MGT Exam 1

Getting work done through others

getting work done with a minimum of effort, expense, or waste

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

• planning
• organizing
• leading 
• controlling

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

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company

involves inspiring and motivating workers to work hard to achieve organizational goals

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

• Interpersonal
• Informational
• Decisional

working with others well

• figurehead
• leader
• liaison

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

managers motivate and encourage workers to accomplish organizational objectives

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

• Monitor
• Disseminator
• Spokesperson

managers scan their environment for information, actively contact others for information, and, because of their personal contacts, receive a great deal of unsolicited information

managers share the information they have collected with their subordinates and others in the company

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

• Entrepreneur
• Disturbance Handler
• Resource Allocator
• Negotiator

managers adapt themselves, their subordinates, and their units to change

managers respond to pressures and problems so severe that they demand immediate attention and action

managers decide who will get what resources and how many resources they will get

managers negotiate schedules, projects, goals, outcomes, resources, and employee raises

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

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

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

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

• **technical skills
• **human skills
• conceptual skills
• motivation to manage

perform nearly all of the functions performed by first-line managers under traditional hierarchies

companies experience long periods of stability followed by short periods of dynamic, fundamental change, followed by a return to stability

• Customer
• Competitor
• Supplier
• Industry Regulation
• Advocacy Group

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

involves identifying and addressing customer trends and problems after they occur

ex: listen closely to customer complaints and respond to customer concerns

identifying and addressing customer needs, trends, and issues before they occur

ex: total rewards programs

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

process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

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

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

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

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

the establishment of mutually beneficial, long-term exchanges between buyers and suppliers

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

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

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

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

an advocacy tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

primary: company founder

recognizing and celebrating heroes

• Adaptability
• Employee Involvement
• Clear Mission
• Consistency

the ability to notice and respond to changes in the organization's environment

encourage open discussion and agreement

culture that promote high levels of EI in decision making, employees feel a greater sense of ownership and responsibility

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

company actively defines and teachers organizational values, beliefs, and attitudes

• Behavioral Addition
• Behavioral Substitution
• Visible Artifacts
• Selection

best way is to combine these

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

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

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

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

the buying and selling of goods and services by people from different countries

• Exporting
• Cooperative Contracts
• Strategic Alliances
• Wholly Owned Affiliates
• Global New Ventures

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

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

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

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

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

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

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

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

direct tax on imported goods

increase the cost of imported goods relative to that of domestic goods

government-imposed regulations that increase the cost and restrict the number of imported goods

government's use of trade barriers to shield domestic companies and their workers from foreign competition

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

limit on number or volume of imported products

Voluntarily imposed limits on number or volume of products exported to a particular country

standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports

government loans, grants ,and tax deferments given to domestic companies to protect them from foreign competition

classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas

corporation that owns businesses in two or more countries

method of investment in which a company builds a new business or buys an existing business in a foreign country

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

political risk

risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business