UF MAN 3025 Exam 2

Flashcard maker : Lily Taylor
2 branches of classical viewpoint
Scientific Management
Administrative Management
4 functions of management
Planning
Organizing
Leading
Controlling
7 challenges for managers
Achieve competitive advantage
Embrace Diversity
Manage for globalization
Incorporate IT
Incorporate Ethics
Manage Sustainability
Achieve Life goals and personal satisfaction
Rewards of practicing and studying management
enhance self management
better interaction with coworkers
better understanding of supervisors
better understanding of how organizations work
4 areas of focus to achieve competitive advantage
Responsiveness
Innovation
Quality
Efficiency
3 ways the internet has affected business
enhanced managerial communication
Improved managerial decision making
Changed organizational structure
Levels of managers in traditional pyramid
Top Managers (CEO)
Middle Managers (Division Head’s, Plant Managers)
First Line Managers (Supervisors, Team Leaders)
Mintzberg’s common management characteristics
Reliance on oral rather than written communication
Work for long hours
Perform variety of fragmented, brief tasks
Mintzberg’s 3 categories of managerial roles
Interpersonal Roles (figurehead, leader and liaison)
*Informational Roles (Monitor, dissemiator and spokesperson)
Decisional Roles (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator)
Katz’s 3 principle skill sets of managers
Technical
Conceptual (Ability to think analytically, visualize organization as a whole and understand how the parts work together)
Human
2 types of entrepreneurs
Opportunity
Necessity
Serial Entrepreneur
Entrepreneur that intends on selling his business in order to create another one down the line
Performance Formula
Performance = Motivation * Ability
Involves translating principles based on best evidence into organizational practice and bringing rationality into the decision making process.
Evidence Based Management
2 categories of management perspectives
Historical
Contemporary
Historical perspective viewpoints
Classical
Behavioral
Quantitative
Contemporary perspective viewpoints
Systems
Contingency
Quality Management
2 branches of the classical viewpoint
Scientific Management
Administrative Management
2 proponents of Scientific Management
Frederick Taylor (father of scientific management)
Frank and Lillian Gilbreath (time motion study experiments)
Taylor’s 4 principles of scientific management
Study each component of task
Select appropriate workers
Train and incentivize them properly
Use scientific principles to plan work methods that help workers perform better
Emphasized finding ways to manage work more efficiently through time and motion studies, scientific methods and job specialization
Classical viewpoint
Emphasized the scientific study of work methods to improve productivity of individual workers
Scientific Management
A holistic approach that is concerned with managing the entire organization
Administrative Management
2 Main proponents of administrative management
Henri Fayol
Max Weber
First to identify major functions of Management
Henri Fayol
Weber’s 5 features of an ideal bureaucracy
Impersonality
merit based careers
clear division of labor
well defined hierarchy
formal rules and procedures
Major flaw of classical view
Views people as machines in a cog
Emphasizes the importance of understanding human behavior and motivating employees to achieve
behavioral viewpoint
3 Pioneers of behavioral theory
Hugo Munsterberg (father of industrial psychology)
Mary Parker Follett (envisioned democratic partnership)
Elton Mayo (conducted Hawthorne experiments)
Phenomenon that workers tend to work harder when they perceive they’re receiving attention
Hawthorne effect
Movement that proposed better human relations could increase productivity
Human relations movement
2 major human relations movement theorists
Abraham Maslow
Douglas McGregor
Maslows Hierarchy of Needs
Self Actualization
Esteem
Social
Safety
Physiological
Identified 2 different general attitudes that managers hold toward their employees
Douglas McGregor
Says managers believe workers are irresponsible, resist change, have no ambition, dislike work and want to be led
Theory X
Says managers believe workers are self directed, imaginative, creative, self controlled and capable of taking on responsibility
Theory Y
Relies on scientific research for developing theories about human behavior
Behavioral Science
Refers to the application of quantitative techniques, such as stats and computer simulations to management
Quantitative Management
2 branches of Quantitative management
Management Science
Operations Management
Stresses the use of rational, science based techniques and mathematical models to improve decision making and strategic planning.
Management Science
Difference between Scientific Management and Management Science.
Management Science – Stresses the use of rational, science based techniques and mathematical models to improve decision making and strategic planning.
Scientific Management – Emphasized the scientific study of work methods to improve productivity of individual workers
focuses on more effectively managing the production and delivery of an organization’s products or services.
