MGMT exam 2

Team

A unit of two or more people who work toward a shared goal and, unlike other work groups, depend on one another to achieve that goal.

Self-managed teams

A team in which members are responsible for an entire process or operation (central idea of an agile organization)

Advantages: lower costs, fast decision-making, greater flexibility and innovation, and improved quality stemming from the increased pride of ownership that an independent team feels in its work.

Functional teams

command teams/vertical teams

A team whose members come from a single functional department and that is based on the organization’s vertical structure

Cross-functional teams

A team that draws together employees from different functional areas

Virtual team

dispersed team

A team that uses communication technology to bring together geographically distant employees to achieve goals

Successful ____ teams can be more effective, engaged, and more productive than co-located teams

More information and knowledge

Advantage of a team.

by pooling the experience of several individuals, a team has access, to more information in the decision-making process

learning opportunities

Advantage of a team, teams that bring together people with various work specialties give people the chance to learn from each other

Boldness

Advantage of a team. People who might hesitate to take calculated risks on their own can be more willing to make bold moves as part of a team

Accountability

Advantage of a team. Most people want to avoid letting others down, creating a built in sense of accountability to others

Trust building

Advantage of a team. Working closely in teams lets people develop trust in their colleagues.

Broader range of viewpoints

advantage of a team

Diverse teams can bring a variety of perspectives that improve decision-making

Built-in for solutions the team creates

advantage of a team

Those who participate in making decision are more likely to support it and encourage others to accept it

Improved performance

advantage of a team

Effective teams can be better than top-performing individuals at solving complex problems

A sense of community in good times and bad

advantage of a team

Being on team helps individuals share in the celebration of successes and provides emotional support during challenging periods

Groupthink

a disadvantage of a team

Uniformity of thought occurs when peer pressures cause individual team members to withhold contrary or unpopular opinions

Consequences can range from bland, unimaginative work to outright disasters

Hidden agendas

disadvantage of team

private, counterproductive motives, such as a desire to take control of the group, to undermine someone else on the team, or to pursue an incompatible goal

Cost and inefficiency

a disadvantage of a team

Aligning schedules, arranging meetings, and coordinating individual parts of a project can eat up a lot of time and money

Overload

a disadvantage of a team

Some companies have embraced collaborative work approaches to such an extent that they are overloading employees with team assignments

Produces emotional exhaustion as people try to develop meaningful and mutually supportive relationships with too many colleagues at once

Team Developing

forming, storming, norming, performing, and adjourning

forming

initial phase, group comes together through online or virtual meetings, and various members begin to establish themselves in specific roles

storming

as team members begin to discuss their positions and become more assertive in establishing their roles, disagreements, and uncertainties are natural in this phase

much of the conflict may be constructive as team members share ideas for meeting the team’s goals

norming

as conflicts resolve themselves, teams begin to take on a cohesive personality with clear behavioral norms.

performing

with a cohesive mindset and positive norms to guide behavior, the group is ready to perform its task

adjourning

when temporary teams accomplish their goal, the fifth and final step is to disband the team

Task force

formed to work on a specific activity with a completion

divisional structure

grouping departments according to similarities in product, process, customer, or geography

Centralized organization

concentrates decision-making authority at the upper levels of organization

Chain of command

makes accountability and authority for decision-making clear, which helps the organization function smoothly

socioemotional

an employee who focuses on the needs of the team members over the task needs in order to strengthen team unity

Mission statement

A brief statement of why an organization exists; what the organization aims to accomplish for customers, investors, etc (not short-term target)

Small business

A company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people

A 12 employee executive recruiting firm making 750k per year would be considered

Business plan

summarizes a proposed business venture, communicates the company’s goals, highlights how management intends to achieve those goals, and shows customers will benefit from the company’s good or services

Unstructured organizations

complex and control issues, uncertain, loss of meaning and connection, diminished loyalty, career development, management succession, and accountability are challenges by these companies

Effective teams

shared sense of purpose and compatible values, clear and challenging goal

belief in the value of team efforts

diverse balanced mix of people

size that aligns with responsibilities

positive behavioral norms that promote psychological safety

willingness to put teams needs ahead of personal needs

open and honest communication

Public corporation/ publicly held/publicly traded

corporation whose stock is sold to general public

Private corporation/closely held

corporation whose stock is held by a small number of owners and is not available for sale to the public

S corporation (subchapter S corporation)

Corporations are allowed to sell stock to a limited number of investors while enjoying the pass-through taxation of a partnership

Limited liability company (LLC)

Corporate structure with benefits similar to those of an S corporation, without the limitation on the number of investors

Benefit corporation

Profit-seeking corporation whose character also requires it to pursue a stated social environment goal

Subsidiary

Corporation primarily or wholly owned by another company

Parent company

Corporation that owns one or more subsidiaries

Holding company

A special type of parent company that owns other companies for investment reasons and usually exercises little operating control over those subsidiaries

