Principles of Management

Mid-term Exam Review

Mid-Term Exam Format

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

Pool 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 Concepts

Organizational Performance Efficiency & Effectiveness Managerial Functions Levels of Management Mintzbergs Managerial Roles Competitive Advantage

Management Theories

Scientific management theory Administrative management theory Fayols principles

Ch.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 Concepts

Ethical dilemmas Ethics and the Law Stakeholders and ethics Managers relationship to stakeholders and ethics Rules for ethical decision making

Ch.4 Concepts

Diversity Sources of Diversity Managerial Roles and Effective Management of Diversity Distributive justice Schemas, stereotypes, biases Overt discrimination

Ch.5 Concepts

Organizational environment Task Environment Role of National Culture Hofstedes Model of National Culture

Ch.6 Concepts

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

Topics
Managers and Managing/ Theory Manager as a Person Ethics Diversity Global Environment Planning & Strategy

$100 $200 $300 $400 $500 $600

$100 $200 $300 $400 $500 $600

$100 $200 $300 $400 $500 $600

$100 $200 $300 $400 $500 $600

$100 $200 $300 $400 $500 $600

$100 $200 $300 $400 $500 $600

Managers and Managing $100

What are the 4 functions of management?

Planning, Organizing, Leading, Controlling

Managers and Managing $200

What are the 3 levels of management?

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

Managers and Managing $300

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

Managers and Managing $400

2 parts A) 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 Managing $500

Name 3 of Fayols 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 Managing $600

Identify the building blocks of competitive advantage

Efficiency, Innovation, Quality, Responsiveness to Customers

Manager as a Person $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 Person $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 Person $300

The ability to understand and manage ones own moods and emotions and the moods and emotions of other people

Emotional Intelligence

Manager as a Person $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 $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 $600

Identify the Big Five personality traits

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

Ethics $100

Identify the stakeholders in an organization

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

Ethics $200

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

Utilitarian Rule

Ethics $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

Ethics $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

Ethics $500

What are the four approaches to social responsibility?

Obstructionist approach, defensive approach, accommodative approach, proactive approach

Ethics $600

How does ethical behavior affect an organization?

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

Diversity $100

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

Diversity

Diversity $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

Diversity $300

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

Biases

Diversity $400

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

Diversity $500

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

Diversity $600

Name 3 roles of management and how managers use those roles to manage diversity effectively
See page 126

Global Environment $100

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

Task environment

Global Environment $200

What are the 5 dimensions of Hofstedes Model of National Culture

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

Global Environment $300

Name three barriers to entry in the task environment

Economies of scale, brand loyalty, government regulations

Global Environment $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 Environment $500

Routine social conventions of everyday life are called___________

folkways

Global Environment $600

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

Bargaining power

Planning $100

What are the three steps of the planning process?

1) Determining the organizations missions and goals 2) Formulating strategy 3) Implementing strategy

Planning $200

A corporate level plan is____________

Top managements decisions about the organizations mission, overall strategy and structure

Planning $300

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

Planning $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

Planning $500

What are the business level strategies managers use?

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

Planning $600

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

Multidomestic strategy