environment. Ethnocentrism might also be called parochialism—that is, a narrow view in which people see things solely through their own perspective. -Is ethnocentrism bad for business? It seems so. A survey of 918 companies with home offices in the United States, Japan, and Europe found that ethnocentric policies were linked to such problems as recruiting difficulties, high turnover rates, and lawsuits over personnel policies.

Embargoes

Ever seen a real Cuban cigar? They're difficult for Americans to get, since they're embargoed. An embargo is a complete ban on the import or export of certain products. It has been years since anyone was allowed to import Cuban cigars and sugar into the United States or for an American firm to do business in Cuba. In early 2012, European countries agreed to embargo—refuse to import—any oil from Iran, amounting to about a fifth of Iran's total exports, if that country did not agree to allow continued sea traffic through the Gulf of Hormuz.

______ is a government's seizure of a domestic or foreign company's assets.

Expropriation

27) The task environment of Top-Notch Sewing consists of just two groups, customers and stockholders, who give the employees and management of Top-Notch the daily tasks that the company's employees will handle T F

FALSE

Prior to a 2010 natural-gas pipeline explosion in San Bruno, California, Pacific Gas & Electric chose to use its surplus revenues to improve safety, an example of ethical decision making. T F

FALSE

Jeffrey Pfeffer and Robert Sutton believed that evidence-based management is founded on the belief that facing the hard facts about what works and accepting the nonsense that passes for sound advice will help organizations perform better. (T/F)

False

Tia works for a line of high-end fashion clothing stores. In her role, she makes strategic long-term decisions about her company overall direction, and she creates the overall corporate goals, policies, and strategies. In light of these tasks, Tia must be a middle manager

False

Two managers from Appliance King were talking to Uri, their district manager, about Hannah, the unpopular store manager. Vivian, the assistant manager, said, "I believe I speak for other managers and employees when I say that Hannah acts like she knows it all. We all feel that Hannah does not listen to any of us because she always thinks her way is right and does not want to consider any other opinion." Hannah is an example of a geocentric manager.

False

Fayol & Weber

Fayol was not the first to investigate management behavior, but he was the first to systematize it. A French engineer and industrialist, he became known to American business when his most important work, General and Industrial Management, was translated into English in 1930. Why Fayol Is Important: Fayol was the first to identify the major functions of management—planning, organizing, leading, and controlling, as well as coordinating—the first four of which you'll recognize as the functions providing the framework for this and most other management books. In our time, the word bureaucracy has come to have negative associations: impersonality, inflexibility, red tape, a molasseslike response to problems. But to German sociologist Max Weber, a bureaucracy was a rational, efficient, ideal organization based on principles of logic. After all, in Weber's Germany in the late 19th century, many people were in positions of authority (particularly in the government) not because of their abilities but because of their social status. The result, Weber wrote, was that they didn't perform effectively. -A better-performing organization, he indicated, should have five positive bureaucratic features: -A well-defined hierarchy of authority. Formal rules and procedures. -A clear division of labor, with parts of a complex job being handled by specialists. -Impersonality, without reference or connection to a particular person. -Careers based on merit. Why Weber Is Important: Weber's work was not translated into English until 1947, but it came to have an important influence on the structure of large corporations, such as the Coca-Cola Company.

Kaylee's customers seem to be buying less of her freshly baked breads and more of her yogurt parfaits and coffees. She begins to ask customers at the checkout why they made their selection. She learns that many of her customers are choosing a gluten-free diet. She changes her breads and now is selling gluten-free breads and most days sells out. Kaylee used

