Business Exam Notes

Question 1

Autocratic Leadership Style

Answer 1

Emphasizes task and result over people, does not share authority. Effective with new employees or employees who challenge the managers authority.

Question 2

Democratic Leadership Style

Answer 2

Act as a facilitator and resource person, encourages active participation. Effective when the leader wants highly involved employees.

Question 3

Laissez-Faire Leadership Style

Answer 3

Hands off, lets employees make decisions. Effective when employees are highly skilled and experienced.

Question 4

Collaborative Leadership Style

Answer 4

Acts as a role model and builds relationships. Effective when the leader wants to give employees the opportunity to develop.

Question 5

Functional Organization Structure

Answer 5

People performing similar tasks are grouped together. Members of functional department share skills, technical expertise and responsibilities. Works best in companies that only produce one product or service.

Question 6

Divisional Organization Structure

Answer 6

People, jobs and activities are based on: product or service provided, process, clientele served or geographic area.

Question 7

Hybrid Organization Structure

Answer 7

Combines different types of divisional structures in the same organization. The larger the organization the more likely it is that the organization will use a hybrid structure.

Question 8

Matrix Organization Structure

Answer 8

Combine functional and divisional structures. People belong to two formal groups at the same time, a functional group and a project team. They report to two supervisors.

Question 9

Herzberg’s Hygiene Factors

Answer 9

Absence can create job dissatisfaction (working conditions, salary, peer relationships)

Question 10

Herzberg’s Motivational Factors

Answer 10

Increase job satisfaction (achievement, recognition, responsibility.)

Question 11

Blake and Mouton

Answer 11

Invented the managerial grid model that identifies five different leadership styles based on concern for people and concern for production.

Question 12

MBO Control Systems

Answer 12

Aligns employee actions with the goals of the organization. Intent is to make sure everyone is clear about what they should be doing and how it is beneficial to the organization.

Question 13

Internal Control System

Answer 13

Relying on employees to regulate their own behavior and demonstrate self-discipline. Works well for highly motivated individuals.

Question 14

Progressive Discipline

Answer 14

The disciplinary action administered to an employee should vary on how significant and how often the behavior occurs, since some types of misbehavior are more severe then others.

Question 15

Role of a Manager

Answer 15

1. Leading (Establishing and directing the vision and mission of the team)
2. Planning (setting performance objecties and deciding the best way to achieve them)
3. Organizing (Directing the activities of the team, scheduling the use of departmental resources and executing the necessary work)
4. Controlling (measuring the teams performance and taking the necessary action to ensure desired results are achieved)

Question 16

Maslow

Answer 16

Famous for the pyramid which is used to symbolize his hiearchy

Question 16

ERG

Answer 16

Presents a model of progressive needs, however unlike Maslow’s hierarchy it allows for flexibility and can account for a wider range of observes behaviors

Question 17

Active listening

Answer 17

1. Listen for total meaning
2. Respond to feelings
3. Note all cues

Question 18

Corporate culture

Answer 18

Core culture: the values and beliefs that shape and guide worlds behaviors

Observable culture: what you see and hear as you walk around an organization

Question 19

Virtual Teams

Answer 19

A group of people who work interdependently with a shared purpose across space, time and organization boundaries using technology.

Question 20

Corporate structure

Answer 20

A grouping of different positions and departments within a company which all have separate tasks but work together to operate as one company

Question 21

Psychological Contract

Answer 21

Represents the mutual beliefs, perceptions and informal obligations between an employer and an employee

Question 22

Functional Structure

Answer 22

The classic organization structure where the employees are grouped hierarchically managed through clear lines of authority and report ultimately to one person.