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Mgmt. Midterm 1
Intro to Management Exam 1
| Term | Definition |
|---|---|
| What is Management? | 1. The pursuit of organizational goals efficiently and effectively. 2. Integrating the work of people. 3. Planning, organizing, leading, and controlling the organization’s resources. |
| Efficient | to use resources (e.g., people, money, raw materials) wisely and cost-effectively |
| Effective | means to achieve results, to make the right decisions and to successfully carry them out so that managers achieve the organization’s goals |
| The Four Principal Functions of Management | Planning, Organizing, Controlling, Leading |
| Planning | setting goals and deciding how to achieve them |
| Organizing | arranging tasks, people, and other resources to accomplish the work |
| Leading | motivating, directing, and otherwise influencing people to work hard and achieve the organization’s goals |
| Controlling | monitoring performance, comparing it with goals, and taking corrective action as required |
| Functional manager | – Responsible for just one organizational activity – For example, director of finance, vice president of production |
| General manager | – Responsible for several organizational activities – For example, executive vice president, an executive director for a nonprofit |
| Top managers | Make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it |
| 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 |
| First-line managers | Make short-term operating decisions, directing the daily tasks of non-managerial personnel |
| Team leader | Responsible for facilitating team activities toward achieving key results |
| Technical skills | The job-specific knowledge needed to perform well in a specialized field |
| Conceptual skills | The ability to think analytically, to visualize an organization as a whole and understand how the parts work together |
| Human skills (soft skills) | The ability to work well in cooperation with other people to get things done; the ability to motivate, to inspire trust, to communicate with others |
| Competitive advantage | The ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them |
| Sustainable development | focuses on meeting present needs while simultaneously ensuring that future generations will be able to meet their needs |
| Scientific Management | Emphasized the scientific study of work methods to improve the productivity of individual workers; key assumption = people are rational |
| Classical Viewpoint | concerned with managing the total organization |
| The Classical Viewpoint: Strengths | • Demonstrated that work activity can be managed by a rational approach • It is possible to improve productivity through scientific methods • Led to later innovations such as management by objectives and goal setting |
| The Classical Viewpoint: Weakness | • Can be too mechanistic • Views workers as “cogs in a machine” with no consideration given to human needs for emotional satisfaction and well being |
| Behavioral Viewpoint | • Emphasized the importance of understanding human behavior and motivating employees toward achievement. • Developed over three phases: 1. Early behaviorism. 2. The human relations movement. 3. Behavioral science. |
| Mayo Studies | Concluded employees worked harder if they received added attention, and thought that managers cared about their welfare and that supervisors paid special attention to them |
| MacGregor’s Theory X | – Represents a pessimistic, negative view of workers. – Workers are irresponsible, resistant to change, lack ambition, hate work, and want to be led. |
| MacGregor’s Theory Y | – Represents an optimistic, positive view of workers. – Workers are considered capable of accepting responsibility, self-direction, self-control, and being creative. |
| Behavioral Science Approach | • 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. |
| Quantitative Viewpoint | Application to management of quantitative techniques, such as statistics and computer simulations Includes: operations management and evidence-based management |
| Operations management | Focuses on managing the production and delivery of an organization’s products or services more effectively. |
| Evidence-based management | Entails translating principles based on best evidence (from research) into organizational practice, bring rationality to the decision-making process. |
| Systems Viewpoint | regards the organization as a system of interrelated parts; can look at your organization as both a collection of subsystems and a whole system |
| Systems Viewpoint: The Four Parts of a System | Inputs, Transformational process, Outputs, Feedback |
| The classical viewpoint often thinks of organizations as ______________; meaning they have little interaction with their environment. | closed systems |
| In reality, nearly all organizations are _____________ meaning they continually interact with their environment | open systems |
| Contingency Viewpoint | Emphasizes that a manager’s approach should vary according to the individual and the environmental situation |
| The Learning Organization | an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge |
| High-Performance Work Practices | Focus on enhancing employees’ ability, motivation, and opportunity to contribute, and thus improve an organization’s ability to effectively attract, select, hire, develop, and retain high- performing personnel |
| Plan | a document that outlines how goals are going to be met |
| Business Plan | a document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success |
| Business Model | describes how its strategy will create value for the customer and at the same time generate revenues sufficient to cover costs and realize a profit; contains customer value proposition and profit formula |
| Customer Value Proposition | Describes: (1) company’s approach to satisfying buyer needs or wants; (2) at a price the customer will consider a good value |
| Without a viable (successful) business model, the firm may fail to: | • Attract customers • Withstand or beat competition • Survive due to lack of profitability |
| Strategy | sets the long term goals and direction for the organization |
| Mission Statement | • Express the purpose of the organization. • What is our reason for being? • Why are we here? |
