MGT 331 FINAL EXAM (GVSU)

Efficiency

A measure of how well or how productively resources are used to achieve a goal

Effectiveness

A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals.

4 tasks of management

1. Planning
2. Organizing
3. Leading
4. Controlling

Steps of Planning Process

1. Deciding which goals the organization will pursue
2. Deciding what strategies to adopt to attain those goals
3. Deciding how to allocate organizational resources

Levels of managements

CEO
Top managers
Middle Management
First line Managers

Administrative management

The study of how to create an organizational structure + control system that leads to high efficiency and effectiveness.

Behavioral management

The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals

The Hawthorne Effect

The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals

Organizational environment theory

The set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources.

The Open Systems View

A system that takes resources from its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers

CLOSED SYSTEM

A self contained system that is not affected by changes in its external environment
Likely to experience entropy and lose its ability to control itself

Contingency Theory

The idea that the organizational structures + control systems manager choose depend on characteristics of the external environment in which the organization operates
"There is no one best way to organize"

5 personality traits

extraversion,
Negative affectiveity
agreeableness,
conscientiousness,
openness to experience

Internal locus of control

Belief you are responsible for your own fate
Own actions and behaviors are major and decisive determinants of job outcomes

External locus of control

Puts responsibility for one's fate on outside forces and one's own actions have little impact on outcomes

Emotional intelligence

The ability for a manager to be able to understand how the employees are feeling and why.
More able to effectively manage their feelings so they do not get in the way of effective decision making.

Stakeholders

The people and groups that supply a company with its productive resources and so have a claim on and stake in the company.

4 Ethical rules

Utilitarian
Justice
Practical
Moral Rights

Distributive Justice

Moral principle calling for fair distribution of pay, promotions, and organizational resources based on meaningful contributions that individuals have made and not personal characteristics over which they have no control

Procedural Justice

Moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members

Schema

abstract knowledge structure stored in memory that allows people to organize and interpret information about a person, event, or situation

Overt Discrimination

Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization (unethical AND illegal)

Quid pro quo

Asking for or forcing an employee to perform sexual favors in exchange for receiving some reward or avoiding negative consequences

4 forms of capital

Human
Resource
Financial
Political

Tariffs

taxes on imported goods

Free Trade

the idea that each county focuses it's production of goods that it is best suited to producing, that way resources will be used most efficiently

Norms

unwritten rules that govern behavior

Mores

norms that are considered by an organization to be central to functioning of society

Folkways

the routine social interactions of everyday life

Intuition

feelings, beliefs, and hunches that come readily available to the mind, require little effort and information gathering, and results in on-the-spot decisions

Reasoned Judgement

A decision that requires time and effort and results from careful information gathering, generation of alternatives, and evaluation of alternatives.

Administrative Model

An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.

job enrichment

■ Increasing the degree of responsibility, a worker has over a job

job enlargement

increasing the number of different tasks in a given job by changing the division of labor

Functional Structures

An organizational structure composed of all the departments that an organization requires to produce its goods or services

matrix structure

An organizational structure that simultaneously groups people and resources by function and by product.

span of control

An organizational structure that simultaneously groups people and resource by function and product
The structure is very flexible
Each employee has two bosses

tall structure

has an overall narrow span and more hierarchical levels

flat structure

have a wide span and fewer levels

3 types if control

Input
Conversion
Output

Control process steps

1. Establish standards
2. Measure performance
3. Compare performance to standards
4. Evaluate

ROI

Organization's net income before taxes divided by its total assets. Most commonly used financial performance measure

Profit ratios

Measure how efficiently managers are using the organization's resources to generate profits

Operating margin

Calculated by dividing a company's operating profit by sales revenue
Provides managers with information about how efficiently an organization is utilizing its resources

Liquidity ratios

Measure how well managers have protected organizational resources to be able to meet short-term obligations (managing cash flows)

Leverage ratios

Measure the degree to which managers use debt or equity to finance ongoing operations

Inventory turnover

Measures how efficiently managers are turning inventory over so excess inventory is not carried

Days sales outstanding

Reveals how efficiently managers are collecting revenue from customers to pay expenses

Evolutionary change

Gradual, incremental, and narrowly focused
Constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate changes in the environment

Revolutionary change

Rapid, dramatic, and broadly focused
Involves a bold attempt to quickly find ways to be effective
Likely to result in a radical shift in ways of doing things, new goals, and a new structure for the organization

Intrinsically motivated behavior

behavior performed for its own sake

Extrinsically motivated behavior

behavior performed to acquire material or social rewards to avoid punishment

Maslow's Hierarchy of needs

An arrangement of five basic needs that motivate behavior
He proposed that the lowest level of unmet needs is the prime motivator and that only one level needs motivation at a time

Operant Conditioning Theory

People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences

Encoding

Translating a message into understandable language or symbols

Noise

Anything that hampers any stage of the communication process

Decoding

Interpreting and trying to make sense of a message.

Nonverbal Communication

The encoding of messages by means of facial expressions, body language, and styles of dress.