Management Principles and Practice Review

Vocabulary flashcards covering fundamental management concepts, managerial roles, challenges, historical viewpoints, stakeholder categories, and ethical decision-making framework based on lecture notes.

Organization

A group of people who work together to achieve some specific purpose.

Management

The pursuit of organizational goals efficiently and effectively!

Multiplier Effect

The principle that a manager's influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.

Functional Managers

Managers who are responsible for just one organizational activity.

General Managers

Managers who are responsible for several organizational activities and typically supervise other managers.

Interpersonal Roles

Managerial roles that include Figurehead, Leader, and Liaison.

Informational Roles

Managerial roles that include Monitor, Disseminator, and Spokesperson.

Decisional Roles

Managerial roles that include Disturbance Handler, Resource Allocator, and Negotiator.

Technical Skills

The ability to perform a specific job and most important at lower levels

Conceptual Skills

The ability to think analytically and most important at higher levels

Human Skills

"Soft skills," or the ability to interact well with people.

Globalization

The increasingly interconnected nature of business around the world and global economy

Operational Management

Branch of quantitative management involving scheduling and delegating, planning production, designing services and delivery, locating/designing facilities, and managing inventory level.

Evidence-based Management

Management approach focused on facing hard facts and rejecting nonsense.

Closed System

An organization that has very little interaction with its environment.

Open System

Organizations that continually interact with their environment, producing synergy.

Contingency Viewpoint

The belief that a manager's approach should differ based on the person and situation.

High-performance Work Practices

Practices focusing on KSAs to improve motivation of employees.

Triple Bottom Line

Measures an organization's social, environmental, and financial performance (People, Planet, and Profit).

Stakeholders

The people whose interests are affected by an organization's activities.

Internal Stakeholders

Parties (employees, owners, and board of directors) who have an important stake in how the organization performs and the power to shape its future.

Customers

Those who pay to use an organization's goods or services.

Competitors

People or organizations that compete for customers or resources.

Suppliers

Entities that provide raw materials, services, equipment, labor, or energy to other organizations.

Distributors

A person or organization that helps another organization sell its goods and services to customers.

Strategic Allies

The relationship of two organizations that join forces to achieve advantages neither can perform as well alone.

Employee Orgs

Labor unions and professional associations who represent employees.

Local Communities

External entities that benefit from the jobs and tax base of the organization.

Financial Institutions

Banks, savings and loans, and credit unions where crowdfunding takes place.

Government Regulators

Regulatory agencies that establish ground rules under which organizations may operate.

Special Interest Groups

Groups whose members try to influence specific issues (social, economic, environmental).

Economic Forces

General environment conditions and trends, such as unemployment, interest rates, and trade balance.

Technological Forces

New developments in methods for transforming resources into goods or services.

Sociocultural Forces

Influences and trends originating in a country's, a society's, or a culture's human relationships and values.

Demographic Forces

Influences arising from changes in a population's characteristics, such as age, gender, or ethnic origin.

Political-Legal Forces

Changes in the way politics shapes laws and laws shape the opportunities for and threats to an organization.

International Forces

Changes in the economic, political, legal, and technological global system that may affect organizations.

Ethics

Standards of right and wrong that influence behavior.

Values

Deeply held underlying beliefs and attitudes that drive behaviors.

Ethical Dilemma

A situation where you decide whether to pursue a course of action that may benefit you/the organization but that may harm one or more stakeholders in your environment.

Utilitarian Approach

An approach to resolving ethical dilemmas where the most ethical decision is the one that does the most good for the greatest number of people.

Moral Rights Approach

An approach rooted in deontology suggesting people have fundamental rights that should be protected above all else.

What are the rewards of studying management?

Understanding organizations from the outside, relating to supervisors, interacting better with coworkers, managing yourself/career, and potentially making more money.

What are the rewards of practicing management?

A sense of accomplishment, developing your abilities, building successful products/services, and mentoring others.

What is managing for competitive advantage?

Staying ahead of rivals.

What four areas must organizations stay ahead in?

Customer responsiveness, innovation, quality, and efficiency.

