Greg, the IT manager, feels that his employees lack the motivation to consistently meet
department goals; therefore, the approach Greg and his supervisors need to take to better
understand human actions to motivate their employees toward achievement is the ____
viewpoint. behavioral
Managers operate within an organization
Organization
a group of people who work together to achieve some specific
purpose
The Art of Management Defined
Management is defined as
1. The pursuit of organizational goals efficiently and effectively by
2. Integrating the work of people through
3. Planning, organizing, leading, and controlling the organization’s resources
The Art of Management Defined
To be efficient means to use resources -people, money, raw materials, and the like
-wisely and cost-effectively
To be effective means to achieve results, to make the right decisions and to
successfully carry them out so that they achieve the organization’s goals
Question:
Burger King decided to add breakfast to its hours of operation in order to increase its
customers. This was an attempt to improve the organization's:
A. Effectiveness
B. Planning
C. Leading strategy
D. Efficiency
Example – Efficiency versus Effectiveness:
Many companies now use a recorded “telephone menu” of options to answer
customer calls
This is efficient for the companies, but not effective
Most consumers prefer a live agent
Rewards of Studying Management:
You will understand how to deal with organizations from the outside
You will understand how to relate to your supervisors
You will understand how to interact with co-workers
You will understand how to manage yourself in the workplace
Rewards of Practicing Management:
You and your employees can experience a sense of accomplishment
You can stretch your abilities and magnify your range
You can build a catalog of successful products or services
You can become a mentor and help others
The Management Process:
Planning: set goals and decide how to achieve them
Organizing: You arrange tasks, people, and other resources to accomplish the work
Leading: You motivate, direct, and otherwise influence people to work hard to
achieve the organization’s goals
Ch 1
The Art of Management Defined
Controlling: You monitor performance, compare it with goals, and take corrective
action as needed.
Question
Laura runs a sales and expense report at the end of each work day? Which management
function is she performing?
A. Leading
B. Organizing
C. Controlling
D. Planning
Seven Challenges to Being
a Star Manager
1. Managing for competitive advantage – staying ahead of rivals
2. Managing for diversity – the future won’t resemble the past
3. Managing for globalization – the expanding management universe
4. Managing for information technology – Dealing with the New Normal
5. Managing for ethical standards
6. Managing for Sustainability— The Business of Green
7. Managing for your own happiness & meaningfulness
The Struggle for Competitive Advantage: App-Based Ride-Share Services Leave the
Taxi Industry Reeling
Technology has enabled on-demand “transportation network companies” (TNCs)
such as Uber, Lyft, and Sidecar to challenge the traditional taxi cab industry.
The cab companies’ competitive disadvantage is aggravated by government
requirements that taxis had to be wheelchair accessible and their drivers
background-checked, requirements so far not applying to the ride-sharing firm
Managing for Competitive Advantage
Competitive advantage
the ability of an organization to produce goods or services more effectively
than competitors do, thereby outperforming them
Managing for Competitive Advantage
Being responsive to customers
Innovation
Quality
Efficiency
Question
John wants his salespeople to use Salesforce.com to improve their sales? Which challenge
is he trying to manage?
A. Information technology
Managing for Information Technology
By 2017, consumers worldwide are projected to spend $2.3 trillion online, a rise of
14.8% over the year before
Information technology has led to the growth of e-business, using the Internet to
facilitate every aspect of running a business
Managing for Information Technology
Implications of information technology: Far-ranging electronic management: e-
communication all the time
More and more data: challenges to decision making
The rise of artificial intelligence: more automation in the workforce
Organizational changes: shifts in structure, jobs, goals, and knowledge management
Managing for Sustainability
Sustainability
economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
Levels & Areas of Management
Four Levels of Management
Top managers
make long-term decisions about the overall direction of the organization and
establish the objectives, policies, and strategies for it
Middle managers
implement the policies and plans of the top managers above them and
supervise and coordinate the activities of the first-line managers below them
“High touch” jobs
dealing with people rather than computer screens or voice-response systems
First-line managers
make short-term operating decisions, directing the daily tasks of
nonmanagerial personnel
Team leader
a manager who is responsible for facilitating team activities toward achieving
key results
Functional Managers versus General Managers
Functional manager
responsible for just one organizational activity
General manager
responsible for several organizational activities
Question
Donielle supervises the food assembly line workers. What type of manager is she?
A. First-line manager
Managers for Three Types of Organizations
- For-Profit Organizations: For making money
- Nonprofit Organizations: For offering services
- Mutual-benefit Organizations: for aiding members
The Skills Exceptional Managers Need
Technical skills
the job-specific knowledge needed to perform well in a specialized field
Conceptual skills
the ability to think analytically, to visualize an organization as a whole and
understand how the parts work together
Human skills
the ability to work well in cooperation with other people to get things done
Soft skills
the ability to motivate, to inspire trust, to communicate with others
The Most Valued Traits in Managers
The ability to motivate and engage others
The ability to communicate
Work experience outside the United States
High energy levels to meet the demands of global travel and a 24/7 world
Roles Managers Must Play Successfully
The manager’s roles: Mintzberg’s useful findings
1. A manager relies more on verbal than on written communication
2. A manager works long hours at an intense pace
3. A manager’s work is characterized by fragmentation, brevity, & variety
Three Types of Managerial Roles
Interpersonal roles
managers interact with people inside and outside their work units
figurehead, leader, liaison
Informational roles
managers receive and communicate information
monitor, disseminator, spokesperson
Decisional roles
managers use information to make decisions to solve problems or take
advantage of opportunities
entrepreneur, disturbance handler, resource allocator, negotiator
Question
CEO, Gary Kelly sets the direction and strategy for Southwest Airlines. What type of
managerial role is he performing?
A. Interpersonal
What Entrepreneurship Is
Entrepreneurship
process of taking risks to try to create a new empire
Entrepreneur, intrapreneur
Entrepreneur
someone who sees a new opportunity for a product or service and launches a
business to try to realize it
Intrapreneur
someone who works inside an existing organization who sees an opportunity
for a product or service and mobilizes the organization’s resources to try to
realize it
How Do Entrepreneurs & Managers Differ
Being an entrepreneur is what it takes to start a business
Being a manager is what it takes to grow or maintain a business
The Entrepreneurial Spirit
Necessity entrepreneurs
people who suddenly must earn a living and are simply trying to replace lost
income and are hoping a job comes along
Opportunity entrepreneurs
those who start their business out of a burning desire rather than because
they lost a job
Question
George thought there was an opportunity and opened a new deli in Irmo. He is a(n)
__________.
A. Entrepreneur
CH 2
Management Part 2
What economic issue gave rise to the scientific approach to management? Labor in short
supply
Synonym for soldiering is underachieving
Differential rate – more efficient workers should be paid higher wages
Henri Fayol & Max Weber Pioneered Administrative Mgmt Theory
Fredrick Taylor, Frank & Lillian Gilbreth pioneered the scientific mgmt. theory
Maslow & McGregor focused on study of human relations as it relates to increasing worker
productivity
Hierarchy of needs: physiological, safety, love, esteem, & self-actualization
Behavioral science relies on scientific research in psychology, sociology, anthro, & eco
Contingency viewpoint emphasizes that a manager’s approach should vary according to that
is be contingent on the individual & environmental situation
Components of TQM aka total quality management (comprehensive approach):
1. Make continuous improvement a priority
2. Get every employee involved
3. Listen to & learn from customers and employees
4. Use accurate standards to identify & eliminate problems
Quality mgmt. viewpoint includes which concepts: Quality control, q assurance, & tqm
Branches of quantitative mgmt.: mgmt. science & operations mgmt.
Mgmt science focuses on the use of mathematics to aid in problem solving and decision
making
Open System continually interacts w environ. & Closed has lil interaction w enviro.
A system is a set of interrelated parts that operate together to achieve a common purpose
Operations mgmt. focuses on managing the production & delivery of an organization’s
products or services more effectively
Evidence based mgmt. means translating principles on best evidence into organizational
practice, bringing rationality to decision making process
A learning organization actively creates, acquires & transfer knowledge w/in itself & is able to
modify its behavior to reflect new knowledge
Parts of a System: Inputs, outputs, feedback, and transformation process
Inputs to a System: people, money, info, equipment, & materials required to produce
organization’s goods or services
Transformational processes are the organizations capabilities in mgmt.
When considering the systems perspective, the transformational processes part of a system
is responsible for transforming inputs into outputs
Outputs to a system: products, services, profits, losses, employee satisfaction or discontent,
& the like that are produced by the org.
