FINAL EXAM Flashcards
(175 cards)
1
Q
What is Management?
A
Management is the process of working with people and resources to accomplish organizational goals.
2
Q
True or False:
Good Management is effective and efficient
A
True
3
Q
True or False:
Management can also be thought of as having a macro - orientation (managing the organization as a whole) or micro-orientation (directly managing people.
A
True
4
Q
What are the four broad things managers do?
A
Plan - Set goals and decide how to achieve them
Organize - Arrange tasks and resources to accomplish goals
Lead - Motivate, direct and influence people to achieve goals
Control - Monitor performance and take corrective actions as needed
5
Q
True or False:
Managers do each of the functions in their roles, though most managers do more of one than another
A
True
6
Q
True or False:
The type of manager they are tends to dictate which function consumes the majority of their duties
A
True
7
Q
What are the four types of managers?
A
Top Managers
Middle Managers
Frontline Managers
Team Leaders
8
Q
What are Top Managers?
A
Responsible for the overall management of the organization (Senior executives in the c-suites)
9
Q
What are middle mangers?
A
Sometimes work as plant managers, regional managers or divisional managers.
They report to top management and organize work to accomplish organizational goals.
10
Q
What are Frontline managers?
A
Office Mangers, shift supervisors, department mangers, frontline managers
They oversee production workers.
11
Q
What are team Leaders?
A
Persons who lead specialized work teams.
12
Q
What is a system?
A
A set of interconnected parts that operate as a whole.
13
Q
What is synergy?
A
When two or more parts working together can produce more than if they were working separately.
14
Q
What are closed systems?
A
Systems that can function without interacting with their external environments
15
Q
What are open systems?
A
Systems that need to interact with their external environment in order to function.
16
Q
What is the contingency perspectives?
A
It is a perspective that argues that there is no such thing as “a best way” to manage instead the best way to manage depends on the circumstances. These unique circumstances are known as contingencies.
17
Q
What is the external environment?
A
All the forces outside of the organization that are able to influence the organization.
18
Q
Give a brief summary on the systems theory.
A
Organizations rely on their external environment for inputs (e.g., raw materials,
information, money, people, equipment) and in turn influence their environments with their outputs (e.g., its products, services, ideas).
19
Q
What are the three organizational environments.
A
The general environment
The specific environment
The internal environment
20
Q
What is the general environment?
A
External factors that influence all firms (regulation, Economic conditions, technology, demographics, social norms).
21
Q
What is specific environment?
A
External factors that influence firms in a specific industry(competitors, New entrants, customers, substitutes and suppliers).
22
Q
What is the internal environment?
A
Culture and values
23
Q
What comprises the external environment?
A
Macro environment and competitive environment.
24
Q
True or False:
The general environment contains macro factors that tend to impact all firms
A
True
25
What is the PESTEL framework?
A good framework for understanding the components of the macro environment.
26
True or False:
The specific environment contains environmental factors that tend to be industry-specific and these factors shape competition.
True
26
What do the letters in the PESTEL framework mean?
Political (These are political factors like elections)
Economic (This refers to the general condition of the economy. Is there high unemployment?
Do consumers have disposable income?)
Sociocultural (This deals with the cultural norms of society)
Technological (What kind of technology is out there and how is it changing the way business
occurs?)
Ecological (This deals with ecological factors such as pollution)
Legal (These are legal issues such as laws, intellectual property protection, and tax codes)
27
What is Porter's Five forces
A good framework for understanding the competitive environment.
28
What are the Porter's Five forces
Threat of New Entrants
Power of Buyers
Threats of Substitutes
Power of suppliers
Rivalry Among Firms
29
Explain Threat of New entrants in Porters Five forces.
Barriers to entry keep the threat of new entrants low. These barriers make it harder for a firm to enter a new market. By contrast, exit barriers make it difficult for a firm to exit a market. Barriers to entry can include government regulations, capital requirements, and
brand loyalties.
30
Explain threat of substitutes in Porters Five forces.
Substitutes offer consumers a way to accomplish the same thing. A bicycle acts as a substitute for a car
31
Explain rivalry among firms in Porters Five forces.
