MGT3000 Test # 1 Study Guide
boundary spinning
links to and coordinates the organization with key elements in the external environment
In managing the strategic approach of and with its subsidiary in Germany, managers at Sharon's company have found that communication with their German colleagues consists mostly of an exchange of facts and information and making sure the aspects of their business transactions are carried out efficiently. The reason this communication style is typical in this situation is because the United States and Germany are both:
low-context cultures.
liaison (part of 10 roles)
maintain information links inside and outside the organizations; use email, phone, meetings
human resources perspective
maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform combines prescriptions for design of job tasks with theories of motivation
trail by fire
managers having to learn of the job, as they go
international management
managing business operations in more than one country
total quality management
managing the entire organization so that it excels on all dimensions of products and services that are important to the customer the four significant elements of this are: employee involvement, focus on the customer, benchmarking, and continuous improvement
discuss how the international landscape is changing, including the growing power of China, India, and Brazil
many companies are going straight to China or Brazil as a first step into international business China is strong in manufacturing, whereas India is a major provider of services Chinese corporation Lenovo is the country's first global corporation, with managers coming from 14 different nations, living and working in six cities on three continents Brazil, with its rapidly growing consumer market, is becoming a major player in the shifting international landscape Managers also look to China, India, and Brazil as a source of lower-cost technological and scientific brainpower
outsourcing
means engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of the country
organizational effectiveness
means providing a product or service that customers value
Explain the unique characteristics of the manager's role in small businesses and nonprofit organizations
most important roles: spokesperson for the business and acting an as entrepreneur nonprofits: direct their efforts towards generating some kind of social impact rather than toward making money, struggle with what constitutes as effectiveness they all integrate and adjust the various management functions to meet the challenges they face
greenfiled venture
most risky type of direct investment a company builds a subsidiary from scratch in a foreign country
informal organization
occurs in all formal organizations and includes cliques, informal networks, and naturally occurring social groupings
high-context culture
one in which people use communication to build personal relationships
competitors
organizations within the same industry or type of business that vie for the same set of customers
customers
part of the task environment and include people and organizations that acquire goods or services from the organization
subsystems
parts of a system, such as an organization, that depend on one another
low-context culture
people use communication primarily to exchange facts and information
figurehead (part of 10 roles)
perform ceremonial and symbolic duties such as greeting visitors, signing legal documents
Efficiency
pertains to the amount of resources - raw materials, money, and people - used to produce a desired volume of output.
Hofstede's sociocultural value dimensions measure power distance, uncertainty avoidance, individualism-collectivism, and masculinity-femininity
power distance - the degree to which people accept inequality in power among institutions, organizations, and people uncertainty avoidance - characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity individualism - refers to a preference for a loosely knit social framework in which individuals are expected to take care of themselves collectivism - refers to a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests masculinity - a cultural preference for achievement, heroism, assertiveness, work centrality, and material success femininity - a cultural preference for relationships, cooperation, group decision making, and quality of life
explain the bottom of the pyramid concept
proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people (people earning less than $1,500 USD/year - about 4 billion people)
Suppliers
provide the raw materials the organization uses to produce its output
how does the general and task environments affect an organization's ability to thrive?
provide the resource and information transactions, flows, and linkage necessary for organizations to thrive
describe the characteristics of a multinational corporation
receives more than 25% of its total sales revenue from operations outside the parent company's home country managed as an integrated worldwide business system in which foreign affiliates act in close alliance and cooperation with one another controlled by a single management authority that makes key strategic decisions relating to the parents and all affiliates top managers are presumed to exercise a global perspective
political risk
refers to a company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments
infrastructure
refers to a country's facilities, such as highways, utilities, and airports, which support economic activities
Supply Chain Management (SCM)
refers to managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to customers
organizational efficiency
refers to the amount of resources used to achieve an organizational goal
effectiveness
refers to the degree to which the organization achieves a stated goal
globalization
refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries
time management
refers to using techniques that enable you to get more done is less time with better results, be more relaxed, and have more time to enjoy your work and your life
negotiator (part of 10 roles)
represent team or department's interests; represents department during negotiation of budgets, union contracts, purchases
international dimension (of the general environment)
represents events originating in foreign countries, as well as opportunities for US companies in other countries
economic dimension (of the general environment)
represents the general economic health of the country of region in which the organization operates
labor market
represents the people available for hire by the organization
Monitor (part of 10 roles)
seek and receive information; scan Web, periodicals, reports; maintain personal contacts
Penelope has held a management position at her organization's foreign subsidiary for nearly a year. She has put much effort into building relationships of trust with other managers there. With her efforts, she is cultivating the _____ of the global mind-set.