Feedback is info about the reaction of the environment to the outputs that affects inputs
Munsterberg suggested that psychologists contribute to industry by :
1. Study jobs & determine which people are best suited to specific jobs
2. Identify the psychological conditions under which employees do their best work
3. Devise mgmt. strategies to influence employees to follow mgmts. interest
Henri Fayol credited as 1st person to Systematize mgmt. behavior
5 Positive bureaucratic features according to Max Weber:
1. Well defined hierarchy of authority
2. Formal rules & procedures
3. Clear division of labor w parts of a complex job being handled by specialists
4. Impersonality w/o reference or connection to a particular person
5. Careers based on merit
Complexity theory- the study how order & pattern arise from very complicated, chaotic
systems
Quality assurance focuses on the performance of workers, urging employees to strive for 0
defects in productions of goods and services
Viewpoints that are aspects of contemporary perspective of mgmt.:
Systems, contingency & quality mgmt.
Subsystems- parts making up the whole system
Two Overarching Perspectives about Management
Historical perspective: classical, behavioral, and quantitative
Contemporary perspective: systems, contingency, and quality-management
The Two Overarching Perspectives—Historical (1911-1950s) and Contemporary
(1960s-)
- Classical (1911-1947): emphasis on ways to work more efficiently
- Behavioral (1913-1950s): emphasis on importance of understanding human
behavior and motivating and encouraging employees toward achievement
- Quantitative Viewpoint (1940s-1950s): applies quantitative techniques to
management
Contemporary (1960s- Present)
- The Systems Viewpoint: regards the organization as systems of interrelated parts
that operate together to achieve a common purpose
- The Contingency Viewpoint: emphasizes that a manager’s approach should vary
according to be contingent on, the individual and environmental situation
- The Quality Management Viewpoint: three approaches
The Historical Perspective: Three Viewpoints—Classical, Behavioral, and
Quantitative
Classical: Scientific & Administrative Management
Scientific: scientific study of work methods to improve the
productivity of individual workers
Administrative: concerned with managing the total organization
Behavioral: Early behaviorists, Human relations movement, behavioral science
app.
Human relations movement: proposed better human relations
could increase worker productivity
Behavioral science approach: relies on scientific research for
developing theory to provide practical management tools
Quantitative: Management Science, Operations Management
Management Science: focuses on using math to aid in problem
solving and decision making
Operations Mgmt: focuses on managing the production and
delivery of an organization’s products or services more
effectively
Question
Which viewpoint emphasized the scientific study of work methods to improve the productivity
of individual workers?
A. Scientific management
Scientific Management: Pioneered by Taylor & the Gilbreths
Scientific management
emphasized the scientific study of work methods to improve the productivity
of individual workers
Frederick W. Taylor, Frank and Lillian Gilbreth
Principles of Scientific Management
1. Scientifically study each part of the task
2. Carefully select workers with the right abilities
3. Give workers the training and incentives to do the task
4. Use scientific principles to plan the work methods
Administrative Management: Pioneered by Fayol & Weber
Administrative management
concerned with managing the total organization
Henri Fayol
French engineer and industrialist
first to identify the major functions of management
Max Weber believed that a bureaucracy was a rational, efficient, ideal organization
based on the principles of logic
Five Positive Bureaucratic Features
1. A well-defined hierarchy of authority
2. Formal rules and procedures
3. A clear division of labor
4. Impersonality
5. Careers based on merit
The Problem with the Classical Viewpoint
Mechanistic
Tends to view humans as cogs within a machine, not taking into account the
importance of human needs
Why the Classical Viewpoint is Important?
Work activity was amenable to a rational approach
Through the application of scientific methods, time and motion studies, and job
specialization it was possible to boost productivity
Question
Which viewpoint emphasized the importance of understanding human behavior and of
motivating employees toward achievement?
A. Behavioral
Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
Behavioral viewpoint
emphasized the importance of understanding human behavior and of
motivating employees toward achievement
The behavioral viewpoint developed over three phases:
1. Early behaviorism
2. The human relations
movement
3. Behavioral science.
Early Behaviorism: Pioneered by Munsterberg, Follett, & Mayo
Hugo Munsterberg: father of industrial psychology
1. Study jobs and determine which people are best suited to specific jobs
2. Identify the psychological conditions under which employees do their best work
3. Devise management strategies to influence employees to follow management’s
interests
Mary Parker Follett: social worker and social philosopher
1. Organizations should be operated as “communities”
2. Conflicts should be resolved by having managers and workers talk over differences
and find solutions that would satisfy both parties
3. The work process should be under control of workers with relevant knowledge
Hawthorne effect
employees worked harder if they received added attention, thought that
managers cared about their welfare and that supervisors paid special
attention to them
Elton Mayo
The Human Relations Movement: Pioneered by Maslow & McGregor
Human relations movement
proposed that better human relations could increase worker productivity
Abraham Maslow and Douglas McGregor
Maslow’s Hierarchy of Needs: self actualization, esteem, social, safety, physiological
Douglas McGregor – Theory X versus Theory Y
Theory X
represents a pessimistic, negative view of workers
workers are irresponsible, resistant to change, lack ambition, hate work, and
want to be led
Theory Y
represents an optimistic, positive view of workers
Workers are considered capable of accepting responsibility, self-direction, self
control and being creative
Why Theory X/Theory Y Is Important
Helps managers understand how their beliefs affect their behavior.
Managers can be more effective by considering how their behavior is shaped by their
expectations about human nature
The Behavioral Science Approach
Behavioral science: relies on scientific research for developing theories about
human behavior that can be used to provide practical tools for managers
Quantitative Viewpoints: Management Science & Operations Research
Quantitative management
application to management of quantitative techniques, such as statistics and
computer simulations
Management science, operations management
Question
Which viewpoint stresses the use of rational, science-based techniques and mathematical
models to improve decision making and strategic planning?
A. Management science
Management Science: Using Mathematics to Solve Management Problems
Management science: stresses the use of rational, science-based techniques and
mathematical models to improve decision making and strategic planning
Operations Management: Being More Effective
Operations management
focuses on managing the production and delivery of an organization’s
products or services more effectively
work scheduling, production planning, facilities location and design
The Contemporary Perspective: quality control, quality assurance, tqm
Systems Viewpoint
Systems viewpoint
regards the organization as a system of interrelated parts
collection of subsystems
part of the larger environment
The Four Parts of a System: inputs, transformational processes, outputs, feedback
Systems Viewpoint
Open system: continually interacts with its environment
Closed system: has little interaction with its environment
Complexity Theory: The Ultimate Open System
Complexity theory
the study of how order and pattern arise from very complicated, apparently
chaotic systems.
recognizes that all complex systems are networks of many interdependent
parts that interact with each other according to certain simple rules
Contingency viewpoint
emphasizes that a manager’s approach should vary according to the
individual and the environmental situation
Most practical because it addresses problems on a case-by-case basis
Evidence-Based Management: Facing Hard Facts, Rejecting Nonsense
Evidence based management
translating principles based on best evidence into organizational practice,
bringing rationality to the decision making process
Pfeffer and Sutton
Quality Control & Quality Assurance
Quality: total ability of a product or service to meet customer needs
Quality control the strategy for minimizing errors by managing each stage of
production
Quality assurance: focuses on the performance of workers, urging employees to
strive for “zero defects”
Quality-Management Viewpoint
Total quality management (TQM)
comprehensive approach-led by top management and supported throughout
the organization-dedicated to continuous quality improvement, training, and
customer satisfaction
Deming, Juran
Total Quality Management
1. Make continuous improvement a priority
2. Get every employee involved
3. Listen to and learn from customers and employees
4. Use accurate standards to identify and eliminate problems
The Learning Organization: Handling Knowledge & Modifying Behavior
Learning organization
organization that actively creates, acquires, and transfers knowledge within
itself and is able to modify its behavior to reflect new
knowledge
How to Build a Learning Organization: Three Roles Managers Play
To create a learning organization, managers must perform three key functions or roles:
1. build a commitment to learning
2. work to generate ideas with impact
3. work to generalize ideas with impact.
Chapter 3 – Ethical Dilemma
Facebook is facing a(n) ethical dilemma, a situation in which they have to decide whether to
pursue a course of action that may benefit them but is illegal or unethical.
If you were to use the utilitarian approach to deciding ethical dilemmas, you would perform a
cost-benefit analysis to determine which option will result in the greatest good for the greatest
number of people.
If you were to use the moral-rights approach, your decision would be guided by the
fundamental rights of human beings, such as those represented in the U.S. Constitution.
If you were to use the justice approach, your decision would be guided by respect for impartial
standards of fairness and equity.
If you were to use the individual approach, your decision would be guided by what will result in
his or her long-term best interests.
Triple bottom line- representing people, planet, & profit
Measures an organization’s social, environmental, & financial performance
Social audit- a systematic assessment of a company’s performance in implementing socially
responsible programs often based on predefined goals
Stockholders indicate those with a stake in an organization,
- Stakeholders- the people whose interests are affected by an organization’s
activities
Managers operate in 2 environments: Internal & external stakeholders
Internal Stakeholders consist of employee, owners, & board of directors, if any
- Owners of an organization consist of all those who can claim it as their legal
property
External Stakeholders- people or groups in the organization’s external environment that are affected
by it. Consists of: task environment & General environment.
