FS Management- Domain 3

Question 1

Maslow’s Hierarchy of Needs

Answer 1

Determinants of behavior motivated by the desire to satisfy specific needs

• Basic needs: pay, benefits, working conditions, schedule, insurance, retirement, security
• Higher Human needs: social (organized activities), self-esteem (job title, rewards, promotion), self-actualization (realizing own potential => advanced training, job enrichment)

When basic needs are met, higher needs become motivators

Question 2

Herzberg’s Two-factor Theory (Motivation and Maintenance Approach)

Answer 2

*Maintenance (hygiene factors)=> keep employees satisfied with factors like fair wage, insurance, retirement benefit, interpersonal relationships on the job, schedule, working conditions, etc. => if present, perceived as good = satisfiers / if lacking, perceived as negative = dissatisfiers and will interfere with work, does not produce motivation
=>Maintain minimal level of need satisfaction

*Motivators = call forth energy and enthusiasm, job enrichment => achievement, personal accomplishment, recognition, responsibility, participation in decision-making, opportunity for growth

Question 3

McClelland’s Achievement (Power-affiliation Theory)

Answer 3

Three “L” in McClelland = 3 needs; achieve, power, affiliation
*Suggests that all people have three needs: the need to achieve (desire to do something better or more efficiently, task-oriented, manage self), need for power (enjoy competition and seek confrontation), and a need for affiliation (desire to be liked by others, join groups)

Question 4

MacGregor Theory

Answer 4

Attitude of the manager toward employees has an impact on job performance => based on manager’s assumptions as to how employees view work

• Theory X (authoritarian/autocratic, negative, work-centered) = people dislike work and will avoid it if possible, workers prefer to be controlled and directed by pressure, motivation through fear
• Theory Y (positive, participative) = work is as natural as play or rest, management should arrange conditions so workers can achieve goals by directing own efforts

Question 5

Hawthorn Studies (Western Electric, Elton Mayo)

Answer 5

If you involve people in the process, they become more productive => productivity due to: employees were given special attention, were involved in an interesting experience, and were well treated by supervisors => work breaks increase productivity => placebo effect: special attention improves behavior

Question 6

Expectancy Theory (Beer, Vroom)

Answer 6

Rewards serve as motivators only under certain circumstances => employees must believe that effective performance leads to certain rewards, employees must feel that reward offered are attractive

Question 7

Path-Goal Theory (Evans, House)

Answer 7

Focuses on leader’s effect on employee’s motivation to perform => motivation to behave in a particular manner is the result of an expectation that a behavior will result in a particular goal and how strongly a person desires the goal

Question 8

Autocratic Leadership

Answer 8

demands obedience, most control, full responsibility

Question 9

Consultative Leadership

Answer 9

asks for input, but makes final decision alone

Question 10

Bureaucratic Leadership

Answer 10

by the book, follows procedures to the letter

Question 11

Participative Leadership

Answer 11

encourage workers to participate, in decision-making, democratic: accepts decision made by the group

Question 12

Country club Management

Answer 12

employee-centered, seeking approval and acceptance, comfortable, friendly atmosphere
1,9 on Leadership Grid

Question 13

Team Management

Answer 13

high concern for people and production, common stake in purpose
9,9 on Leadership Grid

Question 14

Impoverished Management

Answer 14

exert minimum effort to get work done, low concern for people and production
1,1 on Leadership Grid

Question 15

Authority, Obedience, Autocratic Management

Answer 15

focus on production, managing tasks, domination, mastery, control => people are commodities like machines
9,1 one Leadership Grid

Question 16

Likert- Management of Conflict

Answer 16

4 basic systems of organizational leadership

• exploitive (autocratic) => job-centered
• benevolent (autocratic) => job-centered
• consultative=> employee-centered
• participative (most effective) => employee-centered

Question 17

Peter Principle

Answer 17

promote someone to a level of incompetence => manager competent in position get promoted to CEO, promoted to a level not competent in

Question 18

Traditional or Classical

Answer 18

formal structure that organizes and administers the work activities, coordination is main responsibility of management, focus on tasks/structure/authority

Question 19

Scalar Principle

Answer 19

authority and responsibility flow in a direct line vertically from the highest to lowest management

Question 20

Behavioral (human relations) Theory

Answer 20

uses behavioral sciences, workers exist in social groups

employee participation in decision-making is essential, improves morale and productivity

Question 21

Theory Z (Ouchi)

Answer 21

the value of the company is the people, everyone who will be affected by a decision is involved in making the decision

Question 22

Systems Approach

Answer 22

system is an organized whole composed of interdependent parts called subsystems => classified according to their purpose: procurement, production, distribution of service, safety and sanitation
*management approach to considering the entire organization when making decisions or allocating resources

Question 23

Leadership Continuum (Tannebaum and Schmidt)

Answer 23

developed continuum or range of possible leadership behaviors=> each type of behavior is related to the degree of authority used by the manager and amount of freedom available to subordinates in reaching decisions

Tells decision—Sells decision—Discusses decision—Asks for input on decision—Collaborates on decision—Delegates responsibility for decision

Question 24

Contingency Approach (Fiedler)

Answer 24

In both highly favorable and highly unfavorable situations, a task-oriented leader is more effective.
In moderately favorable situations, a relationship-oriented leader tends to be more effective because cooperation is more successful than task-oriented leadership.

