Study Guide Test 1
Study Guide Test 1 MANGMT 3000 - 01
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This 16 page Study Guide was uploaded by elenaspeake on Monday September 14, 2015. The Study Guide belongs to MANGMT 3000 - 01 at University of Missouri - Columbia taught by Timothy Waid in Fall 2014. Since its upload, it has received 72 views. For similar materials see Principles of Management in Business, management at University of Missouri - Columbia.
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Date Created: 09/14/15
Management Study Guide Test 1 CHAPTER 1 Managers operate within an organization 0 Organization a group of people who work together to achieve some specific common purpose To create value in the form of 1 Social benefit 2 Profit Management The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning organizing leading and controlling the organization 3 resources Resources 0 Tangible things you can see touch smell 0 Intangible knowledge customer service attitudes trademarks To be efficient means to use resources people money raw materials and the like wisely and cost effectively 0 Improve outputinput ratio 0 Get more while using less To be effective means to achieve results to make the right decisions and to successfully carry them out so that they achieve organizational goals 0 Reach goals outputs 0 Being effective is more important than being efficient Rewards of Studying Management 0 Deal with organizations from the outside 0 Relate to your supervisors 0 Interact with coworkers 0 Manage yourself in the workplace Rewards of Practicing Management 0 You and your employees can experience a sense of accomplishment 0 You can stretch your abilities and magnify your range 0 You can build a catalog of successful products or services 7 Challenges to being an exceptional manager Competitive advantage staying ahead of rivals Diversity the future won t resemble the past Globalization the expanding management universe Information technology Ethical standards Sustainability the business of green Your own happiness and life goals NQP PWPE Competitive Advantage Providing a product or service in a way that customers value more than any other competitors product or service Managing for Competitive Advantage 0 Being responsive to customers Home Depot and Lowes 0 Innovation Apple 0 Quality Chipotle and Panera 0 Efficiency Burger King and McDonalds Information technology has facilitated ebusiness using the internet to facilitate every aspect of running a business Implications of ebusiness 0 Far ranging emanagement and ecommunication 0 Accelerated decision making con ict and stress 0 Changes in organizational structure jobs goal setting and knowledge management Sustainability economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs What Managers Do The 4 Principle Functions 1 Planning you set goals and decide how to achieve them 0 What are you going to do 2 Organizing you arrange tasks people and other resources to accomplish the work 0 What do you need to do it Leading you motivate direct and otherwise in uence people to work hard to achieve the organization s goals 0 How are you going to do it Controlling you monitor performance compare it with goals and take corrective action as needed 0 Did you do it 9 P Levels and Areas of Management 0 Top manager make long term decisions about the overall direction of the organization and establish the objectives policies and strategies for it More than 3 years General subjective perspective 0 Middle manager implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first line managers below them General and detailed subjective and objective perspective 0 First line manager make short term operating decisions directing the daily tasks of nonmanagerial personnel Detailed objective perspective 0 Functional manage responsible for just one organizational activity 0 General manage responsible for several organizational activities The manager s roles Mintzberg s useful findings 0 A manager relies more on verbal than on written communication 0 A manager works long hours at an intense pace 0 A manager s work is characterized by fragmentation brevity and variety 3 types of Managerial Roles 0 Interpersonal roles Managers interact with people inside and outside their work units stakeholders constituents Figurehead leader liaison 0 Informational roles Managers receive and communication information Monitor disseminator spokesperson 0 Decisional roles Managers use information to make decisions to solve problems or take advantage of opportunities Entrepreneur disturbance handler resource allocator negotiator Entrepreneurship process of taking risks to try to create a new empire 0 Entrepreneur Someone who uses their own money and resources to create goods and services that they know Necessitv entrepreneurs people who suddenly must earn a living and are simply trying to replace lost income and are hoping a job comes along ODDortunitv entrepreneurs those who start their business out of a burning desire rather than because they lost a job 0 Intrapreneur someone who uses organizational money and resources to create goods and services the organization owns Being an Entrepreneur is