Feedback

TQM

From the work of Deming and Juran has come the strategic commitment to quality known as total quality management. Total quality management (TQM) is a comprehensive approach—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction. The four components of TQM are as follows: 1. Make continuous improvement a priority. TQM companies are never satisfied. They make small, incremental improvements an everyday priority in all areas of the organization. By improving everything a little bit of the time all the time, the company can achieve long-term quality, efficiency, and customer satisfaction. 2. Get every employee involved. To build teamwork, trust, and mutual respect, TQM companies see that every employee is involved in the continuous improvement process. This requires that workers must be trained and empowered to find and solve problems. 3. Listen to and learn from customers and employees. TQM companies pay attention to their customers, the people who use their products or services. In addition, employees within the companies listen and learn from other employees, those outside their own work areas. 4. Use accurate standards to identify and eliminate problems. TQM organizations are always alert to how competitors do things better, then try to improve on them—a process known as benchmarking. Using these standards, they apply statistical measurements to their own processes to identify problems. Why Total Quality Management Is Important: The total quality management viewpoint emphasizes infusing concepts of quality throughout the total organization in a way that will deliver quality products and services to customers. The adoption of TQM helped American companies deal with global competition.

Douglas McGregor & Theory X Vs. Theory Y

Having been for a time a college president (at Antioch College in Ohio), Douglas McGregor came to realize that it was not enough for managers to try to be liked; they also needed to be aware of their attitudes toward employees.17 Basically, McGregor suggested in a 1960 book, these attitudes could be either "X" or "Y." Theory X represents a pessimistic, negative view of workers. In this view, workers are considered to be irresponsible, to be resistant to change, to lack ambition, to hate work, and to want to be led rather than to lead. Theory Y represents the outlook of human relations proponents—an optimistic, positive view of workers. In this view, workers are considered to be capable of accepting responsibility, self-direction, and self-control and of being imaginative and creative. Why Theory X/Theory Y Is Important: The principal contribution offered by the Theory X/Theory Y perspective is that it helps managers understand how their beliefs affect their behavior. For example, Theory X managers are more likely to micromanage, which leads to employee dissatisfaction, because they believe employees are inherently lazy. Managers can be more effective by considering how their behavior is shaped by their expectations about human nature. Underlying both Maslow's and McGregor's theories is the notion that more job satisfaction leads to greater worker performance—an idea that is somewhat controversial.

Rewards of Studying Management

Here are just a few of the payoffs of studying management as a discipline: -You will understand how to deal with organizations from the outside. Since we all are in constant interaction with all kinds of organizations, it helps to understand how they work and how the people in them make decisions. Such knowledge may give you some defensive skills that you can use in dealing with organizations from the outside, as a customer or investor, for example. -You will understand how to relate to your supervisors. Since most of us work in organizations and most of us have bosses, studying management will enable you to understand the pressures managers deal with and how they will best respond to you. -You will understand how to interact with coworkers. The kinds of management policies in place can affect how your coworkers behave. Studying management can give you the understanding of teams and teamwork, cultural differences, conflict and stress, and negotiation and communication skills that will help you get along with fellow employees. -You will understand how to manage yourself in the workplace. Management courses in general, and this book in particular, give you the opportunity to realize insights about yourself—your personality, emotions, values, perceptions, needs, and goals. We help you build your skills in areas such as self-management, listening, handling change, managing stress, avoiding groupthink, and coping with organizational politics.

Managers Manage Differently?

If you become a manager, would you be doing the same types of things regardless of the type of organization? Generally you would be; that is, you would be performing the four management functions—planning, organizing, leading, and controlling The single biggest difference, however, is that in a for-profit organization, the measure of its success is how much profit (or loss) it generates. In the other two types of organization, although income and expenditures are very important concerns, the measure of success is usually the effectiveness of the services delivered—how many students were graduated, if you're a college administrator, or how many crimes were prevented or solved, if you're a police chief.

W Edwards Deming

In the years after World War II, the imprint "Made in Japan" on a product almost guaranteed that it was cheap and flimsy. That began to change with the arrival in Japan of two Americans, W. Edwards Deming and Joseph M. Juran. W. Edwards Deming Desperate to rebuild its war-devastated economy, Japan eagerly received mathematician W. Edwards Deming's lectures on "good management." Deming believed that quality stemmed from "constancy of purpose"—steady focus on an organization's mission—along with statistical measurement and reduction of variations in production processes. He also thought that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions. In addition, Deming proposed his so-called 85-15 rule—namely, when things go wrong, there is an 85% chance that the system is at fault, only a 15% chance that the individual worker is at fault. (The "system" would include not only machinery and equipment but also management and rules.) Most of the time, he thought, managers erroneously blamed individuals rather than the system.

