Test 1 Flashcards

Question

classical approach

Answer 1

assumption: people are rational

Answer 2

The Principles of Scientific Management: “The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee.”4 Taylor had noticed that many workers did their jobs in their own way—perhaps haphazard—and without consistent supervision. And it seemed to him that a lack of clear and uniform methods caused workers to lose efficiency and perform below their true capacities. As a result, their organizations also underperformed.

Answer 3

scientific management. It was based on the notion that jobs should be studied to identify their basic steps and motions as well as determine the most efficient ways of doing them. Once this job “science” was defined, workers could be trained to follow it, and supervisors could be trained to support and encourage workers to perform to the best of their abilities. Taylor's approach to scientific management can be summarized in these four core principles.

Answer 4

1. Develop a “science” for each job—rules of motion, standard work tools, and proper work conditions. 2. Hire workers with the right abilities for the job. 3. Train and motivate workers to do their jobs according to the science. 4. Support workers by planning and assisting their work according to the science.

Answer 5

motion study, the science of reducing a job or task to its basic physical motions. Two of Taylor's contemporaries, Frank and Lillian Gilbreth, pioneered the use of motion studies as a management tool.5 In one famous case, they reduced the number of motions used by bricklayers and tripled their productivity.6

Answer 6

a bureaucracy.9 When staffed and structured along the lines listed in Table 2.1, Characteristics of an Ideal Bureaucracy, he believed organizations could be both highly efficient and very fair in treating their members and clients. For Weber, an organization of this type—the bureaucracy—was ideal and rational. And in effect, he was recommending that this is how all organizations should be run.

Answer 7

Clear Division of Labor Jobs are well defined, and workers become highly skilled at performing them. Clear Hierarchy of Authority Authority and responsibility are well defined, and each position reports to a higher-level one. Formal Rules and Procedures Written guidelines describe expected behavior and decisions in jobs; written files are kept for the historical record. Impersonality Rules and procedures are impartially and uniformly applied; no one gets preferential treatment. Careers Based on Merit Workers are selected and promoted on ability and performance; managers are career employees of the organization.

Answer 8

Another branch in the classical approaches to management includes attempts to document and understand the experiences of successful managers. The most prominent writer in this realm is Henri Fayo

Answer 9

• Foresight—complete a plan of action for the future. • Organization—provide and mobilize resources to implement plan. • Command—lead, select, and evaluate workers. • Coordination—fit diverse efforts together, ensure information is shared and problems are solved. • Control—make sure things happen according to plan, take necessary corrective action.

Answer 10

scalar chain principle stated that there should be a clear and unbroken line of communication from the top to the bottom in the organization.

Answer 11

unity of command principle stated that each person in an organization should receive orders from only one boss. Would you say that these principles still make sense today?

Answer 12

Argyris suggests that workers treated as adults will be more productive.

Answer 13

McGregor believed managerial assumptions create self-fulfilling prophecies

Answer 14

• | Maslow described a hierarchy of human needs with self-actualization at the top.

Answer 15

The Hawthorne studies focused attention on the human side of organizations.

Answer 16

Follett viewed organizations as communities of cooperative action

Answer 17

The human resource approaches shifted management thinking away from physical factors and work structures and toward the human side of organizations. The contributors shown here each focused on people as individuals and how their needs may influence their attitudes and behavior at work.

Answer 18

e Hawthorne effect. Have you noticed that people given special attention will tend to perform as expected? Could the Hawthorne effect explain why some students, perhaps you, do better in smaller classes or for instructors who pay more attention to them in class?

Answer 19

progression principle—a need only becomes activated after the next-lower-level need is satisfied.

Answer 20

deficit principle—people act to satisfy deprived needs for which a satisfaction “deficit” exists. Only at the highest level of self-actualization do the deficit and progression principles cease to operate. The more this need is satisfied, the stronger it grows.

Answer 21

Theory X assumptions expect people to generally dislike work, lack ambition, act irresponsibly, resist change, and prefer to follow rather than to lead

Answer 22

McGregor considered such thinking wrong, believing that Theory Y assumptions are more appropriate and consistent with human potential. Managers holding Theory Y assumptions expect people to be willing to work, capable of self-control and self-direction, responsible, and creative.