Task environment consists of 11 groups that present u with daily tasks to handle: customers,
competitors, suppliers, distributors, strategic allies, employee organizations, local communities,
financial institutions, govt regulators, special interest groups, & mass media
1. Customers: are those who pay to use an organization’s goods or services
2. Competitors: people or organizations that compete for customers or resources
3. Suppliers: a person or an organization that provides supplies: raw materials, services,
equipment, labor, or energy to other organizations
4. Distributor: a person or an organization that helps another organization sell its goods
& services to customers
5. Strategic Allies: describe the relationship of 2 organizations who join forces to
achieve advantages neither can perform as well alone
6. Employee Organizations (Unions & Associates)
7. Local Communities: clawbacks-rescinding the tax breaks when firms don’t deliver
promised jobs
8. Financial Institutions: crowdfunding (crowdsourcing)- raising money for a project or
venture by obtaining many small amounts o money from many ppl “the crowd”
9. Government Regulators: regulatory agencies that establish ground rules under which
organizations may operate
10. Special-Interest Groups: groups whose members try to influence specific issues
11. Mass Media: print radio, tv, & internet that gives out both bad and good
General Environment aka Macroenvironment: includes 6 forces: economic, technological,
sociocultural, demographic, political-legal, & international
1. Economic forces- consist of the general economic conditions & trends-
unemployment, inflation, interest rates, economic growth that may affect an
organizations performance
2. Technological forces: new developments in methods for transforming into goods or
services
3. Sociocultural forces: influences & trends originating in a country’s, society’s, or
culture’s human relationships & values that may affect an organization
4. Demographic forces: influences on an organization arising from changes in the
characteristics of a population like age, gender, or ethnic origin
5. Political-legal forces: changes in the way politics shape laws and laws shape the
opportunities for & threats to an organization
6. International forces: changes in the economic, political, legal, & technological global
system that may affect an organization
Choosing between economic performance & social performance is what most ethical
conflicts are about aka ethical dilemma
Ethical dilemma: a situation in which u have to decide whether to pursue a course of action that may
benefit u or ur organization but that is unethical or even illegal
Ethics: standards of right & wrong that influence behavior
Ethical Behavior: behavior that’s accepted as “right” as opposed to “wrong” according to those
standards
Values: relatively permanent and deeply held underlying beliefs & attitudes that help determine a
person’s behavior
Value System: the pattern of values within an organization
4 Approaches to deciding Ethical Dilemmas:
1. Utilitarian Approach: guided by what will result in the greatest good for the greatest #
of people
2. Individual Approach: guided by what will result in the individual’s best long-term
interests, which are ultimately in everyones self interest
3. Moral-Rights Approach: guided by respect for the fundamental rights of human being
4. Justice Approach: guided by respect for impartial standards of fairness & equity
Insider trading: the illegal trading of company’s stock by ppl using confidential company info
Ponzi Scheme: using cash from newer investors to pay off older ones
Sarbanes-Oxley Act of 2002: estimated requirements for proper financial record keeping for public
companies & penalties of as much as 25 yrs in prison for noncompliance
How Organizations can promote ethics:
1. Creating a strong ethical climate- represents employees perceptions about the extent
to which work environments support ethical behavior
2. Screening prospective employees, checks resumes references e verify
3. Instituting ethic codes & training programs. Code of ethics consists of formal written
set of ethical standards guiding an organization’s actions
4. Rewarding Ethical Behavior: Protecting Whistle-blowers- an employee, or even an
outside consultant, who reports organizational misconduct to the public
Social responsibility is a manager’s duty to take actions that will benefit the interests of society as
well as of the organization
Corporate social responsibility (CSR), notion that corporations are expected to go above & beyond
following the law & making a profit
Climate changes refers to major changes in temp, precipitation, wind patterns occurring several
decades
Global warming: one aspect of climate change refers to rise in global avg temp near earth’s surface
Natural capital: value of natural resources, such as topsoil, air, water, & genetic diversity
Philanthropy: making charitable donations to benefit humankind
Corporate governance: interests of corporate owners & other stakeholders are protected
Archie B. Caroll w the most fundamental obligation: economic, legal, ethical & Philanthropic
Preconventional: follows rules
Conventional: follows expectations of others
Postconventional: guided by internal values
The Triple Bottom Line: People, Planet, & Profit
Triple bottom line
representing People, Planet, and Profit (the 3 Ps)
measures an organization’s social, environmental, and financial performance
Social audit
a systematic assessment of a company’s performance in implementing socially
responsible programs
often based on predefined goals
The Community of Stakeholders Inside the Organization
Stakeholders
the people whose interests are affected by an organization’s activities
Internal, external
Internal Stakeholders
Internal stakeholders: consist of employees, owners, and the board of directors
Owners: consist of all those who can claim the organization as their legal property
Board of directors: members elected by the stockholders to see that the company is being
run according o their interests
Question?
Two drug companies agree to work together to pool their research and development funds to develop
a new drug for arthritis. In doing so, these two organizations have:
A. Formed a strategic alliance
The Community of Stakeholders Outside the Organization
External stakeholders
people or groups in the organization’s external environment that are affected by it
Task, general environment
The Task Environment
Customers: those who pay to use an organization’s goods or services
Competitors: people or organizations that compete for customers or services
Supplier: A person or organization that provides raw materials, services, equipment, labor or
energy to other organizations
Example: Amazon.com and the Customer Experience
Jeff Bezos, founder and CEO of Amazon.com is obsessed with customer service
Believes that company’s success is driven by the customer experience
In 2013 the company’s revenue grew to $74.5B
Distributor: a person or organization that helps another organization sell its goods and
services to customers
Strategic allies: describes the relationship of two organizations who join forces to achieve
advantages neither can perform as well alone
Clawbacks: Rescinding the tax breaks when firms don’t deliver promised jobs
Crowdfunding: raising money for a project or venture by obtaining many small amounts of
money from many people (“the crowd”)
Government regulators: regulatory agencies that establish ground rules under which
organizations may operate
Special interest groups: groups whose members try to influence specific issues
The Task Environment
Employee Organizations: Unions & Associations
Local Communities
Financial Institutions
Mass Media
Example: Managing the Media: What’s the Best Practice for Handling Product Recalls?
The gold standard in brand crisis management is the path followed by health products
company Johnson & Johnson in 1982, after several consumers died from taking tainted
Tylenol pills.
“Communicate clearly with the public about a crisis, cooperate with government officials,
swiftly begin its own investigation of a problem, and, if necessary, quickly institute a product
recall.”
The Gold Standard. What is a company supposed to do when it has a public relations
disaster? The gold standard in brand crisis management is the path followed by health
products company Johnson & Johnson in 1982, after several consumers died from taking
tainted Tylenol pills. J&J responded in a way that has become the preferred strategy taught in
business schools, according to one account: “Communicate clearly with the publicabout a
crisis, cooperate with government officials, swiftly begin its own investigation of a problem,
and, if necessary, quickly institute a product recall.” A big part of the strategy is
communicating honestly and frequently through the media.
Question
ChemTech International is being picketed by a group of people who live by their biggest plant. The
group is concerned about ChemTech’s disposal of waste products into nearby waterways. In this
instance, ChemTech is dealing with the _____ part of its _______ environment.
A. local communities; task
The General Environment
Economic forces
consist of the general economic conditions and trends – unemployment, inflation,
interest rates, economic growth – that may affect an organization’s performance
Technological forces
new developments in methods for transforming resources into goods and services
Sociocultural forces
Influences and trends originating in a country’s, a society’s, or a culture’s human
relationships and values that may affect an organization
Demographic forces
influences on an organization arising from changes in the characteristics of a
population, such as age, gender, or ethnic origin
Political-Legal forces
changes in the way politics shape laws and laws shape the opportunities for and
threats to an organization
International forces
changes in the economic, political, legal, and technological global system that may
affect an organization
The Ethical Responsibilities Required of You as a Manager
Ethical dilemma: situation in which you have to decide whether to pursue a course of action
that may benefit you or your organization but that is unethical
or even illegal
Defining Ethics & Values
Ethics standards of right and wrong that influence behavior
Values relatively permanent and deeply held underlying beliefs and attitudes that help
determine a person’s behavior
Values
Organizations may have two value systems that conflict:
1. The value system stressing financial performance versus
2. the value system stressing cohesion and solidarity in employee relationships
Question
The Environmental Protection Agency (EPA) administers environmental standards in the U.S. EPA
represents the __________ part of organizations' __________.