Question 25

Leadership Effectiveness Model (Hersey, Blanchard, Johnson)

Answer 25

Readiness of followers and recommended leadership styles * Readiness=> desire for achievement, willing and able to accept responsibility, skills relevant to task * Leadership style=> tell, sell, participate, delegate Low readiness = tell Low to moderate readiness = sell Moderate to high readiness = participate High readiness = delegate

Question 26

Scientific Management (Taylor)

Answer 26

work-centered: workers must work at fastest pace possible and at maximum efficiency, systematic approach to improving worker efficiency, structure work situation to minimize motivation needed by supervisor, FOCUS ON PHYSICAL ASPECTS OF THE JOB

Question 27

Management by Objective MBO (Drucker)

Answer 27

type of democratic management that provides control from within, establish performance goals WITH employees, gives higher incentive value, PARTICIPATIVE LEADERSHIP

Question 28

Transactional Leader

Answer 28

clarifies roles and responsibilities, uses rewards and punishments to achieve goals

Question 29

Transformational Leader

Answer 29

agents of change, inspire followers to become motivated to work towards organizational goals rather than personal gain, builds on and extends transactional leadership

Question 30

Technical skills

Answer 30

understanding of and proficiency in a specific kind of activity=> most important at lower levels of management

Question 31

Human skills

Answer 31

ability to work effectively as a group member=> important at all levels but imperative at lower management levels

Question 32

Conceptual skills

Answer 32

ability to see organization as a whole=> importance increases at higher ranks of management

Question 33

Reward Power

Answer 33

ability to reward another for carrying out an order, give incentives, praise to reinforce certain behaviors

Question 34

Coercive Power

Answer 34

negative side of reward power, ineffective in motivating behavior change, may create resistance, ability to punish another for not carrying out requirements, used to maintain minimum standards of performance

Question 35

Position/Legitimate Power

Answer 35

subordinate acknowledges that the influencer has the right to exert influence due to position

Question 36

Expert Power

Answer 36

belief that influencer has some relevant expertise that the subordinate does not, credibility

Question 37

Referent Power

Answer 37

based on desire to identify with or imitate the influencer, how well you are liked

Question 38

Operating Budget

Answer 38

forecast of revenues, expenses, and profit for a specific period of time to operate a certain event

Question 39

Cash Budget

Answer 39

projects revenues and expenses, showing inflow and output of cash purpose is to determine if funds will be available when needed Do we have cash for this?

Question 40

Capital Budget

Answer 40

plant facilities, equipment, cost of improvements and repairs, expansions, replacements Includes expenditures whose return are expected to last beyond one year

Question 41

Traditional budget

Answer 41

uses existing budget as base and projects changes for the ensuing year in relation to the current budget, usually begins with this year's expenses plus inflation factor

Question 42

Zero-based budget

Answer 42

NOT this year's expenses, begin at 0, must justify each expense, past dollar allocations are NOT the basis of projections

Question 43

Fixed budget

Answer 43

prepared at one level of sales or revenue, no expected major change

Question 44

Flexible budget

Answer 44

adjusted to various levels of operation with varying levels of sales or revenues throughout the year, gives dollar range for low to high levels of predicted activity

Question 45

Performance budget

Answer 45

details what it costs to perform an activity

Question 46

Inventory turnover rate

Answer 46

cost of sales (food costs) / average inventory cost

Question 47

Food cost percentage

Answer 47

daily food cost / daily income

Question 48

Food cost per meal

Answer 48

(beginning inventory - ending inventory) + food purchases / meals served

Question 49

Profit Margin

Answer 49

net / sales

Question 50

Net Profit

Answer 50

sales - expenses

Question 51

Gross Profit

Answer 51

sales - cost of sales

Question 52

Breakeven Point in Units Sold

Answer 52

BE = fixed costs / selling price - variable cost

Question 53

Breakeven Point is Sales Volume

Answer 53

Graph format fixed costs / 1 - (variable costs / sales)

Question 54

Factor Pricing method

Answer 54

MU (mark up) x Raw food cost MU = 100 / food cost %

Question 55

Prime cost method

Answer 55

USES LABOR COST 1. Raw food + Labor cost = X 2. Food % + Labor % 3. 100 / (food% + labor%) = Y 4. Y x X

Question 56

Cost of profit pricing

Answer 56

1. Add the costs: cost of labor + food cost 2. Subtract from 100: 100 - (cost of labor + food cost) = Y 3. food cost / Y

Question 57

EP + AP: When question says "cost" or "$"

Answer 57

EP > AP AP / EP x yield%

Question 58

EP + AP: When question says "pound" or "weight"

Answer 58

AP > EP EP / AP x yield%

Question 59

Cost-benefit

Answer 59

determines whether the goal of the intervention is worthwhile in terms of cost, value of the benefits derived from the intervention must outweigh the costs ex: change in food habit or diet as a result of counseling, saving of physician's time and other resources due to prevention or reduction in severity of disease

Question 60

Cost-effectiveness

Answer 60

assumes that the goal of the project is worthwhile, compares costs of alternative strategies, systematically considers clinical, costs, and patient outcomes of various interventions to determine which ones are effective and which are not

Question 61

Total Quality Management TQM

Answer 61

philosophy where processes are refined with goal of improving performance in response to customer needs and expectations 3 elements: customers/clients, culture, counting FOCUS-PDSA

Question 62

Continuous Quality Improvement CQI

Answer 62

emphasized organization and systems rather than individuals, ideal that systems and performance can always improve, uses outcome assessment

Question 63

Six Sigma

Answer 63

data-driven approach for improving quality by removing defects and their causes, determine how many errors occur in a process, determine how to eliminate them and get as close to zero as possible

Question 64

Kaizen "good change" philosophy

Answer 64

suggests making continuous and small incremental improvements in a process on a daily basis rather than large changes, processes that continuously improve operations and involve all employees

Question 65

Lean Method

Answer 65

uses less human effort, less space, less capital and less time to make products with few defects, use videotaping and stopwatches to capture work bein done, reorganize workflow, duties and practices, reduce costs, increase customer satisfaction