CLEP - Principles of Management

PERT system (Program Evaluation and Review Technique

is a model for project management designed to analyze and represent the tasks involved in completing a given project.

PERT is a method to analyze the involved tasks in completing a given project, especially the time needed to complete each task, and identifying the minimum time needed to complete the total project.

telecommuting

using computers and telecommunications equipment to perform work from home or another remote location

span of control

The number of subordinates who report directly to a manager

Frederick Taylor

American mechanical engineer, who wanted to improve industrial efficiency. He is known as the father of scientific management, and was one of the first management consultants

operating plan

provides managment with detailed implementation guidance based on stratgy to help with objectives

leadership grids

provides a means for evaluating leadership styles and then training managers to move towards an ideal style of behavior

maslow

hierarchy of needs

hierarchy of needs

Maslow's idea of a pyramid of human needs; physiological needs (ex. hunger) must first be satisfied, then safety needs (ex. security), then belonging needs (ex. love), then esteem needs (ex. respect), and last is self-actualization needs (ex. achieving big goals); some motives are more compelling than others

authoritarianism

A form of social control characterized by strict obedience to the authority of a state or organization, often maintaining and enforcing control through use of oppressive force. "The Ends Justify the Means"

Cohesive Groups

groups in which the members are attached to each other and act as one unit

transactional leadership

leadership based on an exchange process, in which followers are rewarded for good performance and punished for poor performance

transformational leadership

leadership that, enabled by a leader's vision and inspiration, exerts significant influence

charismatic leadership

the behavioral tendencies and personal characteristics of the leader that create an exceptionally strong relationship between them and their followers

people oriented leadership

this cluster includes behaviors such as showing mutual trust and respect for subordinates, demonstrating a genuine concern for their needs, and having a desire to look out for their welfare. Leaders with a strong this style listen to employees suggestions, do personal favors for employees, support their interests when required, and treat employees as equals.

informal leadership

Someone does not have "official" authority but is recognized as a leader by the group

single use plan

A one-time plan specifically designed to meet the needs of a unique situation. "visit of official"

standing plan

A plan that deals with organizational issues and problems that recur frequently. "sexual harassment policy"

strategic plan

plan reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals. LONG TERM GOALS

short-term plan

a plan that provides benefits for a limited amount of time, usually 6 months or less

specific plan

implements general plan and guides development in a localized area; addresses geographical area with in general plan area

decentralization

degree to which decision-making authority is given to lower levels in an organization's hierarchy

projection

(psychiatry) a defense mechanism by which your own traits and emotions are attributed to someone else

selective perception

the phenomenon that people often pay the most attention to things they already agree with and interpret them according to their own predispositions

fundamental attribution error

the tendency for observers, when analyzing another's behavior, to underestimate the impact of the situation and to overestimate the impact of personal disposition

self-serving bias

The tendency to assign internal attributes to successes and external factors to failures.

Pygmalion effect

people's expectations or beliefs determine their behavior and performance, thus serving to make their expectations come true. also... living up to or down to another's expectations of us... "self fulfilling prophecy"

valence

The value or importance an individual places on a reward

referent power

motivates one person to communicate with another, Power given to an individual due to respect and/or desire to be similar to that individual.

coercive power

adj. using threats or orders to make someone do something, the capacity to punish or withhold positive outcomes as a means of influencing other people

grapevine

an informal, person-to-person communication network of employees that is not officially sanctioned by the organization

expert power

Power derived through advanced knowledge or experience in a particular subject.

legitimate power

Power derived through one's position, such as a police officer or elected official.

rewards power

Holder's ability to give something of value, like $, responisbility, or praise; Ex: boss, teachers, etc.

staffing function

provides the right people to fill the structure designed by the organizing function. human resources (personnel) mgmt

organizing function

The management function that determines how the firm's human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals.

controlling function

The management function that measures performance, compares it to objectives, implements necessary changes, and monitors progress

planning function

The management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives, and To be effective, the objectives of individuals, teams, and management should be coordinated to support the firm's mission.

leading function

The management function that energizes people to contribute their best individually and in cooperation with other people

abilene paradox

a paradox in which a group of people collectively decide on a course of action that is counter to the preferences of any of the individuals in the group

Fiedler's contingency theory

group performance is dependent upon the interaction between leadership style and situational favorableness

ethnocentric approach

an approach that fills key managerial positions abroad with persons from headquarters- that is, with parent-country nationals (PCNs); used at internationalization stage

polycentric approach

uses natives of the host country to manage operations within their country and parent-country natives to manage at headquarters.