| Vision Statement | • A clear sense of the future and the actions needed to get there • What do we want to become? • Where do we want to go? |
| Value Statement | • What the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world • What values do we want to emphasize? |
| Short-term goals (aka tactical/operational goals) | Generally span 12 months and connected to strategic goals in a hierarchy known as a means-end chain. |
| Long-term goals (aka strategic goals) | Tend to span 1 to 5 years and focus on achieving the strategies identified in a company’s strategic plan |
| SMART Goals | Specific, Measurable, Attainable, Results-oriented, Target dates |
| Performance Objectives | Express the objective as an outcome or end-result |
| Behavioral Objectives | Express the objective as the behaviors needed to achieve an outcome |
| Learning Objectives | Express the objective in terms of acquiring knowledge or competencies |
| Four Parts of the Planning / Control Cycle | 1. Make the plan 2. Carry out the plan 3. Control the direction by comparing the results with the plan 4. Control the direction in 2 ways |
| Three Key Principles Underlie Strategic Positioning | 1. Strategy is the creation of a unique and valuable position 2. Strategy requires trade-offs in competing 3. Strategy involves creating a “fit” among the activities managed by a business |
| Five Steps of the Strategic Management Process | Step 1: Establish the Company’s Vision, Mission and Value Statements Step 2: Assess the Current Reality Step 3: Formulate the Strategy Step 4: Execute the Strategy Step 5: Maintain Strategic Control |
| SWOT Analysis | a situational analysis in which a company assesses its strengths, weaknesses, opportunities, and threats |
| VRIO | 1. Value 2. Rarity 3. Imitability 4. Organization |
| Forecasting | A vision or projection of the future |
| Trend analysis | Hypothetical extension of a past series of events into the future |
| Contingency planning | - Creation of alternative hypothetical but equally likely future conditions. – Also called scenario planning and scenario analysis. |
| Benchmarking | A process by which a company compares its performance with that of high-performing organization |
| Diversification | – Moving into and/or operating new lines of business – Products may be related or unrelated. |
| Vertical integration | Firm expands into businesses or activities that provide the supplies (product inputs) it needs or that distribute and sell its products |
| Porter’s Four Competitive Strategies | 1. Cost-leadership strategy 2. Differentiation strategy 3. Cost-focus strategy 4. Focused-differentiation strategy |
| Wide market | consists of a broad group of customers that purchase a range of different types of products |
| Narrow market | consists of a subset of customers (a “segment” or “niche”) within a broader market |
| Cost-leadership strategy | Keep the costs, and hence prices, of a product or service below those of competitors and target a wide market |
| Differentiation strategy | Offer products that are of unique and superior value compared to those of competitors and target a wide market. |
| Cost-focus strategy | Keep the costs of a product below those of competitors and target a narrow market. |
| Focused-differentiation strategy | Offer products that are of unique and superior value compared to those of competitors and target a narrow market. |
| Strategic control | Monitoring the execution of strategy and taking corrective action, if necessary |
| Four key steps of keeping a strategic plan on track: | • engage people • keep it simple • stay focused • keep moving |
| Organizational Culture (aka corporate culture) | the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how if perceives, thinks about, and reacts to its various environments |
| Organizational structure | a formal system of task and reporting relationships that coordinates and motivates an organization’s members so that they can work together to achieve the organization’s goals |
| Human Resource practices | consist of all of the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation |
| Four types of Organizational Cultures | - clan - adhocracy - market - hierarchy |
| Horizontal dimension | inward focus; towards operations and employees |
| Vertical dimension | flexibility (and discretion) or stability (control) |
| Clan Culture | • Emphasis on employee collaboration. • Internal focus. • Values flexibility over stability |
| Adhocracy Culture | • Emphasis on innovation and creation. • External focus. • Values flexibility over stability • Adaptable, creative, and quick to respond to changes in the environment. |
| Market Culture | • Emphasis on competition and “winning”, i.e. delivering results. • External focus. • Values stability and control. |
| Hierarchy Culture | • Emphasis on control: process management, efficiency, reliability, timeliness, etc. • Internal focus. • Formalized, structured work environment. |
| How Employees Learn Culture | 1. Symbols 2. Stories 3. Heroes 4. Rites and rituals 5. Organizational socialization |
| Symbols | an object, an act, a quality, or event that conveys meaning to others. |
| Stories | narrative based on true events repeated—and sometimes embellished upon—to emphasize a particular value |
| Heroes | person whose accomplishments embody the values of the organization |
| Rites and rituals | activities and ceremonies that celebrate important occasions and accomplishment |
| Organizational socialization | the process by which people learn the values, norms, and required behaviors of an organization |
| Span of control | The number of people reporting directly to a given manager |
| Centralized authority | Organizational structure in which important decisions are made by upper managers—power is concentrated at the top |
| Decentralized authority | Organizational structure in which important decisions are made by middle-level and supervisory-level managers—power is delegated throughout the organization |
| Wide span of control | a single manager or supervisor oversees a large number of subordinates |
| Narrow span of control | a management style where supervisors manage only a small number of employees |
| Organizational Design | concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies |
