management midterm (lahabi)

the process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively

what is management?

efficiency = doing things right (minimizing waste), effectiveness = doing the right things (achieving goals)

difference between efficiency and effectiveness?

top (strategic), middle (tactical) and first-line (operational)

what are the levels of management?

interpersonal, informational, and decisional roles

what are mintzberg’s managerial roles?

technical, human (interpersonal), and conceptual skills

what skills do managers need?

planning, organizing, leading, controlling

what are the four functions of management

a systematic set of ideas explaining phenomena and guiding research and understanding

what is a theory?

humans are rational and motivated by efficiency

what is the classical viewpoint’s main assumption?

frederick taylor - analysis, selection, training, planning

who developed scientific management and what are its 4 principles?

organizational structure and efficiency (fayol, weber, spaulding)

what is the focus of administrative management?

it viewed humans as machines and ignored human needs

what is the flaw of the classical viewpoint?

workers perform better when they receive attention (hawthorne effect)

what did the hawthorne studies reveal?

x = workers are lazy and need control, y = workers are self motivated and creative

what is theory X v. theory Y?

organizations are interrelated parts working together within an environment

what is the systems viewpoint?

closed = little environmental interaction, open = continuous interaction → synergy

what is the difference between a closed and open system?

all systems are networks of interdependent parts following simple rules

what is complexity theory

anyone affected by or able to affect an organization’s objectives

who are stakeholders?

internal = employees, owners, board; external = customers, suppliers, government, communities

what are internal v. external stakeholders?

business’s main responsibility is to increase profits within legal and ethical limits

what is milton friedman’s shareholder view?

businesses should create value for all stakeholders, not just shareholders

what is r. edward freeman’s stakeholder view?

economic, legal, ethical, and philanthropic responsibilities

what are the four types of corporate social responsibility (CSR)?

environmental, social, and governance

what does ESG stand for?

environmental = carbon footprint, social = diversity and labor practices, governance = transparency and leadership ethics

examples of ESG factors

utilitarianism (outcomes), deontology (duty), justice (fairness), virtue ethics (character)

what are the main ethical frameworks in management?

the trend toward a more interdependent world economy

what is globalization?

positive = access to markets, innovation; negative = outsourcing, inequality

positive v. negative effects of globalization?

economic performance, government efficiency, business efficiency, infastructure

what are the 4 pillars of the IMD competitiveness index

poverty, inequality, climate change, deforestation, corruption

what are examples of global “grand challenges”?

global targets addressing economic, social, and environmental challenges

what are the UN sustainable development goals (SDGs)

access to markets, cheaper labor, resource access, avoid tariffs, gain capital

why do companies expand internationally?

outsourcing, importing/exporting, licensing, franchising, joint ventures, wholly owned subsidiaries

what are 5 ways companies expand internationally?

tariffs, import quotas, and dumping

what are main trade barriers?

WTO, World Bank, and IMF

what organizations promote global trade?

setting goals and deciding how to achieve them

what is planning?

long-term goals and direction for an organization

what is strategy?

formulating and implementing strategies involving all management levels

what is strategic management?

provides direction, momentum, and encourages innovation

why is planning important?

producing goods or services more effectively than competitors

what is competitive advantage?

differentiation, cost leadership, and focus

what are the 3 main types of competitive advantage?

customer responsiveness, innovation, quality, efficiency

what are the 4 sources of sustainable competitive advantage

mission = purpose, vision = future goal, values = guiding beliefs

what’s the difference between mission, vision, and values statement?

“we’re in business to save our home planet”

ex of strong mission statement

achieving sustainable advantage by maintaining distinctiveness in the market

what is strategic positioning

few needs/many customers, broad needs/few customers, broad needs/many customers

what are porter’s 3 positioning principles?

corporate level, business level, and functional level

what are the 3 levels of strategy?

assessment of strengths, weaknesses, opportunities, and threats

what is swot analysis?

analyzing external macro factors: political, economic, social, technological, environmental, legal

what is a PESTEL analysis used for?

value, rarity, imitability, organization - used to assess resource advantage

what does VRIO stand for?

stars, question marks, cash cows, and dogs

what are the four BCG matrix categories?

threats of new entrances, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, rivalry among competitors

what are porter’s five forces