Test 1 Review

Chp 1-3
Chapter 1 Review

1. What are the 3 basic organizational sectors, their goals, and funding?

 Public – serves the “common wealth” – tax revenues, fees, donations, volunteers

 Commercial – profit oriented, market driven – sales

 Non-profit – focused on social welfare – donations, grants, trusts, fees, sales

2. Name the 4 core functions of management and give examples.

 Control – quality control, safety & risk management, physical/financial/human resources

 Lead – motivate, inspire, communicate, team build

 Organize – attracting, hiring, retaining

 Plan – budget, projects, procedures

3. Explain the three broad skills all managers need.

 Technical – perform specialized tasks

 Decision – identify/resolve problems

 Interpersonal – people skills; motivate/lead/communicate effectively

4. Name the 4 levels of management, their roles/activities, and the critical task they share.

 Top level – senior execs, overall management/effectiveness – strategic

 Middle level – middle of hierarchy – tactical

 Frontline – lower-level, execute operations – supervisory

 Team leader – employees who’re responsible for facilitating successful team performance

 “The Ambassador” – each represents one’s staff

Key Terms

Market failure

- Product demanded by consumers ≠ quantity supplied by suppliers

Emotional intelligence (EQ)

- Understanding yourself, managing yourself, dealing effectively with others

Social capital

- Goodwill stemming from your social relationships

Efficiency

- Achieving goals with minimal waste of resources

Effectiveness

- Achieving organizational goals

 Test 1 Review
Chp 1-3
Chapter 2 Review

1. When did management become a formal discipline? Why?

 Industrial Revolution
 Fueled by major advances in technology (cotton gin, railway networks)
 Businesses/factories grew more complex to operate
 Availability of low-skilled workers

2. Name the 5 classical approaches and the people, key concepts and/or studies.

Systematic
o Adam Smith
o Systemizing chaos
o Build procedures = ensuring coordination of effort to achieve goals

Scientific
o Henry Gantt/Frederick Taylor
o Motion studies
o Piecerate systems
o “One best way”
o Eliminate trial/error, guesswork, emotions

Administrative
o Henri Fayol
o 14 principles
o 4 functions (control/lead/organize/plan)
o Mgmt is a profession that can be taught

Bureaucracy
o Max Weber
o Hierarchy
o Fair and impartial hiring & employee relations
o Managers run organization, not owners
o Division of labor, authority, rules, qualifications, ownership

Human Relations
o Abraham Maslow
o Hawthorne Studies
o Workers’ social needs > economic needs
3. What are the limitations of the 5 approaches in today’s organizations?

Overall: each approach neglects to consider the external environment

 Too focused on internal environment

4. What does a Gantt chart represent? What elements are included?

 Scientific management
 Helps plan and complete projects
 Illustrates sequence of which tasks need to be done in order to be efficient
 Step – task – assigned to – accomplish task by date

5. Name 2 of Henri Fayol’s 14 Principles and their relevance today’s world.

Stability and tenure of personnel

o Businesses must ensure that their employees are happy; therefore, employees will
become long-term. The more employees are cared for, the more successful the
business.
Division of work
o Dividing work evenly = closed circuit/organization can run smoothly

6. Name and describe the 4 contemporary approaches.

Sociotechnical Systems Theory

o Right tools/training/knowledge = goods/services valued by customers
o 1st to emphasize empowerment and teamwork

Quantitative Management
o Analysis of managerial decisions/problems
o “Management science”
o Algorithms/formulas
o Moneyball

Organizational Behavior
o Promote employee effectiveness
o Individual/group/organizational processes
o Theory X vs Theory Y
o Strong roots in Human Relations Theory

Systems Theory
o Inputs  outputs
o Contingency perspective
o Examines external/internal environment
 Test 1 Review
Chp 1-3

7. Explain the limitations of quantitative management in management decision-making.

Managers often reject results that contradict their beliefs

o Inconsistent results are ignored
o Basically, they believe what they want to believe

8. How did the Industrial Revolution contribute to the growth of SRT industries?

 Fueled by major advances in technology (cotton gin, railway networks)

 Businesses/factories grew more complex to operate

 Availability of low-skilled workers

9. What sector, funding, and management trends have emerged in the last century in SRT

programming and services?