Answer 23

• Managers use quantitative analysis and tools to solve complex problems. • Organizations are open systems that interact with their environments. • Contingency thinking holds that there is no one best way to manage. • Quality management focuses attention on continuous improvement. • Evidence-based management seeks hard facts about what really works

Answer 24

s analytics, the use of large data bases, often referred to as “big data,” to solve problems and make informed decisions using systematic analysis.23 And in respect to analytics, scholars are very interested in learning how managers can use mathematical tools to conduct quantitative and statistical analyses

Answer 25

management science and operations research are often used interchangeably to describe the use of mathematical techniques to solve management problems. A typical quantitative approach proceeds as follows. A problem is encountered, it is systematically analyzed, appropriate mathematical models and computations are applied, and an optimum solution is identified. Consider these examples.

Answer 26

As open systems, organizations continually interact with their external environments to obtain resource inputs, transform those inputs through work activities into goods and services, and deliver finished products to their customers. Feedback from customers indicates how well they are doing.

Answer 27

subsystems, or smaller components, whose activities individually and collectively support the work of the larger system.24 Figure 2.4 shows the importance of cooperation among organizational subsystems.25 In the figure, for example, the operations and service management systems serve as a central point. They provide the integration among other subsystems, such as purchasing, accounting, sales, and information, all of which are essential to the work, and the success, of the organization. But the reality is that the cooperation is often imperfect and could be improved. Just how organizations achieve this, of course, is a major management challenge.

Answer 28

Rather than trying to find the one best way to manage in all circumstances, modern management adopts contingency thinking. That is, it recognizes there is often more than one pathway to solve a problem—personal or organizational. This means that instead of looking for universal or “cookie-cutter” advice, managers should be trying to identify practices that best fit with the unique demands of different situations.

Answer 29

f Deming's work was the emergence of total quality management, or TQM. This process makes quality principles part of the organization's strategic objectives, applying them to all aspects of operations and striving to meet customers' needs by doing things right the first time. Most TQM approaches begin with an insistence that the total quality commitment applies to everyone in an organization, from resource acquisition and supply chain management, through production and into the distribution of finished goods and services, and ultimately to customer relationship management.

Answer 30

continuous improvement—always looking for new ways to improve on current performance.29 The goal is that one can never be satisfied; something always can and should be improved on.

Answer 31

Scholars Jeffrey Pfeffer and Robert Sutton make the case for evidence-based management, or EBM. This is the process of making management decisions on “hard facts”—that is, about what really works—rather than on “dangerous half-truths”—things that sound good but lack empirical substantiation. Using data from a sample of some 1,000 firms, for example, Pfeffer and a colleague found that firms using a mix of well-selected human resource management practices had more sales and higher profits per employee than those that didn't.35 Those practices included employment security, selective hiring, self-managed teams, high wages based on performance merit, training and skill development, minimal status differences, and shared information. Examples of other EBM findings include that challenging goals accepted by an employee are likely to result in high performance, and that unstructured employment interviews are unlikely to result in the best person being hired to fill a vacant position.36

Answer 32

• Ethical behavior is values driven. • What is considered ethical varies among moral reasoning approaches. • What is considered ethical can vary across cultures. • Ethical dilemmas arise as tests of personal ethics and values. • People tend to rationalize unethical behaviors.

Answer 33

Ethics is defined as the code of moral principles that sets standards of good or bad, or right or wrong, in our conduct.5 Personal ethics are guides for behavior, helping people make moral choices among alternative courses of action.

Answer 34

Most typically, we use the term ethical behavior to describe what we accept as “good” and “right” as opposed to “bad” or “wrong.”

Answer 35

values—underlying beliefs and judgments regarding what is right or desirable and that influence individual attitudes and behaviors.

Answer 36

Terminal values focus on desired ends, such as the goal of lifelong learning. Examples of terminal values considered important by managers include self-respect, family security, freedom, inner harmony, and happiness

Answer 37

Instrumental values focus on the means for accomplishing these ends, such as the role of intellectual curiosity in lifelong learning. Instrumental values held important by managers include honesty, ambition, courage, imagination, and self-discipline.

Answer 38

People often differ in the approaches they take toward moral reasoning, and they may use different approaches at different times and situations. Four ways to reason through the ethics of a course of action are utilitarianism, individualism, moral rights, and justice. Each approach can justify an action as ethical, but the reasoning will differ from that of the other views.

Answer 39

utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people. Founded in the work of 19th-century philosopher John Stuart Mill, this results-oriented view tries to assess the moral implications of our actions in terms of their consequences. Business executives, for example, might use profits, efficiency, and other performance criteria to judge what decision is best for the most people.

Answer 40

, the individualism view focuses on the long-term advancement of self-interests. The notion is that people become self-regulating as they strive for individual advantage over time; ethics are maintained in the process. Suppose, for example, that you consider cheating on your next test. You also realize this quest for short-term gain might lead to a long-term loss if you are caught and expelled. This reasoning shows an individualism view toward ethical behavior and should cause you to quickly reject the original inclination to cheat on the exam.