Operations Management
Viewpoint that regards the organization as a system
Systems viewpoint
4 parts of any system
Input
Transformation process
Outputs
Feedback
2 types of systems
Open
Closed
Emphasizes that a manager’s approach should vary according to the individual and the environmental situation.
Contingency Viewpoint
3 components of quality management viewpoint
Quality Control
Quality Assurance
Total Quality Management
Strategy for minimizing errors by managing each stage of production
Quality Control
Focuses on the performance of workers, urging employees to strive for zero defects
Quality Assurance
4 Components of Total Quality Management
Continuous Improvement
Employee involvement
Learn from employees and customers
Use accurate standards
3 steps to create a learning organization
Build a commitment to learning
Generate ideas with impact
Generalize ideas with impact
2 groups of stakeholders
Internal
External
3 groups of internal stakeholders
Employees
Owners
Board of Directors
Environment that consists of a number of groups that present management with daily tasks to handle
Task Environment
Tax breaks that can be rescinded when a firm does not deliver on its promise of new jobs or other benefit to the community
Clawbacks
Environment that includes forces that can not be controlled by the organization
General
Kohlberg’s levels of personal moral development
Preconventional (Rules and Laws)
Conventional (Other’s Values)
Postconventional (Own Values)
3 Steps to promote ethical behavior
Support a strong ethical climate
Screen applicants
Implement ethics codes and training programs
represents employees’ perceptions about how much different work environments support ethical behavior
Ethical Climate
Carroll’s priorities of corporate social responsibility
1 Philanthropic
2 Ethical
3 Legal
4 Economic
Level’s of Gardenswartz and Rowe’s diversity wheel
Personality (Inner Most)
Internal Dimensions
External Dimensions
Organizational Dimensions
Refers to the shrinking of time and space as air travel and electronic media have made it easier for people around the world to communicate with on another.
global village
Degree of internationalization formula
Degree of internationalization = foreign sales/total sales
BRIC(S) economies
Brazil
Russia
India
China
(South Africa)
Actors in international Business
Multinational Corporations
Multinational Organizations (Red Cross, Doctors w/o borders)
Nongovernmental Organnizations (nonprofits not associated with a government)
Managers that are from the company’s home country but not the host country
Home (Parent) company nationals
Managers from neither the company’s home or host country
Third country nationals
local individuals working for a foreign company
host country nationals (not an expatriate)
4 attitudes of expatriate managers
Ethnocentric
Polycentric
Geocentric
Regiocentric
Manager that believes his native country’s way of doing things is superior
Ethnocentric
Managers that believe native practices are the superior
Polycentric
Managers that strive to identify the true best practice between the company’s home and host country
Geocentric
Managers who adopt the point of view of the region is best, but not necessarily the host country
Regiocentric
5 methods of international expansion
Global Outsourcing (Lowest risk and investment
Importing, Exporting and Counter Trading
Licensing and Franchising
Joint Ventures
Wholly Owned Subsidiaries (Highest Risk and Investment)
Using suppliers outside of the US to provide labor, goods or services.
Global Outsourcing
Seeking markets outside of the US
Exporting, Importing and countertrading
2 practices associated with countertrading
Barter
Countertrading
Agreement in which one company allows another foreign company to make or distribute the first company’s product or service for a fee.
Licensing (Franchising gets a fee and share of profits)
Strategic alliance with a foreign entity to share the risks and benefits
Joint Venture
2 types of wholly owned subsidiaries
Acquisition
Building from scratch
Foreign subsidiary that the parent organization has built from scratch
Greenfield Venture
Occurs when a government pays to take ownership over a company’s assets
Nationalization
Occurs when a government does not pay and takes over a company’s assets
Expropriation
refers to government regulations used to limit the import of goods and services
Trade Protectionism
4 tools of trade protectionism
Tariffs
Embargos
Import Quotas
Sanctions
Established after WWII to provide funding for the reconstruction of Europe
World Bank for Reconstruction and Development
Provides funding assistance to the poorest countries in the world
International Development Association
Provides financing for companies that do work with the world bank
International Finance Corporation
An arbitration forum that allows resolution of investment disputes between contractors and countries
International Center for the Settlement of Investment Disputes
Insures world bank group projects
Multilateral Investment Guarantee Agency
Designed to assist in smoothing the flow of money between nations
International Monetary Fund
Types of Regional Economic Integration
Free Trade Areas
Economic Unions
Psychological distance between cultures or countries
Psychic distance
Culture where shared meanings are primarily derived from written and spoken words
Low context culture (rely on institutionalization rather than personal trust)
Culture where people rely heavily on situational cues
High context culture (rely on personal trust rather than institutionalization)
Refers to the complexity of a country’s institutions
Institutionalization
Hofstede’s 5 cultural dimensions
Individualism/collectivism
Power Distance
Uncertainty avoidance
Masculinity/femininity
Confucian dynamism
cultural dimension that measures how much people accept inequality in power
power distance
Cultural dimension that describes the extent to which a culture has a short term or long term orientation
Cunfucian dynamism
Cultural dimension that describes how strongly people desire certainty
Uncertainty avoidance
General areas of variation across cultures
Language
Interpersonal space
Communication
Time orientation
Religion
2 variations of time orientation
Monochronic
Polychronic
Low probability, high consequence events
black swans
5 steps of the strategic management process
Determing Mission and vision
Determine grand strategy
Generate strategic plans
Execute strategic plans
Maintain control over the strategy
Miles’ and Snow’s 4 strategic archetypes
Defenders
Prospectors
Analyzers
Reactors
Strategic archetype that are experts at producing and selling narrowly defined products or services.
