Business management final prep Flashcards
motivation
is a process by which a person’s efforts are energized and sustain towards detaining a goal. The three key elements of motivation: energy, direction, persistence
What is the hierarchy of needs theory by Abraham Maslow?
1) self actualization: inner potential
2) self esteem
3) love and belonging
4) safety and security
5) psychological needs
What are the two assumptions about humans according to Douglas McGregor?
1) theory x:
-people have little ambition are lazy. Avoid responsibility.
-management role: employees must be controlled, directed, or threatened with punishment to get them to achieve organizational objectives
2) theory y:
-people are creative, except responsibility, ambitious and committed.
-management role is to develop employees potential and help them release their potential towards common goals and maximize employee motivation
goal setting theory
Specific goals, performance, and difficult goals, when accepted, result in higher performance, then do easy goals.
What are the key aspects of goal setting theory?
1) clarity
2) challenge
3) commitment
4) feedback
5) complexity
Equity theory
Employee compares his or her job’s input-outcomes ratio with that of relevant others and thens correct any inequity
Organizational behavior
The study of the actions of people at work. The goals of OB are to explain, predict, and influence behavior.
Organization behaviors crucial behaviors: Employee productivity
Performance measure of both efficiency and effectiveness
Organization behaviors crucial behaviors: absenteeism
The failure to show up for work
Organization behaviors crucial behaviors: turnover
The permanent withdrawal from an organization
Organization behaviors crucial behaviors: organizational citizenship behavior
Behavior that is not part of an employees formal requirements which promotes effective functioning of the organization
Organization behaviors crucial behaviors: counterproductive workplace behavior
Any intentional employee behavior that is damaging to the organization or the individuals within the organization
Attitude
Is a evaluative statements, either favorable or unfavorable concerning objects, people, events.
Job satisfaction
Person’s general attitude towards his job
Job involvement
Degree to which an employee identifies with his or her job, actively participates in it and considers job performance important to self worth
Organizational commitment
Degree to which an employee identifies with a particular organization and its goals and wishes
Myers briggs type indicator(MBTI)
Well-known approach to classifying personality traits
Positive reinforcement
Behavior is followed by something pleasant, such as praising and employee for a job well done
Negative reinforcement
Rewarding a response by eliminating or withdrawing something unpleasant
Punishment
Penalizes undesirable behavior and will eliminate it
Extinction
Eliminating any reinforcement that’s maintaining a behavior
Communication
Transfer and understanding of meaning
Interpersonal communication
Communication between two or more people
Functions of communication
-coordinating employee behavior
-motivate by clarifying to employees what is to be done
-provide emotional satisfaction and fulfill the social need at work
-providing information to get things done in organizations
Barriers to effective communication
-cognitive: information over load, filtering
-emotions
-socioculture
-national culture
` formal communication
Communication that takes place within person prescribed, organizational work arrangements
Downward communication
Communication that flows downward from a manager to employees
Upward communication
Communication that flows from employees to managers
Lateral communication
Communication among employees are the same organization level
Diagonal communication
Communication that crosses across work areas and organizational levels
Communication network
Variety of patterns of flows of organizational communication
Leader
Is someone who can influence others and who has managerial authority
Leader ship traits
1) drive
2) desire to lead
3) honesty, integrity
4) self confidence
5) intelligence
6) job, relevant knowledge
7) extroverted
8) produces a strong sense of responsibility for others
Autocratic
Dictates work, methods, makes unilateral, limits employee participation
Democratic
Involves employees and decision making, delegates(when a manager assigns specific tasks to their employees) authority, and uses feedback as an opportunity for coaching employees
Laissez-fair
Lets the group make decisions and complete the work in whatever way it sees fit
Path goal model
Leader job is to assist subordinates, entertaining their goals into provide direction and support needed to ensure that their goals are compatible with the goals of the organization
Directive leadership
Providing clear instructions, expectations,and specific guidance to the team
Supportive leadership
Creating a supportive friendly environment
Participative leadership
Involving team members in decision-making process
Achievement oriented leadership
Setting challenging goals and having a high expectations for teams
What purposes do organizational structures serve?