Answer 41

justice view of moral reasoning considers a behavior to be ethical when people are treated impartially and fairly, according to legal rules and standards. It judges the ethical aspects of any decision on the basis of how equitable it is for everyone affected.11 Today, researchers often speak about four types of workplace justice—procedural, distributive, interactional, and commutative.

Answer 42

Procedural justice involves the fair administration of policies and rules. For example, does a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level supervisor?

Answer 43

Distributive justice involves the allocation of outcomes without respect to individual characteristics, such as those based on ethnicity, race, gender, or age. For example, does a woman with the same qualifications and experience as a man receive the same consideration for hiring or promotion?

Answer 44

Interactional justice focuses on treating everyone with dignity and respect. For example, does a bank loan officer take the time to fully explain to an applicant why he or she was turned down for a loan?

Answer 45

Commutative justice focuses on the fairness of exchanges or transactions. An exchange is deemed to be fair if all parties enter into it freely, have access to relevant and available information, and obtain some type of benefit from the transaction.

Answer 46

moral rights view considers behavior to be ethical when it respects and protects the fundamental rights of people. Based on the teachings of John Locke and Thomas Jefferson, this view believes all people have rights to life, liberty, and fair treatment under the law. In organizations, this translates into protecting the rights of employees to privacy, due process, free speech, free consent, health and safety, and freedom of conscience

Answer 47

cultural relativism.16 This is the belief that there is no one right way to behave and that ethical behavior is always determined by its cultural context. An American international business executive guided by rules of cultural relativism, for example, would argue that the use of child labor is okay in another country as long as it is consistent with local laws and customs.

Answer 48

moral absolutism. This is a universalist ethical position suggesting that if a behavior or practice is not okay in one's home environment, it is not acceptable practice anywhere else. In other words, ethical standards are absolute and should apply universally across cultures and national boundaries. The American executive in the former example would not do business in a setting where child labor was used because it is unacceptable at home

Answer 49

Critics of the universal approach claim it is a form of ethical imperialism, or the attempt to externally impose one's ethical standards on others.

Answer 50

ethical dilemma is a situation requiring a decision about a course of action that, although offering potential benefits, may be considered unethical. As a further complication, there may be no clear consensus on what is “right” and “wrong.”

Answer 51

• Personal character and moral development influence ethical conduct. • Managers as positive role models can inspire ethical conduct. • Training in ethical decision making can improve ethical conduct. • Protection of whistleblowers can encourage ethical conduct. • Formal codes of ethics set standards for ethical conduct.

Answer 52

ethical frameworks, or well-thought-out personal rules and strategies for ethical decision making

Answer 53

e spotlight questions. You might think of it as highlighting the risk of public disclosure for your actions. Asking and answering the spotlight questions about how you would feel if family, friends, and role models learn of your actions is a powerful way to test whether a decision is consistent with your ethical standards.3

Answer 54

whistleblowers, persons who expose organizational misdeeds to preserve ethical standards and protect against wasteful, harmful, or illegal acts.37 They were also all fired from their jobs.

Answer 55

code of ethics that formally states the values and ethical principles members are expected to display. Some employers even require new hires to sign and agree to their ethics code as a condition of employment

Answer 56

, corporate social responsibility is at issue. Often called CSR, it is defined as an obligation of the organization to act in ways that serve both its own interests and the interests of its stakeholders, representing society at large.

Answer 57

e triple bottom line—how well an organization performs when measured not only on financial criteria but also on social and environmental ones. Some call this triple bottom line the 3 Ps of organizational performance—profit, people, and planet

Answer 58

virtuous circle, where corporate social responsibility leads to improved financial performance that leads to more socially responsible actions in the future.5

Answer 59

socioeconomic view of CSR holds that management of any organization should be concerned for the broader social welfare, not just corporate profits. This broad stakeholder perspective puts the focus on the expanded triple bottom line of not just financial performance, such as shareholder returns, but also social and environmental performance. It is supported by Paul Samuelson, another distinguished economist and also a Nobel laureate.

Answer 60

classical view of CSR holds that management's only responsibility in running a business is to maximize profits and shareholder value. It puts the focus on the single bottom line of financial performance.

Answer 61

shared value advocated by Michael Porter and Mark Kramer.51 They say: “The purpose of a corporation must be redefined as creating shared value, not just profit per se

Answer 62

• Inclusion drives the business case for diversity. • Multicultural organizations value and support diversity. • Minorities and women suffer diversity bias in many situations. • Organizational subcultures can create diversity challenges. • Managing diversity should be a top leadership priority.

