MGT Exam 1

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  1. What is management?
    Getting work done through others
  2. Efficiency
    getting work done with a minimum of effort, expense, or waste
  3. Process of Managing
    plan to get things done, organize the company to be efficient and effective, lead and motivate employees, and put controls in place to make sure our plans are followed and our goals me
  4. Management Functions
    • planning
    • organizing
    • leading¬†
    • controlling
  5. Planning
    involves determining organizational goals and a means for achieving them.

    one of the best ways to improve performance.

    It encourages people to work harder, to work hard for extended periods, to engage in behaviors directly related to goal accomplishment, and to think of better ways to do their jobs.

    companies that plan have larger profits and faster growth
  6. Organizing
    deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company
  7. Leading
    involves inspiring and motivating workers to work hard to achieve organizational goals
  8. Controlling
    monitoring progress toward goal achievement and taking corrective action when progress isn't being made

    basic control process involves setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance to those standards
  9. Mintzberg's Management Roles
    • Interpersonal
    • Informational
    • Decisional
  10. Interpersonal Role
    working with others well

    • figurehead
    • leader
    • liaison
  11. Figurehead Role
    managers perform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities
  12. Leader Role
    managers motivate and encourage workers to accomplish organizational objectives
  13. Liaison Role
    managers deal with people outside their units.

    Studies consistently indicate that managers spend as much time with outsiders as they do with their own subordinates and their own bosses
  14. Informational Roles
    • Monitor
    • Disseminator
    • Spokesperson
  15. Monitor Role
    managers scan their environment for information, actively contact others for information, and, because of their personal contacts, receive a great deal of unsolicited information
  16. Disseminator Role
    managers share the information they have collected with their subordinates and others in the company
  17. Spokesperson Role
    share information with people outside their departments and companies.

    One of the most common ways CEOs serve as spokespeople for their companies is at annual meetings with company shareholders or the board of directors
  18. Decisional Roles
    • Entrepreneur
    • Disturbance Handler
    • Resource Allocator
    • Negotiator
  19. Entrepreneur Role
    managers adapt themselves, their subordinates, and their units to change
  20. Disturbance Handler Role
    managers respond to pressures and problems so severe that they demand immediate attention and action
  21. Resource Allocator Role
    managers decide who will get what resources and how many resources they will get
  22. Negotiator Role
    managers negotiate schedules, projects, goals, outcomes, resources, and employee raises
  23. First-Line Managers
    Office Manager, Shift Supervisor, Department Manager

    The primary responsibility of first-line managers is to manage the performance of entry-level employees who are directly responsible for producing a company's goods and services

    only managers who don't supervise other managers.

    responsibilities include monitoring, teaching, and short-term planning.

    encourage, monitor, and reward the performance of their workers
  24. Top Managers
    CEO, COO, CFO, CIO, VP, Corporate Head

    responsible for the overall direction of the organization

    responsible for creating a context for change

    develop employees' commitment to and ownership of the company's performance

    must create a positive organizational culture through language and action

    responsible for monitoring their business environments
  25. Middle Managers
    General Manager, Plant Manager, Regional Manager, Divisional Manager

    responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving those objectives

    to plan and allocate resources to meet objectives

    to coordinate and link groups, departments, and divisions within a company

    to monitor and manage the performance of the subunits and individual managers who report to them

    responsible for implementing the changes or strategies generated by top managers
  26. Team Leaders
    Team Leader, Team Contact, Group Facilitator

    primarily responsible for facilitating team activities toward accomplishing a goal

    help their team members plan and schedule work, learn to solve problems, and work effectively with each other
  27. Skills needed for lower level managers
    • **technical skills
    • **human skills
    • conceptual skills
    • motivation to manage
  28. Benefits of a self-managed team
    perform nearly all of the functions performed by first-line managers under traditional hierarchies
  29. Punctuated Equilibrium Theory
    companies experience long periods of stability followed by short periods of dynamic, fundamental change, followed by a return to stability
  30. Components of the Specific Environment
    • Customer
    • Competitor
    • Supplier
    • Industry Regulation
    • Advocacy Group
  31. Customer Component
    customers purchase products and services

    companies can't support without customer support

    monitoring customers' changing wants and needs is critical to business success

    2 basic strategies of monitoring: reactive and proactive
  32. Reactive Customer Monitoring
    involves identifying and addressing customer trends and problems after they occur

    ex: listen closely to customer complaints and respond to customer concerns
  33. Proactive Customer Monitoring
    identifying and addressing customer needs, trends, and issues before they occur

    ex: total rewards programs
  34. Competitor Component
    companies in the same industry that sell similar products or services to customers

    ex: Ford, Toyota, Honda, Nissan

    need to keep close track of what competitors are doing--> competitive analysis
  35. Competitive Analysis
    process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
  36. Supplier Component
    companies that provide material, human, financial, and informational resources to other companies

    ex: IBM providing computers and support staff, engineers

    key factor influencing the impact and quality of relationship between companies and suppliers is how dependent they are on each other--> supplier dependence
  37. Supplier Dependence
    degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product
  38. Buyer Dependence
    the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products
  39. Opportunistic Behavior
    a high degree of buyer or seller dependence can lead to

    a transaction in which on party in the relationship benefits at the expense of the other

