MC MGT 371 Gaylor Exam 2

the primary management function

planning

Role of planning/goal setting

set the standards to facilitate control

provide direction

minimize waste and redundancy

reduce the impact of change

Pros for planing

higher profits

higher return on assets

improved quality of planning

appropriate implementation

Cons for planning

may create rigidity

can't replace intuition and creativity

focuses attention on today's success

not tomorrow's survival

reinforces success which may lead to failure

what managers do to develop an organization's strategies

strategic management

plans for how the organization will do what it's in business to do

how it will compete successfully

how it will attract its customers in order to achieve its goals

strategies

Steps in the Strategic Management Process

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

2. External analysis (swot): competition, components of environment, threats and opportunities

3. Internal analysis (swot): resources, capabilities, core competencies, organizational strengths and weaknesses

4. Formulate Strategies: corporate, business, functional

5. Implement Strategies

6. Evaluate Results: how effective have strategies been, what adjustments are necessary

An organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses (includes growth strategy, stability strategy, renewal strategy).

Corporate Strategy

for how an organization will compete in its business its distinctive edge comes from its core competencies and resources

Competitive Strategy

those strategies used by an organization's various functional departments to support the competitive strategy (research and development, manufacturing, marketing, human resources, and finance)

Functional strategy

strategic weapons examples

1. Customer service

2. Employee skills & loyalty

3. Innovation

4. Quality

5. Social media

6. Big data

Comparing an organization's practices, processes, and products against the world's best.

Benchmarking

technology, systems, or software that allow the user to collect, visualize, understand, or analyze data

digital tools

A system in which all computer programs and data is stored on a central server owned by a company (e.g. Google) and accessed virtually

Cloud Computing

Types of plans

goals plus plans

Types of goals

financial versus strategic

stated versus real

Traditional goal setting

1. Top management's objective: "we need to improve the company's performance."

2. Division manager's objective: "I want to see a significant improvement in this division's profits."

3. Department manager's objective: "Increase profits regardless of the means."

4. Individual Employee's objective: "Don't worry about quality; just work fast."

Management by Objectives

goal specificity

participative decision making

explicitly time period

performance feedback

an integrated network of goals in which higher-level goals are linked to lower-level goals, which serve as the means for their accomplishment

Means-end chain

any alteration of an organization's people, structure or technology

Organizational change

Types of change

structure, authority, technology, work, people, attitudes, relationships, coordinating processes, work methods, expectations, perceptions, mechanism, job redesign, equipment, behaviors, spans of control

people who act as catalysts and assume responsibility for managing the change process

Change agents

individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented.

Idea champions

a description of organizational change that likens that change to large ship making a predictable trip across a calm sea and experiencing an occasional storm

calm waters

change to a small raft navigating a raging river

white waters

Explain Kurt Lewin's Three Step Change Process (Unfreeze, Freeze, Refreeze)

1. Unfreeze: once the situation has been unfrozen, the change itself can be implemented. Just introducing change doesn't mean it is going to take hold

2. Freeze: new situation has to be frozen so that it can be sustained over time

3. Refreeze: the change is likely to be short live, so freeze at new equilibrium state and stabilize the new situation by balancing the driving and restraining forces

efforts that assist organizational members with a planned change by focusing on their attitudes and values

organizational development

Steps of organizational development

survey feedback

process consultation

team-building

intergroup development

Factors that cause stress in organizations

Change causes stress.

Role demands: role conflicts, role overload, role ambiguity

Interpersonal demands, organization structure, organizational leaderships

Personal causes: family and personal issues, personality type

the ability to produce novel and useful ideas.

creativity

the process of taking a creative idea and turning it into a useful product, service, or method of operation

innovations

innovation in products, services, or processes that radically change an industry's rules of the game.

disruptive innovation

implications of disruptive innovation

can be too disruptive; corporate leaders want to limit these changes

the process of capitalizing on opportunities by starting new business for the purposes of changing, revolutionizing, transforming, or introducing new products or services

Entrepreneurship

organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals.

Entrepreneurial ventures

an independent business having fewer than 500 employees that doesn't necessarily engage in any new or innovative practices and has relatively little impact on the industry.

Small business

an individual or organization that seeks out opportunities to improve society by using practical, innovative, and sustainable approaches

Social entrepreneurship

Characteristics of an entrepreneur.

high level of motivation, abundance of self-confidence, ability to be involved for the long term, high energy level, persistent problem solver, high degree of initiative, ability to set goals, and moderate risk-taker;

personality trait describing those individuals who are more prone to take actions to influence their environment

proactive personality

someone who initiative and active operates an entrepreneurial venture

Entrepreneur

individuals who work for profit or fees in their own business profession, trade, or farm

Self-employment

idea generation, opportunity evaluation, planning, company formation/launch and growth.

planning new ventures process

an organization's declaration of its mid-term and long-term goals, stating what they want to become in the future.

organization vision

a written document that summarizes a business opportunity and defines and articulates how the identified opportunity to be seized and exploited

