Term
| Process of achieving desired results through material/human resources |
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Definition
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Term
| What are the 2 key concerns of management? |
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Definition
| • Effectiveness and efficiency |
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Term
| 3. What is effectiveness concerned with? efficiency? |
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Definition
• Effectiveness: achieving desired results, the ends, more crucial
• Efficiency: minimizing waste and resource cost, the means |
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Term
| 4. How are effectiveness and efficiency related? |
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Definition
• Easier to be effective if efficient
• More your concerned with efficiency, harder it is to be effective |
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Term
| 5. What is your important resource as a manager? |
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Definition
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Term
| 6. Is management art or science? When is it considered a science? an art? |
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Definition
• Both
• Science: academically/discipline
• Art: practice |
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Term
| 7. How did management become important and why is it still significant today? |
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Definition
• Industrial Revolution
• Skill level went down, management necessary |
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Term
| 8. What was the basic change in the industrial revolution? |
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Definition
| • Transfer of skills from craftsmen to the machines |
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Term
| 9. What happened to productivity (supply), prices, and demand as a result of the industrial revolution? |
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Definition
| • Production increased, prices decreased, and demand increased (capitalism) |
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Term
| 10. What was the pivotal event of our time, according to Drucker? |
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Definition
| • The switch from owner/manager to professional manager |
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Term
| 11. Why do most businesses fail? |
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Definition
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Term
| 12. What does a first-line manager do? What are the names associated with 1st-line management? |
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Definition
• First line manager: carry out plans through laborers
• Foreman, supervisor, assistant manager
• Efficiency oriented |
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Term
| 13. What does a middle level manager do? What are the names associated with middle level manager? |
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Definition
• Integrator and interpreter
• Plant manager, division head, Dept. Chairman
• Efficiency oriented |
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Term
| 14. What is corporate downsizing? What happens in corporate downsizing? What level of management is most adversely affected? |
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Definition
• Cutting spending and cost
• Companies are trying to cut the fat by eliminating layers of management
• Middle level management most affected
• Efficiency oriented |
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Term
| 15. What does a top manager do? What are the names associated with top management? |
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Definition
• Determine general goal and action plans to achieve those goals
• Strategic planning
• CEO, chairman of the board, executive vice president
• Efficiency oriented |
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Term
| 16. What is the difference between a line manager and a staff manager? |
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Definition
• Line manager: production (all levels)
• Staff manager: support and guidance (middle) |
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Term
| 17. What is the difference between a functional manager and a general manager? |
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Definition
• Functional manager: single area
• General manager: many areas |
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Term
| 18. What is the difference between an administrator and a manager? |
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Definition
• Administrator: non profit
• Manager: profit |
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Term
| 19. What are the five functions of management? Be able to identify and describe the five functions of management. |
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Definition
• Planning: establish goals and methods
• Organizing: designing a structure
• Staffing: hiring competent employees
• Leading: motivate and direct others
• Controlling: accomplish objectives |
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Term
| 20. What does "planning has primacy" mean? |
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Definition
| • Planning aims you in the right direction |
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Term
| 21. What are the three aspects of controlling? |
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Definition
• Monitor organizational performance
• Compare actual with “hoped for”
• Take corrective action |
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Term
| 22. What are the Siamese twins of management? |
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Definition
| • Planning and controlling |
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Term
| 23. What is (are) the most important function(s) for a 1st-line manager? Middle manager? Top manager? |
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Definition
• First line: staffing and leading
• Middle: organizing
• Top: planning |
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Term
| 24. What are three managerial roles Mintzberg identified? Be able to identify each role. |
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Definition
• Interpersonal: develop and maintain positive relationships
• Information: receive information, give information, analyze information
• Decisional: using information to solve problems or take advantage of opportunities |
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Term