Consider the following situation: Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because polluting the stream helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because doing so is also in the farmer's best long-term interests. This type of thinking reflects the _____ approach to deciding ethical dilemmas.

Individual

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n)

Learning organization

Mercosur

Mercosur—10 Countries of Latin America The Mercosur is the largest trade bloc in Latin America and has four core members—Argentina, Brazil, Paraguay, and Uruguay, with Venezuela scheduled to become a full member upon ratification by the other countries—and five associate members: Bolivia, Chile, Colombia, Ecuador, and Peru. Besides reducing tariffs by 75%, Mercosur nations are striving for full economic integration, and the alliance is also negotiating trade agreements with NAFTA, the EU, and Japan.

Middle Managers

Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them. Titles might include "plant manager," "district manager," and "regional manager," among others. In the nonprofit world, middle managers may have titles such as "clinic director," "dean of student services," and the like. Their salaries may range from under $45,000 up to $120,000 a year. Middle managers are critical for organizational success because they implement the strategic plans created by CEOs and top managers. (Strategic planning is discussed in Chapter 6.) In other words, these managers have the type of "high-touch" jobs that can directly affect employees, customers, and suppliers.

Moral Idealism

Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. This philosophy exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups. For example, the right to know applies to probable defects in an automobile that relate to safety.

Learning Organization

More formally, a learning organization is an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge. Note the three parts: 1. Creating and acquiring knowledge. In learning organizations, managers try to actively infuse their organizations with new ideas and information, which are the prerequisites for learning. They acquire such knowledge by constantly scanning their external environments, by not being afraid to hire new talent and expertise when needed, and by devoting significant resources to training and developing their employees. 2. Transferring knowledge. Managers actively work at transferring knowledge throughout the organization, reducing barriers to sharing information and ideas among employees. Electronic Data Systems (EDS), for instance, practically invented the information-technology services industry, but by 1996 it was slipping behind competitors—missing the onset of the Internet wave, for example. When a new CEO, Dick Brown, took the reins in 1999, he changed the culture from "fix the problem yourself" to sharing information internally. 3. Modifying behavior. Learning organizations are nothing if not results oriented. Thus, managers encourage employees to use the new knowledge obtained to change their behavior to help further the organization's goals.

Management

More formally, management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization's resources. Management, said one pioneer of management ideas, is "the art of getting things done through people."

NAFTA

NAFTA—the Three Countries of the North American Free Trade Agreement Formed in 1994, the North American Free Trade Agreement (NAFTA) is a trading bloc consisting of the United States, Canada, and Mexico, encompassing 435 million people. The agreement is supposed to eliminate 99% of the tariffs and quotas among these countries, allowing for freer flow of goods, services, and capital in North America. Trade with Canada and Mexico now accounts for one-third of the U.S. total, up from one-quarter in 1989. Is NAFTA a job killer, as some have complained? In Mexico, it has failed to generate substantial job growth and has hurt hundreds of thousands of subsistence farmers, so that illegal immigration to the United States remains a problem. As for the United States, over 682,000 workers lost or were displaced from their jobs because of NAFTA's shifting of jobs south of the border. It also spurred a U.S. trade deficit—$60 billion with Mexico and $31.7 billion with Canada in 2011. However, supporters insist NAFTA ultimately will result in more jobs and a higher standard of living among all trading partners.