What does customer responsiveness mean?

Being responsive to customers' needs and expectations.

Why is innovation important to organizations?

It helps organizations stay competitive and ahead of rivals.

Why is quality important?

High-quality products/services help organizations compete successfully.

What are major technological challenges for managers?

E-commerce, large amounts of data, AI, automation, and organizational changes.

How is AI changing the workforce?

AI is increasing automation in the workforce.

How can technology cause organizational changes?

It can change organizational structures, jobs, goals, and management.

What is the main challenge of managing diversity?

Maximizing the contributions of employees from diverse backgrounds.

What are the 4 functions of management?

Planning, Organizing, Leading, Controlling

Top managers focus on?

Long-term decision making. 

Middle managers?

Implement policies and supervise

First-line managers?

Handle daily operations. 

Team Leaders

Facilitate team activities. 

Three types of organizations?

For-profit, nonprofit, mutual-benefit 

Key difference between organizations?

How success is measured

4 ways to stay competitive?

Customer responsiveness, innovation, quality, efficiency

6 reasons to study management theory?

Insight, guide to action, new ideas, understand managers, understand events, achieve results

What is efficiency?

Using resources wisely to achieve goals.

What is effectiveness?

Achieving organizational goals.

What does the classical viewpoint focus on?

Efficiency and the structure of organizations.

What are the two branches of the classical viewpoint?

Scientific management and administrative management.

What assumption does the classical viewpoint make about workers?

People are rational and primarily motivated by economic rewards.

What is scientific management?

Using scientific methods to determine the most efficient way to perform a job.

What is the core idea of scientific management?

There is one best way to perform a job.

What is soldiering?

Deliberately working below one's full capacity.

What is the differential rate system?

Workers receive different pay rates based on their productivity.

What does administrative management focus on?

Managing the entire organization and developing principles for managers.

Who developed principles of administrative management?

Henri Fayol

What is bureaucracy?

An organizational structure characterized by formal rules, defined authority, hierarchy, and specialization.

Who is associated with the theory of bureaucracy?

Max Weber

What does the behavioral viewpoint focus on?

How human behavior affects organizations and management.

What is the Hawthorne Effect?

People may improve their performance when they know they are being observed.

What is the quantitative viewpoint?

Using mathematical models, statistics, and data to improve managerial decision-making.

What is supply chain management?

Managing the flow of materials, information, and products from suppliers through production to customers.

What is the systems viewpoint?

An organization is a set of interrelated parts that work together and interact with the environment.

What is synergy?

The idea that the whole system can produce more than the individual parts working separately.

What is corporate social responsibility (CSR)?

Voluntary actions an organization takes to improve society and the environment.

What is sustainability?

Meeting current needs while protecting resources and the environment for future generations.

What is an ethical climate?

The shared understanding within an organization of what ethical behavior is expected.

How can organizations promote ethical behavior?

Through ethical climates, hiring practices, training, reward systems, and ethical leadership.

Multi-national enterprise

deploys resources and capabilities in two or more countries

What are the pros of globalization?

Removes friction of distance, Easier information sharing, Foreign companies enter US

What are the cons of globalization?

Job loss in the US, Threats to information security, Dependency can be problematic

What is an ethnocentric manager?

“We know best” — believes the home country’s methods are best.

What is a polycentric manager?

“They know best” — believes local managers in the foreign country understand what works best.

What is a geocentric manager?

“What’s best is what’s effective, regardless of origin” — chooses the best approach regardless of where it comes from.

What is the best type of International manager

Geocentric managers

Why do companies expand internationally?

To access supplies, markets, lower costs, capital, fewer trade barriers, and competitive advantages.

What is the main reason companies expand internationally?

Pursuit of competitive advantage

What is outsourcing?

Using outside companies to provide labor, goods, or services

What is an import?

Buy from another country → sell at home.

What is an export?

Make at home → sell in another country.

What is licensing?

A foreign company pays a fee to use/distribute your product or service.

What is franchising?

A foreign company pays to use your brand and business system.

What is a joint venture?

Two or more companies work together to create a new business and share risk/profits.