Principles of Management Lecture Review

Comprehensive vocabulary flashcards covering managerial roles, ethics, international management, strategic planning, decision biases, historical management viewpoints, organizational environments, and decision-making styles.

Three types of managerial roles

Interpersonal (figurehead, leader, liaison), Informational (monitor, disseminator, spokesperson), and Decisional (entrepreneur, disturbance handler, resource allocator, negotiator).

Figurehead role

Represents the organization in ceremonial or symbolic duties.

Leader role

Guides, motivates, and directs employees.

Liaison role

Maintains relationships and networks with people inside and outside the organization.

Monitor role

Collects and reviews information about the organization and its environment.

Disseminator role

Communicates important information to people inside the organization.

Spokesperson role

Communicates information about the organization to outsiders.

Entrepreneur role

Looks for opportunities and initiates improvements or change.

Disturbance handler role

Responds to unexpected problems, conflicts, or crises.

Resource allocator role

Decides how to distribute resources such as money, time, staff, and equipment.

Negotiator role

Represents the organization in negotiations.

Utilitarian ethical approach

Choose the action that creates the greatest good for the greatest number.

Individual ethical approach

Choose based on what serves an individual's best long-term interests, ultimately considered in everyone's self-interest.

Moral-rights ethical approach

Respect the fundamental rights of human beings.

Justice ethical approach

Respect impartial standards of fairness and equity.

Ethnocentric manager

Believes “we know best”; favors the home country's methods, often because of a narrow view or ignorance.

Polycentric manager

Believes local/native managers know best; the home office should defer to them.

Geocentric manager

Uses whichever methods are most effective, regardless of where they originated.

Trade protection

Government regulations that limit imports to protect domestic industries from foreign competition.

Tariff

A customs duty or tax levied mainly on imports.

Import quota

A limit on the quantity of a product that can be imported.

Sanction

A trade prohibition on certain products, services, or technology for specific reasons.

Embargo

A complete ban on trade between one country and another.

National culture

The shared beliefs, values, knowledge, and patterns of behavior common to a group of people.

Low-context culture

A culture where meaning is communicated mainly through written and spoken words.

High-context culture

A culture where meaning relies heavily on the situation and nonverbal cues.

Hofstede's cultural dimensions

Individualism/collectivism; power distance; uncertainty avoidance; masculinity/femininity.

GLOBE Project cultural dimensions

Power distance; uncertainty avoidance; institutional collectivism; in-group collectivism; gender egalitarianism; assertiveness; future orientation; performance orientation; humane orientation.

Goal

A specific commitment to achieve a measurable result within a stated period of time.

Short-term goals

Usually tactical or operational goals that generally span 12 months and connect to strategic goals through a means-end chain.

Long-term goals

Usually strategic goals spanning about 1–5 years and focused on strategies in the organization's strategic plan.

Operating plan

A plan that breaks long-term output into short-term targets or goals and turns strategic plans into actionable short-term goals.

Action plan

Defines the tactics or course of action needed to achieve a stated goal, including project dates for completing activities.

SMART goals

Goals that are Specific, Measurable, Attainable, Results-oriented, and Target Date/Timely.

Corporate-level strategy

Focuses on the organization as a whole.

Business-level strategy

Focuses on individual business units or product/service lines.

Functional-level strategy

Applies to each functional area to support higher-level strategies.

Growth strategy

A corporate grand strategy involving expansion, such as increased sales, employees, or customers served.

Stability strategy

A corporate grand strategy involving little or no significant change.

Defensive/ retrenchment strategy

A corporate grand strategy involving a reduction in the organization's efforts.

Intuition

Intuitive decision-making; a holistic hunch stems from expertise, while automated experience is intuition based on feelings.

Availability bias

Using information that comes readily to mind or is readily available.

Representativeness bias

Faulty generalizing from a small sample or a single event.

Confirmation bias

Seeking information that supports your existing point of view.

Sunk-cost bias

Continuing because money already spent seems to justify further investment.

Anchoring and adjustment bias

Being influenced too heavily by an initial figure or piece of information.

Overconfidence bias

Focusing on positives while dismissing negatives or overestimating one's judgment.

Hindsight bias

The “I knew it all along” effect after an outcome is known.