Long term self interest

Never take any action not in your organizations long term self interest

Religious injunctions

Never take any action that is not kind or compassionate and that does not build a sense of community

Frederick Taylor & The 4 Principles of Scientific Management

No doubt there are some days when you haven't studied, or worked, as efficiently as you could. This could be called "underachieving," or "loafing," or what Taylor called it—soldiering, deliberately working at less than full capacity. Known as "the father of scientific management," Taylor was an American engineer from Philadelphia who believed that managers could eliminate soldiering by applying four principles of science: 1. Evaluate a task by scientifically studying each part of the task (not use old rule-of-thumb methods). 2. Carefully select workers with the right abilities for the task. 3. Give workers the training and incentives to do the task with the proper work methods. 4. Use scientific principles to plan the work methods and ease the way for workers to do their jobs. Taylor based his system on motion studies, in which he broke down each worker's job—moving pig iron at a steel company, say—into basic physical motions and then trained workers to use the methods of their best-performing coworkers. In addition, he suggested employers institute a differential rate system, in which more efficient workers earned higher wages. Why Taylor Is Important: Although "Taylorism" met considerable resistance from employees fearing that working harder would lead to lost jobs except for the highly productive few, Taylor believed that by raising production both labor and management could increase profits to the point where they no longer would have to quarrel over them. If used correctly, the principles of scientific management can enhance productivity, and such innovations as motion studies and differential pay are still used today.

Polycentric Managers

Polycentric Managers—"They Know Best" Polycentric managers take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone. Thus, the attitude of polycentric managers is nearly the opposite of that of ethnocentric managers.

Acme Sales calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Acme Sales and their customer-service experiences with the dealership. Acme Sales is an example of a(n) ___ system.

Open

Quality Control

Quality control is defined as the strategy for minimizing errors by managing each stage of production. Quality control techniques were developed in the 1930s at Bell Telephone Labs by Walter Shewart, who used statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run.

Quality Management Viewpoint

Quality refers to the total ability of a product or service to meet customer needs. Quality is seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. Two traditional strategies for ensuring quality are quality control and quality assurance. Although not a "theory" as such, the quality-management viewpoint, which includes quality control, quality assurance, and total quality management, deserves to be considered because of the impact of this kind of thinking on contemporary management perspectives.

Cara has discovered that due to a time crunch, her boss has let the latest round of prescription medications be sent to pharmacies without the final check. She claims that there has never been an issue with this particular drug in the past and if patients weren't able to get their medications on time, the story would definitely be in the newspaper. Her boss is willing to take the risk. After all what could possibly go wrong? What do you think Cara should do?

Report her boss for an ethical violation

Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as

Resource Allocator

Darla is an experienced plant manager. She has been assigned to help a struggling plant meet its target goals. On her first day she asks for the organizational chart and the last months productivity reports. what would Darla do with those two documents

She might reorganize the management team and rethink the work processes

Cause Marketing

Socially responsible efforts on behalf of the general public are becoming more common. A formal practice is cause marketing, which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

Business Culture

Societal culture provides a foundation for understanding moral behavior in business activities. Business cultures "comprise the effective rules of the game, the boundaries between competitive and unethical behavior, [and] the codes of conduct in business dealings." Consumers have witnessed instances where business cultures in the financial (inside trading), insurance (deceptive sales practices), and defense (bribery) industries went awry. Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the competitive behavior among sellers.

The GLOBE Projects 9 Cultural Dimensions

Started in 1993 by University of Pennsylvania professor Robert J. House, the GLOBE project is a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes.103 (GLOBE stands for Global Leadership and Organizational Behavior Effectiveness.) GLOBE has evolved into a network of more than 150 scholars from 62 societies, and most of the researchers are native to the particular cultures they study. The nine cultural dimensions are as follows: 1. Power distance—how much unequal distribution of power should there be in organizations and society? Power distance expresses the degree to which a society's members expect power to be unequally shared. 2. Uncertainty avoidance—how much should people rely on social norms and rules to avoid uncertainty? Uncertainty avoidance expresses the extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events. 3. Institutional collectivism—how much should leaders encourage and reward loyalty to the social unit? Institutional collectivism expresses the extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals. 4. In-group collectivism—how much pride and loyalty should people have for their family or organization? In contrast to individualism, in-group collectivism expresses the extent to which people should take pride in being members of their family, circle of close friends, and their work organization. 5. Gender egalitarianism—how much should society maximize gender role differences? Gender egalitarianism expresses the extent to which a society should minimize gender discrimination and role inequalities. 6. Assertiveness—how confrontational and dominant should individuals be in social relationships? Assertiveness represents the extent to which a society expects people to be confrontational and competitive as opposed to tender and modest. 7. Future orientation—how much should people delay gratification by planning and saving for the future? Future orientation expresses the extent to which a society encourages investment in the future, as by planning and saving. 8. Performance orientation—how much should individuals be rewarded for improvement and excellence? Performance orientation expresses the extent to which society encourages and rewards its members for performance improvement and excellence. 9. Humane orientation—how much should society encourage and reward people for being kind, fair, friendly, and generous? Humane orientation represents the degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair.

