Business management essentials exam 1

What is management?

Planning and guiding the work of others so tasks are done efficiently and effectively.

Who is a manager?

Someone who works with and through others to help the organization reach its goals.

efficiency

Doing things right—getting the most output from the least amount of input.

effectiveness

Doing the right things—focusing on work activities that help achieve goals.

What is an organization? and where do managers work

A group of people arranged to work together to achieve a specific purpose. - they work in an organization

What are the four main functions of management?

Planning, organizing, leading, and controlling.

What is planning in management?

Setting goals, deciding how to reach them, and creating plans to coordinate activities.

What is organizing in management?

Arranging and structuring work to achieve the organization's goals.

What five functions did Henri Fayol say all managers perform?

Planning, organizing, commanding, coordinating, and controlling.

What is leading in management?

Working with and through people to achieve organizational goals.

What is controlling in management?

Monitoring, comparing, and correcting work performance.

What are managerial roles?

Specific actions or behaviors expected of a manager.

What are interpersonal managerial roles?

Roles involving working with people and performing ceremonial or symbolic duties.

What are informational managerial roles?

Roles that involve receiving, collecting, and sharing information.

What are decisional managerial roles?

Roles focused on making choices and decisions.

What are the three types of interpersonal roles for managers?

Figurehead, Leader, Liaison.

What are the three types of informational roles for managers?

Monitor, Disseminator, Spokesperson.

What are the four types of decisional roles for managers?

Entrepreneur, Disturbance handler, Resource allocator, Negotiator.

What do first-line managers do?

They manage the work of non-managerial employees who produce the organization’s products. (Karen)

What do middle managers do?

They manage the work of first-line managers and act as a link between top and first-line managers. (jelena)

What do top managers do?

They make organization-wide decisions and set plans and goals for the whole company. - (cathy)

What are three common characteristics of organizations?

Distinct purpose, made up of people, and a deliberate structure.

Why are managers important in organizations?

Because they have skills needed in uncertain and complex times, help get things done, and boost employee productivity and loyalty.

What is the difference between functions and roles in describing what managers do?

The functions approach (like planning, organizing, leading, controlling) is the most useful way to understand a manager’s job.

What are technical skills in management?

Knowledge and expertise in a specific field.

What are human skills in management?

The ability to work well with other people.

What are conceptual skills in management?

The ability to analyze and think about complex or abstract situations.

Which management skills are most important at different management levels?

• Top managers need strong conceptual skills.

• Middle managers need strong human skills.

• First-line managers need strong technical skills

Why is managing more complicated today?

Managers face challenges like pandemics, global uncertainties, ethical issues, security threats, and fast-changing technology.

What are six major changes managers must deal with today?

Adaptability, innovation, sustainability, customers, social media, and employees.

What does it mean for an organization to be adaptable?

It has skills, processes, and culture to spot new problems and offer solutions before clients even notice.

How do successful companies compare to competitors in adaptability?

They are more flexible, efficient, and adaptable.

What is sustainability in business?

A company’s ability to meet goals and grow long-term value by including economic, environmental, and social factors in its strategies.

Why is innovation important in business?

Innovation drives success, can happen in any organization, and helps build an adaptable culture.

Why is focusing on customers important for managers?

Customers are essential to an organization’s survival. High-quality service is key in competitive markets, especially in service industries.

What role does social media play in management?

Social media connects businesses with customers, supports employee engagement, and helps manage communication—but it also brings risks managers must handle.

Why should managers focus on employees?

Treating employees well improves performance, satisfaction, retention, and engagement. Clear expectations and work-life balance are essential.

What does the universality of management mean?

Managers are needed in all types and sizes of organizations, at every level, in all areas, and in all parts of the world.

Why should you study management?

1. Universality of Management – Managers are needed everywhere.

2. Reality of Work – Most people work in organizations where they are managed.

3. Rewards and Challenges – Being a manager has both benefits and difficulties.

4. Insight into Work Life – Helps understand how organizations and people function at work.

What is the “Reality of Work” and how does it relate to studying management?

Whether or not you become a manager, you'll either manage others or be managed—and understanding management helps you work better in both roles.

