Exam 4- Business Flashcards
(183 cards)
0
Q
GENERIC LEADERSHIP STYLES
A
AUTHORITATIVE LEADER
LAISSEZ FAIRE (FREE REIGN) LEADER
PARTICIPATIVE LEADER
1
Q
Business etiquette
A
1. MAINTAIN EYE CONTACT BUT DO NOT STARE GIVE A “FIRM” HANDSHAKE BUT: 3. KEEP GOOD POSTURE 4. SPEAK CLEARLY/AVOID SLANG 5. DRESS APPROPRIATELY
- GET NAMES STRAIGHT
- BE A GOOD LISTENER
- LET THE OTHER PERSON BE THE CENTER OF ATTENTION
- PUNCTUALITY
- GET A MENTOR
- MAKE THE BOSS LOOK GOOD
- HAVE A POSITIVE ATTITUDE.
2
Q
Delegating
A
MUST INCLUDE:
Authority to carry out the task
Accountability for the results
3
Q
JACK WELCH ON LEADERSHIP
A
20-70-10
Rank 20 percent “best”
Rank 70 percent “near best”
Rank 10 percent “below best”
4
Q
JACK WELCH—HANDLING THE MOVE FROM “PEER” TO BOSS
A
From “one of us” to “one of them”
Peers will cheer, then in private feel they deserved it, feel hurt, resentful
Most delicate and complicated situation
Campaign to win them over—3 to 6 months
Create an atmosphere of stability and cohesion
Gentler, kinder boss to lead from strength
5
Q
JACK WELCH’S THREE BOSS-TYPES
A
ARRAYED ON TWO DIMENSIONS
THE “DESTROYER”—A “BAD” TOUGH BOSS
THE “IS EVERYBODY HAPPY?” BOSS—A ANOTHER BAD BOSS
THE “GOOD” TOUGH BOSS—SOMEWHERE IN BETWEEN
6
Q
EVALUATING EMPLOYEES
A
SET PERFORMANCE STANDARDS
MONITOR AND RECORD ACTUAL PERFORMANCE (PAPER TRAIL
COMPARE RESULTS AGAINST PLANS AND STANDARDS
7
Q
JACK WELCH—HOW TO KEEP PEOPLE PUMPED
A
MONEY IS A MOTIVATOR
INTERESTING WORK
ENJOYABLE CO-WORKERS
RECOGNITION
8
Q
HOW TO FORM A BUSINESS
A
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
9
Q
LIMITED LIABILITY COMPANY
LLC
A
The fasted growing way to organize a business
Allows flexibility
Limited liability
Choice of whether to pay taxes as a corporation or a partnership
Flexibility in distributing profits—not just proportional to shares held
10
Q
LIMITED LIABILITY PARTNERSHIP
LLP
A
Favorite among lawyers, accountants, engineers
General partners are not liable for the financial problems of other general partners
Limited liability
Profits are ordinary income and taxed as such
11
Q
LEVERAGED BUYOUT (LBO)
A
Management or investors (or a combination of both) pool money to buy a corporation
Usually using borrowed money
Company is often weakened by huge debt load
Can be politically sensitive if foreign company buys U.S. icon
12
Q
MERGERS AND ACQUISITIONS
A
When companies combine
Merger implies two equally sized firms
Acquisition is when one firm buys another smaller firm
Can be friendly or hostile “takeover”
13
Q
TYPES OF MERGERS
A
HORIZONTAL MERGERS
VERTICAL MERGERS
CONGLOMERATE
14
Q
Horizontal mergers
A
Mergers among competitors
Exxon merges with Mobil to form ExxonMobil
Staples merges with Office Max
Most likely to attract government regulators
15
Q
Vertical mergers
A
Mergers in the channel of distribution
Exxon buys gas stations or pipelines
Staples buys an envelope company
16
Q
Conglomerate
A
A company in unrelated businesses
GE buys wind turbine maker
GE also makes locomotives
Was most popular in the 1960s
17
Q
FREDERICK TAYLOR’S “SCIENTIFIC MANAGEMENT”
A
Principles of Scientific Management, 1911
Goal was to increase productivity
Time-motion studies and speeding up the assembly line
ASSUMES PEOPLE ARE MACHINES
18
Q
THINGS TO KNOW FROM THE “ORGANIZING” CHAPTER
A
CENTRALIZED VERSUS DECENTRALIZED CONTROL
FLAT VERSUS TALL ORGANIZATIONS
SPAN OF CONTROL