social dimension
describe the management changes brought about by a technology-driven workplace, including the role of social media programs, customer relationship management (CRM), and supply chain management
social media induced changes - looking into the backgrounds and activities of job candidates, generating awareness about the company's products and services, sharing ideas/seeking feedback from customers and partners, strengthening relationships among employees, and selling products CRM induced changes - more accurate sales forecast, coordinate sales and service staff, improve product design and marketing, and act quickly to respond to shifting customer needs and desires supply chain management induced changes - managed with sophisticated technology, linking businesses together
provide organizational examples of symbols, stories, heroes, slogans, and ceremonies and explain how they relate to corporate culture
symbols - an object, act, to event that conveys meaning to others (ex: throwing away all of the broken furniture - symbolizing a new start) story - a narrative based on true events that is repeated frequently and shared among organizational employees (ex: UPS ordering an extra plane to make sure Christmas presents get there on time) Hero - a figure who exemplifies the deeds, character and attributes of a strong culture (ex: Steve Jobs exemplified creativity, innovation, and risk-taking actions at Apple) Slogans - a phrase or sentence that succinctly expresses a key corporate value (ex: Disney - "The happiest place on Earth") Ceremony - a planned activity at a special events that is conducted for the benefit of an audience (ex: Southwest buying a plane for their 20th anniversary, and other big anniversaries) all contribute to corporate culture by promoting positivity in the work environment
Organizational ecosystem
system formed by the interaction among a community of organizations in the environment includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive
disturbance handler (part of 10 roles)
take corrective action during conflicts and crises; resolve disputes among subordinates
general environment
technological, natural, sociocultural, economic, legal/political, international
contingency view
tells managers that what works in one organizational situation might not work in others; managers can identify important contingencies that help guide their decisions regarding the organization
systems thinking
the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements
performance
the attainment of organizational goals by using resources in an efficient and effective manner
Management
the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
conceptual skills
the cognitive ability to see the organization as a whole and the relationships among its parts
Organizational effectiveness
the degree to which the organization achieves a stated goals, or succeeds in accomplishing what it tries to do
ethnocentrism
the natural tendency among people to regard their own culture as superior to others managers working should guard against this
culture
the set of key values, beliefs, understandings, and norms shared by members of an organization
technical skills
the understanding and proficiency in the performance of specific tasks
Customer Relationship Management (CRM)
these systems use the latest information technology to keep in close touch with customers and to collect and manage large amounts of customer data
Classical Management Perspective
this perspective contains three subfields, each with slightly different emphasis: scientific management, bureaucratic organizations, and administrative principles. early study of management - occurred during the 19th and 20th centuries
Spokesperson (part of 10 roles)
transmit information to outsiders through speeches, reports
explain the strategies that managers use to help organizations adapt to an uncertain or turbulent environment
uncertainty in management - managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes when there is high uncertainty (high rate of change in factors and high number of factors in the organizational environment), managers tend to adapt to their new environments strategies - boundary spinning, create a corporate alliance, merger/joint venture
Theory Y
under the right circumstances people will both accept and seek responsibility
Management Science
uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems also called the "quantitative perspective" the most recent subfield for this perspective is information technology
behavioral science approach
uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting
consistency culture
values and rewards a methodical, rational, orderly way of doing things
corporate culture
visible aspects - artifacts, such as dress, office layout, symbols, slogans, and ceremonies invisible aspects - expressed values; underlying assumptions and deep beliefs, such as "people here care about one another like family" helps managers understand the hidden, complex aspects of organizational life
universalist view
what works in one organization would work in others
syngergy
whole is greater than the sum of the parts
how is globalization creating a borderless world for today's managers?
whole world is a source of business threats and opportunities interacting with people from other cultures
Describe five management competencies that are becoming crucial in today's fast-paced and rapidly changing world
1. ability to be an enabler rather than a controller 2. using an empowering leadership style 3. encouraging collaboration 4. leading teams 5. mobilizing for change and innovation
what are the four types of corporate cultures?