Framing bias

Being influenced by how a problem or choice is presented.

Escalation of commitment bias

Remaining overly invested in a decision despite evidence it may be wrong.

Categorical thinking bias

Sorting information into categories or buckets, which can oversimplify it.

Progression of management viewpoints

Classical → Behavioral → Quantitative → Systems → Contingency → Contemporary approaches.

Scientific management

Studies work methods scientifically to improve workers' productivity; associated with Taylor and the Gilbreths.

Administrative management

Concerned with managing the total organization's productivity and efficiency; associated with Spaulding, Fayol, and Weber.

Max Weber's bureaucracy

A rational, efficient ideal organization based on logic; reduces ambiguity through hierarchy of authority, clear division of labor, and formal rules and procedures.

Classical viewpoint

Views people like cogs in a machine and may neglect human needs; its essence is a rational approach. Contributed to management by objectives and goal setting.

Behavioral viewpoint

Focuses on people and work processes, including early approaches, human relations, and behavioral science.

Early behavioral approaches

Pioneering management perspectives associated with Mary Parker Follett and Elton Mayo.

Human relations approach

Behavioral management approach associated with Abraham Maslow and Douglas McGregor.

Maslow's hierarchy of needs

Needs arranged from bottom to top: Physiological → Safety → Love/Belonging → Esteem → Self-actualization.

Behavioral science

Uses scientific research to develop theories about human behavior and practical tools for managers; draws on psychology, sociology, anthropology, and economics.

Quantitative viewpoint

Uses quantitative methods and analysis to support management decisions; includes operational management and evidence-based management.

Systems viewpoint

Focuses on organizational processes and how parts of an organization interact.

Closed system

An organization with little interaction with its environment.

Open system

An organization that continually interacts with its environment and may produce synergy.

Synergy

The potential for interacting parts of an open system to produce a combined result greater than what they could achieve separately.

Complexity theory

Studies how order and patterns arise from complicated, apparently chaotic systems; complex systems are networks of interdependent parts following simple rules.

Contingency viewpoint

Emphasizes that the best management approach depends on the situation.

Contemporary approaches

Modern management perspectives that include learning organizations, high-performance work practices, shared value, and sustainable development.

Triple bottom line (TBL)

Measures an organization's social, environmental, and financial performance: people, planet, profit.

Task environment

External groups that directly interact with or affect an organization.

Strategic allies

Two organizations joining forces to gain advantages neither could achieve as well alone.

Government regulators

Agencies that establish ground rules under which organizations may operate.

Economic forces

General economic conditions and trends, such as unemployment, interest rates, and trade balance, that may affect decisions.

Technological forces

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

Sociocultural forces

Trends in a society's or culture's relationships and values that may affect an organization or industry.

Demographic forces

Population changes such as age, gender, or ethnic origin that influence organizations.

Political-legal forces

Changes in how politics shape laws and how those laws affect organizations.

International forces

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

Related diversification

Acquiring or purchasing a new business related to the company's existing business portfolio.

Unrelated diversification

Acquiring a company in a completely unrelated business; can reduce risk.

Vertical integration

Expanding into businesses that supply needed inputs or distribute and sell the firm's products.

Porter's Five Forces

Threat of new entrants; bargaining power of suppliers; bargaining power of buyers; threat of substitute products/services; rivalry among competitors.

Cost-leadership strategy

Keeps costs and prices low for a wide market.

Differentiation strategy

Offers unique and superior value for a wide market.

Cost-focus strategy

Keeps costs and prices low for a narrow market.

Focused-differentiation strategy

Offers unique and superior value for a narrow market.

Directive decision-making style

A decision-making style characterized by low tolerance for ambiguity and a focus on task and technical concerns.

Analytical decision-making style

A decision-making style characterized by high tolerance for ambiguity and a focus on task and technical concerns.

Conceptual decision-making style

A decision-making style characterized by high tolerance for ambiguity and a focus on people and social concerns.

Behavioral decision-making style

A decision-making style characterized by low tolerance for ambiguity and a focus on people and social concerns.

Low tolerance for ambiguity

Preference for clarity, structure, and fewer uncertain options.

High tolerance for ambiguity

Comfort with uncertainty and considering multiple possible solutions.