Rivalry among firms can be thought of as competition between actors within
the industry. Rivalry is the strongest of the five forces and can increase when exit barriers are high.
32
Explain power of buyers in Porters Five forces.
If buyers can negotiate or demand lower prices or if they are price sensitive,
profits may be reduced. Remember buyers are who pay you for something
33
Explain power of suppliers in Porters Five forces.
Much like with buyers, it is not good to have suppliers who can set prices. If a supplier has a necessary input that is short in supply, they tend to hold more power. Conversely, if businesses have other options and switching costs are low, supplier power decreases.
34
According to Porter, what is an attractive environment.
The industry is hard to enter.
There is low competition.
Buyers and suppliers are weak.
It is hard for consumers to switch to alternatives.
35
What is another term for internal environment
Organizational culture
36
What does organization culture refer to?
Values organizational members share which produce the norms that shape behaviour.
37
True or False
Organizational culture can act as a for, of social control.
True
38
What are the three layers of organizational culture?
Visible artifacts - physically seen for example dress codes, storytelling
Values - proper behaviours
Unconscious assumptions - beliefs that influence behaviour
39
True or False:
Cultures are generally considered to be either strong or weak (they heavily influence people or not)
True
39
What is workplace deviance?
Unethical behaviour that violates organizational norms
40
What are the four types of workplace deviance?
Production deviance – Hurts the quality and quantity of work produced.
Property deviance – Unethical behavior aimed at company products or property.
Political deviance – Using one’s influence to harm the company.
Personal aggression – Hostile or aggressive behavior.
41
What are some examples of production deviance
Leaving early
Taking excessive breaks
Intentionally working slowly
Wasting resources
42
What are some examples of property deviance
Sabotaging equipment
Accepting kickbacks
Lying about hours worked
Stealing from the company
43
What are some examples of political deviancee
Showing favoritism
Gossiping
Blaming coworkers
Competiting nonbeneficially
44
What are some examples of personal deviance
Sexual Harassment
Verbal abuse
Stealing from coworkers
Endangering coworkers
45
Out of the four workplace deviances, which ones are minor, which ones are major
Major - Personal and Property deviance
Minor - Production and Political deviance
46
Out of the four workplace deviance, which ones are organization aimed and which ones are person aimed?
Person Aimed - Personal deviance and Political deviance
Organization aimed - Production and Property deviance.
47
What is classified a s a form of work performance?
Workplace deviance
48
What are the four types of work performance?
Task performance (what you were hired to do)
Contextual behavior (going above and beyond, involves “citizenship behaviors”)
Adaptive performance (ability to learn new things and adapt to change)
Counterproductive behavior (workplace deviance).
49
What is Corporate Social Responsibility (CSR)?
An obligation businesses have towards society.
50
What are the two models that argue about what a managersresponsibility should be?
Shareholder and Stakeholder model
51
What is the Shareholder model?
The shareholder model that argues managers are obligated to maximize profits
to shareholders.
52
What is the Stakeholder Model?
The stakeholder model that argues managers are obligated to look beyond profits and include groups who have a stake in the organization
53
What are the two things to bear in mind when planning?
Corporate strategies and business strategies
54
What is a corporate strategy?
Identifying the markets or industries where the firm will compete
55
What is business strategy?
How each business unit will compete in a specific market
56
What is a mission statement?
Describes the organizations purpose and scope
57
What is a vison statement?
Points towards the future and indicates where the organization is heading (should be inspirational)
58
Which two statements are important and often returned to by manages while developing strategic plans?
Vision and Mission statements
59
What is Resource Based View (RBV)?
Argues that a sustainable competitive advantage comes from the unique traits and characteristics of the firm (i.e its resources)
60
What is the VRIO Framework?
It is used to evaluate resources
61
What do the letters in the VIRO framework stand for?
Valuable
Rare
Inimitable
Organized
62
What are resources?
Resources can either be tangible (plant, property or equipment) or intangible (firm knowledge, history trajectory, image branding)
63
Which type of resources tend to be much harder to imitate?