EMPOWERING WORKERS AND SELF-MANAGED TEAMS
19
Q
Sole proprietership
A
A business owned and usually managed by one person
20
Q
Partnership
A
Two or more people legally agree to become co owners of a business
21
Q
Corporation
A
A legal entity with authority to act and have liability apart from its owners
22
Q
Cities with the most minority run firms
A
Atlanta, Baltimore, Nashville, Houston, Miami
23
Q
Benefits of a sole proprietership
A
- Ease of starting and ending the business
- Being your own boss
- Pride of ownership
- Leaving a legacy
- Retention of company profit
- No special taxes
24
Disadvantages of sole proprieterships
1. Unlimited liability (any debts incurred by the business are yours too
2. Limited financial resurces
3. Management difficulties
4. Overwhelming time committment
5. Few fringe benefits
6. Limited growth
7. Limited life span
25
what percent of businesses are sole proprieterships?
72 percent
26
General partnership
All owners share in operating the business and sharing the businesses debts
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Limited partnership
A partnership with one or more general partners and more limited partners. Can have only one general partner.
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Limited partner
Invested in business but enjoys limited liability
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General partner
Manages bysiness and assumes unlimited liability
30
Master limited partnership
Looks like corporation but taxed like a partnership thus avoiding corporate tashes
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Limited liability partnership
Limits liabilities in the risk of losing personal assets
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Advantages of partnerships
```
More financial resources
Shared management
Longer survival
No special taxes and pooled skills/knowledge
Longer survival
No special taxes
```
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Disadvantages of partnerships
Unlimited liability
Division of profits
Disagreements
Difficult to terminate
34
Conventional corporation
A state chartered legal entity with authority to act and have its liability separate from its stockholders
35
Advantages of corporations
```
Limited liability
Ability to raise money
Size
Perpetual life
Ease of ownership change
Ease of attracting talented employees
Separation of ownership from management
```
36
How do owners affect management
Owners/stockholders/elect board of directors -> board of directors (hire officers) -> officers (set corporate objectives and select managers)-> managers (supervise employees) -> employees
37
Largest corporations in us
Walmart, exxon mobil, chevron, conocophillips, fanniemae
38
Largest privste corporations
Cargill, koch industries, bechtel, hca,mars, chrysler, pricewatercoopers, publix, ernst and young, c and s wholesale grocers
39
Disadvantages of corporations
```
Initial cost
Extensive paperwork
Duble taxatioj
Two tax returns
Sixe
Difficulty of termination
Possible conflict with stockholders and board of directors
```
40
Who can incorporate
Anyone
41
S corporation
Government creation that Looks like a corporation but is taxed like sole proprietorships and partnerships
Have shareholders, directors and employees, plus benefit of limited liability. Profits are taxed only as perosnal income of the shareholder.
