Management Test 1

Things of Production

Management focus is on production efficiency via organization design and workflow systems and control

Humanity of Production

Management focus is on meeting human needs for greater motivation and engagement to increase effectiveness

Classical Perspective

Emerged during the 19th and early 20th centuries during rise of the factory system

Scientific Management

Improve efficiency and labor productivity through scientific methods

Frederick Taylor

Part of scientific management. He said management decisions would be based on precise procedures based on study

Pros of Scientific Management

-demonstrated the importance of compensation for performance -initiated the careful study of tasks and jobs -demonstrated the importance of personnel selection and training

Cons of Scientific Management

-did not appreciate the social context of work/higher needs of employees -did not acknowledge variance among individuals -tended to regard workers as uninformed and ignored their ideas and suggestions

Bureaucratic Organizations

Part of scientific management. Organization depends on rules and records.

Max Weber

Theorist of bureaucratic organizations Introduced the concepts: -clearly defined authority -formal recordkeeping -separation of management and ownership

Administrative Principles

Part of scientific management. Focused on the entire organization. Henry Fayol created the 14 general principles of management.

Management Science

Part of scientific management. Applies mathematics, statistics, and other quantitative techniques to management decision making and problem solving

Humanistic Perspective

Understand human behaviors, needs, and attitudes in the workplace

Human Relations Movement

Stresses the satisfaction of employee's basic needs as the key to increased productivity. Truly effective control comes from within the individual worker rather than from strict, authoritarian control.

Hawthorne Effect

Researcher can influence the outcome of an experiment by being too closely involved with research subjects

Human Resources Perspective

Satisfied workers produce more work. Allow employees to use their full potential. Includes Maslow's hierarchy of needs and McGregor's theory x/y.

Theory X

The average human being has an inherent dislike of work and will avoid it if possible. People must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort.

Theory Y

The average human being does not inherently dislike work. A person will exercise self-direction and self-control in the service of objective to which they are committed.

Behavioral Sciences Approach

Scientific methods + sociology, psychology, anthropology, economics, and other to develop theories about human behavior and interaction in an organizational setting.

Organization Development

Set of management techniques that uses behavioral sciences to improve organization's health and effectiveness.

Systems Thinking

System: set of interrelated parts that function as a whole

Subsystems: parts of a system that depend on one another

Synergy: the whole is greater than the sum of its parts

Contingency View

Opposite of universalist view of the classical perspective. Managers must determine what method will work in every new situation.

Radical Decentralization

Employees have authority to make key decisions about their work, eliminating much of hierarchal reporting

Employee Engagement

the emotional commitment the employee has to the organization and its goals

Nudge Management

Applying behavioral science insights in organizational design to guide people toward behaviors that support organizational goals and values

External Organizational Environment

All outside elements that could affect the organization

Task Environment

Closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. Includes competitors, suppliers, customers, and labor market.

General Environment

Affects the organization indirectly. Includes social, economic, legal-political, international, natural, and technological factors that influence all organizations equally.

Strategic Issues

Events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives

Boundary Spanning

Actions that link to and coordinate the organization with key elements in the external environment. Includes business intelligence and social media/big data analytics

Internal Organizational Environment

Includes employees, culture, and management.

Corporate Culture

Set of key values, beliefs, understandings, and norms shared by members of an organization. Evident visibly in symbols, stories, heroes, slogans, and ceremonies, or invisibly in expressed values or underlying assumptions.

Toxic Culture

Exists when persistent negative sentiments and infighting cause stress, unhappiness, and lowered productivity among subgroups of employees

Cultural Leader

One who defines and uses signals and symbols to influence corporate culture

International Management

The management of business operations conducted in more than one country

Globalization

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries. Leads to increasing interdependence among countries, businesses, and people.

Global Mind-set

The ability of managers to appreciate and influence individuals, groups, organizations, and systems that possess different social, cultural, institutional, intellectual, and psychological characteristics. Includes psychological, cognitive, and social dimensions

China

Manufacturing giant. Population of 1.412 billion. 142 companies on Fortune Global 500

India

Giant in software design, services, and precision engineering. Population of 1.393 billion

Multinational Corporation

An organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country and has a number of distinctive managerial characteristics: managed as integrated worldwide business systems, controlled by a single management authority, and regard the entire world as one market.

Ethnocentric Companies

Emphasis on home countries

Polycentric Companies

Oriented toward markets of individual foreign host countries

Geocentric Companies

Truly world-oriented and favor no specific country

Bottom of the Pyramid Concept

Proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poor

Exporting

A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries

Global Outsourcing

Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country. (offshoring)

Partnerships

Partners with a local company in a foreign market. Often the fastest, cheapest, and least risky way to get into global business.