Intangible Resources
64
What is a SWOT analysis
A tool that helps firms to evaluate and understand their internal and external environment. Strategies should be anchored in the strengths of the firm and aimed at the weaknesses of competitors.
65
What do the letters from the SWOT analysis stand for?
Strengths
Weaknesses
Opportunities
Threats
66
From the SWOT analysis which characteristics look within the firm?
Strengths and Weaknesses
67
From the SWOT analysis, which characteristics look outside the firm?
Opportunities and Threats
68
What are some examples of generic strategies?
Low-cost leadership - Competitive advantage is achieved by offering consumers the lowest price
Differentiation - Competitive advantage is achieved by offering consumers something that differs from what everyone else is offering.
Best cost provider - This strategy attempts to maximize value.
69
What is competitive advantage?
When a firm holds a competitive edge over its competition.
70
What is sustainable competitive advantage?
When a firm is able to maintain its competitive edge despite attempts by competitors to erode it away.
71
What will you often see in a competitive evironment?
Strategic groups
72
What is a strategic group?
A cluster of firms all pursuing the same strategy and chasing the same customers
73
What is Strategic group map
Plots the clusters in a strategic group
74
What is a mobility barrier?
Prevents firms from moving around the map.
75
What is diversification?
When firms reduce risk by investing in other firms and industries.
76
What is horizontal integration?
Occurs when firms merge or acquire other firms
77
What is vertical integration?
Acquire firms in the supply chain
78
What is Related diversification?
Acquire firms that produce related products
79
What is unrelated diversification?
Acquiring firms that produce unrelated products.
80
What are Prospectors?
Aggressive firms that are constantly changing their competitive environment (e.g., seeking new products, diversifying, making acquisitions, etc.).
81
What are defenders?
Defenders are firms that like to play it safe and try to stay within a stable product domain.
82
What is Organizational Structure?
Formally dictates how jobs are divided and coordinated in an organization.
83
What is an Organizational chart?
Depicts the positions within the organization and how they are arranged.
84
True or False:
Oragnizations have a vertical and horizontal structuure?
True
85
What is a vertical structure?
Goes up and down and relies on authority
86
What is a horizontal structure?
Focuses on specialization
87
What happens when an organization grows?
Differentiation and Integration occurs
88
What is diffrentiation?
Differentiation means the organization is comprised of different units (i.e.,
departments), each having a specialized function (e.g., marketing, R&D, human
resources, etc.).
89
What is Integration?
Integration means these differentiated units (departments) work together so that work is coordinated.
90
True or False:
As organizations grow they become more and more differentiated.
As they differentiate, more integration is needed.
True
91
What are the five key elements to organization structure?
Work Specialization
Chain of command
Span of control
Centralization
Formalization
92
What is work specialization?
It is the degree to which work is divided into separate jobs and it is based upon expertise.
93
What is work specialization often refered to as?
Division of Labor
94
Where can work specialization be seen on an organizational chart?
In the horizontal structure
95
What is chain of command?
The who reports to whom question. It represents the formal relationships within an organization
96
Where can chain of command be seen on an Organizational chart?
On the vertical structure
97
What is span of control?
A span of control is how many employees a given manager is responsible for in the organization. The more employees that have to report to a given manager, the wider
their span of control.
98
Explain Narrower span of control.
A narrower span of control allows for close relationships and more mentoring
opportunities. Narrower spans can be preferential if the supervisor has more expertise than subordinates.
The more narrow the span of control, the more managers an organization must
hire. Too narrow a span of control can also lead to “micromanagement”.
99
What is centralization?
It refers to where decisions are made in an organization.
100
What is centralized and decentralized organization?
In a centralized organization, high level executives make most of the
decisions.
In a decentralized organization, lower level managers are allowed to make
important decisions.
101
What is formalization
Formalization is the degree to which rules and procedures are utilized to standardize behaviors and decisions.
It can be thought of as the presence of rules or regulation
(attendance policies, email policies, promotion policies, etc.).
Formalization can help organizations standardize products or services.
102
What happens when the five dimensions of structure come together?