42
Qualifications for s corporations
Have no more than 100 sharehodlers
Have shareholders that are us citizens
Have only one class of stock
Derive no more than 25 percent of income from passive sources
43
Limited liability company
```
Similar to an s corporation but without the eligibility
Advantages
Operating flexibility
Flexible ownership rules
Choices of taxation
Flexible ownership rules
No stock therefor ownerhsip is nontransferable
Limited life span
Paperwork
Fewer incentives
```
44
Virtual companies
Online LLCs
45
Merger
The result of two firms joining to form one company
46
Acquisition
One company's purchase of the property and obligations of another company
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Vertical merger
Joins two firms in different stages of related businesses
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Horizontal merger
Joins two firms in the industry nd allows them to diversify or expand their products
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Conglomerate merger
United firms in compltely unrelated industries in order to diversify business operatons and investments
50
Leveraged buyout (LBO)
An attempt by employees, management or a group of investors to buy out the stockholders in a company
Foreign investors do this in US frequently
51
Franchise agreement
An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service(franchise) to others (franchisees)
52
Advantages of franchising
```
Management and marketing asisstance
Personal ownership
Nationally recognized name
Financial advice and asistnce
Lower failure rate
```
53
Disadvantages of franchising
```
Large start up cost
Shared profit
Management regulauton
Coattail effects
Restrictions on selling
Fraudulent franchisors
```
54
Home based franchiens advantages nd disadvantages
Advanatages:
Relief from commuting
Extra family time
Low overhead expenses
Disadvantages:
Isolation
Long hours
Examples: jazzercise, vanguard clesning, lawn doctor
55
Franchises and rhe internet
Tricky because of regulation
| Utilization of facebook
56
Global franchising
Canada is most popular for us chains
57
Top ten performing franchises
```
Hampton hotels
Ampm
Mcdonalds
7eleven
Supercuts
Days inn
Vanguard cleaning
Subway
Dennys
```
58
Cooperstives
Businesses owned and controlled by the people wh o use them-producers, consumers or workers with similar needs who pool their resources for mutual gain
59
Management
The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources
60
Todays managers
```
Are younger
More progressive
Less from elite universities
Growing numbers of women
Ephasis on teams and team building
Need to be skilled communicators and team players
```
61
Respect and how to get it
```
In order of importance
-strong management
Sound business strategy
Ethical practices
Cmpetitve edge
Product innovation
```
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Four functions of management
Planning
Organizing
Leading
Controlling
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Vision
More than a goal, its a broad explanation of why the organizations exists and where its trying to go
64
Mission statementq
Outlines the organizations fundamental purposes
It includes
Organizations self concept, philosohy, long term survival needs, customer needs, social responiblity, nature of the product or service
65
Goals
The broad long term accomplishments an organizations wishes to attain
66
Objectived
Specific short term stteents detailing how to achieve the organization's goals
67
SWOT analysis
Analyzes the Strengths, Weakneses, Opportunities, and Threats
68
Potential internal Strengths
```
Core competencies in some areas
An acknolweged market leader
Well conceived funcitonal area strategies
Proven management
Cost advantages
Better advertising campigns
```
69
Potential external Opportunities
Abiliity to serve additional customer groups
Expand product lines
Ability to transfer skills/technology to new products
Falling trade barriers in attractive foreign markets
Complacency among rival firms
Ability to grow due to increases in market demand
70
Potential internal Weakneses
```
No clear strategic direction
Obsolete facilities
Subpar profitbility
Lack of managerial depth and talent
Weak market image
Too narrow a product line
```
71
Potential external Threats
```
Entry of lower cost foreign competitiom
Rising dales of substitute products
Slower market growth
Costly rgulatory requirements
Vulnerability to rcession and business cycles
Changing buyer needs and tastes
```
72
Planning Functions
Strategic planning. Tactical planning. Operational planning. Contingency planning.
73
Strategic planning
The setting of broad long range goals by top managers
Done by top management nd determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them.
74
Tactical planning
The identification of specific short range objectives by lower level managers
The process of developing detsiled, short term statements bout what is to be done who is to do it and how
75
Operational planning
The setting of work standards and schedules
Te process of setting work standards and schedules necessary to implement the company's tactical objectives
76
Contingency planning
Backup plans in case primary plans fail
The process of preparing alterntive courses of action the firm can use if its primary plans don't work out.
77
Decision making
Choosing between two or more alternatives
78
What makes a great CEO
Keep global business issues in mind and be a citizen of he world
Identify and manage risks before they grow
Change strategies and models with the times
Skillfully mange relationships with governments as government involvement rises
80
Problem solving
The process of solving the everyday problems that occur, less formal than decision making and needs quicker action
Problem solving techniques include brainstorming and PMI
81
PMI
Listing all of the pluses for a solution in one column, all the minuses in another and the implicaitons in a third
82
Organization chart
Visual device thwt dhows relationships among people and divides the organizations work. It shows who reports to whom.
