FINAL EXAM

Question 1

What is the most useful management theory?

Answer 1

Expectancy theory

Question 2

What is the equation of motivation?

Answer 2

M = E x i x V

Question 3

What does E stand for?

Answer 3

Expectancy

- How effort results in performance

Question 4

What does m stand for?

Answer 4

Motivation

Question 5

What does V stand for?

Answer 5

Valence

- How desirable each of the available outcomes from the job is to the person

Question 6

What does the i stand for?

Answer 6

Instrumentality

- A person’s perception about if performance relates with attainment of outcomes

Question 7

What does SMART stand for?

Answer 7

Specific
Measurable
Assignable
Realistic
Time Related

Question 8

What is organizational control?

Answer 8

When managers monitor and regulate how efficiently and effectively an organization and its members are performing to achieve goals

Question 9

What is a Management by Objectives (MBO) strategy?

Answer 9

• a goal setting process that managers set

- periodically evaluate the extent to which the subordinates are achieving these goals

Question 10

What are the activities that managers engage in to attract and retain employees and to ensure that they perform at a high level?

Answer 10

Human Resource Management (HRM)

Question 11

What are the components of a human resource management system? (steps)

Answer 11

1) job design
2) recruiting and selection
3) training/development
4) performance management
5) workforce management

Question 12

What is the most effective way of interviewing someone?

Answer 12

Situation-based interview

- Gives you a situation and expects you to figure out how to deal with it

Question 13

What is the behavior that is performed for its own sake?

Answer 13

Intrinsically Motivated Behavior

Question 14

What is the behavior that is performed to acquire material or social rewards or to avoid punishment?

Answer 14

Extrinsically Motivated Behavior

Question 15

What is the behavior performed to benefit or help others?

Answer 15

Prosocially motivated behavior

Question 16

What is the theory of motivation that focuses on people’s perceptions of fairness of work?

Answer 16

Equity Theory

Question 17

A person’s perception of the fairness of the distribution of outcomes in an organization

Answer 17

Distributive justice

Question 18

A person’s perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization

Answer 18

Procedural justice

Question 19

A person’s perception of the fairness of the interpersonal treatment he or she receives from whoever they interact with

Answer 19

Interpersonal justice

Question 20

A person’s perception of the extent to which his or her manager provides explanations for decisions and the procedures used to arrive at them

Answer 20

Informational justice

Question 21

What is efficiency?

Answer 21

Utilizing resources to their full potential

Question 22

What is effectiveness?

Answer 22

How well they are achieving the mission

Question 23

What are control systems?

Answer 23

Formal, target-setting, monitoring, evaluation and feedback systems
- Provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively

Question 24

What is the problem with feedback control?

Answer 24

It’s already occurred – wasted time, product, etc.

Question 25

What are the three types of control?

Answer 25

``` Feedforward control - allows anticipation of problems before they arise, gives product specifications to suppliers in advance Concurrent control - manage problems as they occur Feedback control - manage problems after they arise ```

Question 26

Feedforward control

Answer 26

- Allows managers to anticipate problems before they arise | - Gives product specifications to suppliers in advance

Question 27

Concurrent control

Answer 27

- Gives managers immediate feedback on how efficiently inputs are being transformed into outputs - managers can correct problems as they arise

Question 28

Feedback control

Answer 28

- Gives managers information about customers' reactions to goods and services - Corrective action can be taken if necessary

Question 29

What are things that might be evaluated in feedback control if things are bad?

Answer 29

- There might be a problem with the leader - Might be individual problems (ineffective employees) - Employees might not have the resources necessary - Wrong processes

Question 30

What are profit ratios?

Answer 30

Measure how efficiently managers are using the organization's resources to generate profits

Question 31

What are returns on investments (ROI's)?

Answer 31

- Organization's net income before taxes divided by its total assets - Most commonly used financial performance measure

Question 32

What are operating margins?

Answer 32

- calculated by dividing a companies operating profit by sales revenue - Provides managers with information about how efficiently an organization is utilizing resources

Question 33

What are days sales outstanding?

Answer 33

Reveals how efficiently manager are collecting revenue from customers to pay expenses

Question 34

What are operating budgets?

Answer 34

- Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently - includes staffing plans

Question 35

What are the problems with output control?

Answer 35

- Managers must create output standards that motivate at all levels - Should not cause managers to behave in inappropriate ways to achieve organizational goals

Question 36

What are the problems with direct supervision?

Answer 36

- Very expensive | - can demotivate subordinates

Question 37

What is bureaucratic control?

Answer 37

- Control by means of a comprehensive system of rules and standard operating procedures (SOPs) - shapes and regulates the behavior of the system

Question 38

What are problems with bureaucratic control?

Answer 38

- Rules easier to make than discarding them | - People might stop thinking for themselves

Question 39

What is organizational change?

Answer 39

Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness

Question 40

What is the MBWA (Management by walking around) strategy?

Answer 40

- it is an empowering approach - replacing MBO strategy - involvement, coaching - get a first-hand look at the problems

Question 41

Why do you not want to use bureaucracies too much?

Answer 41

- if you go too far, you will lose creativity