Management Concepts, Midterm Exam 3 Study Guide
Management Concepts, Midterm Exam 3 Study Guide MANGT 420
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This 9 page Study Guide was uploaded by Laurel Knust on Wednesday July 27, 2016. The Study Guide belongs to MANGT 420 at Kansas State University taught by Sabine Turnley in Summer 2016. Since its upload, it has received 11 views. For similar materials see Management Concepts in Management at Kansas State University.
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Date Created: 07/27/16
Management Concepts - MANGT 420 Sabine Turnley Exam 3 Study Guide – Summer 2015 Entrepreneurship Module (textbook readings, ppt slides, classnotes, video) Entrepreneurship: Definition The process of starting a new venture, organizing and managing, and assuming the risks Why has Entrepreneurship Increased in Popularity? Trends in New Business Start-Ups 1. Downsizing of large corporations 2. Crossovers to small business by former large business employees 3. Increased options in franchising 4. The emergence of E-commerce 5. Increased entrepreneurial opportunities for minorities and women 6. Better survival rates for small businesses 7. Technological advances The Entrepreneurial Personality o 8 personality traits 1. Strong leadership qualities 2. Highly self-motivated 3. Strong sense of basic ethics and integrity 4. Willingness to fail 5. Serial innovators 6. Know what you don't know 7. Competitive spirit 8. Understand the value of a strong peer network o 2 factors o Proactive personality scale Good indicator of a person's likelihood of becoming an entrepreneur o Myths about Entrepreneurs 1. Born, not made 2. Gamblers 3. Money is the key to entrepreneurial success 4. You have to be young 5. You have to have a degree in business The Role of Entrepreneurship in our Society 1. Employ some 52 percent of private workers 2. Provide 51 percent of private-sector output 3. Receive 35 percent of federal government contract dollars 4. Provide as many as 7 out of every 10 new jobs in the economy Writing a Business Plan Document designed to map out the course of a company over a specific period of time Part I: Description of the Business Part II: Marketing Plan Part III: Production/Operations Plan Part IV: Management Plan Part V: Financial Plan Structure of Entrepreneurial Organizations Starting a New Business Buying an Existing Business Business has a proven ability to draw customers and make a profit (the business is a going concern) Networks (e.g., customers and suppliers) are already established Negative: New owners inherit any existing problems Starting from Scratch Avoids problems associated with previous owners Freedom to choose suppliers, equipment, location, and workers Negative: More business risk and uncertainty Financing a New Business Personal Resources Using your own money and money borrowed from friends and relatives to finance the business Strategic Alliances Partnering with established firms such as suppliers in a mutually beneficial relationship Lenders Obtaining funding from traditional lenders (e.g., banks, independent investors, and government loans) Venture Capital Companies Groups of small investors who provide capital funds to small high-growth potential start-up firms in exchange for an equity position (stock) in the firms Small-Business Investment Companies (SBICs) SBICs are investor-owned companies that borrow money from the SBA and, in turn, loan it to small business with high growth potential Minority Enterprise Small-Business Investment Companies (MESBICs) specialize in financing businesses owned by minorities SBA Financial Programs The Small Business Administration has several financing programs (e.g., SBA-guaranteed loans) for small businesses that are unable to get private financing at reasonable terms The performance of Entrepreneurial Organizations 60-80% of all new businesses fail in their first five years of operation Factors causing failure: o Managerial incompetence o Insufficient funds o Weak control systems o Growing too fast o Lack of commitment o Ethical failure Reasons for success: o Hard work, drive, and dedication by the entrepreneur o Careful analysis of market conditions o Managerial competence o Luck can contribute to success Key ingredients for Entrepreneurship o Personal characteristics o Technical Know-How o Marketable Idea o Contacts for Assistance o Financial Resources o Supportive Lifestyle o Leadership Experience o Personal Motivation Video; Artlifting Human Resources Management Module (textbook readings, ppt slides, classnotes, video) Managers can do what they want HRM: Definition The set of organizational activities directed at attracting, developing, and maintaining an effective workforce Strategic Importance of HRM HRM can affect wallet, and helps manager with complexity The Legal Environment OF HRM 1. Equal Employment Opportunity Laws 1. Title VII of the Civil Rights Act of 1964 (as amended by the Equal Opportunity Act of 1972): Forbids discrimination based on race, color, religion, sex (gender), and national origin in all areas of the employment relationship o Beginning of all HR o Affects EVERYONE (Future and Current Employees) o Does not restrict set up of BFOQ (Bona Fide Occupational Qualification) Example: Can say no to female model for male clothes o Adverse Impact Occurs where minority groups pass test at rate of < 80% of the passing rate of majority group ---> Discriminatory (throw test) o EEOC (Equal Employment Opportunity Commission) Enforces, handles claims, creates, and acts 2. Affirmative Action (AA): Requires employers to proactively seek out and hire employees from groups that are underrepresented in the organization 3. Age Discrimination in Employment Act Age discrimination for > 40 yrs enforced by EEOC, but BFOQ Example: 80 year old flying a plane 4. Pregnancy Discrimination Act o United States and Papa New Guinea without maternity leave laws 5. Americans with Disabilities Act 2. Compensation and Benefits Laws 1. Fair Labor Standards Act (FLSA) Sets federal minimum wage, requires overtime pay for 40+ hours (salary employees) 2. Equal Pay Act of 1963 Exceptions: 1. Seniority 