what it takes to start a business Being a Manager is what it takes to grow or maintain a business The Skills Exceptional Managers Need Technical skills the job specific knowledge needed to perform well in a specialized field Comes from classroom Conceptual skills the ability to think analytically to visualize an organization as a whole and understand how the parts work together How effecting a bigger world than what s just in front of you Comes from life Human skills the ability to work well in cooperation with other people to get things done Hard skills Cognitive and psychomotor What you can know and do tasks Soft skills Affective skills How do you feel Behavior The most valued traits in managers The ability to motivate and engage others The ability to communicate Work experience outside the US High energy levels to meet the demands of global travel and a 247 world CHAPTER 2 Evidence based Management Pfeffer and Sutton Translating principles based on best evidence into organizational practice bringing rationality to the decision making process Historical perspective classical behavioral and quantitative Scientific Management Taylor and the Gilbreths Emphasized the scientific study of work methods to improve the productivity of individual workers Principles Scientifically study each part of the task Carefully select workers with the right abilities Give workers the training and incentives to do the task Use scientific principles to plan the work methods Highlights Time and motion standards Productivity measures Calibration measure of work Administrative Management Fayol and Weber Concerned with managing the total organization rather than individual workers macro view not micro view Henri Fayol French engineer and industrialist First to identify the major functions of management systemized the study of management Believed a good manager was the most important ingredient for organizational success Max Weber Believed that a bureaucracy was a rational efficient ideal organization based on the principles of logic Believed a good organization was the most important ingredient for organizational success 5 Positive Bureaucratic Features 1 Mewzv A welldefined hierarchy of authority power Formal rules and procedures right answers A clear division of labor expertise specialize Impersonality number not name Careers based on merit fair rewards Classical Management People are rational People are predictable One right way tool pace worker Work alone Incentive is money Separate workers from managers Focus on good manager good organization design static One product mass production Push organizations push on customers managers push on employees Modern Management Mix of both ends Behavioral Management People are emotional People are unpredictable Many ways tools paces workers 0 Work in groups 0 Incentives isn t just money but other 0 Integrate workers with managers 0 Focus on good communication good relationships dynamic 0 Many products customization 0 Pull ask organization for what it wants Classical Viewpoint 0 Problems Mechanistic Tends to view humans as cogs within a machine not taking into account the importance of human needs 0 Importance Work activity was amenable to a rational approach Through the application of scientific methods time and motion studies and job specialization it was possible to boost productivity Behavioral ViewDoint emphasized the importance of understanding human behavior and of motivating employees toward achievement 0 Developed over 3 phases 1 Early behaviorism 2 The human relations movement 3 Behavioral science Earlv Behaviorism Munsterberg Follett and Mayo 0 Hugo Munsterberg father of industrial psychology Study jobs and determine which people are best suited to specific jobs Identify the psychological conditions under which employees do their best work Devise management strategies to in uence employees to follow management s interests 0 Mary Parker Follett social worker and social philosopher first hippie Organizations should be operated as communities Con icts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties The work process should be under control of workers with relevant knowledge 0 Elton Mayo Hawthorne Effect employees worked harder if they received added attention thought that managers cared about their welfare and that supervisors paid special attention to them workers respond favorably when managers pay attention to them Hawthorne effect is the most important of behavioral management Human Relations Movement Maslow and McGregor 0 Proposed that better human relations could increase worker productivity 0 A satisfied worker is a good worker Maslow s Hierarchy of Needs top to bottom highest to lowest needs 0 Human needs in life is the same as a workers needs in an organization 1 Self actualization know your purpose meaning of life 2 Esteem 3 Social 4 Safety 5 Physiological 0 Social Safety and Physiological are lower needs Theory X and Theory Y Douglas McGregor 0 Theory X Use stick approach since people hate work Represents a pessimistic negative view of workers Workers are irresponsible resistant to change lack ambition hate work and want to be led 0 Theory Y Use carrot approach since