| There are three categories of organizational designs: | 1. Traditional designs 2. Horizontal designs 3. Open boundaries between organizations |
| The Simple Structure | has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization |
| Functional Structure | people with similar occupational specialties are put together in formal groups |
| Divisional Structure | People with diverse occupational specialties are put together in formal groups either by: (1) similar products or services; (2) customers or clients; or (3) or geographic regions |
| Matrix Structure | Combines functional and divisional chains of command in a grid so that there are two command structures: vertical and horizontal |
| Horizontal Design | teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries |
| Hollow or Network Structure | a central core of key functions and outsources other functions to vendors who can do them cheaper or faster |
| Modular Structure | will assemble product “chunks” or modules, provided by outside contractors |
| Virtual organization | Organization whose members are geographically distant, usually working via e-mail, collaborative computing, and other computer connections. |
| Virtual structure | Company outside a company that is created “specifically to respond to an exceptional market opportunity” that is often temporary |
| Strategic Human Resource Management | the process of designing and implementing systems of policies and practices that align an organization’s human capital with its strategic objectives. |
| Talent Management | •Matches high-potential employees with an organization’s most strategically valuable positions •Example: promoting “star” employees to lead important business units •Focuses on individuals |
| High-Performance Work Systems | •Uses bundles (not just one thing) of internally consistent HR practices in order to improve employee ability, motivation, and opportunities •Focuses on improving performance of collective human and social capital |
| Human resource management (HRM) | The process of planning for, attracting, developing, and retaining an effective workforce. |
| Human capital | The economic or productive potential of employee knowledge, experience, and actions. |
| Social capital | The economic or productive potential of strong, trusting, and cooperative relationships. |
| Recruiting | the process of locating and attracting qualified applicants for jobs open in the organization |
| Internal recruiting | means making people already employed by the organization aware of job openings |
| External recruiting | means attracting job applicants from outside the organization |
| Selection | the process of screening job applicants and choosing the best candidate for a position |
| Three types of selection tools: | 1. Background information 2. Interviews 3. Employment tests |
| Unstructured Interview | involves asking probing questions to find out what the applicant is like; no fixed set of questions and no systematic scoring procedure |
| Structured Interview | involves asking each applicant the same questions and comparing their responses to a standardized set of answers |
| Two types of Structured Interviews | Situational and Behavioral-description interviews |
| Situational interview | The interviewer focuses on hypothetical situations |
| Behavioral-description interview | The interviewer explores what the applicant has actually done in the past |
| Employment tests | standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies. |
| Compensation is Comprised of Three Parts | 1. Base pay 2. Incentives 3. Benefits |
| Performance management | set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations |
| Performance management has four steps: | 1. Define performance 2. Monitor & evaluate performance 3. Review performance 4. Provide consequences |
| Performance Appraisal | is a management process that consists of: 1. Assessing an employee’s performance 2. Providing him or her with feedback |
| Objective appraisals (results appraisals) | based on facts and are often numerical (measure desired results and are harder to legally challenge) |
| Subjective appraisals | based on a manager’s perceptions of an employees traits or behaviors |
| Trait appraisals | ratings of such subjective attributes as “attitude”, “initiative”, and “leadership” |
| Behavioral appraisals | measure specific, observable aspects of performance. |
| 360-Degree Assessment | employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients |
| Forced Ranking | all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve |
| Civil Rights Act, Title VII | Prohibits discrimination on basis of race, color, religion, national origin, sex, or sexual orientation |
| Workplace Discrimination | occurs when employment decisions about people are made for reasons not relevant to the job, such as skin color or eye shape, gender, religion, national origin, and the like. |
| Adverse impact | occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites). |
| Disparate treatment | results when employees from protected groups (such as disabled individuals) are intentionally treated differently. |
| Affirmative action | focuses on achieving equality of opportunity within an organization. |
| Sexual harassment | consists of unwanted sexual attention that creates an adverse work environment. |
| Quid pro quo | asking for or forcing an employee to perform sexual favors in exchange for receiving some reward or avoiding negative consequences |
| Hostile work environment | telling lewd jokes, displaying pornography, making sexually-oriented remarks about someone’s personal appearance, and other sex-related actions that make the work environment unpleasant. |
| Managerial Steps to Prevent Harassment | • Put in place an effective sexual harassment policy • A formal complaint procedure should be put in place and communicated to employees • Supervisors should be trained in Title VII requirements and the proper procedures to follow when charges occur |
| Bullying | repeated mistreatment of one or more persons by one or more perpetrators; it is abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating. |
| Diversity | can be defined as dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities |
Created by:
coralis
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