They create an organization that is has either a mechanistic or organic structure
103
What is a mechanistic organization?
A mechanistic organisation is one that is very formalized and has a rigid hierachy. They are usually found in predictable environments and the structure is inteneded to improve efficiency.
104
What is an Organic structure?
It is a structure that is less rigid and more flexible, they do well in environments with less predictability and in the organizations that use organic structures there is a wider span of control and less direction is given from the top of the organization.
105
What dictates how an organization structures itself?
The competitive environment
106
True or False
In most instances, organizations are not entirely mechanistic or
organic. Instead, they oftentimes are a blend of these two structures
True
107
What is recruitment?
Recruitment is done to develop a pool of applicants for the organization to choose from. It can be internal or external.
108
What is internal and external recruiting?
Internal recruiting refers to fnding potential applicants within an organization.
External recruiting is finding potential applicants outside the organization.
109
What are the advantages of internal and external recruiting?
Internal recruiting - is that the organization already knows who it is getting and it shows employees in the organization that they can advance within the organization.
External recruiting - brings in a new set of eyes to examine things. It also brings in new ideas.
110
When do organizations conduct job analysis?
Before recruitment begins
111
What is job analyses and why do we use it.
Collects work-related aspects of a job
They are used to develop job descriptions and job specifications.
112
What are the four things gathered in job analysis?
What workers do as well as how, when and why they do it
Tools and equipment needed
Working conditions for the job
What specific knowledge, skills or abilities (KSAOs) are needed
113
What is Job description and Job specification?
Job description lists the essential tasks, duties and responsibilities of the job
Job specification lists the required knowledge, abilities and other characteristics needed for the task.
114
True or False:
Many times, Job descriptions and specifications are used as defense in the event of a lawsuit.
True
115
What is selection?
Selection refers to the process of selecting the right person for a job.
116
What are selection tools available to evaluate applicants?
Applications/resumes
Interviews
Reference checks
Background checks
Personality checks
Drug tests
Cognitive ability tests
Performance tests
Integrity tests
116
What is reliability and Validity?
Reliability refers to consistency over time.
Validity refers to accuracy. Two types of validity:
116
True or False
Selection techniques should be reliable and valid
True
117
What are the two types of validity?
Criterion validity refers to the predictive ability of the test.
Content validity refers to whether or not the test actually addresses the KSAOs needed for the job
118
What are interviews?
Interviews are an opportunity to actually speak to a prospective candidate;
Interviews can be structured or unstructured
119
What is structured and unstructured interviews?
A structured interview is a more standardized approach where the interviewer conducts the exact same interview with each applicant.
An unstructured interview is when every applicant gets a slightly different interview.
120
What are the two types of structured interviews?
Situational interviews – Ask about hypothetical situations (“what would you do if ...”).
Behavioral description interviews – Ask about what a person has actually done in the past (“tell me about a time when
....”).
121
What is cognitive ability test?
A cognitive ability test measures intellectual abilities like verbal comprehension and numerical aptitude.
122
What is performance test?
A performance test is when an applicant actually performs the work related to the job and is evaluated. An assessment center is a common type of performance test
123
What is assessment center?
An assessment center is not a physical location. Rather, it is a collection of assessments aimed at evaluating the applicant more holistically.
124
What is integrity test?
An integrity test attempts to determine how honest an applicant is or how likely it
would be for them to engage in unethical behaviors. Lie detector tests cannot be
used for employment purposes.
125
What is the goal setting theory?
Goal-setting theory argues that goals themselves can motivate.
According to the theory, goals that are specific and difficult (but achievable) lead to higher
motivation and performance.
The idea is that vague goals that do not require any effort will not lead to a sense of achievement, and thus will lack motivational potential.
125
What does the goal setting theory assume?
That people have KSAOs
126
True or False
The desire to achieve a goal can also prompt cheating and manipulative behavior.
True
126
True or False
If people lack KSAOs to achieve goals, telling people to do their best or establishing learning goals as opposed to performance goals may be best
True
127
True or False
Individualized incentives can sometimes cause competition and erode team efforts
and create animosity.
