MAN 3025 EXAM 1 (CH 1-5)

leading

The set of processes used to get members of the organization to work together to further the interests of the organization - often considered to be the most important and most challenging of all management activities

corporate-level strategy

The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

business-level strategy

The set of strategic alternatives that helps an organization focus its competitive efforts for each industry or market in a targeted and focused manner

technical skills

The skills necessary to accomplish or understand the specific kind of work done in an organization

corporate governance

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

satisficing

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

What does the ultimate success of a tactical plan depend on?

The way it is carried out

Which of the following statements is true about tactical goals?

Their focus is on how to operationalize actions necessary to achieve strategic goals

manager

Someone whose primary responsibility is to carry out the management process

task environment

Specific organizations or groups that affect the organization

managerial ethics

Standards of behavior that guide individual managers in their work

general environment

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

tactical goals

A goal set by and for an organization's middle managers

venture capital companies

A group of small investors seeking to make profits on companies with rapid growth potential

interest groups

A group organized by its members to attempt to influence organizations

regulators

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

small business

A business that is privately owned by one individual or a small group of individuals and has revenues and assets that are not large enough to influence its environment

intuition

A characteristic of the art, rather than the science, of management

bounded rationality

A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits

theory

A conceptual framework for organizing knowledge and providing a blueprint for action

state of risk

A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates

state of uncertainty

A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have

state of certainty

A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative

franchising agreements

A contract between an entrepreneur (the franchisee) and a parent company (the franchiser); the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans

strategic alliance

A cooperative arrangement between two or more firms for mutual gain

escalation of commitment

A decision maker's staying with a decision even when it appears to be wrong

programmed decision

A decision that is fairly structured or recurs with some frequency (or both)

non-programmed decision

A decision that is relatively unstructured and occurs much less often than a programmed decision

interacting groups and teams

A decision-making group or team in which members openly discuss, argue about, and agree on the best alternative

administrative model

A decision-making model that argues that decision makers (1) use incomplete and imperfect information (2) are constrained by bounded rationality (3) tend to "satisfice" when making decisions

business plan

A document that summarizes the business strategy and structure

focus strategy

A firm pursuing this strategy concentrates on a specific regional market, product line, or group of buyers

Delphi group

A form of group decision making in which a group is used to achieve a consensus of expert opinion

code of ethics

A formal, written statement of the values and ethical standards that guide a firm's action

strategic plan

A general plan outlining decisions about the resource allocation, priorities, and action steps necessary to reach strategic goals set by top managers

operational goals

A goal set by and for an organization's lower-level managers

Sarbanes-Oxley Act of 2002

A law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms' financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption - imposes tough measures to deter corporate and accounting fraud

established market

A market in which several large firms compete according to relatively well-defined criteria

GE Business Screen

A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business

product life cycle

A model that portrays how sales volume for products changes over the life of products

entropy

A normal process leading to system decline

theory X

A pessimistic and negative view of workers, consistent with the views of scientific management

operational plan

A plan that focuses on carrying out tactical plans to achieve operational goals

theory Y

A positive view of workers; it represents the assumptions that human relations advocates make

start-up

A relatively new small business

niche

A segment of a market not currently being exploited

economic community

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

project

A single-use plan of less scope and complexity than a program

groupthink

A situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision

SOP

A standard plan that outlines the steps to be followed in particular circumstances

policy

A standing plan that specifies the organization's general response to a designated problem or situation

overall cost leadership strategy

A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms

single-product strategy

A strategy in which an organization manufactures just one product or service and sells it in a single geographic market

related diversification

A strategy in which an organization operates in several businesses that are somehow linked with one another

differentiation strategy

A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services

nominal group

A structured technique used to generate creative and innovative alternatives or ideas

General Agreement on Tariffs and Trade (GATT)

A trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets - uses the most favored national (MFN) principle, in which members of the agreement receive preferential treatment

North American Free Trade Agreement (NAFTA)

