Principles of Management Principles of Management

Mid-term Exam Review

Mid-Term Exam FormatMid-Term Exam Format

15 multiple choice (30%)10 True/False (10%)8 short answer (40%)10 definitions (20%)

Pool of DefinitionsPool of Definitions Efficiency Effectiveness Outsourcing Global Organization External locus of control Organizational culture Stakeholders Reputation Societal ethics Vertical integration

Glass ceiling Schema Bias Stereotype Brand Loyalty Economies of Scale Folkways Differentiation strategy Low-cost strategy Time Horizon

Ch.1 ConceptsCh.1 Concepts

Organizational PerformanceEfficiency & EffectivenessManagerial FunctionsLevels of ManagementMintzberg’s Managerial RolesCompetitive Advantage

Management TheoriesManagement Theories

Scientific management theoryAdministrative management theoryFayol’s principles

Ch.2 ConceptsCh.2 Concepts

Big 5 personality traits Terminal vs. Instrumental Values Organizational citizenship behaviors Emotional intelligence Organizational culture Attraction-selection-attrition framework Factors that maintain and transmit organizational

culture

Ch.3 ConceptsCh.3 Concepts

Ethical dilemmasEthics and the LawStakeholders and ethics Manager’s relationship to stakeholders and

ethicsRules for ethical decision making

Ch.4 ConceptsCh.4 Concepts

DiversitySources of DiversityManagerial Roles and Effective

Management of DiversityDistributive justiceSchemas, stereotypes, biasesOvert discrimination

Ch.5 ConceptsCh.5 Concepts

Organizational environmentTask EnvironmentRole of National CultureHofstede’s Model of National Culture

Ch.6 ConceptsCh.6 Concepts

In general, you should know all major concepts from Ch.6

TopicsTopicsManagers and Managing/Theory

Manager as a Person

Ethics Diversity Global Environment

Planning & Strategy

$100 $100 $100 $100 $100 $100

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$500 $500 $500 $500 $500 $500

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Managers and ManagingManagers and Managing $100$100

What are the 4 functions of management?

Planning, Organizing, Leading, Controlling

Managers and ManagingManagers and Managing$200$200

What are the 3 levels of management?

First-line managers (supervisors), middle managers, top managers

Managers and ManagingManagers and Managing$300$300

Measure of how efficiently and effectively managers use resources to satisfy customers and achieve goals

Organizational Performance

Managers and ManagingManagers and Managing$400$400

2 partsA) Measure of how well or how

productively resources are used to achieve a goal

B) Measure of the appropriateness of the goals managers have selected for the organization to pursue

A) Efficiency B) Effectiveness

Managers and ManagingManagers and Managing$500$500

Name 3 of Fayol’s Principles of Management

Division of labor, authority and responsibility, unity of command, line of authority, centralization, unity of direction, equity, order, initiative, discipline, remuneration of personnel, stability of tenure of personnel, subordination of individual interest to the common interest, esprit de corps

Managers and ManagingManagers and Managing$600$600

Identify the building blocks of competitive advantage

Efficiency, Innovation, Quality, Responsiveness to Customers

Manager as a PersonManager as a Person$100$100

Behaviors that are not required of organizational members but that contribute to and are necessary for organizational efficiency, effectiveness, and gaining competitive advantage

Organizational citizenship behaviors (OCB)

Manager as a PersonManager as a Person$200$200

Define Attraction-Selection-Attrition framework

When founders hire employees for their new ventures, they tend to be attracted to and choose employees who are similar to themselves

Manager as a PersonManager as a Person$300$300

The ability to understand and manage one’s own moods and emotions and the moods and emotions of other people

Emotional Intelligence

Manager as a PersonManager as a Person$400$400

Identify the factors that maintain and transmit organizational culture

Values of the founder, Socialization, ceremonies and rites, stories and language

Manager as a Person Manager as a Person $500$500

What is the difference between terminal values and instrumental values?

A terminal value is a personal conviction about life long goals and objectives, while an instrumental value is a personal conviction about ways of behaving

Manager as a Person Manager as a Person $600$600

Identify the “Big Five” personality traits

Extraversion, Negative Affectivity, Agreeableness, Conscientiousness, Openness to experience

EthicsEthics $100$100

Identify the stakeholders in an organization

Stockholders, employees, managers, suppliers, distributors, community, customers

EthicsEthics $200$200

The concept that an ethical decision should produce the greatest good for the greatest number of people

Utilitarian Rule

EthicsEthics $300$300

Define “Tragedy of the commons”

The pursuit of individual self-interest with no consideration for the interests of society leads to disaster for each individual and the whole society

EthicsEthics $400$400

When a person must decide between two different courses of action, knowing that whatever he or she chooses will result in harm to one and a benefit to the other is called____________

Lesser of two evils

EthicsEthics $500$500

What are the four approaches to social responsibility?

Obstructionist approach, defensive approach, accommodative approach, proactive approach

EthicsEthics $600$600

How does ethical behavior affect an organization?

Ethical behavior leads to increases in efficiency and effectiveness, which increases company performance

DiversityDiversity $100$100

Dissimilarities among people due to age, gender, race, ethnicity, socio-economic background, etc. is called__________

Diversity

DiversityDiversity $200$200

The principle that dictates that distribution of pay raises, promotions, job titles, interesting job assignments, office space and other organizational resources is called_____________

Distributive Justice

DiversityDiversity $300$300

Systematic tendencies to use information about others in ways that result in inaccurate perceptions is called________

Biases

DiversityDiversity $400$400

A metaphor alluding to the invisible barriers that prevent minorities and women from being promoted to top corporate positions is called___________

Glass ceiling

DiversityDiversity $500$500

Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization is called______

Overt discrimination

DiversityDiversity $600$600

Name 3 roles of management and how managers use those roles to manage diversity effectively

See page 126

Global EnvironmentGlobal Environment $100$100

The set of forces and conditions originating with suppliers, distributors, customers and competitors

Task environment

Global EnvironmentGlobal Environment $200$200

What are the 5 dimensions of Hofstede’s Model of National Culture

Individualism vs. Collectivism, Power distance, achievement vs. nurturing orientation, uncertainty avoidance, short-term vs. long-term orientation

Global EnvironmentGlobal Environment $300$300

Name three barriers to entry in the task environment

Economies of scale, brand loyalty, government regulations

Global EnvironmentGlobal Environment $400$400

Define “global outsourcing”

The process by which organizations purchase inputs from other companies or produce inputs themselves throughout the world to lower costs or improve the quality of their products

Global EnvironmentGlobal Environment $500$500

Routine social conventions of everyday life are called___________

folkways

Global EnvironmentGlobal Environment $600$600

The relative power that one party has over another party in negotiations or a business relationship

Bargaining power

PlanningPlanning $100$100

What are the three steps of the planning process?

1) Determining the organization’s missions and goals

2) Formulating strategy3) Implementing strategy

PlanningPlanning $200$200

A corporate level plan is____________

Top management’s decisions about the organization’s mission, overall strategy and structure

PlanningPlanning $300$300

The corporate level strategy of entering a new business or industry to create a competitive advantage in one or more of an organization’s existing divisions or businesses is called____________

Related diversification

PlanningPlanning $400$400

A method of planning based on creating multiple forecasts of future conditions and then creating strategy to address each condition is called____________

Scenario planning

PlanningPlanning $500$500

What are the business level strategies managers use?

Low-cost strategy, differentiation strategy, focused low-cost strategy, focused differentiation strategy

PlanningPlanning $600$600

A strategy of customizing products and marketing strategies to specific national conditions is called__________

Multidomestic strategy