| 25. What gives rise to the three managerial roles, according to Mintzberg? |
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Definition
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Term
| 26. What are three managerial skills identified by Katz? Be able to identify each skill. |
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Definition
• Technical: use special expertise
• Human: ability to work well with others
• Conceptual: ability to problem solve |
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Term
| 27. At what level of management are conceptual skills most important? Technical skills? Human skills? |
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Definition
• Conceptual: top
• Technical: first line
• Human: equal at all levels |
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Term
| 28. What skill is most difficult to develop? Why? |
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Definition
• Conceptual
• They require smartness and time/experience to develop |
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Term
| 29. According to Luthans (1988), are effective managers successful managers in general? |
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Definition
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Term
| 30. What percent of effective managers are successful? |
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Definition
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Term
| 31. On what activity do effective managers spend the majority of their time? Successful managers? |
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Definition
• Effective managers: communicating
• Successful managers: networking |
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Term
| 32. What is the primary difference between derailed executives and executives who made it to top management, according to the Center for Creative Leadership? |
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Definition
• Derailed executives were insensitive to others
• The only way you “get ahead” or “get the job done” is through others |
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Term
| 33. What are the three basic characteristics of an open system? |
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Definition
| • Input, transformation, output |
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Term
| 34. What is the cyclical nature of the nature transformation process? Negative entropy? Buffering the technical core? Role differentiation and specialization? Synergy? Equifinality? |
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Definition
• cyclical nature: customers buy, more money for resources
• negative entropy: stop decline, bring in new people with new ideas
• buffering: maintain stability in production
• role differentiation and specialization: develop specialized units
• synergy: teamwork, 2+2=4
• equifinality: many means to success, many roads to success |
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Term
| 35. What are the five subsystems of an organization? What functions do each subsystem perform? |
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Definition
• Production: produces product and service outputs (efficiency)
• Boundary-Spanning: handle transactions at org. boundaries (effective)
• Adaptive: responsible for organizational change (effective)
• Maintenance: smooth operation and upkeep of organization (efficiency)
• Management: provides direction, strategy, goals ,and policies (both) |
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Term
| 36. What are the two major dependencies in the external environment? What is the threat to these 2 major dependencies? |
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Definition
• Customers and suppliers
• Competitors threatens the two |
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Term
| 37. How do customers influence organizations and how do organizations influence customers? |
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Definition
• Customers influence organizations by trying to force down prices, obtain more or higher quality products, and increase competition
• Organizations influence customers by advertising and marketing research |
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Term
| 38. How much more does it cost to find a new customer than to keep an old one, according to Total Quality Management estimates? |
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Definition
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Term
| 39. How do suppliers influence organizations and how do organizations influence suppliers (i.e., 3 ways to establish and maintain a positive relationship with suppliers)? |
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Definition
• Vertical integration: backward, buy your supplier
• Long term contracts
• Reduce the number of suppliers |
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Term
| 40. What is the law of the marketplace? |
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Definition
• Companies that cannot compete will be faced with either changing their product line or be eliminated
• Organizational Darwinism |
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Term
| 41. What are the five forces of competition and how does each influence the level of competition within an industry? |
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Definition
• Rivalry
• Threat of new entrants
• Threat of substitutes
• Power of suppliers
• Power of customers |
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Term
| 42. What are the barriers to entry into an industry? |
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Definition
• Government policy
• Capital requirements
• Brand identification
• Cost advantage
• Distribution channel
• *barriers high > threat low |
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Term
| 43. What happens when a new entrant comes into the market/industry? |
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Definition
• They want your market share and profitability
• Prices decrease, Cost of Advertising increases |
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Term
| 44. What determines if a supplier is powerful? Customer? |
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Definition
• Supplier: few other resources of supply or many other buyers
• Customer: make larger purchases or find alternative places to buy |
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Term
| 45. How do powerful suppliers and customers influence organizations? |
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Definition
• They cut into marketplace and profitability.