Joint Venture

A type of partnership. A company shares costs and risks with another firm, typically in the host country, to develop new products, build a manufacturing facility, or set up as a sales and distribution network

Political Risk

The risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country. Includes internal conflicts such as social unrest, ethnic violence, social activism, and politically motivated terrorism and cyberthreats as well as government actions such as changes in laws, taxes, and other regulations

Political Instability

Includes riots, revolutions, civil disorders, and frequent changes in government

Ethnocentrism

A natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values

Hofstede's Value Dimensions

Five dimensions of national value systems that influence organization and employee working relationships

GLOBE Project

Nine dimensions that explain cultural differences

Power Distance

The degree to which people accept inequality in power among institutions, organizations, and people (high means people accept inequality in power)

Uncertainty Avoidance

Characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity

Individualism

A preference for loosely knit social framework in which individuals are expected to take care of themselves

Collectivism

A preference for tightly knit social framework in which individuals look after one another and organizations protect their members' interests

Masculinity

Preference for achievement, heroism, assertiveness, work centrality, and material success

Femininity

Preference for relationships, cooperation, group decision making, and quality of life

Long-term Orientation

Greater concern for the future and a high value on thrift and perseverance

Short-term Orientation

Concern with the past and present and a high value on meeting current obligations

Implicit Communication

Sending and receiving unspoken cues such as tone of voice or body language as well spoken words

High-context Culture

People are sensitive to circumstances surrounding social exchanges (Chinese)

Low-context Culture

People use communication primarily to exchange facts and information; meaning is derived primarily from words (German)

Cultural Intelligence

The ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses. The three components include cognitive, emotional, and physical.

GATT (General Agreement on Tariffs and Trade)

Set of rules to ensure nondiscrimination, clear procedures, the negotiation of disputes, and the participation of lesser-developed countries in international trade. Called for the establishment of the World Trade Organization

WTO (World Trade Organization)

Maturation of GATT into permanent global institute. 164 member countries by 2016

EU (European Union)

A powerful single-market system allowing people, goods, and services to move freely from one country to the next. More competitive with other markets because of economies of scale.

USMCA (United States-Mexico-Canada Agreement)

Replaced the NAFTA that merged the United States, Canada, and Mexico into a single market in 1994. Annual trade flows among the three countries largely unchanged. Established tougher rules on labor and environmental standards.

Ethics

The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

Codified Law

One of three categories of behavior. Values and standards are written into the legal system and enforceable in the courts

Free Choice

One of three categories of behavior. Pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom

Ethics

One of three categories of behavior. Has no specific laws, yet it does have standards of conduct based on shared principles and values about moral conduct that guide an individual or company

Utilitarian Approach

Moral behavior produces the greatest good for the greatest number (could consider cost/benefit analysis)

Individualism Approach

Acts are considered moral if they promote the individual's best long-term interests

Moral-rights Approach

Humans have fundamental rights and liberties that cannot be taken away by an individual's decision

Justice Approach

Moral decisions must be based on standards of equity, fairness, and impartiality

Distributive Justice

Different treatment of people cannot be based on arbitrary characteristics

Procedural Justice

Rules must be administered fairly

Compensatory Justice

Individuals should be compensated for the cost of their injuries by the party responsible

Practical Approach

A decision-making approach that sidesteps debates about what is right, good, or just, and bases decisions on the prevailing standards of the profession and larger society. Criteria include: acceptable by the professional community, manager would not hesitate to publicize decision on the evening news, and person would typically feel comfortable explaining to family and friends

Preconventional

First level of moral development. Follows rules to avoid punishment. Acts in one's own interest.

Conventional

Second level of moral development. Lives up to expectation of others. Fulfills desires and obligations of social system

Postconventional

Third level of moral development. Follows self-chosen principles of justice and right. Aware that people hold different values and seeks creative solutions to ethical dilemmas. Balances concern for individual with concern for common good

Corporate Social Responsibility (CSR)

The obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization

Stakeholder

Any person or group within or outside the organization that has an investment or interest in the organization's performance

Sustainability

The ability to generate wealth with environmental responsibility and social stewardship, thereby meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well

Triple Bottom Line

Refers to measuring the organization's financial performance, social performance, and environmental performance

Benefit Corporation

A for-profit organization whose stated purpose includes: creating a material positive impact on society, requiring the consideration of the impact of all decisions on shareholders, employees, the community, and the environment, and voluntarily holding itself to high standards of accountability and transparency

Whistle-blowing

The disclosure by employees of unethical, illegitimate, or illegal practices by an organization

Peter Drucker

Father of modern business management. He taught that successful leaders should put people and ethics first rather than focusing entirely on profits and rigid rules and work structures

Management

The attainment of organization goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

Planning

One of the four management functions. Select goals and ways to attain them

Organizing

One of the four management functions. Assign responsibility for task accomplishment

Leading

One of the four management functions. Use influence to motivate employees

Controlling

One of the four management functions. Monitor activities and make corrections

Organization

Social entity that is goal-directed and deliberately structured

Technical Skills

One of the three categories of management skills. Understanding of and proficiency in the performance of specific tasks

Human Skills

One of the three categories of management skills. Manager's ability to work with and through other people and to work effectively in a group

Conceptual Skills

One of the three categories of management skills. Cognitive abilities to see the organization as a while and the relationship among its parts

First-level Managers

Responsible for the production of goods and services. Vertical management