83
Levels of managemen
Top management, middle management, supervisory management
84
Top management
The highest level, consists of the president and othe rkey company executives who develop strategic plans
85
Middle management
Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
86
Supervisory management
Those directly responsible for supervising workers and evalutng daily performance
87
CEO
Chief executive officer
Introduce change into an organization
88
COO
Chief Operating Officer
Implements CEOs changes
89
CFO
Chief financial officer
Obtains funds, plans budgets, collects funds, etc
90
CIO
Chief information officer
Gets the right information to the right people so decisions can be made
91
Managerial skills
Technical, human relations, conceptual
92
Technical skills
The ability to perform tasks in a specific discipline or department
93
Human relations skills
Skills that involve communication and motivation- they enable managers to work through and with people
94
Conceptual skills
Sills that involve the ability to picture the organization as a whole and the relationship among its various parts
95
The most basic human relations skill
Saying Thank You
96
Staffing
Recruiting, hiring, motivating, and retaining the best peiple available to accomplish the company's objectives
Recruiting good people is crucial.
Many people are not willing to work at companies unless they are treated well with fair pay.
97
Six sins of staffing
Don't hire someone because someone else says so
Dont get caught up in applicants appearences
Dont give someone the wrong job
Dont forget about feedback
Dont give promotions just because 'its time'
Dont cheat your employees
98
Five things leaders must do
```
Communicate a vision and rally others around tha vision
Establish corporwte values
Promote corporate ethics
Embrace change
Stress accountability and responsiblity
```
99
Transparency
The presention of the company's facts and figures in a way that is clear and apparent to all stakeholders
100
Autocratic leadership
Making managerial decisions without consulting others
101
Participtive or democratic leadership
Managers and employees work together to make decisions
102
Free rein leadership
Managers set objectives wnd employees are free to do whatever is appropriate to accomplish those objects
103
Four types of executives
Rationalists
Humanists
Culturists
Politicists
104
Epowerment
Progressive lesders give employees the authority to make decisions on their own without comsulting a manager
Customer needs are handled quickly
Managers role becomes less of a boss and more of a coach
105
Enabling
Giving workers the education and tools they need to make decisions
106
How to ease pressure on workers
Manage output instead of hours
Train workers to be ready for a more complex corporate structure
Allow lower level managers to make decisions
Use technology to foster teamwork
Shift hiring emphasis to collaboration
107
Knowledge management
Finding the rit information, keeping information in a readily accessible place and making the information known to everyone in the firm
Tries to keep people from reinventing the wheel
108
Five steps of controlling
```
Establishing clear standards
Monitor and record performance
Cmpare results against standards
Cmmunicate results
If needed take corrective action
```
Ask wuestion 'are standards realistic?' And repeat chain
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Measurements of success
Financials
| Then Pleasing emoloyees, stakeholders and customers
110
External customers
Dealers, who buy products to sell to others,and ultimate customers who buy products for their own use
111
Internsl customers
Individuals and units within the firm and receive services from other individuals and units
112
How to structure an organization
```
Create a division of labor
Set up teams or departments
Allocate resources
Assign tasks
Establish procedures
Adjust to new realities
```
113
Change in organizations is due to
More global competiton
Declining economy
Faster technological change
Pressure to protect the environment
114
Economies of scale
Companies can reduce their production costs by purchasing raw materials in bulk
115
Fayol's principles
```
Unity of command
Hierachy of authority
Division of labor
Subordination of individual interests to the general interest
Authority
Degree of centrlaization
Clear communication channels
Order
Equity
Espirit de corps
```
116
Organizational theories based on fayol's principles
Organizairojs in which employees have no more than one boss. Lines of authority are clear.
Rigid organizations that often dont respond to customers quickly.