An agreement between the United States, Canada, and Mexico to promote trade with one another

licensing

An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales - excessive transportation costs, government regulations, and home production costs might lead a firm to choose this approach to internationalization

universal perspective

An attempt to identify the one best way to do something

ethics

An individual's personal beliefs about whether a behavior, action, or decision is right or wrong

coalition

An informal alliance of individuals or groups formed to achieve a common goal

system

An interrelated set of elements functioning as a whole

board of directors

An organization working together with one or more other organizations in a joint venture or similar arrangement

strategic partners

An organization working together with one or more other organizations in a joint venture or similar arrangement

World Trade Organization (WTO)

An organization, which currently includes 164 member nations and 23 observer countries, that requires members to open their markets to international trade and to follow WTO rules

distinctive competence

An organizational strength possessed by only a small number of competing firms

first-mover advantage

Any advantage that comes to a firm because it exploits an opportunity before any other firm does - created by a firm when it exploits an opportunity before any other firm

ethical behavior

Behavior that conforms to generally accepted social norms

unethical behavior

Behavior that does not conform to generally accepted social norms

operations management

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

scientific management

Concerned with improving the performance of individual workers

classical management perspective

Consists of two distinct branches—scientific management and administrative management

organizational behavior

Contemporary field focusing on behavioral perspectives on management

standing plan

Developed for activities that recur regularly over a period of time

behavioral management perspective

Emphasizes individual attitudes, behaviors, and group processes

soldiering

Employees deliberately working at a slow pace

Evidence-based management (EBM) practices suggest treating the organization as an unfinished prototype, which means what?

Encourage experimentation and learning by doing

Kamiya owns a small business that has always put customer service first, even if it meant a loss in profit. Kamiya's company is being bought by another firm that has always emphasized profits, to the point that some employees are fired if they cost the company profit. What will be the greatest challenge of integrating the two companies?

Establishing a single organizational culture

external environment

Everything outside an organization's boundaries that might affect it

Supertech Inc. is a large firm that manufactures mobile phones accessories. The company sells a line of inexpensive accessories exclusively targeted at youth and teenagers who like to personalize their phone. Which of the following strategies is illustrated in the scenario?

Focus strategy

quantitative management perspective

Focuses on decision making, cost-effectiveness, mathematical models, and the use of computers

administrative management

Focuses on managing the total organization

management science

Focuses specifically on the development of mathematical models

Who was one of the earliest advocates of scientific management?

Frederick Taylor

Who was one of the first experts to recognize decisions are not always made rationally and developed the administrative model to describe how decisions are often made?

Herbert Simon

resource deployment

How an organization distributes its resources across the areas in which it competes

Who is recognized as the father of industrial psychology based on his belief that psychologists can make valuable contributions in the areas of training, employee selection, and motivation?

Hugo Münsterberg

In the systems perspective, outputs include _____.

employee behaviors

According to the BCG matrix, what should a company do with the cash that is generated by cash cows?

Invest it in stars

Which of the following is true of a trade quota?

It is used most commonly to restrict trade.

Which of the following statements about the behavioral management perspective is true?

It was influenced by the industrial psychology movement

Maquiladoras

Light assembly plants that are built in northern Mexico close to the U.S. border and are given special tax breaks by the Mexican government

effective

Making the right decisions and successfully implementing them

Portfolio management techniques

Methods that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance

Which is likely to be the largest group of managers in most organizations, who are primarily responsible for implementing the policies and plans of an organization?

Middle managers

controlling

Monitoring organizational progress toward goal attainment

As the head of Human Resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?

More alternatives can be identified and evaluated

Which of the following statements best reflects contemporary management trends?

More and more organizations are using quality as a basis for competition

In addition to management science, which of the following is one of the two branches of the quantitative management perspective?

Operations management

human relations movement

Proposed that workers respond primarily to the social context of the workplace, including social conditioning, group norms, and interpersonal dynamics

United States-Mexico-Canada Agreement (USMCA)

Revised and amended NAFTA to provide greater incentives for Mexico to increase its imports from the United States

Whose works should you study if you want to understand the origins of the recognition of the importance of human resources and the personal welfare of workers?