    will never be completely eliminated
  40. Relationship Behavior
    the establishment of mutually beneficial, long-term exchanges between buyers and suppliers
  41. Industry Regulation Component
    regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions

    ex: car manufacturers are subject to CAFE regulations that currently require cars and SUVs to average 27.5 and 22.5 MPG

    regulatory agencies affect businesses by creating and enforcing rules and regulations to protect consumers, workers, or society as a whole
  42. Advocacy Groups
    concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions

    ex: try to get manufacturers to reduce smokestack pollution emissions

    cannot enforce organizations to change their practices

    use techniques to influence companies: public communications, media advocacy, product boycotts
  43. Public Communications
    an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out
  44. Media Advocacy
    an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage
  45. Product Boycott
    an advocacy tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service
  46. Source of Company's Culture
    primary: company founder

    recognizing and celebrating heroes
  47. 4 Elements of Successful Organizational Cultures
    • Adaptability
    • Employee Involvement
    • Clear Mission
    • Consistency
  48. Adaptability
    the ability to notice and respond to changes in the organization's environment
  49. Employee Involvement
    encourage open discussion and agreement

    culture that promote high levels of EI in decision making, employees feel a greater sense of ownership and responsibility
  50. Clear Mission
    business's purpose or reason for existing

    with a clear mission, the organization's strategic purpose and direction are apparent to everyone in the company

    helps guide the discussions, decisions, and behavior of the people in the company
  51. Consistency
    company actively defines and teachers organizational values, beliefs, and attitudes
  52. Levels of Organization's Culture
    Image Upload
  53. Changing an Organization's Culture
    • Behavioral Addition
    • Behavioral Substitution
    • Visible Artifacts
    • Selection

    best way is to combine these
  54. Behavioral Addition
    the process of having managers and employees perform a new behavior that are central to and symbolic of the new organizational culture that a company wants to create
  55. Behavioral Substitution
    process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture
  56. Visible Artifacts
    visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room
  57. Selection
    hiring and selecting people with values and beliefs consistent with the company's desired culture

    process of gathering information about job applicants to decide who should be offered a job
  58. Global Business
    the buying and selling of goods and services by people from different countries
  59. Forms of Global Business
    • Exporting
    • Cooperative Contracts
    • Strategic Alliances
    • Wholly Owned Affiliates
    • Global New Ventures
  60. Exporting
    selling domestically produced products to customers in foreign countries

    • advantages:
    • - makes company less dependent on sales in its home market
    • - provides a greater degree of control over research, design, and production decisions

    • disadvantages:
    • - many exported goods are subject to tariff and non tariff barriers that can substantially increase their final cost to customers
    • - transportation costs can significantly increase the price of an exported product
  61. Cooperative Contracts
    agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country

    two types: licensing and franchising
  62. Licensing
    a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service, or use its brand name in a specified foreign market

    advantages: allows companies to earn additional profits without investing more money

    disadvantages: licensor gives up control over the quality of the product or service sold by the foreign licensee
  63. Franchising
    collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

    disadvantage: face a loss of control when they sell businesses to franchises who are thousands of miles away; success is culture-bound
  64. Strategic Alliances
    agreement in which companies combine key resources, costs, risk, technology, and people

    joint venture: two existing companies collaborate to form a third, independent company

    advantages: help companies avoid tariff and nontariff barriers to entry; bear only part of the costs and risks

    disadvantages: share profits; managing is difficult because reps 4 different cultures
  65. Wholly Owned Affiliates
    foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

    advantage: parent company receives all of profits and has complete control over the foreign facilities

    disadvantage: expense of building new operations or buying existing businesses
  66. Global New Ventures
    new companies that are founded with an active global strategy and have sales, employees, and financing in different countries

    company founders successfully develop and communicate the company's global vision from inception

    bring a product or serivie to market in several foreign markets at the same time
  67. How To Go Global
    Consistency= when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures

    Adaptation= modifying rules, guidelines, policies and procedures to adapt to differences in foreign customers, governments, and regulatory agencies
  68. Tariffs
    direct tax on imported goods

    increase the cost of imported goods relative to that of domestic goods
  69. Trade barriers
    government-imposed regulations that increase the cost and restrict the number of imported goods
  70. Protectionism
    government's use of trade barriers to shield domestic companies and their workers from foreign competition
  71. Nontariff barriers
    nontax methods of increasing the cost or reducing the volume of imported goods

    • quotas
    • voluntary export restraints
    • government import standards
    • government subsidies
    • customs valuation/classification
  72. Quota
    limit on number or volume of imported products
  73. Voluntary Export Restraints
    Voluntarily imposed limits on number or volume of products exported to a particular country
  74. Government Import Standard
    standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports
  75. Subsidies
    government loans, grants ,and tax deferments given to domestic companies to protect them from foreign competition
  76. Customs Classification
    classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas
  77. Multinational Corporation
    corporation that owns businesses in two or more countries
  78. Direct Foreign Investment
    method of investment in which a company builds a new business or buys an existing business in a foreign country
  79. Political Uncertainty
    political risk

    risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events
  80. Policy Uncertainty
    political risk

    risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business
Card Set:
MGT Exam 1
2013-09-17 16:39:05

chapter 1, 3, and 8 notecards for exam 1
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