A. local communities; task environment
B. financial institutions; internal environment
C. government regulators; task environment
D. special interest groups; external environment
Four Approaches to Deciding Ethical Dilemmas
Utilitarian guided by what will result in the greatest good for the greatest number of people
Individual guided by what will result in the individual’s best long term interest, which
Moral-rights guided by respect for the fundamental rights of human beings
Justice guided by respect for impartial standards of fairness and equity
Question
Pat, a manager at State University, is deciding how to set up a procedure for registering on-line that
gives students fair access to courses. Pat is engaged in the ________ approach.
A. justice
The Sarbanes–Oxley Reform Act
Sarbanes-Oxley of 2002
Often shortened to SarbOx or SOX, established requirements for proper financial
record keeping for public companies and penalties of as much as 25 years in prison
for noncompliance
SOX requires a company’s CEO and CFO to personally certify the organization’s financial
reports, prohibits them from taking personal loans and lines of credit, and makes them
reimburse the organization for bonuses and stock options when required by restatement of
corporate profits. It also requires the company to have established procedures and
guidelines for audit committees
How Do People Learn Ethics? Kohlberg’s Theories
Level 1, preconventional – follows rules
Level 2, conventional – follows expectations of others
Level 3, postconventional – guided by internal values
How Organizations Can Promote Ethics
1. Creating of a strong ethical climate
2. Screening prospective employees
3. Instituting ethics codes and training programs
4. Rewarding ethical behavior: Protecting whistle-blowers
Rewarding Ethical Behavior: Protecting Whistle-Blowers
Whistle-blower
an employee, or even an outside consultant, who reports organizational misconduct to
the public, such as health and safety matters, waste, corruption, or overcharging of
customers
The Social Responsibilities Required of You as a Manager
Social responsibility
manager’s duty to take actions that will benefit the interests of society as well as of
the organization
Corporate social responsibility
notion that corporations are expected to go above and beyond following the law and
making a profit
Carroll’s Global Corporate Social Responsibility Pyramid
Another Type of Social Responsibility: Philanthropy, “Not Dying Rich”
Philanthropy making charitable donations to benefit humankind
Corporate Governance
Corporate governance
the system of governing a company so that the interests of corporate owners and other
stakeholders are protected.
The Need for Independent Directors
More attention is being paid to strengthening corporate governance so that directors are
clearly separated in their authority from the CEO
Chapter 4 Global Management
All of the following are ways that Apple Inc. has expanded globally, as discussed in the case, except
Purchasing wholly-owned subsidiaries
If you were a top manager in a large multinational corporation like Apple Inc., it would be most
important for you to have qualities of geocentrism
Which of the following is a reason discussed in the case that Apple Inc. has expanded its operations
globally? Lower labor costs
All of the following are situations that Apple’s top managers must be prepared to address EXCEPT
ignoring language barriers and miscommunications
Globalization: the trend of the world economy toward becoming more interdependent system
Global Village: “shrinking” of time and space as air travel & the electronic media have made it easier
for the people around the globe to communicate w one another
E-commerce, electronic commerce: the buying & selling of products & services thru computer
networks
Global economy: increasing tendency of the economies of the world to interact with one another as
one market instead of many national markets
Minifirms aka small companies can get started more easily, maneuver faster
Multinational corporation/enterprise: a business firm with operations in several countries
Multinational organization: a nonprofit organization with operations in several countries
Ethnocentric managers: believe that their native country, language & behavior are superior too all
others
Parochialism: narrow view in which people see things solely through their own perspective
Polycentric managers: take the view that native managers in the foreign offices best understand native
personnel & practices, & so home office should leave them alone
Geocentric managers- accept that there are differences & similarities between home & foreign
personnel & practices & that they should use whatever techniques are most effective
Why Companies expand internationally:
1. Availability of Supplies
2. New Markets
3. Lower Labor Costs: maquiladoras- manufacturing plants allowed to operate in
Mexico with special privileges in return for employing Mexican citizens
4. Access to Finance Capital
5. Avoidance of Tariffs & Import Quotas
How Companies expand internationally:
1. Global Outsourcing: using suppliers outside the company to provide goods & services
2. Importing, exporting & countertrading: Importing, a company buys goods outside
the country & resells them domestically. Exporting, company produces goods
domestically & sells them outside the country. Countertrading, bartering goods for
goods
3. Licensing & franchising: licensing, company allows a foreign company to pay it a fee
to make or distribute the first company’s product or service. Franchising, form of
licensing in which a company allows a foreign company to pay it a fee & a share of
the profit in return for using the 1st company’s brand name & package of materials &
services
4. Joint ventures: aka strategic alliance, with a foreign company to share the risks &
rewards of starting a new enterprise together in a foreign country
5. Wholly-owned subsidiaries: foreign subsidiary that is totally owned & controlled by
an organization. GreenField venture: foreign subsidiary that the owning organization
has built from scratch
1-5, 1 is lowest risk & investment, 5 is highest risk investment. Order from lowest to highest
Free trade: the movement of goods & services among nations w/o political or economic obstruction
Trade protectionism: use of gov’t regulations to limit the import of goods & services
Barriers to International trade:
1. Tariff: trade barrier in the form of a customs duty, or tax, levied mainly on imports.
Revenue tariff- raise money for the gov’t
Protective tariff- raise the price of imported goods to make prices of domestic
products more competitive
2. Import quota: trade barrier in the form of a limit on the numbers of a product that can
be imported. Dumping, practice of a foreign company’s exporting products abroad at
a lower price than the price in the home market- or even below the costs of
production- in order to drive down the price of domestic product.
3. Embargoes: complete ban on the import or export of certain products
Organizations promoting International Trade
1. World Trade Organization (WTO): designed to monitor & enforce trade agreements
2. World Bank: provide low interest loans to developing nations for improving
transportation, education, health, & telecommunications
3. International Monetary Fund (IMF): designed to assist in smoothing the flow of
money between nations
Trading bloc, aka economic community: group of nations w/in a geographical region that have agreed
to remove trade barriers w one another
1. North American Free Trade Agreement (NAFTA): trading bloc consisting of the US,
Canada, & Mexico
2. The EU: the European Union consists of 28 trading partners in Europe
3. APEC: Asia-Pacific Economic Cooperation a group of 21 Pacific Rim countries
whose purpose is to improve economic & political ties
4. ASEAN: Association of Southeast Asian Nations is a trading bloc consisting of 10
countries in Asia
5. Mercosur: largest trade bloc in Latin America & has 5 core members- Argentina,
Brazil, Paraguay, Uruguay & Venezuela. 7 associate members- Bolivia, Chile,
Colombia, Ecuador, Guyana, Peru & Suriname
6. CAFTA-DR: Central America Free Trade Agreement, involves US & Costa Rica, DR,
El Salvador, Guatemala, Honduras & Nicaragua
Most favored nation: trading status describes a condition in which a country grants other countries
favorable trading treatment such as the reduction of import duties
Exchange rate: rate at which the currency of one area or country can be exchanged for the currency of
another’s
Culture: shared set of beliefs, values, knowledge & patterns of behavior common to a group of people
Low-context culture: shared meanings are primarily derived from written & spoken words
High-context culture: people rely heavily on situational cues for meaning when communicating with
others
GLOBE project: started in 1993 by Robert J. House, a massive & ongoing cross-cultural investigation
of 9 cultural dimensions involved in leadership & organizational processes
1. Power distance: unequal distribution of power
2. Uncertainty avoidance: people rely on social norms & avoids
3. Institutional collectivism: leaders encourage & reward loyalty
4. In-group collectivism
5. Gender egalitarianism
6. Assertiveness: confrontational & dominant
7. Future orientation: people delay gratification
8. Performance orientation: individuals rewarded for improvement
9. Humane orientation
Cultural Variations:
1. Language
2. Interpersonal Space
3. Communication
4. Time orientation
Monochromic time: preference for doing 1 thing at a time
Polychronic time: preference for doing more than 1 thing at a time
5. Religion
6. Law Stability & Political Stability: instability, expropriation, corruption
Expropriation- gov’t seizure of domestic or foreign company’s assets
Foreign Corrupt Practices Act- makes it illegal for employees of US
companies to make ‘questionable’ or ‘dubious’ contributions to political
decision makers in foreign nations
Labor abuses
Expatriates: people living or working in a foreign country
Competition & Globalization: Who Will Be No. 1 Tomorrow?
Globalization the trend of the world economy toward becoming a more interdependent
system
The Rise of the “Global Village” & Electronic Commerce
Global village
the “shrinking” of time and space as air travel and the electronic media have made it
much easier for the people of the globe to communicate with one another
E-commerce the buying and selling of products and services through computer networks
U.S. retail e-commerce sales were estimated at $263.3 billion for 2013, up 16.9%
over the previous year
One Big World Market: The Global Economy
Global economy the increasing tendency of the economies of the world to interact with one
another as one market instead of many national markets
Positive effects world will be far more interconnected leading to better and more affordable
products, as well as ever better communication among nations
Negative effects the movement, or outsourcing, of formerly well-paying jobs overseas as
companies seek cheaper labor costs, particularly in manufacturing
Minifirms operating worldwide
Small companies can get started more easily
Small companies can maneuver faster
Question
Jelene sells her art through her own web site and her etsy store. She receives questions from many
different countries. Jelene is engaged in _________.