2. Merit 3. Employee Retirement Income Security Act (ERISA) 4. Family and Medical Leave Act (FMLA) Requires up to 12 weeks each year for unpaid leave (>50+ employees) 3. Labor Relations Laws 1. National Labor relations Act of 1935 Wagner Act Requires recognition of a union 2. Labor Management Relations Act of 1947 Taft-Hartley Act Limits power of union and increases management control/rights during organized campaign 4. Health and Safety Laws Occupational Safety and Health Act of 1970 o Employers must provide a place of employment free from hazards o Organizations must obey safety and health standards established by Occupational Safety and Health Administration (OSHA) The HRM Process 1. HR Planning When management ensures that it has the right number and mix of workers needed to meet the organizational goals Step 1: Assessing current HR (number and skills) Step 2: Assessing future HR needs Step 3: Developing program to match resources with needs Job Forecasting Tools Replacement Chart Employee Information System 2. Recruitment The process of attracting qualified job candidates to fill vacant positions Internal Recruiting Advantages: Enhance moral, better data, faster, less expensive Drawbacks: Domino effect of continuous position filling, no fresh view point External recruiting Examples: Newspaper, online, career fairs, head hunters Advantages: Change culture, new ideas/views Drawbacks: More training, expensive and time consuming, hurt moral 3. Selection Involves gathering and assessing information about job candidates and making decision about whom to hire Selection Techniques Reliability Validity 7 Questions 1. What laws and regulations shape my HRM practices? (legal environment) 2. What are my HRM needs? (HR planning) Succession Chart Skills Inventory 3. Where can I find qualified job candidates? (recruitment practices) 4. How can I choose the best qualified job candidates? (selection techniques) 5. How can I ensure employee skills are current? (training) 6. What is the best way to evaluate an employee's performance? (PA) 7. What options exist to handle overstaffing? (decruitment process) Performance Appraisal Objective Measures o Measures of Performance o Problems of Opportunity Bias o Special Opportunity tests Judgmental Measures o Ranking o Rating Graphic Rating Scale Behaviorally Anchored Rating Scale (BARS) Performance Appraisal Errors o Recency Error o Error of Leniency and Strictness o Halo Error Performance Feedback Video: SAS North Carolina 10,000 Employees Same CEO for entire existence Free M&Ms on Wednesdays Individual Behavior in Organizations Module (textbook readings, ppt slides, classnotes) The Psychological Contract The overall set of expectations held by an individual with respect to what he/she will contribute to the organization and what the organization will provide in return Contributions from the Individual o Effort o Ability o Loyalty o Skills o Time o Competencies Inducements from the Organization o Pay o Job Security o Benefits o Career Opportunities o Status o Promotion Opportunities Person-Job Fit The extent to which contributions made by the individual match the inducements offered by the organization Reasons for poor person-job fit o Selection procedures are imperfect o People and organizations change o Individuals are unique (individual differences) Personality and Individual Behavior Personality: definition\ The relatively stable set of psychological and behavioral attributes that distinguish one person from another The Big Five Model of Personality 1. Agreeableness 2. Conscientiousness 3. Emotional Stability 4. Extraversion 5. Openness to New Experiences Other Personality Traits at Work o Locus of Control Individual's belief about the extent to which their behavior affects what happens to them Internal External o Self-Efficacy Person's belief about his/her capability to perform a task o Authoritarianism Extent to which an individual believes that power and status differences are appropriate o Machiavellianism Behavior directed at gaining power and controlling/manipulating the behavior of others o Self-Esteem Extent to which a person believes she/he is a worthwhile individual (more general than self- efficacy) Attitudes and Individual Behavior Definitions A predisposition to react in a certain way toward people and things in one's environment o Affective Component: Feelings and emotions. Explains how we feel. o Cognitive Component: Attitude derived from perceived knowledge. Explains why we feel the way we feel. o Intentional Component: How a person expects to behave in a given situation Work-related attitudes Job Satisfaction/Dissatisfaction Attitude that reflects the extent to which an individual is gratified or fulfilled by his/her work o There is a strong and positive relationship between satisfaction and low absenteeism and low turnover o High levels of job satisfaction DO NOT necessarily lead to high job performance! Organizational Commitment An attitude that reflects an individual's identification with and attachment to an organization Commitment strengthens with o Age o Years with the organization o Job Security o Participation in decision making Committed Employees o Have highly reliable habits o Plan a longer tenure with the organization o Muster more effort in performance Perception and Perceptual Process Perception: Definition The process through which people receive, organize and interpret information from the environment How we see/interpret info (Act on perception) Attribution Theory When we observe behavior and attribute a cause to it (external or internal) 1. Consensus: The extent to which others, in the same situation, behave the same Low Consensus = Internal Attribution 2. Consistency: The extent to which a person similarly behaves in the same situation Low Consistency = External Attribution 3. Distinctiveness: The extent to which a person behaves the same in other situations High Distinctiveness = Situation is unique (everywhere else is good), External Attribution Selective Perception Screening out information that causes discomfort or that contradicts our beliefs
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