117
Weber's principles
Employees just need to do what they're told
Also emphasized
Job descriptions
Written rules, decision guidelines, detsiled records
Cnsistent procedures, regulations, and policies
Staffing nd promotion based on qualifications
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Hierarchy
| Fayol and weber
A system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down
119
Chain of command
Te line of authority that moves from the top of the hierrchy to the lowest level
120
Beaurocracy
A organization with many layers of managers who set rules and regularions and oversee all decisions
This can annoy customerd as it can take weeks or months to have info passed down to lower level employees.
121
Centralized authority
When decision making is concentrated at the top level of management
122
Decentralized authority
When decision making is delegsted to lower level managers and meployees mo familiar with local conditions than headquartees is
123
Span of control
The optimal number of subordinates a manager supervises or should supervise
When work is standardizwd, broad spans of control are possible
Appropriate span narrows at hogher levels of the organization
Te trend today is to reduce middle managers and hire bette rlow level employees
124
Organizarional structures
Tall organization structures
| Flat organization structures
125
Tall organization strcutures
An organizational structure in which the organization chart would be tall because of the various levels of management
126
Flat organization structures
A organizational structure that has few layers of management and a broad span of control
127
Departmentalization
Divides organizations into seperate units
Workers are grouped by skills and expertise to specilaize their skills
128
Advantages of departmentlaization
Eployees can develop skills and progress within a department as they master skills
Te company can achieve economies of scale
Employees can coordinte work within the fucntion and top management can easily direct activites.
129
Disadvantages of departmentslizaion
Departments my not communicate well
Eployees may identify with their departments goals rather than their organization's
Te company's respose to external changes mAy be slow
People may not be trained to take different managerial responsibilities instead they become specialists
Department members may engage in groupthink snd may need outside input
130
Ways to departmentalize
By product
| By function
131
Four ways to structure an organization
Line organizations
Line and staff organizations
Matrix style organizations
Cross functional self managed teams
132
Line organization
Hs directed two way lines of responsibility authority and communication running from the top to the bottom. Everyone reports to the supervisor.
There are no specilaists, legal, accounting, human reources, or informaiton technology departments
Line managers issue orders enforce discipline and adjust the organization to changes
133
Line personnel
Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees
Line personnel have authority to make decisions
134
Staff personnel
Employees who advise and assist the personnel in meeting their goals and include marketing research, legal advising, IT and human resource employees
135
Matrix organizations
Specialists from different parts of the organization work together temporarily on specific project but still remain part of a line and staff structure.
136
Advantages of the matrix style
Managers have flexibility in asigning peiple to projects
Interorganizatonal Cooperation and teamwork is encouraged
Creative solutioms ot prduct development problems are produced
Efficient use of organizational resurces
137
Disadvantage sof matrix style
Costly and complex
| Employees confused bout where loylty belongs
138
Cross functional self msnaged teamsq
Groups of employees from different departments working together on s long time basis
139
Cross functional teams work best when
The voice of the customer is heard
Teams tht include customers suppliers and distributors go beyond organizational boundsries.
140
Important conditions for small teams
```
Clear purpose
Clear goals
Correct skills
Mutual accountability
Shift roles when appropriate
```
141
Networking
Using communications technology to link organizations and allow them to work together.
Companies are no longer self sufficient and rely on a global business network
142
Real time
Te present moment or actual time in which smething takes place
143
Transparency in electronics
Cmpny is very open to share electronic information with other companies as if they were one
144
Virtual corporation
A temporary networked organization made up of replacable firms that join and leave as needed
145
Benchmarking
Compares an organizations practices, processes and products against the world best.
146
Core competencies
The functions an organization can do as well or better than any other organization in the world
147
Restructuring
Redesigning an organization so it can more effectively and efficiently serve its customers.
148
Inverted corporation
An organization that has contact people at the top and the ceo at the bottom.
A manager assists and supports workers, not bosses them.
149
Corporate culture
The widely shared values within an organization that fosters unity and cooperwtion to achieve commo goals.