geocentric approach

Staffing means seeking the best people for key jobs throughout the entire organistaion irrespective of nationality

hawthorne studies

a series of studies conducted by Elton Mayo and his Harvard colleagues at the Western Electric Company's Hawthorne plant in Illinois; tested workers' productivity under different levels of lighting; tested whether temperature, humidity, etc. would effect productivity; the experiments were considered a total failure after unexpected results because of Hawthorne effect (the tendency for people to behave differently when they know they are being studied)

gantt chart

a simple bar chart that depicts project tasks against a calendar

Decision Making Process

1) Awareness of need for a decision. 2) Formulation of the problem. 3) Diagnosis and information gathering. 4) Generation of alternatives. 5) Evaluation of alternatives and selection of best option. 6) Implementation of solution. 7) Feedback and evaluation of decision.

Classical Approach to decision making

assumes that the manager will operate an make decisions based on the best economic interest of the company

Administrative Model of decision making

assumes that managers will not search for the optimal solution to an issue, but will instead settle for the first available solution that meets their needs.

satisficing

Choosing an option that is acceptable, although not necessarily the best or perfect.

political model of decision making

there are no predefined criteria or priorities. Instead they are set by the group when making the decision

nominal group technique

a decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group. This ensures weaker voices have a chance to speak.

morals

fundamental values of right and wrong

ethics

motivation based on ideas of right and wrong

defense reaction

when a company or organization does the bare minimum required to meet a requirement or responsibility

Proaction reaction

when a company or organization chooses to do more than required to meet a requirement or responsibility and perhaps even becoming an industry leader in that area.

Reaction reaction

when a company or organization responds to a requirement or responsibility by fighting against it.

core functions of management

Planning, Controlling, Leading, Organizing

overhead

total fixed cost

feedforward control

control that allows managers to anticipate problems before they arise

concurrent control

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

feedback control

a mechanism for gathering information about performance deficiencies after they occur

loop control

tests ending condition in middle of loop

control system

assure that organizational processes are acting as intended. Additionally, the control system will help create a system that limits waste to organizational resources.

kanban system

links production rate to demand

keeps any step from producing too much inventory, refills needed parts at every stage to minimize waste time

used in time production of multi-step process to keep each step producing proper quantity in time frame

What is the EOQ? Economic Order Quality

determined by factoring the machine set up costs as well as the cost of operating the production equipment.

business process re-engineering

A technique that seeks to alter the nature of the work done in a business function, with the objective of radically improving performance.

supply chain management

management encompassing everything in the value chain starting with the company's suppliers of RAW Materials and ending with the customer herself and her experiences.

Theory X

assumes that workers are basically lazy, error-prone, and extrinsically motivated by money, and should be directed from above.

Theory y

assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.

Expectancy theory

a theory that states that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards

Three components of Expectancy theory

1. Expectancy: Effort → Performance (E→P) belief that one's effort (E) will result in attainment of desired performance (P) goals

2. Instrumentality: Performance → Outcome (P→O)belief that a person will receive a reward if the performance expectation is met

3. Valence- value the individual places on the rewards based on their needs, goals, values and Sources of Motivation

Fundamental Attribution Error

the tendency for observers, when analyzing another's behavior, to underestimate the impact of the situation and to overestimate the impact of personal disposition

institutional power (as defined by McClelland)

The ability to use influence to achieve results

Herzberg's Two Factor Theory

motivation has two factors: satisfiers and dis-satisfiers.

Rationalizing

to bring into accord with reason or cause something to seem reasonable

benchmarking

the process of comparing a practice or process to an alternate, existing practice or process in order to gain insights and make improvements

Alderfer's ERG theory

Alderfer proposed that motivation is a function of three basic needs (listed from lowest to highest): existence needs (the desire for physiological and materialistic well-being), relatedness needs (the desire to have meaningful relationships with significant others), growth needs (the desire to grow as a human being and to use one's abilities to their fullest potential).

McCelland's Acquired Need theory

achievement, affiliation, power

Enterprise resource planning

integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations

ARPU

Average Return per user

task force

Temporary allocation of personnel and resources for the accomplishment of a specific objective

Stages of Groups

Forming

Storming

Norming

Performing

stages of conflict

1.LATENT - parties don't know the conflict exists

2.PERCEIVED - reacting calmly and seeking to understand the situation

3.FELT

4.MANIFEST

5.CONFLICT AFTERMATH

Scientific Management

management dealing primarily with the organizing and leading core management functions. Specifically, it has contributed to the ideas of division of labor, standard procedures and work flows, idea of providing incentives for performance on the job, and specialization.

zeitgeist

(n.) - the spirit of the time

Leaders are born into the times where they will be effective