Business plan

an analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility

Feasibility study

Components of business plan

Executive summary

Analysis of opportunity

Analysis of the context

Description of the business

Financial data and projections

Supporting documentation

One owner

Income and losses "pass through" to owner and are taxed at a personal rate

Unlimited personal liability

Low start-up costs; freedom from most regulations owner has direct control all profits go to owner; easy to exit business

Sole proprietorship

Two or more owners

Income and losses pass through to partners and are taxed at personal rate; flexibility in profit-loss allocations to partners

Unlimited personal liability

Ease of formation; pooled talent; pooled resources; somewhat easier access to financing; some tax benefits

General partnership

Two or more owners

Income and losses pass through to partners and are taxed at personal rate; flexibility in profit-loss allocations to partners; limited although on partner must retain unlimited liability

Good way to acquire capital from limited partners

Limited liability partnership (LLP)

unlimited number of shareholders; no limits on types of stocks or voting arrangement

dividend income is taxed at corporate and personal shareholder levels; losses and deductions are corporate

limited liability

C Corporation

-up to 75 shareholders; no limits on types of stock or voting arrangements

-income and losses pass through to partners and are taxed at personal rate;flexibility in profit loss allocations to partners

-limited liability

-easy to set up; enjoy limited liability; protection and tax benefits of partnership can have a tax exempt entity as a shareholders

S Corporation

-unlimited number of "members," flexible membership arrangements for voting rights and income

-income and losses pass through to partners and are taxed at personal rate; flexibility in profit loss allocation to partners

-limited liability

-greater flexibility; no constrained by regulations on c and s corporations; taxed as partnership, not as a corporation

Limited liability company (LLC)

What is average age of entrepreneurs?

25-34 years old

List the elements of organized structure

Work specialization

Departmentalization

Authority and responsibility

Span of control

Centralization versus decentralization

Formalization

dividing work activities into separate job tasks

Work Specialization

the dividing of organizational functions into separate units

Departmentalization

managers have the right to give orders and the power to exhort subordinates for obedience

Authority and Responsibility

the number of subordinates who report directly to a manager

Span of control

centralization versus decentralization

The level within a hierarchy at which decisions are made. Keeping decision making at the top of the hierarchy describes a centralized system and vice versa.

the presence of rules and regulations governing how people in the organization interact

formalization

factors that cause a producer's average cost per unit to fall as output rises

economies of scale

the property whereby long-run average total cost rises as the quantity of output increases

diseconomies of scale

Types of Departmentalization

functional, product, customer, geographic, matrix

the right to use power

authority

the ability of one person to get another person to act in accordance with the first person's intentions

Power

French and Raven's Bases of Power

reward, coercive, legitimate, expert, referent

a form of organization that seeks to maximize internal efficiency

mechanistic organization

an organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge

organic organization

structure in which a set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions

Divisional Organizational Structure

work is arranged within main business functions such as production, operations, marketing, and human resources

functional organizational structure

a structure centered on work teams or groups

team organizational structure

an organizational structure in which the hierarchy of decision making and authority flows from the strategic management at the top down to operational management and non-management employees

Traditional Organizational Structure

a structure centered on major products or services

project organizational structure

Globalization, intense competition, sustainability and ethics, speed of responsiveness the digital workplace, diversity, and big data analytics.

Current organizational challenges

​__________ is often called the primary management function.

A.

Organizing

B.

Leading

C.

Controlling

D.

Planning

E.

Motivating

Planning

Which of the following is not a reason that managers need to​ plan?

A.

Establishes a coordinated effort

B.

Reduces uncertainty

C.

Establishes goals

D.

Minimizes timing

E.

Lessens wasteful activities

Minimizes Timing

All good strategic management processes start with​ __________.

A.

doing an external analysis

B.

identifying the​ mission, goals, and strategies

C.

evaluating ideas

D.

doing an internal analysis

E.

measuring capabilities

identifying the​ mission, goals, and strategies

The part of the SWOT analysis that examines the activities an organization does well is​ __________.

A.

opportunities

B.

structure

C.

threats

D.

strengths

E.

weaknesses

Strengths

​Nissan's strategic goal of developing a car that rivals​ Porsche's 911 Turbo is what kind of​ goal?

A.

​Mean-ends

B.

Super

C.

Stated

D.

Real

E.

Traditional

Stated

The first step for a manager to accomplish when setting goals is which of the​ following?

A.

Work with others to set the goal

B.

Assess goal progress

C.

Link rewards to goal

D.

Communicate goals to all who need to know

E.

Review the​ organization's mission

Review the organization's mission

Michael gives his sales team time every week to walk through the​ competitors' stores and look for any new changes. This is an example of​ __________.

A.

change evaluation

B.

competition scanning

C.

illegal observation

D.

strategic competition

E.

competitive intelligence

Competitive inteligence

A(n) __________ means lower organizational levels can set goals and develop plans more readily.

A.

traditional organization

B.

flat hierarchy

C.

strategic leader

D.

ambiguous strategy

E.

turbulent environment

flat hierarchy

Smithy's, the local coffee​ shop, is switching to an online pay system. What kind of organizational change are they​ facing?