people like work Represents an optimistic positive view of workers Workers are considered capable of accepting responsibility selfdirection selfcontrol and being creative Why Theory X and Theory Y are Important 0 Helps managers understand how their beliefs affect their behavior 0 Managers can be more effective by considering how their behavior is shaped by their expectations about human nature Behavioral Science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers 0 A happy understood worker is not necessarily a good worker Quantitative Management 0 Application to management of quantitative techniques such as statistics and computer simulations 0 Management science operations management Management science stresses the use of rational sciencebased techniques and mathematical models to improve decision making and strategic planning Operations Management Focuses on managing the production and delivery of an organization s products or services more effectively Work scheduling production planning facilities location and design CHAPTER 5 Planning What are you going to do Coping with uncertainty by formulating future courses of action to achieved specified results Setting goals and deciding how to achieve them Control Did you do it Planning and Strategic Management U PP N Strategy Entity higher organization Establish the organization s mission and vision Formulate the grand strategy Formulate the strategic plans then the tactical and operational plans Implement the strategic plans Control the strategy Planning Requires you to set aside the time to do it You may have to make some decisions without a lot of time to plan Hard for 2 reasons It is a slow re ective effort Involves choices Helps you Check on your progress Coordinate activities Think ahead Cope with uncertainty Makes you Action oriented keep results driven sense of direction Change oriented anticipate problems opportunities and handle them Time oriented manage time well 4 Basic Strategy Types 1 2 Defenders expert at producing and selling narrowly defined products Do one thing do it well Prospector focus on developing new products and in seeking out new markets rather than waiting for things to happen Create opportunities make things happen 3 Analyzers let other organizations take the risks of product development and marketing and then imitate what seems to work best 0 Example Dell Computers 4 Reactors make adjustments only when finally forced by environmental pressures The Adaptive Cvcle businesses are continuously cycling through decisions about 3 kinds of business problems 1 Entrepreneurial select adjust products markets 2 Engineering produce deliver products 3 Administrative establish rules relationships organizational processes Making Plans 1 Mission Statement What is our reason for being 0 Being purpose 2 Vision Statement What do we want to become 0 Becoming hopes 3 Strategic planning done by top managers for the next 15 years 0 General subjective 4 Tactical planning done by middle managers for the next 624 months 0 General subjective and specific objective 5 Operational planning done by first line managers for the next 152 weeks 0 Specific objective Mission Statement expresses the purpose of the organization 0 What you are Vision Statement long term goal describing what an organization wants to become 0 What you hope to become 0 Clear sense of the future and the actions needed to get there 3 Types of Planning for 3 Levels of Management 0 Strategic Planning determine what the organization s longterm goals should be for the next 15 years with the resources they expect to have available Example Fast Food CEO Organization will be innovative and delight the customer 0 Tactical Planning determine what contributions their departments or similar work units can make during the next 624 months Intermediate term 0 Operational Planning determine how to accomplish specific tasks with available resources within the next 152 weeks Short term Fast food store supervisor Serve chicken pork or fish special each day and fulfill orders in under 2 minutes Goals specific commitment to achieve a measurable result within a stated period of time 0 Also known as objectives 0 Strategic goals set by and for top management and focus on objectives for the organization as a whole 0 Tactical goals set by and for middle managers and focus on the actions needed to achieve strategic goals 0 Operational goals set by and for first line managers and are concerned with short term matters associated with realizing tactical goals Goals can be good 0 Narrow attention and direct efforts to goal relevant activities 0 Can lead to more effort 0 In uence persistence Goals can be bad 0 Narrow attention and direct efforts to goal relevant activities ONLY 0 Cause unethical behavior 0 Increase risk taking 0 Decrease cooperation 0 Decrease intrinsic motivation Action plan defines the course of action needed to achieve the stated goal Operating plan 0 Designed for a 1 year period 0 Defines how you conduct your business based on the action plan 0 Identifies clear targets such as revenue cash ow and market share Standing Plan plans developed for activities that occur repeatedly over a period of time 0 Consist