 Growth of middle class

 Increased income
 Increased discretionary time
 Mobility
 Recognition of value of leisure (“quality of life”)

10. Explain Theory X vs Theory Y managers.

Douglas McGregor – organizational behavior

Theory X
 Workers dislike work, lack ambition, and require constant supervision

Theory Y
 Workers enjoy work, are self-directed, and seek responsibility
Key Terms

Self-fulfilling prophecy
- expectations from a situation affects an individual’s behavior and causes them to be
fulfilled

Contingencies
- Factors that determine appropriateness of managerial actions
o External environment
o Internal strengths/weaknesses
o Values/goals/skills/attitudes of managers/workers
o Tasks/resources/technologies organization uses

Contingency perspective
- Managerial strategies/processes that result in high performance

Hawthorne Effect
- Being observed/studied = superficial changes in behavior
- Human Relations Theory

Piecerate System
- Frederick Taylor
- Workers motivated by receiving money (bonuses)
- Scientific management

Economies of scale
- Avg cost of production goes down
- Total volume produced goes up

Inputs (systems theory)

- Goods and services are taken in
to create…

Outputs (systems theory)

- Products and services

Maslows Hierarchy of Needs

 Test 1 Review
Chp 1-3
Chapter 3 Review

1. What are the elements in the external environment that organizations “scan” in order to

operate effectively? (Hint: PEST)

Political / laws and regulations

Economic

Social / demographics, values

Technological / new industries and markets develop

2. What are the 5 forces that shape an organization’s competitive strategy?

Threat of new entrants

Threat of substitute products/services
Bargaining power of buyers/customers
Bargaining power of suppliers
Rivalry among existing competitors

3. Under what conditions is competition between rivals most intense?

 Many direct competitors

 Industry growth is slow
 Product/service can’t be differentiated

4. What factors pose barriers to entry for a new business?

Govt policy
 when patents expire, other companies can enter market
Capital requirements
 getting started costs a lot, so companies won’t try to raise such large amounts
of money
Cost disadvantages
 larger companies are able to keep costs low bc they’re favorable and have
existing assets
Brand identification
 when customers are loyal to a familiar brand, new entrants have to spend
heavily
Distribution channels
 existing channels are too tight to allow for new entrants
5. What are visible artifacts? Examples? What are the other levels of organization culture?

 A company’s culture that can be seen and heard

o Office layout, dress, stories, written material
 Other levels: values and unconscious assumptions

6. Describe the 4 types of organizational culture (Competing Values Model).

Group/clan – collaborate
Cohesiveness, participation, teamwork, sense of family
Hierarchy – control
Order, rules/regulations, uniformity, efficiency
Market/rational – compete
Goal achievement, environment exchange, competitiveness
Adhocracy – create
Entrepreneurship, adaptability, dynamism

7. When is a culture considered strong or weak? How can it hinder progress?

Strong – agree on goals, unilateral understanding/belief in goals/priorities/practice

Weak – desired values do not match behavior (disagree on goals)

Strong cultures may work against success:

 Resistant to change when its needed

 Counterproductive if it encourages inappropriate behavior
 Test 1 Review
Chp 1-3
Key Terms

Macroenvironment
- General environment (“outside”)
- Factors that affect all organizations

External environment
- Relevant forces outside an organization’s boundaries
- Competitors, customers, govt, economy

Competitive environment
- Immediate environment surrounding an organization
- Suppliers, customers, rivals

Internal environment
- Elements within organization
- Defines employee behavior
- Current employees, management, corporate culture

Open systems
- Organizations that affect/are affected by the external environment
- Inputs/outputs
- Macroenvironment

Switching costs
- Fixed costs buyers face when changing suppliers

Benchmarking
- Comparing a company’s practices/technologies to another company’s

Competitive intelligence
- Info that helps managers determine how to compete better

Acquisition
- One firm buying another

Divestiture
- A firm selling one or more businesses

Environmental scanning
- Searching for/sorting through info about the environment

Diversification
- Firm’s investment in a different product/business/geographic area
Organizational culture
- Assumptions members share to create internal cohesion and adapt to external
environment

Competitive aggression
- Improving efficiency for competitive advantage

Competitive pacification
- Improving relations with competitors