-divides work into specific departments
-assigns tasks and responsibilities associated with individual jobs
-coordinates diverse organizational tasks
-cluster jobs into units
-establishes relationships among individuals groups and departments
-establishes formal lines of authority
-allocate in employees, organizational resources
Work specialization
Dividing work activities into separate job tasks
departmentalization
The basis by which jobs are grouped
Chain of command
The line of authority extending from upper organizational levels to the lowest levels
span of control
The number of employees and manager efficiently and effectively manage
Centralization/ decentralization
The degree to decision-making takes place at upper levels of the organization/ degree to lower level employees provide input or make decisions
formalization
The extent to which employee behavior is guided by rules and procedures
Mechanistic organization
An organizational design that’s rigid and tightly controlled
-High specialization
-centralization
-neurons of control
-clear chains of command
organic organization
Organizational design is highly adaptive and flexible:
-cross functional teams
-Cross hierarchical teams
-free flow information
-decentralization
-formalization
organizational design: simple structure
Organizational design with little departmentalization, wide spans of control, centralized authority, and little formalization
Weaknesses: not appropriate as organization grows
organizational design: functional structure
Organizational design that groups together similar or related occupational specialties
weakness:
-functional specialist, become isolated and have little understanding of what other units are doing
organizational design: divisional structure
Organizational structure made up of separate semi autonomous units or division
Weaknesses:
-duplication of activities and resources increases cost, and reduces efficiency
Matrix structure
In organizational structure that assigns specialists from different functional departments to work projects lead by project manager
project structure
Organizational structure in which employees continuously work on projects
task force (or AD hoc team)
A temporary committee or team form to tackle a specific short term problem affecting several departments
human resource management
` organizing, coordinating, and managing organizations employees to carry out and organizations, goals, and mission.
There job includes: recruiting, hiring, training, compensating, retaining, and motivating employees
human resource management process
1) ensure that they have the right number of kinds of people in right places and at right times
2) recruitment/ dismissal
3) Selection
4) Orientation
5)Training
6) Performance management
7)Compensation and benefits
8) Career development
planning
management function that involves setting the organization’s goals, establishing strategies for achieving those goals.
why is planning important in management?
1)planning provides
2)planning reduces uncertainty
3) planning minimizes waste and redundancy(the state of being not or no longer needed or useful.)
4) planning establishes the goals or standards used in controlling
types of plans
1)breath: strategic and operational
2) time frame( long term, short term)
3)specificity (directional, specific)
4)frequency of use(single use, standing)
traditional goal setting
top managers set goals that then flow down through the organization and become subgoals for each organizational area
Management by objectives
A process of setting mutually agreed goals, and using those goals to evaluate employee performance
strategic management
is what managers do to develop the organization’s strategies
strategies
are the plans for how the organization will do its business, how it will compete successfully, and how it will attract and satisfy its customers
Business model
is how a company is going to make money. which focuses on:
a) whether customers will value what the company is providing
b) whether the company can make any money doing that
Corporate strategy
Strategy that determines what businesses a company is in or wants to be in and what it wants to do with those businesses it is top levels, managers, responsibility.
growth strategy
is applied when an organization wants to expand the number of markets served or products offered, either through its current or new business
grows based on concentration
Focuses on its primary line of business and increases the number of products offered or markets served
grows based on integration
-horizontal integration involves the acquisition of another company in the same business line
-vertical integration happens when a company takes control over one or more stages in the production or distribution of its products
grows based on diversification
focuses on venturing into a new business distant from the existing one and creating new products within the new area
- related: diversification happens when a company combines with other companies in different, but related, industries
-unrelated: diversification happens when a company combines with firms in different and unrelated industries
stability strategy
is strategy in which an organization continues do what is currently doing. This includes continuing to serve the same clients by offering the same products or services, maintaining market share, and sustaining. the organization’s current business operations
renewal strategy
is a strategy designed to address declining performance. This strategy helps organizations cut costs and reconstructive organizational operations.
corporate strategy
-stability
- Renewal
-Growth
- Concentration(trying to compete successfully within a single industry)
-integration(taking an overview across all project teams and analyzing where you can make efficiencies)
-diversification(a growth strategy that involves entering into a new market or industry )
planning effectively in dynamic changing environments is difficult because of the following:
-unforeseen global factors(sanctions, wars)
-increased global political and business interconnections
-spread of new technologies(AI, digital tools)
-risks and opportunities related to social media
decision making process
1) identify problem
2) identify decision criteria
3) allocating weights
4) developing solutions
5)analyze solutions
6) select solutions
7)implement
swot analysis method for identify company’[s strengths and weaknesses
-Strengths
-Weaknesses
-Opportunities
-Threats
decision types
1) structured problems: straightforward, familiar, and easily defined problems.
a.programmed decision: a repetitive decision that can be handled by a routine approach(procedure, rule, policy)
3) unstructured problems: new or usual problems for which info is incomplete
b) non-programmed decision: unique and non-recurring that require custom made solution
decision-making conditions
a) certainty: the situation where a manager can make accurate decisions because all outcomes are known
b) uncertainty: a situation in which decision maker has neither certainty nor probability estimates about the outcomes
c) risk: a situation in which the decision-maker can estimate the likelihood of certain outcomes
decision-making styles
1) linear thinking style: manager prefers using external data in facts about processing this information through rational, logical thinking
2) nonlinear thinking style: a manager prefers internal sources (feeling and intuition) when processing info and to guide decisions
Strategies development based on a combination of factors
1) using strengths to take advantage of opportunities
2) using opportunities to mitigate weaknesses
3) using strength to reduce the negative impact of threats
4) combining weaknesses and threats to mitigate damages and avoid losses
In the Myers Briggs Type indicator what do the letters stand for?
-extraversion
-sensing
-thinking
-judging
-introversion
-intuition
-feeling
-perceiving