A. E-commerce
Why Learn About International Management?
Multinational corporation business firm with operations in several countries
Multinational organization nonprofit organization with operations in several countries
Why Learn About International Management?
You may deal with foreign customers or partners
You may deal with foreign employees or suppliers
You may work for a foreign firm in the United States
You may work for an American firm outside the United States – or for a foreign one
The Successful International Manager
Ethnocentric managers believe that their native country, culture, language, and behavior are
superior to all others
Parochialism narrow view in which people see things solely through their own perspective
Polycentric managers take the view that native managers in the foreign offices best
understand native personnel and practices, and so the home office should leave them alone
Geocentric managers accept that there are differences and similarities between home and
foreign personnel and practices and that they should use whatever techniques are most
effective
Question
Alvin accepts that differences and similarities exist between home and foreign personnel and
practices, and that the company should use whatever techniques are most effective. Alvin can be
described as:
A. Geocentric
Being a Star Road Warrior
Lesson 1: Frequent travel may be needed because personal encounters are essential
Lesson 2: Travel may be global, but understanding must be local
Lesson 3: Travel downtime can be used to expand business contacts
Why Companies Expand Internationally
1. Availability of supplies
2. New markets
3. Lower labor costs
4. Access to finance capital
5. Avoidance of tariffs & import quotas
Five Ways of Expanding Internationally
How Companies Expand Internationally
Global outsourcing using suppliers outside the United States to provide labor, goods, or
services. AKA offshoring
Importing a company buys goods outside the country and resells them domestically
Exporting a company produces goods domestically and sells them outside the country
Countertrading bartering goods for goods
Top 10 exporting countries,1999 and 2013. 1 US(1999) 1. China(2013)
How Companies Expand Internationally
Licensing a company allows a foreign company to pay it a fee to make or distribute the firm’s
product or service
Franchising a company allows a foreign company to pay it a fee and a share of the profit in
return for using the company’s brand name and a package of materials and services
How Companies Expand Internationally
Joint ventures
formed with a foreign company to share the risks and rewards of starting a new
enterprise together in a foreign country. Aka strategic alliance
Wholly-owned subsidiary
foreign subsidiary that is totally owned and controlled by an organization
Greenfield venture
a foreign subsidiary that the owning organization has built from scratch.
Question
XYZ Corporation builds a manufacturing plant in Mexico, employs Mexican citizens and receives
favorable tax treatment by the Mexican government. XYZ is:
A. Using a maquiladora
Barriers to International Trade
Tariffs customs duty, or tax, levied mainly on imports
Import quotas limits on the numbers of a product that can be imported
Embargoes complete ban on the import or export of certain products
Organizations Promoting International Trade
World Trade Organization (WTO)
designed to monitor and enforce trade agreements
Agreements are based on the General Agreement on Tariffs and Trade (GATT)
Consist of 159 countries
Organizations Promoting International Trade
World Bank
purpose is to provide low-interest loans to developing nations for improving
transportation, education, health, and telecommunications
International Money Fund (IMF)
designed to assist in smoothing the flow of money between nations
Major Trading Blocs
Trading bloc
group of nations within a geographic region that have agreed to remove trade barriers
with one another. Aka economic community
NAFTA – U.S., Canada, Mexico
European Union – 28 trading partners in Europe
APEC – group of 21 Pacific Rim countries
ASEAN - trading bloc of 10 countries in Asia
Mercosur – trading bloc in Latin America
CAFTA – Central America
Question
The U.S. does not allow the import of Cuban sugar and cigars. This is an example of a(n):
A. Embargo
Most Favored Nation Trading Status
Most favored nation trading status
describes a condition in which a country grants other countries favorable trading
treatment such as the reduction of import duties.
The Importance of National Culture
Culture shared set of beliefs, values, knowledge, and patterns of behavior common to a group
of people
Cultural Dimensions:
The GLOBE Project
Low-context culture
shared meanings are primarily derived from written and spoken words
High-context culture
people rely heavily on situational cues for meaning when communicating with others
The Globe Project’s Nine Cultural Dimensions
Power distance
how much unequal distribution of power should there be in organizations and society
Uncertainty avoidance
how much should people rely on social norms and rules to avoid uncertainty
Institutional collectivism
how much should leaders encourage and reward loyalty to the social unit
In-group collectivism
how much pride and loyalty should people have for their family or organization
Gender egalitarianism
how much should society maximize gender role differences
Assertiveness
how confrontational and dominant should individuals be in social relationships
Future orientation
how much should people delay gratification by planning and saving for the future
Performance orientation
how much should individuals be rewarded for improvement and excellence
Humane orientation
how much should society encourage and reward people for being kind, fair, friendly,
and generous
Other Cultural Variations
1. Language
2. Interpersonal space
3. Communication
4. Time orientation
•Monochronic, Polychronic
Monochronic time preference for doing one thing at a time
Polychronic time preference for doing more than one thing at a time
5. Religion
6. Law and political stability
U.S. Managers on Foreign Assignments: Why Do They Fail?
Expatriates
people living or working in a foreign country
10%–20% of all U.S. managers sent abroad returned early because of job dissatisfaction or
adjustment difficulties
TEST 1-4
As a customer, the only way of improving our understanding of how to deal with organizations is by
talking directly with companies, not by studying management.
False
In business, innovation is defined as seeking ways to deliver less costly goods but in similar ways
because change can hurt employee morale
False
List the characteristics that most entrepreneurs have.
Risktakers
Leadership skills
High Esteem
Communication skills
Innovative
In organizations today, the emphasis is on efficiency, as companies strive to produce goods or
services as quickly as possible using as few employees and raw materials as possible
TRUE
When Randy, a general manager of a national retailer, moved to a different store in his company that
was having difficulty, he knew that sales were low and after talking to his employees, he found
morale was also low. At first Randy thought attitudes were poor due to low sales, but after working
closely with employees, he realized that the poor attitudes were actually the cause of poor sales.
Randy was able to discover the cause of the problem by utilizing ______ skills.
Soft
Samuel, a marketing manager, recently attended a
management workshop where he learned of Mihaly
Csikzentmihalyi's view that the ideal state that many people
seek is ___.
a high-pressure career that makes an individual stronger
Today nearly one in six American workers is foreign-born. True
The general manager of a furniture store recently gave a
motivational PowerPoint presentation to his employees on the
value of being courteous to each customer. This is an example
of leading
The ideal state that many people seek is an emotional zone
somewhere between excitement and anxiety. False its boredom
and anxiety
Gregson Production is keenly aware of the need to daily strive
to produce goods and services more effectively than its
competitors. Therefore, to achieve this standard, Gregson's
management strives to maintain quality and efficiency
The multiplier effect states that a manager's influence on the
organization has implications far beyond the results that can be
achieved by one person acting alone
Contemporary
Within his company, Greg has set up a system with inputs,
outputs, transformation processes, and feedback. Within
his organization, he utilizes a management style that varies
according to the individual and environmental situation,
with a strategy for minimizing errors by managing each
stage of production. Greg is utilizing a _______ perspective.
Open
Right Motors calls its customers after they purchase an
automobile from the dealership. In addition, every year
customers are asked to complete a short survey about the
car they purchased from Right and the dealer's service.
This is an example of a(n) ___ system.
systems, contingency, quality management
The contemporary perspective consists of three
viewpoints: ____.
learning organization
An organization in which the management builds a
commitment to learning, works to generate ideas with
impact, and works to generalize ideas with impact is
creating a(n) ____.
managing the total organization
Tom, the manager of floral shop, is interested in
implementing the principles of administrative management,
which involves ____.
system
The Jones family had a fire that destroyed their home.
Various departments of a restoration company, from the
initial cleanup crew to the assistance with the Jones family
moving back in, worked together to achieve this goal. This
is an example of a(n) ____.
ongoing and systematic
Gary Hamel suggests we need to look at management as a
process and then make improvements and innovation ____.
feedback
When the sales of a certain brand of diet soda slowed, a
national grocery retailer decided to drop the price of that
product, which resulted in a large increase in sales of the
soda. This sales increase is a type of ____.
a product or service should satisfy a customer's real
needs
Joseph Juran defined quality as "fitness for use," which
meant that ____.
soldiering
Susan, a movie theater manager, has observed that as
workers feel some company policies are not fair, the
employees have not been working as hard as in the past.
