Study Guide Test 1
Study Guide Test 1 MGMT 371 002
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MGMT 371 002
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This 6 page Study Guide was uploaded by Richard Martin on Thursday September 22, 2016. The Study Guide belongs to MGMT 371 002 at University of South Carolina taught by Patrick J. Demouy in Fall 2016. Since its upload, it has received 80 views. For similar materials see Principles of Management in Business Administration at University of South Carolina.
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Date Created: 09/22/16
Test 1 Saturday, September 3, 2016 1:11 AM Chapter 1 • Management: attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources • Four principles of management: ○ Planning: defining goals and tasks and resources needed to attain them ○ Organizing: assigning tasks, grouping tasks into departments, allocating resources in departments ○ Leading: use influence to motivate employees to achieve goals ○ Controlling: monitoring activities, keeping organization on track and make corrections as needed Know definition and order of these principles • Organization: social entity that is goal directed and deliberately structured • Effectiveness: degree to which the organization achieves a stated goal • Efficiency: use of minimal resources to produce a desired volume of output ○ Efficiency comes after effectiveness • Onshoring: bringing manufacturing back to the county it used to be in Management Skills • Conceptual: ability to see organization as a whole, think strategically in long-term • Human: ability to work with other people as a group by motivating, coordinating, leading and resolving conflicts • Technical: knowledge of methods, techniques and equipment involved to solve problems in a specific function Roles of Manager • Informational: activities used to maintain and develop network, roles of communication and distribution of information ○ Monitor: seek and receive information, scan reports, maintain personal contacts ○ Disseminator: forward information to other members, send memos/reports, make phone calls ○ Spokesperson: transmit information to outsiders through speeches, reports, memos • Interpersonal: relationships with others (human skills), leading and handling ceremonial/symbolic activities ○ Figureheads: perform ceremonial/symbolic duties like greeting visitors, signing legal documents ○ Leader: direct, motivate, train, counsel and communicate with subordinates ○ Liaison: maintain information links inside and outside organization by mail, phone, or meetings • Decisional: events which manager must make a choice, need conceptual and human skills ○ Entrepreneur: initiate improvement projects, new ideas ○ Disturbance handler: take corrective action during crises, resolve conflicts, adapt to environmental crises ○ Resource allocator: decides who gets resources, schedule, budget, set priorities ○ Negotiator: representor during negotiation of union contracts, sales, purchases, budgets, representing departmental interests Chapter 2 • Political forces: influence of political and legal institutions on people and organizations • Social forces: aspects of a culture that guide and influence relationships among people • Economic forces: the availability, production, and distribution of resources in a society • Classical perspective: a management perspective that emerged during the 19 and early 20 centuries that emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines • Scientific management: a subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labor productivity • Fredrick Winslow Taylor: ○ Father of scientific management ○ Improved efficiency and labor productivity through scientific methods ○ Proposed that workers "could be retooled like machines" • Henry Gantt: developed Gantt chart to measure planned and completed work along each stage of production • Gilbreths: pioneered time and motion studies to promote efficiency • Max Webber: bureaucratic management, bureaucratic control ○ Division of labor: definitive authority and responsibility of different areas ○ Unity of command: report to one and only one direct supervisor ○ Managers also have to follow rules and procedures ○ Management is separate from ownership of organization ○ Administrative acts and decisions recorded in writing ○ Personnel should be promoted and hired based on technical qualifications • Administrative principles approach: a subfield of classical management perspective that focused on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling th • Humanistic Perspective: a management perspective that emerged around the late 19 century that emphasized understanding human behavior, needs, and attitudes in the workplace Study Guide Page 1 human behavior, needs, and attitudes in the workplace ○ Mary Parker Follett and Chester Barnard ○ Empowerment: facilitating instead of controlling ○ Recognized informal organization ○ Acceptance theory of authority: people have free will and can choose whether to follow management orders ○ Human relations: employees perform better when managers treat them positively • Hawthorne studies: series of experiments on worker productivity, employees increased output due to better treatment by managers • Theory X: ○ People have inherent dislike of work and will avoid it if possible ○ Must be coerced, controlled, or directed to get them to put forth effort ○ Prefers to be directed, wishes to avoid responsibility, little ambition and wants security • Theory Y: ○ Expenditure of physical and mental effort in work is natural, doesn't inherently dislike work ○ Exercise self-direction and self-control to achieve objectives ○ Learns not only to accept but to seek responsibility ○ Capacity to exercise imagination, ingenuity and creativity in solution of problems is widely distributed in population ○ Under modern industrial life, intellectual potentialities of average person are only partially utilized • Management science: a management perspective that emerged after World War II and applied mathematics, statistics, and other quantitative techniques to managerial problems • Operations research: consists of mathematical model building and other applications of quantitative techniques to managerial problems • Systems theory: an extension of the humanistic perspective that describes organizations as open systems that are characterized by entropy, synergy, and subsystem interdependence • Open system: system that interacts with the external environment • Closed system: system that does not