Answer 63

diversity are often discussed in respect to age, race, ethnicity, gender, physical ability, and sexual orientation. An even broader definition includes differences in religious beliefs, education, experience, family status, national cultures, and perhaps more.2 In his book Beyond Race and Gender, diversity consultant R. Roosevelt Thomas Jr. says that “diversity includes everyone … white males are as diverse as their colleagues

Answer 64

This problem of high employee turnover among minorities and women has been called the Revolving door syndrome The revolving door syndrome is high turnover among minorities and women. revolving door syndrom

Answer 65

leaking pipeline problem shows up in male-dominant organizational cultures. It occurs as women leave careers because their employer lacks family-friendly human resource policies and practices.1

Answer 66

Some may try to “fit in” by adapting through biculturalism, attempting to display majority culture characteristics that seem necessary to succeed in the work environment. For example, gays, lesbians, bisexuals, and transgendered might hide their sexual orientations and gender identities; an African-American or Hispanic manager might avoid using words or phrases that white colleagues would consider slang; a woman might use football or baseball metaphors in conversations with men to gain acceptance into their career networks.

Answer 67

Cultural intelligence, sometimes called CQ, is defined as a “person's capability to function effectively in situations characterized by cultural diversity.”17 It's a concept often used in the context of global business and travel. But shouldn't CQ skills be part of subculture relationships right here at home—at work and in everyday living?

Answer 68

Maybe, too, meeting or working with someone from another culture, causes us to experience something known to international travelers as culture shock.

Answer 69

Confusion —First contacts with the new culture leave you anxious, uncomfortable, and in need of information and advice. • Small victories —Continued interactions bring some “successes,” and your confidence grows in handling daily affairs. • Honeymoon —This is a time of wonderment, cultural immersion, and even infatuation, with local ways viewed positively. • Irritation and anger —This is a time when the “negatives” overwhelm the “positives” and the new culture becomes a target of your criticism. • Reality —This is a time of rebalancing; you are able to enjoy the new culture while accommodating its less-desirable elements.

Answer 70

n high-context cultures such as Vietnam, what is actually said or written may convey only part, sometimes a very small part, of a message. The rest must be interpreted from nonverbal signals and the situation as a whole—things such as body language, physical setting, and even past relationships among the people involved. Context counts, and cultures and ceremonies are carefully interpreted. Things like dinner parties and social gatherings are also important. They allow potential business partners to get to know one another. It is only after the relationships are established that it becomes possible to discuss and hopefully make business deals.

Answer 71

In low-context cultures most communication takes place via the written or spoken word. This is common in the United States, Canada, and Germany, for example. We rely on words to communicate messages. And as the saying goes: “We say (or write) what we mean, and we mean what we say.

Answer 72

f a polychronic culture are more flexible about time and who uses it. They often try to work on many different things at once, perhaps not in any particular order. An American visitor (monochronic culture) to an Egyptian client (polychronic culture) may be frustrated, for example, by interruptions as the client deals with people continually flowing in and out of his office.

Answer 73

a monochronic culture as one in which people tend to do one thing at a time. This is typical of the United States, where most businesspeople schedule a meeting for one person or group to focus on one issue for an allotted time period. And if someone is late for one of those meetings or brings an uninvited guest, we tend not to like it.

Answer 74

tight culture, such as ones found in Korea, Japan, or Malaysia, social norms are strong and clear. People know the prevailing norms and let them guide their behavior. They self-govern and try to conform. They also understand that any deviations are likely to be noticed, discouraged, and even sanctioned. The goal in tight cultures, as suggested in the Asian proverb, is to fit in with society's expectations and not stand out.

Answer 75

loose culture, such as ones found in Australia, Brazil, or Hungary, social norms are mixed and less clear cut. People may be more or less concerned with them, and conformity will vary a good deal. Deviations from norms tend to be tolerated unless they take the form of criminal behavior or reach toward the extremes of morality. It is quite acceptable for individuals in loose cultures, as suggested in the American idiom, to show unique identities and express themselves independent from the masses.

