Management Exam 2 Study Guide

Established Market

A market with many large firms participating, thriving, and doing well.

First-Mover Advantage

A distinctive competency where a firm innovates before competitors to win the market.

Types of Departmentalization

Forming departments based on job, customer type, product, and location.

Chain of Command

The formal line of authority detailing who reports to whom.

Span of Management

Deals with how much authority a specific manager is given.

Pooled Interdependence

Departments do not necessarily have to coordinate with each other as much.

Sequential Interdependence

The output from one department becomes the input for another.

Reciprocal Interdependence

Interdependence between departments goes both ways.

Job Specialization

A job that is very focused on doing a specific, narrow set of tasks.

Job Rotation

Employees rotate through different tasks to reduce boredom and increase flexibility.

Job Characteristics Model

A work-design framework showing how job structure impacts motivation, satisfaction, and performance.

Small-Batch Technology

Technology used to produce specific items or things in small batches.

Mechanistic Organization

Less flexible structures occurring in stable environments, related to bureaucracy.

Organic Organization

Fluid and flexible structures occurring in unstable environments with high uncertainty.

Recruiting

The process of attracting people to apply for work.

Training

Focuses on teaching skills someone needs for a job after being hired.

On-The-Job Training

Training employees while they are actively performing their job duties.

Entrepreneur

Someone who takes risks to start up a new business venture.

Small Business

A business owned by one person or a small group, employing a small number of people.

Business Plan

Outlines strategic, step-by-step, and financial planning for starting and operating a business.

Existing Business

Purchasing an already established business and market as a startup route.

Retail Business

A business focused on selling products like clothes or food directly to consumers.

Change

Any substantial shift to a part of an organization.

Forces of Change

Internal or external pressures driving organizational change.

Types of Change

Planned versus reactive changes affecting structure, technology, operations, or people.

Lewin Model of Change

A three-step model of change: Unfreeze, Implement, and Refreeze.

Compensation

Monetary payment provided to employees for their work.

Incentive

Additional pay usually awarded based on performance.

Benefits

Non-wage compensation like health insurance, dental coverage, and 401(k).

Resistance to Change

Specific reasons and barriers why people oppose organizational shifts.

Organizational Development

Deals with how a firm is structured to make it run smoothly.

Human Resource Management

Activities directed at attracting, developing, and maintaining an effective workforce.

Title VII of Civil Rights Act of 1964

Prohibits employment discrimination based on race, color, religion, sex, and national origin.

Labor Management Relations Act

Also known as the Taft-Hartley Act; limits union power and prohibits certain tactics.

Franchise

Permission granted to open a location of an established company, like McDonald's.

Job Description

A detailed listing of the duties and responsibilities of a job.

Job Specification

Details the skills, knowledge, and qualifications an employee needs to bring to a position.

Performance Appraisal

Evaluations using techniques like ratings, comparisons, BARS, and objective measures.

360 Degree Feedback

Performance feedback received from managers, peers, and subordinates.

venture capital

Money that is invested in new or emerging companies that are perceived as having great profit potential

lenders

Banks, individuals, companies, car companies. Anyone who allows individuals to borrow money.