This reduction in effort is known as ____.
operations management
A computer manufacturer is seeking to cut costs by
designing an inventory system that reduces the number of
finished products in stock due to overproduction and to set
in place a production schedule that better matches
customers' orders. This is an example of ____.
learning
A successful daycare center continuously focuses on
actively developing, finding, and then communicating to its
employees any new information and approaches related to
its business of child care so that workers can modify their
behavior to reflect this new knowledge. These types of
companies are called _______ organizations.
output
A local farmer grows and sells tomatoes and beans to the
local grocers. Using the systems viewpoint, the tomatoes,
beans, and profits that are earned from the sales are known
as a(n) _____.
closed
For years ABC Copier, a copier machine supplier, enjoyed
strong sales and a huge share of the copier market, far
ahead of its competition. However, over the years, ABC
seldom asked customers for feedback. So when some of
ABC's competition responded to what customers need and
started offering copiers with new technology, ABC lost
much of its market share. ABC utilizes a(n) ____ system.
behavioral
Greg, the IT manager, feels that his employees lack the
motivation to consistently meet department goals;
therefore, the approach Greg and his supervisors need to
take to better understand human actions to motivate their
employees toward achievement is the ____ viewpoint.
input
Donna, a chef in a fine restaurant, utilizes top-of-the-line
equipment as she prepares meals for customers. Donna
and her equipment are a(n) ______ in the restaurant's
system.
giving more attention to employees increases worker
productivity, if they think managers care about them
A large production company has been utilizing the
Hawthorne effect in its 12 international factories, and it has
seen great success from implementing the Hawthorne
principles that propose that ____.
Theory X
George, who owns a small grocery store, has a reputation
in the community as a tough manager. Many customers
have heard George yell at his employees because he feels
that workers today are lazy, lack ambition, and hate to work.
George is a(n) ____ manager.
quality control
The management of XYZ Manufacturing is implementing a
plan to minimize production mistakes by allowing teams
that work in each area of the production facility to develop
a plan and then monitor their area to ensure the reduction
of errors. This is an example of ____.
transformation process
When a line cook in a restaurant cooks a raw hamburger to
become part of the Super Burger Special, this is an
example of a ____.
behavioral science research
The example in the textbook of Paul English of Kayak.com
altering an existing open-office seating arrangement by
using new employees to change existing seating patterns is
an example of ____.
Mary Parker Follett
That organizations should be operated as "communities,"
with managers and subordinates working together in
harmony, is one of the proposals of ____.
provides clues to the meaning of your managers'
decisions
Wanda, a CEO, has been encouraging her managers to
study and utilize theoretical perspectives of management
because this approach _____.
scientific management
Amy is a package delivery service manager. She is
interested in implementing the management philosophy
pioneered by Frederick W. Taylor and Frank and Lillian
Gilbreth, which scientifically studies work methods to
improve the productivity of individual workers, known as
____.
rational, efficient, ideal organization based on principles
of logic
Because there are some positive aspects of bureaucracy,
as proposed by Max Weber, Tammy, a restaurant manager,
is interested in implementing certain aspects of the
bureaucratic approach to management within her
restaurant. Like Weber, Tammy feels bureaucracy is a ____.
staying ahead of competitors in customer
responsiveness, innovation, quality, and efficiency will
result in?
Competitive advantage
Between the years 2010 and 2030, the number of U.S.
citizens over the age of 65 is expected to
more than double
Monitoring performance, comparing it with goals, and
taking corrective action as needed is the management
function known as
controlling
Which of the following titles would be held by a top
manager?
A. Department chair
B. Regional manager
C. Plant manager
D. Chief operating officer
E. Production supervisor
Chief operating officer
A commonweal organization offers services to a more
complete group of clients than other types of ________
organizations.
Nonprofit
Mintzberg defined three broad managerial roles:
interpersonal, informational, and
Decisional
Conceptual skills needed by managers include
the ability to understand how parts of the organization work
together.
The pursuit of organizational goals efficiently and
effectively by integrating the work of people through
planning, organizing, leading, and controlling the
organization's resources is called
Management
A group of people who work together to achieve some
specific purpose is/are called
an Organization
To be ______ as a manager means to make the right
decisions and successfully carry them out to achieve
goals.
effective
The _________ effect states that a manager's influence on
the organization has implications far beyond the results
that can be achieved by one person acting alone.
Multiplier
The ability of an organization to outperform others by
producing goods or services more effectively than its
competitors is called its
competitive advantage
Which of the following is not an area in which an
organization must stay ahead of its competitors to
achieve competitive advantage?
A. Innovation
B. Quality
C. Being responsive to customers
D. Environmental action
E. Efficiency
enviornmental action
Competitive advantage is the ability of an organization to
produce goods or services more effectively than
competitors do, thereby outperforming them. This means
an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4)
efficiency.
In seeking competitive advantage, the first law of
business is to
take care of the customer
Finding ways to deliver new or better goods or services is
called
innovation
Which of the following is one of the four principal
functions of management, also known as the
management process?
A.Monitoring
B.Executing
C.Organizing
D.Scheduling
E.Motivating
organizing
Setting goals and deciding how to achieve them is called
planning
Monitoring performance and taking corrective action as
needed is called
controlling
Managers who implement the policies and plans
determined at the highest levels and coordinate the
activities of lowest-level managers are called
middle manager
Managers who make short-term operating decisions and
direct the daily tasks of the nonmanagerial employees are
called
first-line managers
A ______ manager is responsible for just one
organizational activity.
functional
Which of the following is an example of a decisional role
that managers play?
A.Figurehead
B.Spokesperson
C.Liaison
D.Monitor
E.Resource allocator
resource allocator
_________ means taking risks to try to create a new
enterprise.
entrepreneurship
The belief that you control your own destiny is called
internal locus of control
According to researcher Robert Katz, which of the
following is one of three principal skills acquired by
experienced managers?
A. Human
B. Coordination
C. Intuitive
D. Comprehensive
E. Evaluative
human
______ skills consist of the job-specific knowledge
needed to perform well in a specialized field.
Technical
The ability to think analytically, to visualize an
organization as a whole, and to understand how the parts
work together is associated with ______ skills.
conceptual
______ skills consist of the ability to work well in
cooperation with other people to get things done.
human
Even for nonprofits, sooner or later there will be no
organization without ____.
customers
Donna manages the service desk and makes routine
decisions related to customer refunds and merchandise
returns. Donna also oversees the daily tasks of the
cashiers and front desk employees. Donna is a(n) ____
manager.
first-line
Conceptual skills consist of ____.
the ability to think analytically, to visualize an organization
as a whole, and to understand how the parts work together
According to management scholar Henry Mintzberg,
managers play three roles:
interpersonal, informational, decisional
At ABC Manufacturing, employees work together to
achieve the company goals and purposes. This describes
___.
an organization
When the manager of a local restaurant sets goals and
then develops a plan on how to achieve them, she is ____.
planning
Today nearly one in six American workers is _____.
foreign-born
As organizations strive to obtain a competitive advantage,
taking care of the customer is the ____.
first law of business
The discipline concerned with creating computer systems
that simulate human reasoning and sensation is known
as ___.
artificial intelligence
With production today, companies emphasize _____.
efficiency
Using state-of-the-art computer software and hardware to
help people work better together is known as ____.
collaborative computing
Donna received a degree in management and has several
years of strong management experience. As a result of
her education and experience, researcher Robert Katz
believed that Donna acquired which of the following
principal skills?
technical, conceptual, human
The principal functions of management are ___.
planning, organizing, leading, controlling
Managers are classified into the four levels of ____.
top, middle, first-line managers, team leaders
The vice president of marketing, while meeting with the
district sales managers, mentioned that management
theorist Peter Drucker compared ____.
the workplace of the future to a symphony orchestra
Studies show that dealing with excessive and
unimportant e-mail and text messages in the workplace
can lead to ____.
increased employee conflict and stress
Greg, a supervisor, is known by his managers to be sharp
in his decisions and has a good track record of meeting
his goals; Greg is a(n) ____ manager.
effective
New York Times columnist Thomas Friedman noted that
globalization has leveled the competitive playing fields
between industrial and emerging-market countries. This
phenomenon proposes that ____.
the world is flat
Conceptual skills consist of ____.
the ability to think analytically, to visualize an organization
as a whole, and to understand how the parts work together
Donna manages the service desk and makes routine
decisions related to customer refunds and merchandise
returns. Donna also oversees the daily tasks of the
cashiers and front desk employees. Donna is a(n) ____
manager.
first-line
Management is defined as the pursuit of organizational
goals ____.
efficiently and effectively
According to management theorist Peter Drucker,
"knowledge workers" are analogous to conductors in a
symphony.
False
The traditional organizational model is most often
represented by a tree, where leaders are at the root, with
layers of employees above.
False
Employees can be taught how to be exceptional
managers.
True
Management scholar Henry Mintzberg found that in their
workday, managers ____.
have work that is characterized by fragmentation, brevity,
and variety
The city fire department offers its services to any
individual within its city limits, so even Paul, who is
driving through the city on vacation, received assistance
with a car fire. The fire department is an example of a ___
organization.
commonweal
Technical skills consist of ____.
job-specific knowledge needed to perform well in a
specialized field
One of challenges of management is that problems and
scenarios are seldom similar, so managers are not able to
use past products and accomplishments as indicators of
future success.