True
127
What is expectancy theory?
Expectancy theory evaluates how cognitive processes influence behavior.
This theory argues that effort leads to performance and performance leads to an outcome.
128
What do expectancy and instrumentality link?
Expectancy links effort to performance and instrumentality links performance to
outcomes
128
What is expectancy?
Expectancy is the perceived likelihood that efforts will lead to success.
As such, higher expectancies tend to be more motivating.
128
What is Instrumentality?
Instrumentality is the perceived likelihood that performance will lead to an outcome.
Again, higher instrumentality tends to be more motivating.
129
What do possible outcomes have?
Valence
130
What is Valence
The value a person places on the outcome. Valences tend to be positive (good outcome) or negative (undesirable outcome).
131
To be motivating, effort, instrumentality, and valence all need to be high.
If a person does not feel that efforts will lead to performance, or that
performance will not lead to an outcome, there will be no motivation.
Outcomes must also be perceived as positive in order to achieve motivation.
....
132
What are Extrinsic rewards?
Extrinsic rewards are rewards given to people by a manager, the company, or another person. This can be things like salary, benefits, a nice office, etc.
These rewards tend to be tangible.
133
What are Intrinstic rewards?
Intrinsic rewards are rewards derived from performing (and usually accomplishing) a task. With an intrinsic reward, the sense of accomplishment after completing a task is the reward. These rewards tend
to be intangible.
133
In many jobs, intrinsic motivation is essential for high performance.
Jobs that provide little intrinsic rewards (such as assembly line work) provide little meaning and lead to dissatisfaction, absenteeism, and turnover.
....
134
What are the numerous ways to make work more intrinsically rewarding?
Job rotations allow workers to experience new jobs and develop new skills. The idea is to
alleviate boredom by giving people different things to do during their workday.
Job enlargement gives people additional tasks. Workers are assigned additional tasks with the idea of reducing boredom and creating more mental stimulation.
Job enrichment redesigns or restructures jobs so that additional responsibility can be added. The added responsibility can make a job more rewarding and satisfying
135
The notion of job enrichment led to which two major motivational theories?
Herzberg’s two-factor theory
Hackman and Oldham job characteristics model
135
What is Herzberg two-factor theory?
Hygiene factor - Characteristics of the workplace, such as company policies, working conditions, pay, and
supervision. These factors are drivers of dissatisfaction and will never lead to satisfaction.
Motivators - Factors derived from the work
itself (e.g., additional job
responsibilities, opportunities for personal growth and recognition, and feelings of achievement). The factors dealing with the work itself are the secret to increasing
satisfaction
135
What was the point of herzberg's two factor theory?
The whole point Herzberg was trying to make is that one set of factors creates happiness while a separate set of factors creates unhappiness.
From this, it is possible for an individual to be neither happy nor unhappy at work and eliminating things that unhappy will not necessarily make them
happy.
A big takeaway from the model was to not solely focus on extrinsic rewards.
Intrinsic rewards matter and may be the key to increasing satisfaction.
136
What is the overall idea of the hackman & oldham's job characteristics model?
To make workers feel as if their individual jobs matter.
137
What is Need for growth?
Need for growth is the degree to which individuals want personal and psychological development. This need determines the effectiveness of job enrichment programs
137
What are hackman and oldham's core job characteristics?
Skill variety is achieved when a job involves numerous activities and utilizes several
skillsets.
Task identity is the completion of a whole, identifiable piece of work.
Task significance refers to whether a job has an important and positive impact on others.
Autonomy is the degree to which the job offers a worker the freedom to decide how the
work will be done.
Feedback occurs when an individual receives information about the performance or
effectiveness of their work.
138
What is the equity theory?
Equity theory explains how people make social comparisons to
determine fairness.
139
How is fairness determined?
Fairness is determined by comparing one’s own inputs and outcomes.
to that of another person.
Your inputs/Your outcomes
Someone else’s inputs/Someone else’s outcomes
140
What are common inputs and outcomes?
Common inputs include perceived contributions to the workplace and
organization, education level, certifications, etc.
