Management Test #1

licensing

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

The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and fulfills duties and obligations of the social system.

false

direct investment

firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country (lower labor costs)

contingency perspectives

suggest that appropriate managerial behavior in a given situation depends on or is contingent on a wide variety of elements

closed system

system that does not interact with its environment

open system

system that interacts w its environment

subsystem

system within another system

Contingency planning

systematic assessment of the external environment to prepare for a possible range of alternative futures for the organization (4th step in SMP)

The theory based on the idea that the best managerial actions in a given situation depend on the elements of that situation is known as

the contingency approach

____ is NOT included in the model of personal moral development described in your text.

-Preconventional -Principled -Postconventional -Conventional (all are included)

quantitative management limitations:

-cannot fully explain or predict behavior of people in organizations -models may have unrealistic assumptions

What are the main points in Weber's bureaucratic organization structure?

-clear differentiation of tasks and responsibilities among individuals -coordination through a strict hierarchy of authority and decision rights -standardized rules and procedures -vertical separation of planning and exectuion so that plans are made in the upper ranks of an organization and executed in lower

four basic elements of a system:

-inputs -transformation processes -outputs -feedback

classical management perspective two branches:

-scientific management -administrative management

senior executives are expected to:

-set the vision and agenda for the organization as well as oversee strategic execution -secure buy-in and support in the organization -rely on strong communication and interpersonal skills

3 Pillars of management:

1. Strategic Position 2. Organizational Design 3. Individual Leadership

Only about _____ percent of American adults reach the level-three stage of moral development.

20

Which of the following individuals is the best example of a senior executive?

A person who sets the vision and objectives of an organization

Scientific management was introduced by:

Frederick Taylor

in the 1930's what type of movement occurred:

Human relations movement

Which of the following statements best describes scientific management?

It focuses on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods.

Leaders vs. Managers:

Leaders: set direction, align people, motivate and inspire managers: plan and budget, organize and staff, control and problem solve

Which of the following is NOT a characteristic of a mature market economy? A) They employ market forces in the allocation of resources B) Their GDP comes largely from oil revenue C) They have mostly private ownership of property D) U.S. managers have relatively few problems operating there E) Markets in these economies are typically quite mature

The GDP comes largely from oil revenue.

Which of the following statements about the three pillars of management is true?

The interplay of strategy, organizational design, and individual action operates within a broad contextual landscape.

According to the text, which of the following is a factor of the political-legal environment for international managers? A) Infrastructure B) The use of import quotas and tariffs C) Natural resources D) Language spoken E) Religious beliefs

The use of import quotas and tariffs

What does VUCA stand for?

V: volatility U: Unvertainty C: Complexity A: Ambiguity

Contemporary organization theory has its roots in

Weber's work on bureaucracy

international business

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

NAFTA

an agreement made by US, Canada, and Mexico to promote trade w one another

definition of leadership:

ability to drive change and innovation through inspiration and motivation

contextual intelligence

ability to understand the impact of environment factors on a firm

Definition of management:

act of working with and through a group of people to accomplish a desired goal or objective in an efficient and effective manner

____ focuses on the management of the entire firm as opposed to the jobs of individual workers.

administrative management

market economy

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

The human relations movement:

belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of the firm.

importing

bringing a good, service, or capital into home country from abroad

domestic business

business that acquires all of its resources and sells all of its product or services within a single country

multinational business

business that has worldwide marketplace from which it buys raw materials, borrows money, where it manufactures its products and to which it subsequently sells its products

global business

business that transcends national boundaries and is not committed to a single home country

classical management limitation:

can lead to people being seen as tools rather than resources, and is sometimes put to universal problems that it is not applicable to handle. (for more simple situations)

management perspectives that are considered "universal"

classical, behavioral, and quantitative

The Taliban seek to isolate women and control every aspect of their lives. The Taliban try to create ____ that do not interact with the external environment.

closed system

market systems

cluster of countries that engage inhigh levels of trade with one another

business environment definition:

combination of all contextual forces and elements in the external and internal environment of a firm

operations management

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

Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development?

conventional

TransFair USA promotes fair trade programs so farmers in developing countries can earn high enough wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of international management. A) technological B) cultural C) political D) economic E) legal

cultural

classic example of bureaucratic organization:

military

Compassion International is a children's charity that provides basic necessities, schooling, and job training for poverty-stricken children around the world. This not-for-profit organization would require which type of investment when it enters a new country? A) Direct investment B) Joint venture C) Licensing D) Importing/exporting E) Franchising

direct investment

Which of the following responsibilities is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics?

discrentionary

behavioral management perspective

emphasizes individual attitudes and behaviors and group processes

According to the systems perspective of management, which of the following is NOT an example of a transformation process for an organization?