Managing for Sustainability

Sustainability is defined as economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. An apparently changing climate, bringing increased damage from hurricanes, floods, and fires throughout the United States and the world, has brought the issue of "being green" to increased prominence. Former U.S. Vice President Al Gore's documentary film An Inconvenient Truth, along with his book by the same name, further popularized the concepts of global climate change and the idea of sustainability as a business model. Our economic system has brought prosperity, but it has also led to unsustainable business practices because it has assumed that natural resources are limitless, which they are not. Pacific Gas & Electric, PNM Resources, and Mohawk Fine Papers—resigned from the Chamber in protest. Perhaps, then, business can begin to take the lead. After years of being slow to address climate change, major corporations—including industrial giants that make products ranging from electricity to chemicals to bulldozers—have begun to call for limits on global warming emissions.

The EU

The EU—the 27 Countries of the European Union Formed in 1957, the European Union (EU) consists of 27 trading partners in Europe, covering nearly 500 million consumers. (It will be 28 members in July 2013, with the addition of Croatia.) Nearly all internal trade barriers have been eliminated (including movement of labor between countries), making the EU a union of borderless neighbors and the world's largest free market, with a gross domestic product of more than $17 trillion, larger than that of the United States. By 2002, such national symbols as the franc, the mark, the lira, the peseta, and the guilder had been replaced with the EU currency, the euro. There was even speculation that someday the euro could replace the U.S. dollar as the dominant world currency. However, in 2010-2012, the shaky finances and massive government debts of Portugal, Ireland, Italy, Greece, and Spain (so-called PIIGS) revealed an inherent weakness of the union—that both weak and strong economies were expected to coexist. This affected the euro's exchange rate—the rate at which the currency of one area or country can be exchanged for the currency of another's—so that the euro began to decline in worth compared to the U.S. dollar. In early 2012, the EU was in full-blown crisis, and it was not clear whether stronger countries such as Germany and the Netherlands would back the rescue of PIIGS or whether some of the latter would actually be expelled from the EU, a path with possibly dire worldwide economic consequences.

Recognizing Cultural Tendencies to Gain Competitive Advantage

The GLOBE dimensions show a great deal of cultural diversity around the world, but they also show how cultural patterns vary. For example: -The U.S. managerial sample scored high on assertiveness and performance orientation—which is why Americans are widely perceived as being pushy and hardworking. -Switzerland's high scores on uncertainty avoidance and future orientation help explain its centuries of political neutrality and its world-renowned banking industry. -Singapore is known as a great place to do business because it is clean and safe and its people are well educated and hardworking—no surprise, considering the country's high scores on social collectivism, future orientation, and performance orientation. -By contrast, Russia's low scores on future orientation and performance orientation could foreshadow a slower-than-hoped-for transition from a centrally planned economy to free-enterprise capitalism. The practical lesson to draw from all this: Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage. GLOBE researchers also set out to find which, if any, attributes of leadership were universally liked or disliked, the results of which are shown in the table on the next page. Throughout the world, visionary and inspirational leaders who are good team builders generally do the best; self-centered leaders seen as loners or face-savers received a poor reception.