of Policy outlines the general response to a designated problem or situation Procedure more detailed outlines the response to a particular problem or circumstances such as tornado fire lightning RLle designates specific required action SingleUse plans plans developed for activities that are not likely to be repeated in the future 0 Program encompasses a range of projects or activities 0 Project plan of less scope and complexity than a program SMART Goals Less is more 0 Specific not vague terms 0 Measurable or quantifiable 0 Attainable acceptable If too easy goals won t impel people to make much effort If too hard people won t even bother trying or they will continually fail and have low morale Too easy and too hard goals are both demotivating and demoralizing 0 Results oriented realistic and challenging not too hard not too easy Only a few goals should be chosen less is more In writing out the goals use to action verb 0 Target dates timed Goals should specify the target dates or deadline dates This forces action focus and motivates gt Effective goals are SMART such as to graduate from the University of Missouri in Business management with a GPA of 32 in 4 years Having any goal statement means you ll slightly improve creating a SMART goal statement means you ll improve dramatically 0 Jointly set objectives 0 Develop action plan 0 Periodically review performance 0 Give performance appraisal and rewards if any Three Types of Objectives Used in MBO 1 Improvement Obiectives Express performance to be accomplished in a specific way for a specific area 2 Personal Development Obiectives Express personal goals to be realized 3 Maintenance Objectives Express the intention to maintain performance at previously established levels Cascading Objectives MBO from the top down 1 Top management must be committed 2 It must be applied organization wide 3 Objectives must cascade The PlanningControl Cycle Make the plan Carry out the plan Control the direction by comparing results with the plan Control the direction by taking corrective action in two ways correcting deviations and improving future plans PP P CHAPTER 4 Globalization the trend of the world economy toward becoming a more interdependent between one another system Global Village the shrinking of time and space as air travel and the electronic media have made it much easier for the people of the globe to communicate with one another ECommerce the buying and selling of products and services through computer networks Global Economv the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets 1 Minifirms operating worldwide Small companies can get started more easily Small companies can maneuver faster 2 Rise of Megafirms large cross border Industries illsuited for small medium size 0 Positive effects more markets for American exports 0 Negative effects vast surplus funds from global investments owed into US that were invested badly in subprime mortgages Multinational corporation business firm with operations in several countries Multinational organization nonprofit organization with operations in several countries Multinational across many different countries Why learn about International Management 0 You may deal with foreign customers or partners 0 You may deal with foreign employees or suppliers 0 You may work for a foreign firm in the US 0 You may work for an American firm outside the US or for a foreign one Ethnocentric manager believe that their native country culture language and behavior are superior to all others 0 Parochialism narrow view in which people see things solely through their own perspective 0 We know best attitude Polycentric manager take the view that native managers in the foreign offices best understand native personnel and practices and so the home office should leave them alone 0 they know best attitude Geocentric manager accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective what is best depends attitude Why companies expand internationally 1 Availability of supplies raw material resources including labor 2 New markets great demand enter before competitors 3 Lower labor costs ex Maguiladora manufacturing plant operating in Mexico 4 Access to finance capital 5 Avoidance of tariffs and import quotas Challenges culture language customs laws time zone geographic distance currency product configurations How Companies Expand Internationally Global outsourcing using suppliers outside the US to provide labor goods or services Availability of special expertise Availability of raw materials Importing a company buys goods outside the country and resells them domestically Exporting a company produces goods domestically and sells them outside the country Advantage low cost risk test waters Disadvantage face tariffs cost of logistics not always cheapest option Countertrading bartering goods for goods Licensing a firm allows a foreign company to pay it a fee to make or distribute the firm s product or service Advantage low cost risk Disadvantage loss of trade secrets or service quality control Franchising a firm allows a foreign company to pay it a fee and a share of the profit in return for using the firm s brand name and a package of materials and services