employee behavior

soldiering

employees deliberately working at a slow pace

Classical management consists of two distinct branches: behavioral management and human resource movement.

false

France has a relatively low level of government ownership among the market economies. Indicate whether the statement is true or false

false

Managerial view is a business framework where the job of top managers is to produce the highest possible stock market valuation of the firm's assets.

false

Packaging for rice should be green because all countries think green is healthy.

false

shareholder view (1960's-1980's)

focus on financial performance, get highest possible stock market valuation of the firms assets

managerial view (up to 1960's):

focus on production

stakeholder view (1980's-now)

focus on serving multiple constituencies,

behavioral management perspective

focuses on employee behavior in organization context. stimulated by birth of industrial psychology

Scenario building

forecasting the likely result that might occur when several events and stakeholders are linked together (3rd step in SMP)

Quantitative Management Movement

happened after second world war. applies quantitative technique to management

"universal perspectives" try and

identify "one best way" to manage organizations

limitation of behavioral management

individual behavior is complex, making the prediction of that behavior difficult. managers are also reluctant to adopt this method.

Z-Gadgets often faces opposition when it goes into a community to open a new Z-Gadgets store. One reason for this is that the management of Z-Gadgets has been accused of unethical acts, such as discriminating against women and minorities. The top managers' poor treatment of women and minority employees might be considered a failure with respect to what area of managing organizations?

individual leadership

When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of the_____.

individualism approach

Satellites, shipping ports, railroads, and airports are part of a nation's A) natural resources. B) political system. C) cultural environment. D) infrastructure. E) technological environment.

infrastructure

Helen, a senior executive, works with others to create the strategic positioning that will enable the firm to effectively compete in the marketplace. From this scenario, it can be inferred that Helen uses the _______ of management.

interpersonal skills

Which of the following is the most important skill of a middle manager?

interpersonal skills such as motivating and developing

The frontline managers of a firm are feeling directionless and resistant to change. Middle management has failed in providing

leadership

maquiladoras

light assembly plants built close to Us in northern mexico that are given special tax breaks by Mexican gov.

the bureaucratic organization effectively did what:

made organizations more rational and efficient

exporting

making a product in the firm's domestic marketplace and selling it in another country

Input ex:

material, human, financial, and info resources the organization gets from its environment

Charles Babbage emphasized the application of mathematics to production problems; thus, his work was a forerunner of

operations management

What insight came from the 1950's?

organizational structure differs whether they are designed to execute certain tasks or uncertain innovative tasks.

When a local manager is given autonomy and responsibility in dealing with job design, he or she has freedom in global A) planning and decision making. B) organizing. C) leading. D) controlling. E) None of these choices

organizing

The relationship between social responsibility and financial performance has been shown to be _____.

positive

The decision by Paula Reid, the manager who statted the U.S. Secret Service prostitution scandal in Catagena, was based largely on the _____ approach

practical

strategic review process:

process by which senior leaders of a corporation meet with business unit managers to review progress toward specific goals. (1 step in stakeholder management process)

outputs ex:

products, services (or both), profits, loses, employee behaviors, and info

Environmental scanning

scan's business horizon for key events and trends that will affect the business in the future (2nd step in stakeholder management process)

At Toyota, each task operating employees and machines perform is carefully studied to promote maximum productivity. Some tasks are examined using time and motion studies to standardize work methods. What management approach is Toyota using?

scientific management

in the 1910's what type of management occurred:

scientific management

Describe sceintific management and administrative management from the classical management perspective

scientific management: focuses on individual and production administrative management: focuses on efficiency and effectiveness

According to the contingent view

the organization's structure should fit the firm's environment.

People in Pakistan and West Africa are more likely to want immediate gratification. This is an example of Hofstede's ____ orientation. A) power B) global C) social D) time E) uncertainty

time orientation

Trend analysis

tool where key variable are monitored and modeled to help predict a changed that might occur in the environment

A stakeholder is any group or individual who can affect or is affected by the achievement of an organization's purpose.

true

Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.

true

Important stakeholders in corporations include the government and the community.

true

No organization is insulated from the effects of foreign markets and competition. Indicate whether the statement is true or false

true

T or F: The study of management did not begin until the nineteenth century.

true

T or F: When compared to management science, operations management is focused more on applications.

true

strategic alliance

two or more firms jointly cooperate for mutual gain

synergy

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

joint venture

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

contingent view (1960's):

view of the firm where effective organizational structure is based on fit or alignment between the organization and various aspects in its environment

human relations movement

workers respond primarily to social context of the workplace. this includes: social conditioning, group norms, and interpersonal dynamics