False
Having airline representatives apologize for service
difficulties is efficient, but it's not effective when
customers are angry and less inclined to continue doing
business.
True
The multiplier effect states that a manager's influence on
the organization ___.
has implications far beyond the results that can be
achieved by one person acting alone
Most managers are not in a position to be a mentor to
others.
False
Managers are classified into the four levels of ____.
top, middle, first-line managers, team leaders
Those who study management will understand how to
___.
relate to their managers and deal with organizations from
the outside
The three interpersonal managerial roles include
figurehead, leader, and liaison activities.
True
The vice president of marketing, while meeting with the
district sales managers, mentioned that management
theorist Peter Drucker compared ____.
the workplace of the future to a symphony orchestra
Mintzberg proposed that managers utilize written
communication more than verbal because of the possible
confusion of the latter.
False
The "management functions" are sometimes called the
"six management parts."
False
Human skills are the least important skill for top
managers.
False
Most managers are not in a position to be a mentor to
others.
False
One of the easier components of management is time and
task management.
False
The vice president of marketing, while meeting with the
district sales managers, mentioned that management
theorist Peter Drucker compared ____.
the workplace of the future to a symphony orchestra
According to management scholar Henry Mintzberg,
managers play three roles:
interpersonal, informational, decisional
Robert Katz proposed that through strong observation,
managers acquire conceptual and human skills.
False
At ABC Manufacturing, employees work together to
achieve the company goals and purposes. This describes
___.
an organization
There are two levels of management in an organization:
top and first-line.
False
Studying management is likely to help you understand
how to deal with organizations from the outside, relate to
your supervisors, interact with coworkers, and manage
yourself in the workplace.
True
When the manager of a local restaurant sets goals and
then develops a plan on how to achieve them, she is ____.
planning
In their three informational roles as monitor, disseminator,
and spokesperson, managers receive and communicate
information with other people inside and outside the
organization.
True
Robert Katz proposed that through strong observation,
managers acquire conceptual and human skills.
False
Becoming a manager offers ___.
many rewards apart from money and status
Donna received a degree in management and has several
years of strong management experience. As a result of
her education and experience, researcher Robert Katz
believed that Donna acquired which of the following
principal skills?
technical, conceptual, human
Because upper management must deal with problems
that are ambiguous but that could have far-reaching
consequences, ____ skills are particularly important for
top managers.
conceptual
The vice president of marketing, while meeting with the
district sales managers, mentioned that management
theorist Peter Drucker compared ____.
the workplace of the future to a symphony orchestra
The three interpersonal managerial roles include
figurehead, leader, and liaison activities.
True
One way to think of management is ___.
the art of getting things done through people
Greg, a supervisor, is known by his managers to be sharp
in his decisions and has a good track record of meeting
his goals; Greg is a(n) ____ manager.
effective
The three interpersonal managerial roles include
figurehead, leader, and liaison activities.
True
Acting on impulses regularly, working on several items
simultaneously rather than focusing on one task, and
dealing with distractions as they arise are characteristics
of good executive functioning.
False
The departments in a retail department store are managed
by the general manager.
True
The vice president of human resources is a first-line
manager.
False
ABC Manufacturing employs some of the top
professionals in its field, and because of their skills and
experience, ABC is highly efficient and outperforms its
competitors. ABC Manufacturing has a(n) ____ over its
competition.
competitive advantage
A national sales organization has implemented a sets of
training courses on its intranet, with a link that allows
employees to find and share answers to questions that
arise with customers. A system that allows the sharing of
knowledge and information throughout an organization is
known as ___.
a strategy database
At times, customers have an unexpected need and
require certain departments, such as production, to
change their schedule to meet the demands of the sales
department. When Susan, the vice president of marketing,
is involved in resolving this conflict, this is an essential
part of which management function?
Leading
The principal functions of management are ___.
Planning, organizing, leading, controlling
Management is defined as the pursuit of organizational
goals ____.
efficiently and effectively
Project management software allows customers to
request a company to supply their product or service by a
particular technician at a requested time and price.
False
The work time for most managers typically consists of
long periods during the day that are uninterrupted.
True
When Greg meets regularly with his workers to provide
encouraging words so they work hard to achieve the
company's goals, he is engaged in the management
function of controlling.
False
When Paul, a new restaurant owner, is determining which
products to offer on his menu, he is involved in the
management function of planning.
True
Felix pays a lot of attention to the environment outside
his company, staying alert for long-run opportunities and
problems and devising strategies for dealing with them.
Felix is a(n) ____ level manager.
Upper
Donna, vice president of finance, and Bob, vice president
of human re
sources, are ____ managers.
functional
In February, when Paula, the manager of a landscaping
company, is looking at the upcoming need for more
workers to handle the increased customers in spring and
summer, she is involved with ____.
organizing
As a store manager, Liandra has to play the role of
negotiator, such as purchasing products at a fair price for
her company. As she handles this responsibility, Liandra
is playing the ____ role.
decisional
The police chief is meeting with some citizens in his
community, where he will discuss the police department's
positive service delivery. The success of his organization
is measured by _____.
its effectiveness, such as decreased crime
Donna, the office manager, spends a large part of her day
working closely with those whom she supervises to
successfully accomplish the many tasks she is
responsible for. She also works well with other
departments to get things done. Donna is exhibiting
which type of managerial skill?
human
Gregson Production is keenly aware of the need to daily
strive to produce goods and services more effectively
than its competitors. Therefore, to achieve this standard,
Gregson's management strives to ____.
maintain quality and efficiency
The vice president of human resources for a national
electronics retailer is meeting with employees of several
stores to present information to workers that their stores
are closing and how the company will help employees in
the future. This task is part of a(n) _______ role.
disseminator
The city fire department offers its services to any
individual within its city limits, so even Paul, who is
driving through the city on vacation, received assistance
with a car fire. The fire department is an example of a ___
organization.
commonweal
Becoming a manager offers ___.
many rewards apart from money and status
Mark, vice president of human resources at Executive
Corporation, is a(n) ____ level manager.
upper
When Randy, a general manager of a national retailer,
moved to a different store in his company that was having
difficulty, he knew that sales were low and after talking to
his employees, he found morale was also low. At first
Randy thought attitudes were poor due to low sales, but
after working closely with employees, he realized that the
poor attitudes were actually the cause of poor sales.
Randy was able to discover the cause of the problem by
utilizing ______ skills.
conceptual
Josh, a college student, has become very interested in
helping his community, so he is volunteering in a
neighborhood improvement organization. This type of
organization is an example of a(n) ______ organization.
mutual-benefit
Two of the primary challenges facing managers today are
____.
managing for a competitive advantage and diversity
The rarest and most precious resource in business
according to Fortune magazine is ___.
skilled and effective managers
Elizabeth is a chef and the kitchen manager in an upscale
restaurant. She is very knowledgeable in both the culinary
and restaurant management fields. Because of these
skills, Elizabeth can be considered a(n) ____ worker.
knowledge
Greg, the marketing manager, is constantly seeking
information about his competition while looking online or
speaking to people; this is an example of the ___ role.
monitor
The district manager of a national fast-food restaurant
watches the sales reports for each restaurant daily to
compare actual sales with projected sales goals, and then
takes corrective action if needed. This function is ____.
controlling
Being a manager can be one of the greatest avenues to a
meaningful life, particularly if the manager ____.
is working within a supportive or interesting organizational
culture
One way to think of management is ___.
the art of getting things done through people
Tom, a restaurant general manager, carefully watches his
costs by reusing some items that in the past were
immediately thrown away. Tom is an example of a(n)
_____ manager.
efficient
Raylene, the CEO of a Fortune 500 company, met with
business leaders from the local community. Afterwards,
she spent time informally answering their questions
about the company as part of which managerial role?
monitor
One of the reasons Ace Distributors, a local
manufacturing company, is considered to be a good place
to work is that the managers are expected to encourage
and reward their employees for developing new products
and ways of improving existing products and services.