Defenders
Strategic archetype that focus on developing new products or services
Prospectors
Strategic archetype that lets other organizations take the risk of product development and then imitates what seems to work
Analyzers
Strategic archetype that only make adjustments when forced to do so
Reactors
Miles’ and Snow’s adaptive cycle
Entrepreneurial problems
Engineering problems
Administrative problems
5 steps of the planning process
Mission statement
Vision statement
Strategic planning
Tactical planning
Operational planning
Expresses the purpose or reason for an organization existing
Mission statement
Expresses a long term goal describing what the organization wants to become
Vision statement
3 types of planning
Strategic
Tactical
Operational
3 types of goals
Strategic
Tactical
Operational
SMART Goals
Specific
Measurable
Attainable
Results Oriented
Target dates are set
Defines the course of action needed to achieve the stated goal
Action plan
2 types of plans
Standing plans (rule, procedure, policy)
Single use plans (program, project)
A four step process with the purpose of motivating subordinates to achieve organizational goals
Management by objective
4 steps of MBO
Set objectives jointly
Develop action plan
Review performance periodically
Appraise performance and giver rewards
3 types of MBO objectives
Improvement
Personal Development
Maintenance
3 requirements for MBO success
Commitment of top management
Organization wide commitment
Cascading objectives
A continuous feedback loop for each level of planning
Planning/Control Cycle
4 steps of the Planning/Control Cycle
Planning
1 make the plan
2 carry it out
Control
1 compare results to plan
2 take corrective action
Porter’s 3 principles of effective strategy
Involves creating a unique and valuable position
involves competitive trade offs
requires the creation of a fit among activities
3 common grand strategies
Growth
Stability
Defensive
Components of SWOT analysis
Strengths (I)
Weaknesses (I)
Opportunities (E)
Threats (E)
3 tools used to convert the firm’s mission and vision into a grand strategy
Competitive Intelligence
SWOT analysis
Forecasting
2 types of forecasting
Trend analysis
Contingency Planning
Porter’s 5 forces of competition
threat of new entry
suppliers bargaining power
buyers bargaining power
threats of substitute products
competitive rivalry
Porter’s 4 competitive strategies
Cost leadership
differentiation
cost focus
focused differentiation
2 types of diversification strategy
Unrelated
Related
2 types of related diversification strategy
Related constrained
Related lineked
A network of Japanese businesses that are characterized by interlocking directorates and cross-holding of shares
Keiretsu
Advantages of diversification
Reduced risk
Management efficiencies
Synergy
3 core processes of business
People
Strategy
Operations
4 steps in rational decision making
Identify problem
Generate alternatives
Evaluate alternatives and pick one
Implement the solution and evaluate it
3 faulty assumptions of the rational model
Managers have complete information
Managers can separate their emotions from their analysis
Managers are capable of making the best decision for the organization
3 major nonrational decision making models
Satisficing
Incremental
Intuition
Davenport’s 3 key attributes of analytics
Use of modeling
Using multiple applications
Top management support
4 decision making styles
Analytical
Conceptual
Directive
Behavioral
Individual responses to decision situations
Relaxed avoidance
Relaxed change
Defensive avoidance
Panic
6 decision making biases
Availability
Confirmation
Representative
Sunk Cost
Anchoring adjustment
escalation of commitment
Group problem solving techniques
Consensus
2 techniques for group problem solving
Brainstorming
Computer aided decision making
2 types of computer aided decision making
Group driven
Chauffeur driven

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