Principles of Management Exam 1

Forces in the general environment

economy

demographics

socio-cultural

technology

political

legal

externalitities

economic costs or benefits that aren’t included in prices customers pay or in the cost to a firm

often hear more about ____ externalities, but ____ externalities exist

negative, positive

forces in the task environment

customers

competitors

suppliers

Who came up with the Doughnut Economic Theory

Kate Raworth

The Doughnut Economic theory says that

profit-seeking, traditional capitalistic firms face natural limits on their operations and their growth

The Doughnut Economic theory tells companies to

find the balance

Visionaries

are framed as those who can imagine the future that doesn’t actually exist, see things that aren’t really there, and have the motivation to act on these thing we imagine

Visionaries are similar to

schizophrenics

globalization is driven by 2 primary factors

• collapse of time and distance

  • including technology advancements

• decline in barriers to trade

ESG stands for

Environment, social, and government

the ESG theory states that

consumers want to buy things that align with their values

pyramid of corporate responsibility bottom tier

fulfilling the need for capitalistic success

main responsibility of a company

profit

industrial revolution

the historical event that led to the need for professional workplace management

self-fulfilling prophecy

if we see the world a certain way, everything bends that way for us to reinforce that belief

true or false: efficiency is more important than effectiveness

false

the peter principle

an individual is promoted to their level of max incompetence

who pays tariffs

importers or other channel entities like wholesalers who are acting as importers

Who created the framework of cultural dimensions and globalization in management

Hofsted

What does Hofsted’s framework of cultural dimensions do

supports orgs to guide success in international assignments

key framework guides

• individualism vs. collectivism

• uncertainty avoidance

• masculinity vs. femininity

• power distance

notes from podcast

• promotion is carrot because it costs companies less than to raise everyone’s pay

• major pain point for managers today is time spent in zoom meetings

• best way to get out of a peter principle is to quit and find a new job

Hawthorne effect

• watching employees makes them more productive

• listening to employees raises their productivity

formula to measure productivity

output/input

Theory X

• people dislike and avoid work

• only punishment works

• people are selfish, have no ambition, and dislike responsibility

• everyone is threatened by change, wants stability

• people are stupid and believe everything

Theory Y

• work is natural along w/ self control and motivation

• rewards enhance committment

• people seek responsibility and are smart, creative, and have underutilized skills

the main reason people behave unethically

self interest

US Foreign Corrupt Practices Act

it is illegal for US Businesses to bribe foreign representatives

Maslows hierarchy of needs top tier

self actualization

self actualization

when individuals develop the best version of themselves for themselves

Globalization Pros

• greater peace and prosperity for people everywhere

• consumers have the chance to buy some goods at lower costs

• firms realize economy of scale

• increased access to investments and international orders to grow their businesses

• opening local subsidiaries to avoid tariffs and import costs

Globalization Cons

• if costs are lower elsewhere, jobs and growth will go elsewhere

• to keep industries on homeland, companies need government support