A.

Changing technology

B.

Changing assets

C.

Changing structure

D.

Changing people

E.

Changing strategy

Changing technology

Michael is very enthusiastic about the new direction in which his company is headed. With everything new that is about to take​ place, Michael's boss enlists his help to act as a catalyst and help manage the change process. Michael can be described as a​ __________.

A.

change team

B.

change manager

C.

change director

D.

change leader

E.

change agent

Change agent

Danylle has heard the new vision for her​ team, and has a basic understanding that things​ can't stay the way they​ are, but she is still not excited about the change. The best way to describe​ Danylle's resistance to change is which of the​ following?

A.

Concern over personal loss

B.

Resources

C.

Uncertainty

D.

Habit

E.

Change is not in the​ organization's best interest

uncertainty

Which country has the highest stress level on​ average?

A.

United States

B.

Brazil

C.

United Kingdom

D.

China

E.

India

United Kingdom

Ross is having difficulty trying to find balance in life. He is feeling pressure as​ dad, husband,​ director, colleague, and friend.​ Ross's stress is being caused by which of the​ following?

A.

Interpersonal demands

B.

Organizational structure

C.

Leadership

D.

Task demands

E.

Role overload

Role overload

Which of the following is not part of the creative​ process?

A.

Incubation

B.

Inspiration

C.

Perception

D.

Teamwork

E.

Innovation

teamwork

Innovation in​ products, services, or processes that radically change an industry is called​ __________.

A.

uncertainty

B.

role overload

C.

sustaining innovation

D.

disruptive innovation

E.

perception

disruptive innovation

Amazon was one of the first large online​ retailers, which means it was able to capitalize on a change in​ ___________.

A.

people

B.

labor markets

C.

structure

D.

government regulations

E.

technology

Technology

Because of recent increases in the popularity of its​ products, employees at ABC Corp. have been working longer hours and many Saturdays. Despite the larger​ paychecks, employees are becoming testy and less cooperative. This is typical of a change in​ __________ that might prompt organizational change.

A.

technology

B.

marketplace

C.

labor markets

D.

employee attitudes

E.

structure

employee attitudes

Kurt​ Lewin's model in dealing with change involves​ __________.

A.

trial periods before full implementation of the change

B.

moving without ever refreezing

C.

making only those changes presented by employees

D.

​unfreezing, changing, and refreezing

E.

skipping the unfreezing action

unfreezing, changing, and refreezing

In northern​ Indiana, the influx of workers from​ Spanish-speaking countries has caused employers to seek bilingual candidates for management and human resources positions. This is reflective of a change in​ _____________.

A.

the composition of the​ organization's workforce

B.

employee attitudes

C.

technology

D.

methods

E.

strategy

the composition of the organization's workforce

In the calm waters​ metaphor, ____________.

A.

the future is not​ unknowable; all decisions must be made without complete information

B.

a constantly changing environment is interrupted by brief periods of calm

C.

the external environment is​ unstable, complex, and dynamic

D.

change is predictable and can be anticipated

E.

change is viewed as a temporary distraction in an otherwise predictable environment

change is viewed as a temporary distraction in an otherwise predictable environment

The main purpose of​ ______________ is to​ __________________.

A.

organization​ development; identify whether the organization is facing calm waters or​ white-water rapids

B.

process​ consultation; improve coordination among various groups

C.

intergroup​ development; clarify problems employees may be facing

D.

team​ building; increase​ members' trust and openness toward one another

E.

survey​ feedback; help managers diagnose interpersonal processes that need improvement

team​ building; increase​ members' trust and openness toward one another

With the introduction of the new compensation​ system, HR knows that people are getting a little anxious. So along with the announcement of the new​ system, HR is sending out an email that will explain why the new system is necessary and how the system is going to benefit the employees and the organization. HR is trying to reduce the resistance to change by doing which of the​ following?

A.

Manipulation

B.

Negotiation

C.

Education and communication

D.

Facilitation and support

E.

Coercion

One of the myths of entrepreneurship is that entrepreneurs​ __________.

A.

can learn from observing other entrepreneurs

B.

can be taught through mentors

C.

can learn skills through books and videos

D.

are born with characteristics that make them successful

E.

can take college courses on entrepreneurship

are born with characteristics that make them successful

An organization that is characterized by innovative practices and has growth and profitability as its main goal Is called​ a(n) __________.

A.

entrepreneurial venture​ (EV)

B.

global enterprise

C.

small business

D.

skunk work

E.

serial entrepreneurship

entrepreneurial venture​ (EV)

Which of the following is NOT one of the potential sources of opportunity for​ entrepreneurs?

A.

changes in perception

B.

new knowledge

C.

global warming

D.

the unexpected

E.

demographics

global warming

A structured evaluation approach that an entrepreneur might use is​ __________.

A.

insight

B.

collaboration

C.

passion

D.

imitating competitors

E.

a feasibility study

a feasibility study