What are the rewards and challenges of being a manager?

• Rewards: Helping others succeed, creating positive work environments, and making work meaningful.

• Challenges: Working hard, handling admin tasks, and managing different personalities.

How does studying management help you gain insight into work life?

It helps you understand how managers think, improves your results at work, and can lead to career growth—since good employees often become managers.

What is a manager? How do managers differ fromnonmanagerial employees? Is your course instruc-tor a manager? Discuss in terms of managerial func-tions, managerial roles, and skills.

• A manager coordinates and oversees others’ work to meet goals.

• Non-managerial employees work on tasks but don’t manage others.

• Course instructor as a manager? Likely yes. If they plan lessons, guide students, evaluate progress, and manage classroom resources, they are performing planning, leading, controlling, and using interpersonal, informational, and decisional roles.

In today’s economic environment, which is moreimportant to organizations—efficiency, effective-ness, or adaptability? Explain your choice

Adaptability is most important today because businesses face constant change (e.g., technology shifts, global events). — adaptability keeps a company relevant and competitive.

What are the four functions of management? Brieflydescribe each of them

• Planning – Setting goals and deciding how to reach them.

• Organizing – Arranging tasks, people, and resources.

• Leading – Motivating and guiding people.

• Controlling – Monitoring progress and making adjustments.

What are the three categories of managerial roles proposed by Mintzberg? Provide an example of each.

• Interpersonal – e.g., Leader: motivating employees.

• Informational – e.g., Spokesperson: speaking on behalf of the company.

• Decisional – e.g., Resource allocator: assigning budgets.

“The manager’s most basic responsibility is to focus people toward performance of work activities to achieve desired outcomes.” What is your interpretation? Do you agree?

Interpretation: A manager’s main role is to guide people so their work leads to results.
Agree: Yes. Managers align tasks, goals, and people—making sure efforts are focused and productive.

What is an organization? Why are managers important to an organization’s success?

• An organization is a group of people structured to achieve a purpose.

• Managers are vital because they set direction, organize efforts, lead teams, and keep things on track.

Why is an understanding of management important even if you don’t plan to be a manager?

It helps you work better with managers, understand how decisions are made, improve teamwork, and grow your career—even if you're not managing others.

How could an organization build an adaptive culture?

By encouraging innovation, supporting learning, being open to change, rewarding flexibility, and staying customer-focused.

What was the Industrial Revolution?

A period in the late 1700s when machine power replaced human labor, making it cheaper and more efficient to produce goods in factories instead of at home.

What is the classical approach to management?

The earliest study of management, focused on using logic and structure to make organizations and workers as efficient as possible.

What is scientific management?

An approach that uses the scientific method to find the “one best way” to do a job.

What are therbligs?

A system for identifying and labeling basic hand movements used in work tasks.

What is general administrative theory?

A management approach that explains what managers do and what good management looks like.

What are principles of management?

Core rules of management that can be applied in any organization and taught in schools.

What is bureaucracy in management?

An organizational structure with clear division of labor, strict rules, a set hierarchy, and impersonal relationships.

What is Organizational Behaviour (OB)?

The study of how people act at work.

What were the Hawthorne Studies?

A series of studies in the 1920s–30s that gave new insights into how individuals and groups behave at work.

What is the quantitative approach to management?

Using math and data analysis to improve decision-making.

What is Total Quality Management (TQM)?

A management philosophy focused on continuous improvement and meeting customer needs and expectations.

What is a system in management?

A set of connected and dependent parts arranged to work together as a whole.

What is a closed system?

A system that doesn’t interact with or get influenced by its environment.

What is an open system?

A system that interacts with and is influenced by its environment.

What is the contingency approach to management?

It’s the idea that organizations are different and need different management methods based on their specific situations.

Why is studying management history important?

It helps us understand how current practices evolved, avoid past mistakes, and apply proven ideas to today’s challenges.

What contributions did classical theorists make?

• Taylor introduced scientific management and efficiency.

• Fayol outlined key management functions.

• Weber developed the idea of bureaucracy for structured organizations.

What is a bureaucracy? Do they still exist today?