Common outcomes include salary, promotion, recognitions, perks, etc.
Bear in mind that inputs and outcomes can be anything of value to an
individual.
If there is an imbalance, people work to restore equity.
141
What did equity theory lead to a lot of work on?
Organizational Justice
141
What are the three braod categories of justice?
Distributive justice (are outcomes fair?)
Procedural justice (are procedures fair?)
Interactional justice (am I treated well?)
One interesting fact is that as long as procedures are perceived as fair,
outcomes can be considered a little unfair.
142
What are Psychological contracts?
Psychological contracts are perceptions on what a person owes their organization and what their organization owes them.
With a psychological contract breech, think of a broken promise.
This isn’t something that motivates as much as it demotivates
143
What is leadership?
Getting others to work towards some goal attainment.
144
What is Power?
The ability to influence others.
144
All leadership to some extent is related to what?
Power
145
What are five sources of power?
Legitimate power – Comes from a position (e.g., a supervisor).
Reward power – The ability to grant rewards (e.g., pay raises).
Coercive power – The ability to punish.
Referent power – A person who has desirable traits (e.g., social
media “influencers”).
Expert power – Having specific knowledge.
145
What is Management Audit
Audits done to evaluate effectiveness and efficiency.
145
What is Internal audits
Audits done by the organization itself.
145
What is External audits
Audits done by outsiders
145
What are accounting audits
A common type of audit and are done to verify financial information.
145
What are importanr financial statements.
Balance sheets
Profit and Loss statements
146
What are the three elements of balance sheets?
Assets – value of what the organization owns.
Liabilities – amounts organization owes to creditors.
Stockholder equity – amount that goes to shareholders (owners).
Remember that Assets = Liabilities + Stockholder Equity.
146
What is a balance sheet
A snapshot of the financials for an organization at a given point in time.
146
What is a profit and loss statement
A statement that shows income and losses. It goes beyond snapshots and compares a few years at a time. They are useful in seeing how the company is doing in key areas.
147
Whenever there is a new market, organizations must decide whether
to go in first, or sit back and wait.
Being a first mover has its advantages, as does being a late mover.
Generally speaking, first movers receive a lot of benefits by entering a
market first but also assume some the risks.
....
147
When do you move first?
When going first can create a reputation and brand loyalty.
* Initial customers are likely to be very loyal.
* This brand loyalty can thwart attempt by competitors to poach customers.
* Branding is a difficult entry barrier to overcome.
When switching costs are anticipated.
* Initial investment can lock consumers into a product even if other products are more appealing.
When property rights can be leveraged.
* Copyrights, patents, and trademarks can prevent competitors from creating imitations.
When learning curves exist.
* A steep learning curve and give a firm a substantial head start.
148
When do you wait?
When being a pioneer is expensive.
When learning curves are minimal.
When the initial products do not live up to consumer expectations.
When potential consumers are skeptical.
When the market is rapidly evolving.
* This allows late movers to leapfrog first movers with better next version models.
149
What is agency?
Agency theory is a theoretical framework that describes the conflicts of interest
issues that sometimes occur when ownership and control are separated.
* The underlying thesis is that when ownership and control are separated, agents
(the individuals who control) will not always prioritize the interests of principles
(the individuals who own).
* This diverging of interests leads to agency costs, which are the costs (i.e., the
loses or denial of gains) principles must bear when they hire agents.
* The more the interests of agents diverge from the interests of the principles, the
higher the agency costs will be to the principles
150
How do we deal with agency issues?
Historically, agency concerns have been addressed through two governance
mechanisms:
1. First, firms can create separate boards of directors to oversee top
management and ensure that executives work on behalf of the owners.
2. Second, executives can be given equity stakes in their firms
* CEO duality – This is when the top executive in the firm also chairs the board of
directors
151
What is the stewardship theory?
Stewardship theory argues that certain factors can prompt executives to act in a
way that serves principles even if doing so runs counter to their own personal
interests.
152
What does the agency theory argue?
Agency theory argues that executives are self-interested whereas stewardship
theory argues that executives can act in the best interest of the organization and
be “stewards” or caretakers.