interact with the external environment • Entropy: tendency for a system to run down and die • Synergy: concept that the whole is greater than the sum of its parts • Subsystem: parts of a system that depend on one another for their functioning Total Quality Management: concept that focuses on managing the total organization to deliver quality to customers • Employee involvement: requires company wide participation in quality control. • Focus on the customer: all employees focus on the customer by finding out what the customers want and they try to meet their need and expectations • Benchmarking: refers to a process whereby companies find out how others do something better than they do and then try to imitate or improve on it • Continuous improvement: the implementation of small, incremental improvement in all areas of the organization on an ongoing basis • Learning Organization: an organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability • Team Based Structure: team made up of employees with different skills that collaborate and communicate across departmental and hierarchical boundaries • Empowered Employees: unleashing the power and creativity of employees by giving them the freedom, resources, information, and skills to make decisions and perform effectively • Open Information: the sharing of information with all employees that allows them to identify needs and solve problems Chapter 4 • Domestic: market is limited to home country, production and marketing facilities in home, managers may be aware of global environment and may want to consider foreign involvement • International: exports increase, company adopts multidomestic approach, uses international division to handle marketing in other countries individually • Multinational: company has marketing and production facilities located in separate countries and maintains ownership/control • Global: stage of corporate international development transcends any single home country, make sales and acquire resources in what country offers best opportunities and lowest cost, ownership/control/top management dispersed among several nationalities Economic Development: represents the economic conditions in the country where the international organization operates • Economic development: refers to the level of output each country can produce. They are less-developed countries (LDCs)-which are Study Guide Page 2 • Economic development: refers to the level of output each country can produce. They are less-developed countries (LDCs)-which are countries that low per capita income. Developed countries have high per capita income. • Infrastructure: a country’s physical facilities that support economic activities. • Resource and Product Market: resource markets are the markets that provide needed raw materials and labor. Product market is where the demand for products is high. They determine the allocation and distribution of resources and finished goods. • Exchange Rates: the rate at which one country’s currency is exchanged for another country’s. Legal-Political Environment: the political systems and laws of countries that businesses are forced to deal with when they go international • Political Risk: a company’s risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments • Political Instability: events such as riots, revolutions, or government upheavals that affect the operations of an international company • Laws and Regulations: the rules companies must abide by when dealing with an international business. They include libel statues, consumer protection, information and labeling, employment and safety, and wages • GATT: General Agreement on Tariffs and Trade-started as a set of rules to ensure nondiscrimination, clear procedures, the negotiation of disputes, and the participation of lesser developed countries in international trade. • NAFTA: North American Free Trade Agreement-merges the United State, Canada, and Mexico into a megamarket with more than 421 million consumers. It breaks down tariffs and trade restrictions on most agricultural and manufactured products over a 15-year period. • The European Union: a 25-nation alliance that created a powerful single market system. It created an open market in Europe and proposed dramatic reform and deregulation in areas such as banking, insurance, health, safety standards, airlines, telecommunications, auto sales, social policy, and monetary union. Sociocultural Environment: the shared knowledge, beliefs, values, behaviors, and ways of thinking among members of a society • Hofstede's Value Dimensions ○ Power distance: degree to which people accept inequality in power among organizations/people ○ Uncertainty avoidance: characterized by people's intolerance for uncertainty resulting support for beliefs that promise certainty and conformity ○ Individualism and collectivism: social framework which individuals take care of themselves or look after one another and organizations protect their member's interest ○ Masculinity and felinity: cultural preference for achievement, heroism, assertiveness, cooperation, relationships and quality of life • Social Values: values held by societies and their separate importance to each society • Cultural Characteristics: characteristics of a society including religion, language, attitudes, social organizations, and education. • Ethnocentrism: a cultural attitude marked by the tendency to regard one’s own culture as superior to others Market Entry Strategy: organizational strategy for entering a foreign market • Exporting: transferring products for sale to foreign countries • Outsourcing: called off shoring, work activities are done in countries with cheap labor • Licensing: enabling a company to produce and market a product in another country Franchising: licensing that provides a complete package of materials and services ○ Approaches to Direct Investing • Direct Investing: an entry strategy in which the organization is involved in managing its production facilities in a foreign country. • Joint venture: a variation of direct involvement in which an organization shares costs and risks with another firm to build a manufacturing facility, develop new products, or set up a sales and distribution network. • Wholly owned foreign affiliate: a foreign subsidiary over which an organization has complete control. • Greenfield venture: the most risky type of direct investment, whereby a company builds a subsidiary from scratch in a foreign country. Multinational Corporation-MNC-an organization that receives more than 25% of its total sales