• You can’t make products without your suppliers |
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Term
| 46. How do substitutes affect an industry? |
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Definition
| • Limits growth and profitability |
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Term
| 47. What are process and product innovations? What is the focus of each? |
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Definition
• Process innovation: made in transforming inputs into goods and services
• Product innovation: made in the basic good or service provided |
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Term
| 48. What are the general effects of technology on an industry? |
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Definition
| • Product obsolescence and increased competition |
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Term
| 49. How does the economy influence an organization? |
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Definition
| • Can restrict business investment and growth |
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Term
| 50. What are the four ways that government influences organizations? |
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Definition
• Government regulation
• Subsidization and taxation
• Government competition
• Government economic policies |
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Term
| 51. What is the shadow bureaucracy? |
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Definition
| • Nearly every department within an organization has a counterpart in one or more federal agencies |
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Term
| 52. What are the three ways organizations influence governments? |
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Definition
• Lobbying
• Direct political action
• Illegal action |
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Term
| 53. What is a PAC? What are the limits regarding PAC contributions to campaigns? |
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Definition
• Political Action Committee
• Can give $5000 directly ,but indirectly this is no limit |
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Term
| 54. How does society influence business? Business influence society? |
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Definition
• Society influence business: can boycott
• Business influence society: community service work, charity drives |
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Term
| 55. How does the international component of the environment influence organizations? |
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Definition
• Provides greater opportunities
• By knowing customers, suppliers, competitors, technology, economy, government, and culture |
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Term
| 56. What is environmental scanning? How is it related to planning and organizational performance? |
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Definition
• Process of monitoring and evaluating changes and trends in the environment
• “The more you scan, the better your plan! The better you plan, the better you perform” |
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Term
| 57. What are the three purposes of planning? |
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Definition
• Fundamental purpose: establish and help achieve objectives
• Protective/Defensive purpose: reducing risk
• Affirmative/Offensive purpose: seeking out and taking advantage of opp. |
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Term
| 58. Why is planning important? |
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Definition
• Organization success
• Sense of unity and direction
• Coping with change
• Performance standards
• Managerial development |
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Term
| 59. Why do managers resist planning? |
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Definition
| • Fear failure, hard work, not rewarded, takes time, expensive |
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Term
| 60. What is Gresham's law of planning? |
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Definition
| • Tendency for routine, repetitive problems to overshadow planning problems |
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Term
| 61. What does the non-planner typically blame for his/her poor performance? |
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Definition
| • Bad luck, outside forces |
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Term
| 62. What are the five phases of the planning process and what happens at each phase? |
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Definition
• Establishing goals
• Develop premises: forecasting events or conditions
• Decision making: select best course of action
• Implementing course of action: carrying out the plan
• Evaluating results: compare actual with “hoped for” |
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Term
| 63. What provides the basis for Phase 1: Establishing Objectives? |
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Definition
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Term
| 64. What are the SMART goals? |
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Definition
• Specify
• Measurable
• Achievable
• Relevant or Important
• Track able |
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Term
| 65. What is contingency planning? What are the benefits and drawbacks? |
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Definition
• Developing premises about the future
• “what if” planning
• Benefits: greater flexibility, act rather than react
• Drawbacks: requires greater time and money |
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Term
| 66. What are the keys to effective implementation of a plan? |
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Definition
• Have the resources to implement the plan
• People must understand the plan to implement
• People must be motivated to implement the plan |
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Term
| 67. What function of management is Phase 5: Evaluating Results? |
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Definition
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Term
| 68. What is the basic dilemma in planning? |
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Definition
• Commitment and flexibility
• More committed > less flexible |
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Term
| 69. What are the different failures to avoid in planning? Be able to identify. |
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Definition
• Top down delegation
• Key line managers left out
• Lack of supportive climate for planning
• Plans that are too rigid and/or complex
• Failure to manage your plan (Phases 4 and 5)
• Getting bogged down in the details of planning
• Unrealistic expectations |
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Term
| 70. What is the crystal ball syndrome? Cure-all syndrome? Persian messenger syndrome? |
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Definition
• Crystal ball syndrome: see future, plan it, no execution (do 12, neglect 34)
• Cure all syndrome: planning cures all problems, doesn’t happen, think it’s a waste of time
• Persian messenger syndrome: bad news, kill messenger, no more feedback |
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Term
| 71. What is the focus of strategic planning? |
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Definition
| • Maintaining positive relationship with external environment |
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Term
| 72. What are the four components of a well-thought out strategy? Be able to identify. |
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Definition
• Scope: range of market to explore
• Resource deployment: how to spend money
• Distinctive competence: unique competitive advantage
• Synergy: teamwork |
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Term
| 73. What is corporate strategy and business level strategy? |
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Definition
• Corporate strategy: what businesses do we want to be in
• Business level strategy: how we want to compete in a business, market, or industry |
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Term
| 74. What are the four elements of strategy formulation and what does each element consist of? |
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Definition
• Mission statement: what is its purpose?
• External environment:
• Internal environment:
• Management: |
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Term
| 75. What are benefits of a mission statement? |
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Definition
• Establish overall goals
• Provide target for your plans
• Source of motivation
• Source of legitimacy |
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Term
| 76. What is a SWOT analysis? |
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Definition
• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threat (external) |
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Term
| 77. What is the goal of the Business Portfolio Matrix Approach? |
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Definition
| • To own that mix of businesses with will maximize market share and profitability |
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Term
| 78. What levels of strategy does the Business Portfolio Matrix Approach deal with? |
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Definition
| • Corporate and business level |
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Term
| 79. How are SBUs classified in the Business Portfolio Matrix Approach? |
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Definition
• Cash Cow(High Market Share, Low Market Growth, product has been around for a long time, people are loyal to your brand)(“Stable Growth Strategy”
• New Venture (Low Market Share, High Market Growth, hoping that the new venture will take off and become a star product.)