Answer 76

Power distance is the degree to which a society accepts or rejects the unequal distribution of power in organizations and society. In high power distance cultures such as Japan, we expect to find great respect for age, status, and titles. Could this create problems for an American visitor used to the informalities of a more moderate power distance culture, and perhaps accustomed to first names and casual dress in the office? Uncertainty avoidance is the degree to which a society tolerates or is uncomfortable with risk, change, and situational uncertainty. In high uncertainty avoidance cultures, such as France, one would expect to find a preference for structure, order, and predictability. Could this be one of the reasons why the French seem to favor employment practices that provide job security? Individualism-collectivism is the degree to which a society emphasizes individual accomplishments and self-interests, versus collective accomplishments and the interests of groups. In Hofstede's data the United States had the highest individualism score of any country. Don't you find the “I” and “me” words used a lot in our conversations and meetings? I'm always surprised how often they occur in student team presentations. What are the implications of our cultural tendency toward individualism when we try to work with people from more collectivist national cultures? Masculinity-femininity is the degree to which a society values assertiveness and materialism, versus feelings, relationships, and quality of life.40 You might think of it as a tendency to emphasize stereotypical masculine or feminine traits and attitudes toward gender roles. Visitors to Japan, with the highest masculinity score in Hofstede's research, may be surprised at how restricted career opportunities can be for women. The Wall Street Journal comments: “In Japan, professional women face a set of socially complex issues—from overt sexism to deep-seated attitudes about the division of labor.” One female Japanese manager says: “Men tend to have very fixed ideas about what women are like.41 Time orientation is the degree to which a society emphasizes short-term or long-term goals and gratifications.42 Americans are notorious for being impatient and wanting quick, even instantaneous, gratification. Even our companies are expected to achieve short-term results; those failing to meet quarterly financial targets often suffer immediate stock price declines. Many Asian cultures are quite the opposite, valuing persistence and thrift, and being patient and willing to work for long-term success. Although Hofstede's ideas are insightful, his five value dimensions offer only a ballpark look at national cultures. They're a starting point at best. Hofstede himself even warns that we must avoid the ecological fallacy.43 This is acting with the mistaken assumption that a generalized cultural value, such as individualism in American culture or masculinity in Japanese culture, applies always and equally to all members of the culture.

Answer 77

n intercultural competencies, skills and personal characteristics that help us function successfully in cross-cultural situations. Think of them as “must-haves” for career success today. These intercultural competencies focus us on acting competent when working in another culture or in culturally mixed settings. Scholars describe them as the three pillars of perception management, relationship management, and self-management.

Answer 78

a global economy where labor and resource supplies, capital and product markets, and business competition are worldwide in scope.3 Pretty much everything we do—from the things we buy to the food we eat to the investments we make, is influenced by the forces of globalization. Think of it as the process of growing interconnections among the components of the global economy.4 Harvard scholar and consultant Rosabeth Moss Kanter describes globalization as “one of the most powerful and pervasive influences on nations, businesses, workplaces, communities, and lives.”

Answer 79

Firms like Cisco, Sony, Ford, and IKEA are large international businesses. They conduct for-profit transactions of goods and services across national boundaries. Such businesses, from small exporters and importers to the huge multinational corporations, form the foundations of world trade. They move raw materials, finished products, and specialized services from one country to another in the global economy. And, they all “go global” for good reasons—profits, customers, suppliers, capital, labor, and risk management.9

Answer 80

• Profits —gain profits through expanded operations. • Customers —enter new markets to gain customers. • Suppliers —get access to products, services, and materials. • Capital —get access to financial resources. • Labor —get access to low-cost, talented workers. • Risk —spread assets among multiple countries.

Answer 81

global sourcing, licensing and franchising, exporting and importing

Answer 82

joint ventures, foreign subsidiaries,

Answer 83

a foreign subsidiary is a local operation completely owned and controlled by a foreign firm. It might be a local firm that was purchased in its entirety or it might be a brand-new operation built from start as a greenfield venture. Decisions to set up foreign subsidiaries are most often made only after foreign firms have gained experience in the local environment through earlier joint ventures.

Answer 84

g transnational corporations. That is, they would like to operate worldwide without being identified with one national home.

Answer 85

A global corporation or multinational corporation (MNC) has extensive international operations in many foreign countries and derives a substantial portion of its sales and profits from international sources.21 The world's largest MNCs are identified in annual listings such as Fortune magazine's Global 500 and the Financial Times' FT Global 500. They include names very familiar to consumers, such as Wal-Mart, BP, Toyota, Nestlé, BMW, Hitachi, Caterpillar, Sony, and Samsung.

Answer 86

Universal Facilitators of Leadership Success • Acting trustworthy, just, honest • Showing foresight, planning • Being positive, dynamic, motivating • Inspiring confidence • Being informed and communicative • Being a coordinator and team builder

Answer 87

Universal Inhibitors of Leadership Success • Being a loner • Acting uncooperative • Being irritable • Acting autocratic

Test 1 Flashcards

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