Robert Owen

When devising a new strategy, it is best to start with________.

SWOT analysis

In the context of the systems perspective, which of the following would be considered an output?

Services

planning

Setting an organization's goals and deciding how best to achieve them - decision making is part of this process

contingency perspective

Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, unique elements in a given situation

interpersonal skills

The ability to communicate with, understand, and motivate both individuals and groups

internal environment

The conditions and forces within an organization

contingency planning

The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate

whistle-blowing

The disclosure, by an employee, of illegal or unethical conduct on the part of others within the organization

risk propensity

The extent to which a decision maker is willing to gamble when making a decision

ethical compliance

The extent to which an organization and its members follow basic ethical standards of behavior

legal compliance

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

entrepreneurship

The process of planning, organizing, operating, and assuming the risk of a start-up or new venture

Ralph Corp. and Swan Inc. have entered into an arrangement in which Ralph sells Swan's merchandise in its stores, and Swan promotes Ralph stores in its advertisements. In this context, which of the following best describes the relationship between Ralph Corp. and Swan Inc.?

They are strategic partners

Why is it important that a manager continuously monitor ongoing activities tied to a tactical plan?

To ensure they achieve desired results

synergy

Two or more subsystems working together to produce more than the total of what they might produce working alone

direct investment

When a firm builds or purchases operating facilities or subsidiaries in a different country from the one where it has its headquarters

unrelated diversification

firms that implement this strategy operate multiple businesses that are not logically associated with one another

tactical plan

focuses primarily on people and action

Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) _____.

interacting team

An organization that pursues a single-product strategy ______.

operates in a single geographic market

strategy implementation

organizations use this to operationalize or execute strategies, while it focuses on the processes through which strategies are achieved

Lillian Gilbreth's work in scientific management resulted in substantive contributions to _____.

personnel management

strategy formulation

process of creating or determining the organization's strategies

Petra was looking for ways to double her plant's production capacity, and she considered acquiring the production plant of a rival company. The engineers in Petra's company advised her against it because acquiring the new plant would only increase their company's production by 15 percent. Petra's idea failed the test for _____ in the context of the rational decision-making process.

satisfactoriness

scope

the component of a strategy that specifies the range of markets in which an organization will compete

The most significant disadvantage to owning a franchise is that_______.

the franchisee may have to pay a high start-up cost

classical decision model

A prescriptive approach to decision making that tells managers how they should make decisions; assumes that managers are logical and rational and that their decisions will be in the best interests of the organization

management

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

joint venture

A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis

closed systems

A system that does not interact with its environment

open systems

A system that interacts with its environment

subsystems

A system within a broader system

tariff

A tax collected on goods shipped across national boundaries

export restraint agreement

Accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another

regulatory agencies

An agency created by the government to regulate business activities

Avec runs an organization that is in a rapidly changing environment. Which management perspective should Avec take when planning how to respond to changes in the environment?

Contingency

organizing

Determining how activities and resources are to be grouped

Raphael started a new financial consulting business on the side, with the hopes that it would someday become his full-time work. He had a lot of experience in this field before launching his company. He did his research and knew what services to offer at what prices. Raphael lined up a number of clients and hired workers to service the accounts. In spite of all this, his business failed. What led to this business failure?

Neglect

decision making

Part of the planning process that involves selecting a course of action from a set of alternatives

European Union (EU)

The first and most important international market system

Which of the following is an advantage of a franchising agreement?

The franchisee can easily establish a business with reduced risks

political-legal dimension

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

communication skills

The manager's abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others

decision-making skills

The manager's ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities

time management skills

The manager's ability to prioritize work, to work efficiently, and to delegate appropriately

conceptual skills

The manager's ability to think in the abstract

diagnostic skills

The manager's ability to visualize the most appropriate response to a situation

technological dimension

The methods available for converting resources into products or services

economic dimension

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

In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?

The same culture is not found throughout the organization.

social responsibility

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

efficient

Using resources wisely in a cost-effective way