IMF

The International Monetary Fund Founded in 1945 and now affiliated with the United Nations, the International Monetary Fund is the second pillar supporting the international financial community. Consisting of 187 member nations, the International Monetary Fund (IMF) is designed to assist in smoothing the flow of money between nations. The IMF operates as a last-resort lender that makes short-term loans to countries suffering from unfavorable balance of payments (roughly the difference between money coming into a country and money leaving the country, because of imports, exports, and other matters). In recent times, the IMF has become more high profile because of its role in trying to shore up some weaker European economies, including making loans to Greece, Portugal, and Ireland and considering how to assist Italy and Spain.

The Toyota Way

The Toyota Way is a business philosophy used to (1) improve processes and products, (2) build trust, and (3) empower individuals and teams. There are two values that act as pillars of The Toyota Way. They are continuous improvement and respect for people. These values are evident in five business practices: -Challenge: To build a long-term vision and meet challenges with courage and creativity. -Kaizen: To continuously improve business operations, always striving for innovation and evolution. -Genchi Genbutsu: To always go to the source to find the facts and make correct decisions; to build consensus and expeditiously achieve goals. -Respect: To respect others and the environment, to build trust and to take responsibility. -Teamwork: To stimulate personal and professional growth, maximize individual and team performance.

World Bank

The World Bank The World Bank was founded after World War II to help European countries rebuild. Today the purpose of the World Bank is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications. The bank has 187 member nations, with most contributions coming from Britain, the United States, Japan, and Germany. In recent years, the World Bank has been the target of demonstrations in Seattle; Washington, DC; Ottawa; and elsewhere. Some protesters believe it finances projects that could damage the ecosystem, such as the Three Gorges Dam on China's Yangtze River. Others complain it supports countries that permit low-paying sweatshops or that suppress religious freedom. Still others think it has dragged its feet on getting affordable AIDS drugs to less-developed countries in Africa. Many of the same protests were leveled against the International Monetary Fund, discussed next. The World Bank has responded by trying to support projects that are not harmful to the environment and that are aimed at helping lift people out of poverty.

The Global Economy

The global economy refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.

Global Village

The hallmark of great civilizations has been their great systems of communications. In the beginning, communications were based on transportation: the Roman Empire had its network of roads, as did other ancient civilizations, such as the Incas. Later the great European powers had their far-flung navies. In the 19th century, the United States and Canada unified North America by building transcontinental railroads. Later the airplane reduced travel time between continents. From Transportation to Communication Transportation began to yield to the electronic exchange of information. Beginning in 1844, the telegraph ended the short existence of the Pony Express and, beginning in 1876, found itself in competition with the telephone. The amplifying vacuum tube, invented in 1906, led to commercial radio. Television came into being in England in 1925. During the 1950s and 1960s, as television exploded throughout the world, communications philosopher Marshall McLuhan posed the notion of a "global village," where we all share our hopes, dreams, and fears in a "worldpool" of information. The global village refers to the "shrinking" of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another. Then the world became even faster and smaller. Fifteen years ago, cellphones, pagers, fax, and voice-mail links barely existed. When AT&T launched the first cellular communications system in 1983, it predicted fewer than a million users by 2000. By the end of 1993, however, there were more than 16 million cellular phone subscribers in the United States. By 2011, there were 5.9 billion mobile-cellular subscriptions, with global penetration reaching 87%.14 The Net, the Web, & the World Then came the Internet, the worldwide computer-linked "network of networks." Today, of the 7 billion people in the world, 35% are Internet users. The Net might have remained the province of academicians had it not been for the contributions of Tim Berners-Lee, who came up with the coding system, linkages, and addressing scheme that debuted in 1991 as the World Wide Web. "He took a powerful communications system [the Internet] that only the elite could use," says one writer, "and turned it into a mass medium."16 The arrival of the Web quickly led to e-commerce, or electronic commerce, the buying and selling of products and services through computer networks. U.S. retail e-commerce sales were estimated at $48.2 billion in the third quarter of 2011.

Intrapreneur

The intrapreneur. An intrapreneur is someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it. This person might be a researcher or a scientist but could also be a manager who sees an opportunity to create a new venture that could be profitable.