Some of the best organizational cultures emphasize service.
150
Formal organization
Details lines of responsibility, authority, and position
151
Informal organization
The system of relationships that develop spontaneously as employees meet and form relationships
152
Limitations of informal organziations
Too unstructured and emotional on its own
153
Intrinsic goals
Personal satisfaction you feel when you perform well and complete goals
154
Extrinsic rewards
Something given as a recognition of good work
155
Scientific management
Studying workers to find the most efficient ways of doing things and hen teaching people those techniques
156
Three element to increase productivity
Time
Mthods of work
Rules of work
157
Taylor's four key principles
Study how a job is performed
Codify the best method into rules
Choose workers whose skill matches the rules
Establish a fair level of performance and pay
158
Time motion studies
Tudies of which tasks must be performed the complete a job and the time neede to do each task
159
Principle of motion economy
Every job can be broken down into a series of elementsry motions
160
Hawthorne effect
People act diffeeently when they know htey are being studied
161
Mslows hierchy of needs
Theory of motivation based on unmet human needs from basic hysiologic needs to safety, social and esteems needs to self actualizatuon needs.
162
Herzberg's motivating factors
Researched two questions
- what factors controlled by managers re most effective in increasing worker motivation
- how do workers rank job related factors in order of importance related to motivation
Discovered that job content factors were most importsnt- workers like to feel that they contribute to the company
163
Hygiene factors
Job factors that can cause dissatisfaction if missing but do not necessarily morivate employees if increased
164
Ways to reinvigorate work life
Dnt work alone all the time
Redecorate your space to get away from same old
Dont complain- think of things to celebrate
165
Theory x and theory y
Two types of mangers according to douglas mcgregor
166
Assumptions of theory x managers
Workers dislike work and seek to avoid it
Workers must be forced to work with punishment
Workers prefer to avoid responsiblity
Primary motvators are fear and money
167
Assumptions of Theory y managers
People like to work its a part of life
Workers seek goals which they are committed
People are motivated by a variety of rewards
168
William ouchi
Researched cultural differences between us and japan
Type j commited to the group
Type a focused on the indidivudal
Theory z was hybrid of type j and type a approahc
169
Goal setting theory
Setting ambitious but attainable goals can motivate workers and improve perofrmance if the goals are accepted, accompanied by feedback and facilitated by organizational conditions
170
Management by objectives (MBO)
Involves a cycle of discussion, review and evalution of objectives among to nd middle level managers, supvisrs and employees
171
Expectancy theory
The amount of effort employees exert on a specific task deends on their expecstions of the outcome
172
Nadler and lewis
Five steps for managwrrs
- determine what rewards employees value
- determine workers performance standard
- make sure perofamnce stndards are attainable
- tie tewards to performance
- be sure employees feel rewards are adequate
173
Reinforcement theory
Positive and negative reinforcers motivate a person to behave in certain ways
Positive and negative reiforcment plus extinciton
174
Equity theory
Eployees try to maintain equity between inouts and outputs compared to oer sin similar positions
175
Job enrichment
A motivational strategy that emohasies motivating the worker through the job itself
Bsed on herzerg's motivatorss
176
Key characteristics of work
```
Skill variety
Task identity
Task significance
Autonomy
Feedback
```
177
Types of job enrichment
Job enlargement
| Job rotation
178
Job enlargement
A job enrichment strategy that involves combinng a serie skof tasks into one challengin and interesting asisgnment
179
Job rotation
A job enrichment strategy that involves moving emoloyees from one job to another
180
Open communciation
Fosters a culture that rewards listneing, trains mangers to listen, uses effective wuesitoning techniques, akss employees whats imprtsnt to them
181
High context
Require relationships and group trust before performance
182
Low context
Believe relationship building distracts from tasks
235
Rational decision making model
```
Define the situation
Describe and collect needed information
Devleop alternarives
Develop agreement among those involved
Decide which alternative is best
Do what is indicated
Determine whether the decision was a good one and follow up.
```
