BUS 315 Study Guide

What is management?

The process of getting things done effectively and efficiently, with and through people.

What does effectiveness mean?

Doing the right things.

What does efficiency mean?

Doing things right.

What are the four functions of management?

Planning, organizing, leading, and controlling.

What four management skills are listed in lecture?

Conceptual, interpersonal, technical, and political skills.

What is an organization?

A deliberate arrangement of people brought together to accomplish a specific purpose.

What are the three common characteristics of organizations?

Goals, people, and structure.

How are managers different from nonmanagerial employees?

Managers direct and oversee the activities of others; nonmanagerial employees work directly on tasks and do not oversee others.

What do top managers do?

Make decisions about the overall direction of the organization.

What do middle managers do?

Manage other managers and carry out top management's plans.

What do first-line managers do?

Direct nonmanagerial employees and day-to-day work.

What do team leaders do?

Manage the activities of a work team.

Why study management history?

To understand where management ideas came from, gain perspective on current management, and see the effects of social, legal, political, economic, and technological factors.

What does early management history show?

Management has been practiced for thousands of years through planning, organizing, leading, and controlling large organized projects.

What are examples of early management discussed in lecture?

The Egyptian pyramids, Great Wall of China, and Sun Tzu's emphasis on planning and strategy.

What were major characteristics of the Industrial Revolution?

Political change, the Protestant work ethic, steam power, and major technological change.

What technologies helped drive the Industrial Revolution?

Steam engines, the cotton gin, mass production, railroads, steam-powered ships, and the telegraph.

How did the Industrial Revolution change management?

Large factories created a need for professional managers, planning, structure, efficiency, and worker training.

What are the four broad approaches to management history?

Classical, behavioral, quantitative, and contemporary.

Who is associated with scientific management?

Frederick W. Taylor.

What was Taylor's scientific management idea?

Scientifically finding the "one best way" to do a job.

Who is associated with general administrative theory?

Henri Fayol.

What did Henri Fayol contribute to management?

He identified management functions and developed 14 principles of management.

What are Fayol's 14 principles of management?

Division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps.

What is unity of command?

Each employee should receive orders from only one superior.

What is unity of direction?

Activities with the same objective should follow one plan and one manager.

What is the behavioral approach to management?

An approach focused on managing people through motivation, leadership, trust, teamwork, and conflict management.

Who developed the Hierarchy of Needs?

Abraham Maslow.

What are Maslow's five levels of needs from lowest to highest?

Physiological, safety, love/belonging, esteem, and self-actualization.

What is the quantitative approach to management?

Using quantitative techniques to improve decision making.

Who is associated with Total Quality Management in lecture?

W. Edwards Deming.

What are the two contemporary management approaches listed in lecture?

Systems approach and contingency approach.

How does the systems approach view an organization?

As inputs that move through a transformation process to produce outputs, with feedback and the external environment affecting the system.

What is the basic idea of the contingency approach?

Management decisions depend on the situation—an "if…then" approach.

What is Organizational Behavior (OB)?

The systematic study and application of knowledge about how individuals and groups act within the organizations where they work.

What are the four key elements of OB?

People, structure, technology, and environment.

What is the Big Five Model of Personality?

Extraversion, agreeableness, conscientiousness, neuroticism/emotional stability, and openness to experience.

What does OCEAN stand for?

Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

How is social intelligence framed in lecture?

As social astuteness—the ability to understand social situations and how others are reacting.

What four elements make up political skill in lecture?

Networking ability, interpersonal influence, social astuteness/intelligence, and apparent sincerity.

What are the six components of the external environment shown in lecture?

Political/legal, demographics, economic, sociocultural, technological, and global.

How does the external environment affect managers?

It affects jobs and employment, environmental uncertainty, stakeholder relationships, and business planning.

What is PEST analysis?

A tool for analyzing Political, Economic, Sociocultural, and Technological forces.

What additional factors may be added to PEST?

Legal and Environmental factors.

What is SWOT analysis?

An analysis of Strengths, Weaknesses, Opportunities, and Threats.

Which SWOT factors are internal and which are external?

Strengths and weaknesses are internal; opportunities and threats are external.

What are Porter's Five Forces?

Bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and rivalry among existing competitors.

What does bargaining power of suppliers examine?

How much influence suppliers have over an industry or firm.

What does bargaining power of buyers examine?

How much influence customers have over an industry or firm.

What do threat of new entrants and threat of substitutes examine?

New entrants measure the risk of new competitors; substitutes measure the risk of alternative products or services.

How does organizational culture affect managers?

At the organizational level, culture affects a manager's behavior and how people operate within the organization.

What are examples of organizational stakeholders?

Employees, unions, customers, shareholders, communities, social/political groups, competitors, trade associations, governments, media, and suppliers.

What is business ethics?

Principles, values, and standards that guide behavior in the world of business.

What is an ethical strategy?

A course of action that does not violate a company's accepted ethical principles.

What are examples of unethical practices from lecture?