1. adaptability culture 2. achievement culture 3. involvement culture 4. consistency culture
What are the personal challenges in becoming a new manager?
1. immense time pressures of management 2. administrative paperwork 3. challenge of directing others 4. adjusting to new roles and responsibilities 5. expectation of having more freedom than they do 6. having issues delegating work 7. multi-tasking - do one thing at a time 8. life on speed dial - finding time
Define 10 roles that managers perform in organizations
1. monitor 2. disseminator 3. spokesperson 4. figurehead 5. leader 6. liaison 7. entrepreneur 8. disturbance handler 9. resource allocator 10. negotiator
what are the three subfields of management science?
1. operations research 2. operations management 3. information technology
Organizations often join together to adapt to or influence the environment. The number of corporate alliances has been increasing at a rate of _____ annually.
25%
achievement culture
A results-oriented culture that values competitiveness, personal initiative, and achievement.
bureaucratic organizations approach
A systematic approach developed in Europe that looked at the organization as a whole, a subfield within the classical perspective. Max Weber (1864-1920), a German theorist, introduced most of the concepts on bureaucratic organizations. ideal bureaucracy: division of labor (w/ clear definitions of authority and responsibility), positions organized in a hierarchy of authority, managers subject to rules, management separate from ownership, administrative acts and decisions recorded in writing, personnel selected and promoted based on technical qualifications
multinational corporation (MNC)
An organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country and has a number of distinctive managerial characteristics.
administrative principles approach
Another major subfield within the classical perspective that focuses on the total organization rather than the productivity of the individual worker. The major contributor to this approach was Henri Fayol (1841-1925), a French mining engineer. discussed 14 general principles of management, including: unity of command, division of work, unity of direction, and scalar chain (chain from top to bottom including all employees)
As a geocentric company, Avian Enterprises would have which of the following characteristics?
It does not favor a specific country.
The strategic plan at Everett's company includes a move to become a multinational company. Which of the following would need to occur in order for it to be considered a multinational company?
It is managed as an integrated worldwide business system.
Which of the following statements about managing international business matters is true?
Many managers fail to realize that the values and behaviors that typically govern how business is done in their own country don't always translate to the rest of the world.
Over a 15-year period, the agreement that removes tariffs and trade restrictions on most manufactured and agricultural products and is expected to spur growth, increase exports, and create jobs in all three of its signatory countries is:
NAFTA
Hawthorne Studies
Observation that employee motivation is affected as much or more by recognition and show of concern, as it is by improvements in their work conditions. Observed by the US productivity researcher George Elton Mayo (1880-1949), during 1927 to 1933 at the Hawthorne (Illinois) plant of Western Electric.
organizational efficiency vs. effectiveness
Organizational efficiency involves the specific amount of resources used in production. Organizational effectiveness means that its products are providing value to customers
Which of the following statements about a global mind-set is true?
People who have exposure to different cultures develop a global mind-set more easily.
Who is credited with creating the modern study of management?
Peter Drucker
Which of the following EU members has had difficulties paying its debts, a situation that puts the entire eurozone at risk?
Portugal
quants
Refers to financial managers and others who make decisions based primarily on complex quantitative analysis. has come to dominate decision making in financial firms
scientific management
Scientifically determined jobs and management practices as the way to improve efficiency and labor productivity. within the classical management perspective developed standard method for performing each job, selected workers based on their abilities for each job, trained workers in standard methods, supported workers (planning their work, eliminating interruptions), and provided wage incentives to workers for increased output / Taylor insisted that improving productivity meant that management itself would have to change and, further, that the manner of change could be determined only by scientific study
A basic supply chain model for a retail organization would include which sequence of members?
Suppliers, manufacturers, distributors, retailers
Which of the following would NOT be considered an economic factor to be considered in decisions about international business?
Tariffs, quotas, and taxes
human relations
The study of how people interact with one another
In a discussion of the attributes of strong corporate cultures, which of the following statements is true?