This policy is an example of managers carrying out the
______ role.
entrepreneur
Deshawn started a new type of business that provides
new and unique services that did not exist before his
efforts. This is an example of a(n) ____.
entrepreneur
An individual or individuals who work(s) within an
existing organization, using personal resources to exploit
an opportunity, defines a(n) ____.
intrapreneur
Management scholar Henry Mintzberg found that in their
workday, managers ____.
have work that is characterized by fragmentation, brevity,
and variety
Donna, vice president of finance, and Bob, vice president
of human resources, are ____ managers.
functional
In February, when Paula, the manager of a landscaping
company, is looking at the upcoming need for more
workers to handle the increased customers in spring and
summer, she is involved with ____.
organizing
As a store manager, Liandra has to play the role of
negotiator, such as purchasing products at a fair price for
her company. As she handles this responsibility, Liandra
is playing the ____ role.
decisional
The police chief is meeting with some citizens in his
community, where he will discuss the police department's
positive service delivery. The success of his organization
is measured by _____.
its effectiveness, such as decreased crime
Donna, the office manager, spends a large part of her day
working closely with those whom she supervises to
successfully accomplish the many tasks she is
responsible for. She also works well with other
departments to get things done. Donna is exhibiting
which type of managerial skill?
human
Gregson Production is keenly aware of the need to daily
strive to produce goods and services more effectively
than its competitors. Therefore, to achieve this standard,
Gregson's management strives to ____.
maintain quality and efficiency
The vice president of human resources for a national
electronics retailer is meeting with employees of several
stores to present information to workers that their stores
are closing and how the company will help employees in
the future. This task is part of a(n) _______ role.
disseminator
The city fire department offers its services to any
individual within its city limits, so even Paul, who is
driving through the city on vacation, received assistance
with a car fire. The fire department is an example of a ___
organization.
commonweal
Becoming a manager offers ___.
many rewards apart from money and status
Mark, vice president of human resources at Executive
Corporation, is a(n) ____ level manager.
upper
When Randy, a general manager of a national retailer,
moved to a different store in his company that was having
difficulty, he knew that sales were low and after talking to
his employees, he found morale was also low. At first
Randy thought attitudes were poor due to low sales, but
after working closely with employees, he realized that the
poor attitudes were actually the cause of poor sales.
Randy was able to discover the cause of the problem by
utilizing ______ skills.
conceptual
Josh, a college student, has become very interested in
helping his community, so he is volunteering in a
neighborhood improvement organization. This type of
organization is an example of a(n) ______ organization.
mutual-benefit
Two of the primary challenges facing managers today are
____.
managing for a competitive advantage and diversity
The rarest and most precious resource in business
according to Fortune magazine is ___.
skilled and effective managers
Elizabeth is a chef and the kitchen manager in an upscale
restaurant. She is very knowledgeable in both the culinary
and restaurant management fields. Because of these
skills, Elizabeth can be considered a(n) ____ worker.
knowledge
Greg, the marketing manager, is constantly seeking
information about his competition while looking online or
speaking to people; this is an example of the ___ role.
monitor
The district manager of a national fast-food restaurant
watches the sales reports for each restaurant daily to
compare actual sales with projected sales goals, and then
takes corrective action if needed. This function is ____.
controlling
Being a manager can be one of the greatest avenues to a
meaningful life, particularly if the manager ____.
is working within a supportive or interesting organizational
culture
One way to think of management is ___.
the art of getting things done through people
Tom, a restaurant general manager, carefully watches his
costs by reusing some items that in the past were
immediately thrown away. Tom is an example of a(n)
_____ manager.
efficient
Raylene, the CEO of a Fortune 500 company, met with
business leaders from the local community. Afterwards,
she spent time informally answering their questions
about the company as part of which managerial role?
monitor
One of the reasons Ace Distributors, a local
manufacturing company, is considered to be a good place
to work is that the managers are expected to encourage
and reward their employees for developing new products
and ways of improving existing products and services.
This policy is an example of managers carrying out the
______ role.
entrepreneur
Deshawn started a new type of business that provides
new and unique services that did not exist before his
efforts. This is an example of a(n) ____.
entrepreneur
An individual or individuals who work(s) within an
existing organization, using personal resources to exploit
an opportunity, defines a(n) ____.
intrapreneur
Management scholar Henry Mintzberg found that in their
workday, managers ____.
have work that is characterized by fragmentation, brevity,
and variety
uotas are designed to prevent
Dumping
International forces
Changes in the economic,political, legal, and technological
global system that may affect an organization
Abraham Maslow proposed the
Hierarchy of human needs
Therbligs
The 17 basic units of motion, identified by Frank and Lilian
Gilbreth
Principal functions of management are
Planning, organizing, leading, controlling
An organization's internal stakeholders consist of
Board of directors, employees, owners
Quality air, a company that builds airplanes, typically
utilizes other production companies that specialize in
certain parts for its jets, this practice is known as
Outsourcing
Mary Parker Follett anticipated some of today's concepts,
such as
Self-managed teams and worker empowerment
The mass media is considered part of an organization's
Task environment
Sustainability is economic development that
Meets present needs without compromising the ability of
future generations to meet their own needs
Intrapreneur
An individual or individuals who work(s) within an
organization, using personal resources to exploit an
opportunity
Conceptual skills consist of
The ability to think analytically, to visualize an organization
as a whole, and to understand how the parts work together
Crowdfunding
When individuals who want to start a new venture obtain
many small amounts of money from many people, this type
of financing is called
Greg, the IT manager, feels that his employees lack the
motivation to consistently meet department goals;
therefore, the approach Greg and his supervisors need to
take to better understand human actions to motivate their
employees toward achievement is the
Behavioral viewpoint
The Sarbanes-Oxley Act of 2002
Established requirements for proper financial record
keeping for public companies; as much as 25 years in
prison
Free trade is
Movement of products between countries without political
or economic obstruction
Artificial intelligence
The discipline concerned with creating computer systems
that stimulate human reasoning and sensation
Local communities are stakeholders of organizations
because communities
Rely on the tax base from companies, and their employee
payrolls, to thrive
Greg, a supervisor, is known by his managers to be sharp
in his decisions and has a good track record of meeting
his goals. Greg is
An effective manager
Even for nonprofits, sooner or later there will be no
organization without
Customers
Technical skills consist of
Job-specific knowledge needed to perform well in a
specialized field
The beliefs that there are a few really new ideas and that
true is better than new are two of the foundational
principles of
Evidence-based management
Those who study management will understand how to
Relate to their managers and deal with organizations from
the outside
Olivia, the general manager of a bowling center, believes
in her workers and that they are responsible and capable
employees, so that they can be trusted when given
responsibility. Olivia is an example of
Theory Y manager
New developments in methods for transforming
resources into goods and services are
Technological forces
The field of behavioral science includes
Psychology, sociology, anthropology, economics
Ethics are
Standards of right and wrong that influence behavior
Tom, the manager of floral shop, is interested in
implementing the principles of administrative
management, which involves
Managing the total organization
With production today, companies emphasizeuEfficiency
The relatively permanent and deeply held underlying
beliefs and attitudes that help determine a person's
behavior are known as
Values
Mateo, an It manager, has been studying the work
methods of each task to increase the productivity of the
employees in his department. Mateo is utilizing
Scientific management
Sometimes a country's laws forbid foreigners from
ownership within their nation, and the only way an
American company can have a presence in that foreign
country is with a(n)
Joint venture
The hallmark of great civilizations has been great systems
in
Communications
The classical viewpoint of management emphasized ways
to
Manage work more efficiently
Management is defined as the pursuit of organization
goals
Efficiently and effectively
Donald enjoys the excitement and challenge of forming a
firm in Europe that is totally owned and controlled by his
company because he knows that although the investment
will be substantial, it could result in a large return. This
type of organizations is an example of a
Wholly-owned subsidiary
Alice's Pasta Kitchen makes quality pasta and sells its
products to customers in other countries. This is an
example of
Exporting
Corporate governance is the system
Of governing a company so that the interests of corporate
owners and other stakeholders are protected
Globalization is the trend
Of the world economy toward becoming a more
interdependent system
Technology experts is a US company that specializes in IT
research. It has formed a joint venture with Processor
Inc., a Canadian organization that has a reputation of
producing quality PCs, to market laptops in China,
sharing the risks and rewards of starting the new
enterprise together. This is an example of
Strategic alliance
The justice approach to deciding ethical dilemmas is
guided by
Respect for impartial standards of fairness and equity
Donna manages the service desk and makes routine
decisions related to customers refunds and merchandise
returns. Donna also oversees the daily tasks of the
cashiers and front desk employees. Donna is a
First-line manager
An entrepreneur is best described as
Someone who takes risks to try to create a new enterprise
Tops Burger, based out of Texas, has locations in 25
countries. Tops is a
Multinational corporation
Luxere Hotels International, an American company, sells
the rights to other hospitality companies globally to open
hotels with the Luxere name for a fee and a share of the
profit, in return for using Luxere's brand name and a
package of materials and services. This defines
Franchising
Gabriel, the CEO of a large global production company, is
excited about the introduction of statistics and computer
simulations in the design stage of their products. This is
an example of
Quantitative techniques
At ABC Manufacturing, employees work together to
achieve the company goals and purposes. This describes
an organization
Dominique owns an international grocery store where
customers can purchase products from other countries.
Dominique's store is an example of a company that
imports
The management approach that emphasized ways to
manage work more efficiently is the ___ viewpoint.
classical
What mechanism is used to provide a systematic
assessment of an organization's triple bottom line?
social audit