Deceptive advertising, unclear pricing, dumping, price fixing, counterfeit goods, piracy, high-pressure selling, misleading packaging, and irresponsible credit practices.

What are the most common ethical issues in international business?

Employment practices, human rights, environmental regulations, corruption, and moral obligations of multinational corporations.

Why can international business create ethical conflicts?

Political systems, laws, economic development, and cultures differ across countries.

What six factors can lead managers to behave unethically?

Personal ethics, decision-making processes, organizational culture, unrealistic performance goals, leadership, and societal culture.

What performance-related factor can contribute to unethical behavior?

Unrealistic performance goals.

How can organizations encourage ethical behavior?

Use a code of ethics, ethical leadership, and ethics training.

What behaviors should an ethical leader model?

Be honest, tell the truth, avoid manipulating information, admit failures, communicate values, and hold people accountable.

What is globalization?

The increasing interconnectedness of countries, organizations, economies, politics, and cultures.

Which international organizations were listed in the class notes?

World Bank, IMF, NATO, UN, WTO, WHO, and OPEC.

What does IMF stand for?

International Monetary Fund.

What does WTO stand for?

World Trade Organization.

What does OPEC stand for?

Organization of the Petroleum Exporting Countries.

What are major economic benefits of globalization?

Cheaper prices, better product availability, easier access to capital and commodities, increased competition, larger markets, and economic growth.

What are major economic disadvantages of globalization?

Some countries struggle to compete, multinational firms may gain strong bargaining power, crises can spread, and social dumping can occur.

What are cultural benefits of globalization?

Access to new cultural products and information, greater understanding of foreign values, and easier global communication.

What are cultural disadvantages of globalization?

Cultural homogenization, cultural imperialism, loss of smaller cultures, and faster spread of harmful ideas.

What are political benefits of globalization?

International aid, cooperation, support for peace, more influence for smaller countries, and learning between governments.

What are political disadvantages of globalization?

Reduced sovereignty, accountability concerns, influence by powerful countries, and slower decision making.

Why do companies expand internationally?

Availability of supplies, new markets, lower labor costs, access to financial capital, and avoidance of tariffs and import quotas.

What are the six ways organizations go global listed in class?

Foreign subsidiary, strategic alliance/joint venture, franchising, licensing, exporting/importing, and global sourcing.

Which global expansion method has significant risk and investment?

Foreign subsidiary.

Which global expansion method has minimal risk and investment?

Global sourcing.

What is a strategic alliance/joint venture?

A cooperative arrangement in which organizations work together to pursue shared business goals.

What are the GLOBE dimensions of cultural difference listed in lecture?

Assertiveness, future orientation, gender differentiation, uncertainty avoidance, power distance, individualism/collectivism, in-group collectivism, performance orientation, and humane orientation.

What is planning?

The primary management function; setting goals and deciding how to achieve them while coping with uncertainty.

What is strategy?

A large-scale action plan that sets the direction of an organization for long-term survival or prosperity.

Why do managers plan?

To provide direction, encourage new ideas, and develop sustainable competitive advantage.

What organizational benefits are associated with formal planning?

Higher profits, higher return on assets, improved quality of operations, and appropriate implementation.

What does SMART stand for?

Specific, Measurable, Attainable, Relevant, and Time-Based.

What is the purpose of SMART goals?

To make goals clear, trackable, attainable, relevant, and tied to a deadline.

What are the major steps in goal setting from lecture?

Review the mission/job tasks, evaluate resources, determine goals, make and communicate well-written goals, build in feedback, and link rewards to goal attainment.

What type of planning does top management use?

Strategic planning, usually about 1–5 years and focused on the organization's overall direction.

What type of planning does middle management use?

Tactical planning, usually about 6–24 months and focused on implementing top management's plans.

What type of planning does first-line management use?

Operational planning, usually about 1–52 weeks and focused on daily tasks.

What is strategic management?

The process of identifying mission and goals, analyzing the environment, formulating strategies, implementing them, and evaluating results.

What is Step 1 of the strategic management process?

Identify the organization's mission, goals, and strategies.

What is Step 2 of the strategic management process?

Conduct external analysis to identify opportunities and threats.

What is Step 3 of the strategic management process?

Conduct internal analysis of resources, capabilities, core competencies, strengths, and weaknesses.

What are Steps 4, 5, and 6 of strategic management?

Formulate strategies, implement strategies, and evaluate results.

What is a growth strategy?

Expanding products, markets, or acquisitions.

What is a diversification strategy?

Entering new industries or lines of business.

What is restructuring/retrenchment?

Cutting costs, reorganizing, or exiting weak areas.

What is a cooperative strategy or strategic alliance?

Working with another organization to pursue shared objectives.

What global strategies are listed in the strategy lecture?

Global standardization, localization, and transnational strategy.

What broad strategy categories does the Exam 1 guide say businesses may use?

Growth, diversification, restructuring, global, cooperative/strategic alliances, and web business modes.

What is rational decision making?

Making choices that are consistent and value-maximizing within specified constraints.