A bureaucracy is a structured organization with rules, hierarchy, and defined roles.
Yes, many governments, large corporations, and institutions still use bureaucratic structures.

What did early OB (Organizational Behaviour) advocates contribute?

They emphasized the human side of work—motivation, teamwork, leadership, and communication.

Why were the Hawthorne Studies critical to management history?

They showed that workers' performance improves when they feel observed and valued—highlighting the social and psychological factors in productivity.

What kind of workplace would these theorists create?

• Henri Fayol: A structured, orderly workplace with clear roles and leadership.

• Mary Parker Follett: A collaborative, people-focused workplace with shared power.

• Frederick W. Taylor: A highly efficient, task-optimized workplace with set procedures.

What has the quantitative approach contributed to management?

It brought data-driven decision-making, models, and tools to solve complex business problems.

How has technology impacted use of the quantitative approach?

Technology allows faster data collection, real-time analysis, and better modeling—making quantitative tools more powerful and widely used.

How do systems theory and contingency approach help managers?

• Systems theory helps managers see how different parts of the organization work together.

• Contingency theory teaches that there’s no one-size-fits-all—managers must adapt to the situation.

How do societal trends affect management? What does it mean for students?

Trends like remote work, diversity, sustainability, and AI shift how managers lead.
For students, it means learning to be adaptable, tech-savvy, and socially aware.

What is the omnipotent view of management?

It’s the idea that managers are fully responsible for an organization’s success or failure.

What is the symbolic view of management?

It suggests that managers’ control is limited by external factors like the economy, customers, competitors, and past decisions.

What is organizational culture?

A shared system of values, beliefs, and practices that shapes how people in an organization behave—it’s “the way we do things around here.”

What are three key implications of organizational culture?

1. Culture is a perception – It’s how people view the organization.

2. Culture is descriptive – It describes what the organization is like, not if it's good or bad.

3. Culture is shared – Members of the organization hold common beliefs and values.

What is a strong organizational culture?

A culture where key values are deeply held and widely shared by members of the organization.

What is a weak organizational culture?

A culture where key values aren’t clear or widely shared, so it has little influence on how managers and employees act.

What are two advantages of strong organizational cultures?

• Employees tend to be more loyal.

• It leads to higher organizational performance.

What is a disadvantage of a strong organizational culture?

It can stop employees from trying new ideas, especially when rapid change is needed.

What is a dominant culture in an organization?

The shared core values held by most members that give the organization its unique personality.

What are subcultures in an organization?

Mini-cultures often formed by departments or geographic locations within the organization.

What are core values in an organizational culture?

The main values that are widely accepted and shared across the entire organization.

Where does an organization’s culture come from?

It originates from the founder’s vision and mission and evolves based on macro environmental factors.

How is organizational culture passed on and changed over time?

It is passed on through practices and modified by external (macro) environmental influences.

How is organizational culture established and maintained?

Through:

1. Recruiting employees who fit the culture

2. Actions and behavior of top management

3. Socialization processes that help new employees adapt

What is socialization in the context of organizational culture?

The process that helps employees adapt to and learn the organization's culture.

How do stories help employees learn about organizational culture?

They are narratives about important events or people that convey the organization’s values and spirit.

What are rituals in an organizational culture?

Repetitive activities that express and reinforce key values of the organization.

What role do material artifacts and symbols play in organizational culture?

They are physical items that distinguish and represent the culture of the organization.

How does language help employees learn a culture?

Through specific acronyms, jargon, and terminology unique to the organization.

How does culture affect what managers can or cannot do?

It defines which managerial actions are seen as acceptable or unacceptable by the organization.

How does culture influence organizational priorities?

It shapes which activities are valued and encouraged by the organization.

What is the significance of the strength of organizational culture for managers?

A strong or weak culture affects how much influence the culture has over managerial behavior and decision-making.

What are key characteristics of an innovative culture

• Challenge and involvement

• Freedom

• Trust and openness

• Idea time

• Playfulness and humour

• Conflict resolution

• Encouragement of debate

• Risk taking

How does an organization's culture influence its ethical behavior?

The context and strength of the culture shape its ethical climate and employee behavior.