Despite recent pressure from stockholders to increase profits, Global Oil., a global petroleum organization, has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration when making decisions, and obeying the laws of host countries as well as international law. Global Oil. provides an example of a company acting in a socially responsible way. (T/F)

True

Right to Safety

The right to safety manifests itself in industry and federal safety standards for most products sold in the United States. In fact, the U.S. Consumer Product Safety Commission routinely monitors the safety of 15,000 consumer products.

Human Relations Movement

The two theorists who contributed most to the human relations movement—which proposed that better human relations could increase worker productivity—were Abraham Maslow and Douglas McGregor.

4 Parts of a System

The vocabulary of the systems perspective is useful because it gives you a way of understanding many different kinds of organizations. The four parts of a system are defined as follows: 1. Inputs are the people, money, information, equipment, and materials required to produce an organization's goods or services. Whatever goes into a system is an input. 2. Transformation processes are the organization's capabilities in management, internal processes, and technology that are applied to converting inputs into outputs. The main activity of the organization is to transform inputs into outputs. 3. Outputs are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. Whatever comes out of the system is an output. 4. Feedback is information about the reaction of the environment to the outputs that affects the inputs. Are the customers buying or not buying the product? That information is feedback.

George, who owns a small grocery store, has a reputation in the community as a tough manager. Many customers have heard George yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. George is a(n) ____ manager.

Theory X

3 Roles of a Learning Organization

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, and (3) work to generalize ideas with impact. 1. You can build a commitment to learning. To instill in your employees an intellectual and emotional commitment to the idea of learning, you as a manager need to lead the way by investing in it, publicly promoting it, creating rewards and symbols of it, and performing other similar activities. For example, Mark Pigott, chairman of PACCAR, Inc., which makes Kenworth and Peterbilt trucks, accomplished this by looking at other kinds of businesses and learning from their success. By focusing intently on how to improve quality, PACCAR can charge up to 10% more than competitors for its trucks.51 2. You can work to generate ideas with impact. As a manager, you need to try to generate ideas with impact—that is, ideas that add value for customers, employees, and shareholders—by increasing employee competence through training, experimenting with new ideas, and engaging in other leadership activities. Soon after Dick Brown became new CEO of EDS, he saw that the company had to be reinvented as a cool brand to make people feel good about working there. His marketing director decided to launch a new campaign at the biggest media event of all: the Super Bowl. EDS ran an ad showing rugged cowboys riding herd on 10,000 cats. The message: "We ride herd on complexity." 3. You can work to generalize ideas with impact. Besides generating ideas with impact, you can also generalize them—that is, reduce the barriers to learning among employees and within your organization. You can create a climate that reduces conflict, increases communication, promotes teamwork, rewards risk taking, reduces the fear of failure, and increases cooperation. In other words, you can create a psychologically safe and comforting environment that increases the sharing of successes, failures, and best practices.

Toyota Environmental Action Plan

To make its environmental vision actionable, Toyota developed a five-year Environmental Action Plan. The plan is structured around five key areas: -Energy and Climate Change -Recycling and Resource Management -Air Quality -Environmental Management -Cooperation with Society Toyota believes that partnerships with relevant organizations help increase awareness of its technologies and products. In addition, Toyota believes that the programs have other benefits, including: -Strengthen Toyota's image as an environmental leader among automakers -Communicate a message of environmental stewardship -Build awareness of the Prius and other Toyota hybrids -Educate park visitors on the benefits of advanced vehicle technology

Triple Bottom Line

Today, emphasis is placed on the triple-bottom line—recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.30 Growing interest in green marketing, cause marketing, social audits, and sustainable development reflects this recognition.

Top Managers

Top managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it. They need to pay a lot of attention to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them. Thus, executives at this level must be future oriented, dealing with uncertain, highly competitive conditions. These people stand at the summit of the management pyramid. But the nature of a pyramid is that the farther you climb, the less space remains at the top. Thus, most pyramid climbers never get to the apex. However, that doesn't mean that you shouldn't try. Indeed, you might end up atop a much smaller pyramid of some other organization than the one you started out in—and happier with the result.