Alien corporation

Corporation that operates in the United States but is incorporated in another country

Foreign corporation (out of state corporation)

Company that is incorporated in one state (like delware where laws are more lenient) but does business in several other states where it is registered

Domestic corporation

Corporation that does business only in the state where it is chartered

Sole proprietorship advantages

Simplicity, single layer of taxation, privacy, flexibility and control, fewer limitations on personal income, personal satisfaction

sole proprietorship disadvantages

financial liability, demands on the owner, resource limitations, no employee benefits from the owner, and finite life span

General partnership

all partners have joint authority to make decisions for the firm and joint liability for the firm’s financial obligations

limited partnership

one or more persons act as general partners who run the business and have the same unlimited liability as sole proprietorship

Limited liability partnership (LLP)

form of a business was created to help protect individual partners in professions from major mistakes

Partnership advantages

simplicity, single layer taxation, more resources, cost sharing, broader skills and experience base, and longevity

Partnership disadvantages

Unlimited liability, potential for conflict, and expansion succession and termination issues (no clear plans and expectations)

Board of directors

Group of professionals elected by shareholders as their representatives with responsibility for the overall direction of the company and the selection of top executives

corporate governance

policies, procedures, relationships, and systems in place to oversee successful and legal operation

Shareholders elect the board of directors who hire corporate officers who hire employees

Corporate officers

The top executives who run a corporation

Chief executive officer (ceo)

The highest ranking officer of a corporation

Proxy

authorizing management to vote on their behalf (since they could not attend)

vertical merger

different stages or levels of the same industry

horizontal merger

different companies at the same stage or level

Conglomerate merger

companies in unrelated industries

hostile takeover

tender offer or proxy fight; buyer/raider buy a certain number of stocks until they take control of corporation or in a proxy fight where the raider tries to persuade other shareholders to vote the way it wants

strategic alliance

long-term partnership between companies to jointly develop, produce, or sell products

joint venture

Separate legal entity established by two or more companies to pursue business objectives

volume

big data is BIG

velocity

how fast big data comes to you

variety

data records

veracity

quality of data a system collects

small business advantages

provide jobs

introduce new products that fulfill unmet market needs

meet the needs of larger organizations by acting as distributors, servicing agents, and suppliers to larger corporations

take risks that larger companies avoid

provide economic opportunities for a diverse range of people

entrepreneurial spirit

positive, forward-thinking desire to create profitable, sustainable business enterprises

qualities shared by entrepreneurs

confidence, drive, and passion

Intrapreneurship

entrepreneurial spirit within a larger business community

Busines Plan

Summary (one or two paragraphs your business concept), mission and objectives, company overview, products or services, management and key personnel, target market, marketing strategy, design and develop plans, operations plans, start-up schedule, major risk factors, financial projections and requirements, and exit strategy

Mission and objectives

purpose of business

company overview

background information on the origins and structure

target market

data that will persuade an investor that you understand target market (strengths and weaknesses of your competitors)

marketing strategy

projections of sales and strategy to reach potential customers

pivoting

adjusting a firm’s business model when a better opportunity presents itself

SCORE

Service Corps of Retired Executives partner with SBA

Equity

you give investors a share of the business in exchange for their money

microlenders

organizations, often not for profit that lend smaller amounts of money to business owners

Venture Capitalists

provide money to finance new businesses in exchange for a portion of their ownership with objective of selling their shares at a significant gain

Angel investors

private individuals who invest money in start ups usually earlier in a businesses life and in smaller amounts

Small Business Administration Assistance

SBA offer several financial programs for small businesses

Initial Public Offering IPO

Corporations first offering of shares to the public

crowdfunding

soliciting project funds business investments or business loans from members of the public

franchise

company (franchisee) obtains rights to sell the products and use various elements of a business system of another company (franchisor)

machine learning

general capability of computers to learn without ongoing human input

deep learning

uses layers of neural networks to attack problems at multiple levels

management

process of planning, organizing, leading, and controlling to meet organizational needs

Intrapersonal roles

leading employees, building relationships, and acting as a liaison between groups and individuals.

informational roles

communicate information to employees other managers and other stakeholders

decisional roles

decisions are fairly routine, like hire or setting prices

Social media

helps managers learn more from employees and costumers and communicate back to them

Planning

establishing objectives and goals for an organization and determining the best way to accomplish them

SWOT

strengths. weaknesses, opportunities, and threats

Values statement

brief articulation of the principles that guide a companys decisions and behaviors

SMART goals

specific, measurable, attainable, relevant, and time limited

Organizing

process of arranging resources to carry out the organizations plans

top managers

responsible for setting strategic goals and most power and responsibility

middle managers

develop plans to implement the goals of top manager and coordinate the work of lower managers