Exam 1

Question 1

What does good management look like?

Answer 1

Reliable, Organized, Accountable, Efficient, etc

Question 2

The Management Process

Answer 2

• Planning and Decision Making
  • Organizing
  • Leading (motivating and guiding)
• Controlling (monitoring and correcting

Question 3

Efficiency

Answer 3

Using resources wisely in a cost-effective way

Question 4

Effectiveness

Answer 4

Making the right decisions and successfully implementing them

Question 5

Kinds of Managers

Answer 5

1. Top Managers
   - CEO’s, CFO’s
2. Middle Managers
   - Regional Managers
3. First-Line Managers
   - Supervise/coordinate operating employees

Question 6

Why Study Theory?

Answer 6

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

Question 7

4 periods of management

Answer 7

Classical - late 1800s

Behavioral - early 1900s

Quantitative - Mid 1900s (WWs)

Contemporary - Late 1900s-present

Question 8

Classical period of management (late 1800s)

Answer 8

Growth of large businesses created interest on how best to operate

Question 9

Behavioral period of management (Early 1900s)

Answer 9

Focus on individuals as people and not treat them as tools or machines

Question 10

Quantitative period of management (Mid 1900s)

Answer 10

Emerged from WW2, used mathematical models to solve management problems for logistical support of deployed soldiers

Question 11

Contemporary period of management (late 1900s-present)

Answer 11

Technology and robotics - saw value in theories and attempts to integrate these to solve problems

Question 12

Scientific Management theory

Answer 12

Concerned with improving the performance of individual
- grew out of the Industrial Revolution’s labor shortage

Question 13

Administrative Management theory

Answer 13

Focuses on managing the total organization rather than individuals

Question 14

Hawthorne Studies

Answer 14

Emphasized the importance of individual attitudes and behaviors and group processes

Question 15

Human Relations Movement

Answer 15

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

Basically, worker performance and satisfaction would increase if manager’s concern for workers increased

Question 16

Theory X and Theory Y

Answer 16

Polar opposites

Theory X says that workers are lazy and need strict supervision from management

Theory Y says workers are motivated and don’t need much supervision to get their work done

Question 17

Organizational Behavior study

Answer 17

Focus on behavior perspectives, draws on physocology, sociology , etc.

PROBLEM: complexity of individuals makes behavior hard to predict

Question 18

Systems perspective study

Answer 18

Interrelated set of elements functioning as a whole
- open systems, closed systems, subsystems

Question 19

Contingency Perspective study

Answer 19

Suggests each organization is unique

• Appropriate managerial behavior depends (is contingent) on current situation in the organization
• No “one best way” to manage

Question 20

External vs. Internal Environment

Answer 20

Internal
- Owners
- Employees
- Physical Environment
- Board of directors
- Culture

External
- Customers
- Suppliers
- Regulators
- Competitors

Question 21

General Environment (five dimensions)

Answer 21

International dimension

Technological dimension

Economic dimension
- GDP, unemployment rate, inflation

Sociocultural dimension
- demographics, culture

Political-legal dimension

Question 22

Key indicators of the economic dimension

Answer 22

• interest rates
• unemployment rate
• GDP
• inflation

Question 23

Ethics

Answer 23

An individuals personal beliefs regarding whether a behavior, action, or decision is right or wrong

Question 24

5 Levels of International Business Activity

Answer 24

Exporting

Importing

Licensing

Strategic Alliance and Joint Ventures

Direct Investment
- occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country

Question 25

5 elements of task environment

Answer 25

Regulators Competitors Customers Suppliers Strategic Partners

Question 26

Arguments for social responsibility

Answer 26

Business creates problems and should therefore help solve them Corporations are citizens in our society Business often has the resources necessary to solve problems Business is a partner in our society, along with the government and the general population

Question 27

Arguments against Social Responsibility

Answer 27

The purpose of business in US society is to generate profit for owners Involvement in social program gives business too much power There is potential for conflicts of interest Business lacks the expertise to manage social programs

Question 28

SWOT Analysis

Answer 28

Strengths, Weaknesses, Opportunities, Threats. SWOT can be used to improve a company's all around efficiency and growth. resources, competitive advantage, expansion, risk management. etc.

Question 29

Three types of business level strategies

Answer 29

Differentiation strategy Overall cost leadership strategy Focus strategies

Question 30

Differentiation strategy

Answer 30

Making your product very different/unique from your competitors

Question 31

Overall cost leadership strategy

Answer 31

Offer the best price or best value

Question 32

Focus Strategies

Answer 32

Focuses on a particular target audience

Question 32

Fundamental skills you need for effective management

Answer 32

Technical skills Interpersonal skills Conceptual skills Decision-making skills Time management skills

Question 33

The three main historical perspectives that other perspectives fall under

Answer 33

Classical Management Perspective Behavioral Management Perspective Contemporary Perspectives

Question 34

Corporate level strategies

Answer 34

Single-product strategy (simplicity) Related diversification (synergy) - Company owns lots of names under it (Hilton Hotels) Unrelated diversification (risk/return)

Question 35

Time dimension of Planning

Answer 35

Strategic - long range, 5 or more years, Top management Tactical - Intermediate rang, 1-5 years Operational - short range

Question 36

Types of goals

Answer 36

Strategic goals, set by top management, address broad competitive issues Tactical goals, set by middle managers, that focus on how to operationalize action to strategic goals Operational Goals, set by lower-level managers, focus on actions in support of tactical goals