Michelle grew up helping her father work on cars in his auto repair shop and developed into an excellent auto technician. Because of stereotypes regarding women in this field, she is interested in finding a shop that minimizes gender discrimination and gender role inequalities. Michelle wants to work for a company that highly values gender egalitarianism.

True

The Best Fit Office Supplier continually talks with customers after they purchase their products, and The Best Fit managers regularly visit customers to gather feedback on new products, product improvements, and how The Best Fit can better serve its customers. This is an example of an open system. (T/F)

True

The general environment, or macroenvironment, includes six forces: economic, technological, sociocultural, demographic, political-legal, and international.

True

The general environment, or macroenvironment, includes six forces: economic, technological, sociocultural, demographic, political-legal, and international. (T/F)

True

Moral Philosophy

Two prominent personal moral philosophies have direct bearing on marketing practice: (1) moral idealism and (2) utilitarianism.

Managing for Ethical Standards

With the pressure to meet sales, production, and other targets, managers can find themselves confronting ethical dilemmas. What do you do when you learn an employee dropped a gyroscope but put it in the helicopter anyway in order to hold the product's delivery date? How much should you allow your sales reps to knock the competition? How much leeway do you have in giving gifts to prospective clients in a foreign country to try to land a contract? In an era of global warming and rising sea levels, what is your responsibility to "act green"—avoid company policies that are damaging to the environment? Ethical behavior is not just a nicety; it is a very important part of doing business. This was certainly made clear in December 2008, when financier Bernard Madoff confessed that his investments were all "one big lie"—not investments at all, but rather a $50 billion scheme (Ponzi scheme), using cash from newer investors to pay off older ones. Not since sociologist Edwin Sutherland invented the term "white-collar crime" in the 1930s have so many top-level executives been hauled into court.

Joseph Juran defined quality as "fitness for use," which meant that ____.

a product or service should satisfy a customer's real needs

joseph Juran defined quality as "fitness for use," which means that

a product or service should satisfy a customer's real needs.

Which of the following statements is an example of place utility?

a service station that adds a diesel fuel pump to its three unleaded gasoline pumps

When Randy, a general manager of a national retailer, moved to a different store in his company that was having difficulty, he knew that sales were low and after talking to his employees, he found morale was also low. At first Randy thought attitudes were poor due to low sales, but after working closely with employees, he realized that the poor attitudes were actually the cause of poor sales. Randy was able to discover the cause of the problem by utilizing ______ skills.

conceptual

Rebecca, a department manager, has been dealing with two workers in her department who do not get along. Due to family problems for both employees, today they had a loud argument in the break room. Rebecca is meeting with both to resolve the issues. Which managerial role is Rebecca playing?

disturbance handler

Maryanne was looking over her son's school supply list and saw that he needed three 2-inch binders, a pack of copy paper, and a box of staples. Knowing that her company had all of this in the supply closet, she planned to just bring them home with her the next day. This would be considered

employee theft

Free trade is the

movement of products between countries without political or economic obstruction

Josh, a college student, has become very interested in helping his community, so he is volunteering in a neighborhood improvement organization. This type of organization is an example of a(n) ______ organization.

mutual benefit

Justin, a college student, has become very interested in helping his community, so he is volunteering in a neighborhood improvement organization. This type of organization is an example of a(n) ( )organization

mutual-benefit

After returning home from a trade show, Mr. Jones, the president of a manufacturing company, called a meeting of his production department. He indicated that the company would soon be implementing a new policy of _______, which focuses on worker performance and urges employees to strive for zero defects.

quality assurance

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Therese, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Therese feels bureaucracy is a

rational, efficient, ideal organization based on principles of logic

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a

rational, efficient, ideal organization based on principles of logic.

Sunset Oil is a large oil drilling company off the Gulf Coast. They want to expand their drilling area and are receiving a great deal of push back from the local community. It will now be on the ballot at the next election. Sunset Oil is concerned about how all of this will impact their bottom line. Which of the following should be a consideration for Sunset Oil?

triple bottom line