• Star (High market share, High Market Growth. what your company is known for, your “star” product)(“Growth Strategy”)
• Dog (Low Market Share, Low Market Growth, i.e. Kodak Digital Cameras, Jaguar Station Wagon X-Type, HD-DVD, Hooters Air, Ford Excursion, etc.) When you have a profitable dog product, you “retrench”, or downsize the product, cut costs to make it as profitable as possible. When you have an unprofitable dog, you “divest.” |
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Term
| 80. What business strategy is used for a cash cow? Star? Dog? New Venture? |
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Definition
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Term
| 81. What is the basic idea behind Generic Strategies? |
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Definition
| • Define your competitive niche |
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Term
82. What are the three Generic Strategies identified by Porter? Be able to identify.
D OCL F |
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Definition
| • Differentiation: develop a different image • Overall Cost Leadership: maximize sales, minimize cost • Focus: concentrate on one |
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Term
| 83. What is the basic idea behind the Adaptation model of strategy? |
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Definition
| • Strategy must be aligned with its external environment for the strategy to be effective |
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Term
| 84. What is a defender? Prospector? Analyzer? Reactor? When is a defender strategy the best? Prospector? Analyzer? Reactor? |
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Definition
• Defender: sees demand for their product not growing, stable environment
• Prospector: sees environment as dynamic, growing
• Analyzer: see environment as moderately changing
• Reactor: worst strategy, not set strategy, reacts, inefficient |
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Term
| 85. How does each strategy type in the Adaptation Model answer the entrepreneurial, engineering, and administrative questions? |
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Definition
• Entrepreneurial - How do we compete?
• Engineering - How do we produce?
• Administrative - How do we organize? |
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Term
| 86. How are the strategies in the Business Portfolio Matrix Approach and the Adaptation Model of Strategy related to one another? (Defender and Prospector are opposites) |
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Definition
• Defender: Defend market share, keep growth stable (Just like cash cow)
o ENTR: seal off market share through overall cost leadership
o ENG: efficient production to lower costs
o ADM: Organizational structure emphasizes use of rules/regulations. Lots of budgetary constraints/cost controls.
• Prospector: Looking for new customers, new markets. (Star, New Venture)
o ENTR: find and exploit new markets. Develop new & different products (growth)
o ENG: Flexible production to take advantage of multiple opportunities.
o ADM: Organizational structure has few rules/regulations. Far less budgetary constraints/cost controls (loose controls)
• Analyzer: Cash Cow, Star, New Venture
o This strategy is a combination of defender and prospector
o But it’s a combination “in name only” because they’re never mixed.
• Reactor: Dogs
o This is the worst of the four strategic types.
o It is constantly reacting to what other companies are doing and as a result, how it answers the three questions is constantly changing.
o There is no set strategy in place, so not much gets done. |
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Term
| 87. What does the article, “When competitive advantage is neither,” say about competitive benchmarking as a strategy? |
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Definition
• Companies should strive for “value innovation”
• Place emphasis on buyer not on competition |
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Term
| 88. What does the article, “Avoid pricing yourself short”, say about competing on price as a strategy for attracting customers? |
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Definition
| • You can only have 2 of 3: Price, Quality, Service |
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Term
| 89. 3 ways to provide superior customer service |
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Definition
• Make it easy to complain
• Make a timely, personal response to the complaint
• Make sure your response to the complaint is effective |
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Term
| 90. What is vertical integration forward? |
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Definition
| • You buy up customer organization |
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Term
| 91. What is Pareto’s Rule on results? |
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Definition
| • 80% of the results on a job come from 20% of the job’s activities |
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Term
92. Managerial value system affects implementation of the ___. B. If it isn't consistent with the managerial value system, ___ will suffer. c. Since values change slowly, then strategy must change lowly to minimize______
d. If an organization needs a radical strategic change, then top management typically must ___. |
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Definition
a. The managerial value system affects the implementation of the strategy
b. If strategy isn’t consistent with the managerial value system, implementation will suffer
c. Since values change slowly, then strategy must change lowly to minimize resistance to change
d. If an organization needs a radical strategic change, then top management typically must be replaced. |
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Term
| • Process of achieving desired results through material/human resources |
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Definition
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