They sometimes promote negative values and behaviors.
high-performance culture
a culture that is based on a solid organizational mission or purpose, embodies shared adaptive values that guide decisions and business practices, and encourages individual employee ownership of both bottom-line results and the organization's cultural backbone
involvement culture
a culture that places high value on meeting the needs of employees and values cooperation and equality
wholly owned foreign affiliate
a foreign subsidiary over which an organization has complete control
franchising
a form of licensing in which a company provides its foreign franchisees with a complete package of materials and services (ex: McDonald's)
role
a set expectations for a manager's behavior
system
a set of interrelated parts that function as a whole to achieve a common purpose
Organization
a social entity that is goal directed and deliberately structured
human skills
ability to be able to work with others important to managers because it will allows one to develop good work relationships, clarify direction and performance expectations, and the ability to create cooperation and teamwork
joint venture
an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution network
human relations movement
based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control
adaptability culture
characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses
Name the contemporary management tools and some reasons that management trends change over time
contemporary management tools: e-business, decentralization, customer relationship management, virtual organization, empowerment, and reengineering why trends change over time? - tend to look for new ideas to help them cope during difficult times management idea life cycles have been growing shorter and shorter - only averaging about 3 years now
economic development
countries vary widely in this they are classified as developed countries or less-developed countries (LDCs)
explain why it is important for managers to develop their cultural intelligence
cultural intelligence (CQ) - refers to a person's ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately; there are three aspects: cognitive, emotional, and physical
what are the tools that a cultural leader uses to create a high-performance culture?
cultural leadership - managers must over-communicate to ensure that employees understand the new culture values, and they signal these values in actions as well as words
examine the relationship between culture, corporate values, and business performance
culture enables solid business performance through the alignment of motivated employees with the mission and goals of the company
task environment
customers, competitors, suppliers, labor market
resource allocator (part of 10 roles)
decide who gets resources; schedule, budget, set priorities
cultural leader
define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions
leader (part of 10 roles)
direct and motivate subordinates; train, counsel, and communicate with subordinates
case view
each situation in management is believed to be unique
indicate how dissimilarities in the economic, sociocultural, and legal-political environments throughout the world can affect business operations
economic - economic development, infrastructure, resource and product markets, per capita income, exchange rates, and economic conditions legal-political - political risk, government intervention, tariffs/quotas/taxes, terrorism/political instability, and laws and regulations sociocultural - social values/beliefs, language, religion (objects, taboos, and holidays), demographic profile, formal education and literacy, and time orientation
Humanistic Management Perspective
emphasizes the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes. There are three primary subfields based on this: the human relations movement, the human resources perspective, and the behavioral science approach
internal environment
employees, culture, management
strategic issues
events and forces that alter an organization's ability to achieve its goals as environmental turbulence increases, these issues emerge more frequently
explain the three common market entry strategies: exporting, licensing, and direct investing
exporting - the company maintains its production facilities within the home nation and transfers its products for sale in foreign countries licensing - a corporation (the licensor) in one country makes certain resources available to companies in another country (the licensee). example resources: technology, managerial skills, and patent or trademark rights direct investing - means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control
Disseminator (part of 10 roles)
forward information to other organization members; send memos and reports, make phone calls
Many American shoppers say they would pay higher prices for U.S.-made products to keep jobs from going overseas. This statement is a reflection of which of the following concepts?
global backlash
describe a global mindset and why it has become imperative for companies operating internationally
global mindset - the ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics a manager with a global mindset can perceive and respond to many different perspectives at the same time rather than being stuck in a domestic mind-set that sees everything from one's cultural perspective
personal identity
in terms of becoming a manager, the transformation in the way people think of themselves, which includes letting go of deeply held attitudes and habits and learning new ways of thinking
natural dimension (of the general environment)
includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate
sociocultural dimension (of the general environment)
includes demographic characteristics, norms, customs, and values of a population within which the organization operates
political instability
includes events such as riots, revolutions, or government upheavals that can affect the operations of an international company
legal-political dimension (of the general environment)
includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior
technological dimension (of the general environment)
includes scientific and technological advances in society
Which of the following would NOT be considered a key legal-political factor in the international environment?
infrastructure
entrepreneur (part of 10 roles)
initiate improvement projects; identify new ideas, delegate idea responsibility to others