Advantage and disadvantage same as Licensing Joint Ventures formed with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country Also known as a strategic alliance Laws prohibit sole ownership Advantage share cost risk leverage local know how Disadvantage loss of trade secrets loss of management control Whollvowned subsidiarv foreign subsidiary that is totally owned and controlled by an organization Highest payoff step very costly Advantage protect trade secrets keep management control Disadvantage high cost risk Greenfield venture a foreign subsidiary that the owning organization has built from scratch Barriers to International Trade Tariffs customs duty or tax levied mainly on imports Import guotas limits on the number of a product that can be imported Embargoes complete ban on the import or export of certain products Free trade the movement of goods and services without movement of economic of government obstruction Dumping when a foreign company exports goods at a lower price than home country Organizations Promoting International Trade World Trade Organization WTO Designed to monitor and enforce trade agreements Agreements are based on the GATT Consist of 153 countries World Bank Purpose is to provide low interest loans to developing nations for improving transportation education health and telecommunications International Money Fund IMF Designed to assist in smoothing the ow of money between nations Trading bloc group of nations within a geographic region that have agreed to remove trade barriers with one another Also known as an economic community Maj or Trading blocs NAFTA US Canada Mexico North America European Union 27 trading partners in Europe APEC group of 21 Pacific Rim countries ASEAN trading bloc of 11 countries in Asia Mercosur trading bloc in Latin America CAFTA central America Culture shared set of beliefs values knowledge and patterns of behavior common to a group of people Lowcontext culture shared meanings are primarily derived from written and spoken words Meaning is direct and literal you say what you mean Highcontext culture people rely heavily on situational cues for meaning when communicating with others Meaning is not direct or literal you do not say what you mean The Globe Project s 9 Cultural Dimensions Power distance How much unequal distribution of power should there be in organizations and society Power respec accept power authority title hierarchy significant formal Power tolerant power authority more democratic title hierarchy insignificant informal Management challenges lines of authority negotiation greeting Uncertainty avoidance How much should people rely on social norms and rules to avoid uncertainty Uncertain acceptance stimulated by change new opportunities certainty is dull Uncertain avoiding change undesirable uncertainty uncomfortable prefer routine absolute Management challenges organizational structure risk taking Institutional collectivism How much should leaders encourage and reward loyalty to the social unit In group collectivism How much pride and loyalty should people have for their family or organization Attitudes toward individuals or groups Individualism individual comes first independence selfrespect valued Collectivism group comes first dependence group association valued Management challenges nepotism compensation career jobs Gender egalitarianism How much should society maximize gender role differences High women in authority positions no gender occupations malefemale education levels same Low few women in authority positions gender occupations female education level lower Assertiveness How confrontational and dominant should individuals be in social relationships High value competition success communicate directly expert subordinates to take initiative Low value cooperation relationships communicate indirectly to save face expect subordinates to be loyal Future orientation How much should people delay gratification by planning and saving for the future Short term vs long term Management challenges career jobs business partnerships Performance orientation How much should individuals be rewarded for improvement and excellence High values materialism competitiveness formal feedback direct communication what one does more than who one is Low values social relations harmony avoid formal feedback indirect subtle communication who one is more than what one does Humane orientation How much should society encourage and reward people for being kind fair friendly and generous High interest of others belonging and affiliation individual wellbeing of others child labor limited sensitive to racial discrimination Low selfinterest power and material possessions wellbeing of others state provided child labor unlimited racial discrimination Other Cultural Variations Language Interpersonal space Communication Time orientation Monochronic 1 thing only not multitaskers MM many things at 1 time multitasking Religion Expatriate people living or working in a foreign country 2 world views Global Integration directive mass production push keep control 2 Local Responsiveness supportive customize pull relinquish control 1
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