revenues from operations outside the parent company’s home country, also called Global Corporation or transitional corporation Chapter 7 • Goal: desired future state that the organization attempts to realize • Plan: blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals • Planning: act of determining the organization's goals and the means to achieving them • Legitimacy: allows those outside organization to view company in favorable light and accept its existence • Source of motivation and commitment: goals and plans facilitate employee's identification with organization and help motivate them by reducing uncertainty and clarifying what they should accomplish • Guides to action: goals and plans provide sense of direction, focus attention on specific targets, direct efforts towards outcomes • Rationale for decision: through goal setting and planning, managers learn what organization is trying to accomplish • Standard of performance: goals define desired outcomes, so they serve as performance criteria Mission Statement • Mission: organization's purpose or reason for existence Study Guide Page 3 • Mission: organization's purpose or reason for existence • Mission statement: broad definition of organization's basic business scope and operations that distinguishes it from others ○ Allows customers, suppliers, employees, and stockholders to know company's purpose and values, used as a marketing tool Plans • Strategic goals: broad statements of where organization wants to be in future, pertain to organization as a whole rather than departments • Strategic plans: action steps an organization intends to attain strategic goals, specific to divisions or departments • Tactical goals: goals that define outcomes that major divisions and departments must achieve in order to reach its overall goals • Tactical plans: plans designed to help execute major strategic plans and accomplish a specific part of company's strategy • Operational goals: specific, measurable results expected from departments, work groups, and individuals inside the organization • Operational plans: plans developed at the organization's lower levels that specify action steps toward achieving operational goals and support tactical planning activities Criteria for effective goals • Specific and measurable: expressed in quantitative terms, precisely defined and allow for measurable progress • Cover key result areas: activities that contribute to company's performance, used to monitor organizational performance • Challenging but realistic: goals should be ambitious but within reach, challenge employees to meet high standards • Defined time period: goals should specify time period of achievement • Linked to rewards: impact of goals depend on extent to which awards are based • Key performance indicators: (KPI) measures that reflect how low level goals are helping progress toward strategic goal Management by Objective (MBO): system where manages and employees define goals and use them to monitor performance 1. Setting Goals: most difficult step in MBO, involves employees at all levels to look beyond day-to-day activities, need to establish good goals that are concrete, realistic, and provide a specific target and time frame, and assign responsibility 2. Developing action plans: action plans define the course of action needed to achieve a stated goal, made for individuals and departments 3. Reviewing progress: a periodic review is important to ensure that action plans are working, informal between managers and subordinates to determine whether they are on target or if corrective actions is needed 4. Appraising overall performance: the final step is to carefully evaluate whether annual goals have been achieved for both individuals and departments • Single-Use Plan: used once, achieve one-time goal. Ex. Company's 25th celebration • Standing Plans: ongoing plans, standard procedure for doing something. Ex. End of the year inventory counting • Contingency planning: planning or emergencies, setbacks, or unexpected conditions • Building scenarios: forecasting technique to look at current trends and visualize future possibilities • Crisis planning: sudden, devastating, unexpected events Study Guide Page 4 • Decentralized planning: top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans • Stretch goals: reasonable yet highly ambitious and compelling goals that energize people and inspire excellence • Intelligence team: cross-functional group of people who work together to gain understanding of specific competitive issue and offer insight and recommendations for planning • Central Planning Department: a group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO Crisis Management (3 Stages) Prevention • Build relationships • Detect signals from environment Preparation • Designate response: Activate the crisis management plan • Create detailed crisis management plan • Set up effective communication system Containment • Rapid response. Activate crisis management plan • Get the awful truth out • Meet safety and emotional needs • Return to business Central Planning Department: group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO Decentralized Planning: managers work with planning experts to develop their own goals and plans Review in class Chapter 1 • Roles of managers • 3 levels of skills • Planning, organizing, leading and controlling definitions and which is most important (planning) Chapter 2 • Fredrick Winslow Taylor, Webber, Gilbreths and all other people, who they are, ask about 4 of 5 people • Classical vs humanistic perspective • Administrative principles • Organizational development and post WWII theories Chapter 4 • Four stages of globalization: what they are • Definition of international market strategies with example • Slide 9 and 10 know • Know more about political risk from books • Hofstede's Value Dimensions (3 questions) • Globe Project Value Dimensions • Cultural intelligence • GATT, WTO, EU, NAFTA (6 questions) • Definition of multinational corporations • Slide 25 Chapter 7 • Goal vs plan (2 questions) • Levels of goals and plans, which is most specific (operational) broadest (mission statement) • Slide 5 diagram • Definitions through slide 8 Study Guide Page 5 • Definitions through slide 8 • Slide 9 • Single-use and standing plans (2 questions) • Definitions of slide 15 • Prevention vs preparation • Stretch goals for excellence, know characteristics • Performance dashboard definition: real-time tracking of projects Study Guide Page 6
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