IDK Flashcards
1
Q
7 External Environmental Forces
A
Political and Legal
Economic
Technological
Societal
Environmental (Sustainability)
Global
2
Q
Types of Roles of managers
A
Interpersonal Roles, Information Roles and Decision Roles
3
Q
Types of Interpersonal Roles
A
Figurehead, Leader and Liaison
4
Q
Leader
A
A motivator, a communicator, and a coordinator of her
subordinates’ activities.
Eg. conducting performance appraisals, offering training
to a new recruit,
5
Q
Figurehead
A
ceremonial or symbolic in nature
Eg. “employee of the month” awards at a company
banquet.
6
Q
Liaison
A
developing relationships with members of the
organization outside the manager’s area of authority
7
Q
Types of Informational Roles
A
Monitor
Disseminator
Spokesperson
8
Q
Monitor
A
must constantly monitor the internal and external environments
Eg. the marketing manager may be responsible for assessing consumer demand for a newly proposed product.
9
Q
Disseminator
A
share or distribute the information
Eg. offering clear information regarding company expectations of performance
standards and performance appraisal criteria
10
Q
Spokesperson
A
transmit information to individuals outside their area of authority.
Eg. a marketing manager might provide the engineering department with the latest
report of consumer preferences regarding product design. Or the company president
may report to a government regulatory board regarding the company’s environmental
policy
11
Q
Types of Decisional Roles
A
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
12
Q
Functions of managers
A
Planning
Organizing
Controlling
Leading
13
Q
Management Philosophies
A
Classical
Behavioral
14
Q
Classical approaches to managing
A
Scientific
Administrative
Bureaucratic
15
Q
Scientific Management
A
(Fredrick Taylor)
Standardizing
Supervising
Motivating
16
Q
Standardizing the work (Scientific Management)
A
Work Divided
Observation and measurement
One best method for performing a job
17
Q
Benefits of Scientific Management
A
Easy and inexpensive to train
Available pool of labor
Clear rules in how to perform the job
Little room for individual discretion
Consistent
18
Q
Supervising the workers (Scientific Management)
A
take charge of their area of expertise
Mental work should be separated from labourers’ physical work
Workers not capable of managing themselves
19
Q
Motivate the workers (Scientific Management)
A
Money only factor
Compensation closely tied to performance
Piece-rate pay
20
Q
Administrative Management
A
(Henry Fayol)
Work divided
reports to only one boss
Team spirit and harmony
Company goals prioritized
21
Q
Bureaucratic Management
A
(Max Weber)
Rules and Procedure
Hierarchy of authority
Division of labour
Impersonality
Selection and Promotion
22
Q
Rules and Procedures (Bureaucratic Management)
A
Organizations require stable and documented rules
23
Q
Hierarchy of authority (Bureaucratic Management)
A
Organizations have fixed positions that are ranked according to their level of power
24
Q
Division of labour (Bureaucratic Management)
A
Simplifying the job will achieve greater efficiencies
25
Impersonality (Bureaucratic Management)
Rules and procedures, not personal agendas, govern behaviour; the individual and organization are professional, not personal.
26
Selection and promotion (Bureaucratic Management)
Hiring will be based on ability, not friendship or family ties; promotion will be based on job performance, not favouritism
27
Types of Behavioral approaches
Human relations movement
Mary Parker Follet
Chester Barnard
Modern Behavioral Science
28
Human Relations movement
Known as Hawthorne studies
Productivity increases when taken interest and comfortable
People work best in organized groups with effective two-way communication with their leaders
29
Mary Parker Follet
Coordination
Self-Management
Collaboration
30
MPF Coordination
Encouragement from managers should come from coordinating and harmonizing
31
MPF Self-management
decisions can be often be made by those performing the work
32
MPF Collaboration
Managers and workers should view themselves as collaborators or partners
33
Chester Barnard
Organizations are social systems
Communication systems
Organizations objectives
Authority over subordinates
Collaboration
34
Modern Behavioral Science
Motivating employees is key
35
Contingency Approach
Determine which managment style
Organization size
Routineness of technology
Environmental uncertainty
Individual difference
36
What makes an effective
team?
Shared vision
Empowerment
Trust
Culture of collaboration
37
Changing nature of organizations
Traditional Bureaucracy and Modern Organizations
38
Traditional Bureaucracy
Tall/hierarchical
Rigid, rule-oriented
Buffered from the environment
Narrow Market
39
Modern Organization
Flat
Fluid
Integrated
Global
40
MO Flat
Increase decision-making speed
React faster to environment changes
Allow more responsibility to employees
Provide lower-level more decision-making power
41
MO Fluid
Adaptive to change
Suitable in dynamic environments
A trait of organic structures
42
MO Integrated
Cross-functional teams
Self-managing teams
Information sharing
Alliances outside the organization
43
MO Global
Greater competition
Better access to new markets
Increased networking opportunities
44
Types of organizations
Public/Governmental
Private/Non governmental
Private
45
Organization as systems
Closed and Open
46
Proccess of Open System
Inputs -> Process-> Outputs -> Feedback -> Inputs
47
Five Elements of organizations structure
Work specialization
Decision-Making source
Levels of Administration
Departmentation
Formalization
48
Types of Work Specialization
Functional and Social
49
Functional Specialization
Division of jobs into simple and repetitive tasks
Frederick Taylor advocated high job specialization.
Job Enrichment promotes low job specialization
50
Social specialization
Specialization of Individuals rather than of jobs
Expertise is developed in specific areas or specialties
Eg. Accountants, Nurses, Profs
51
Decision-making/Authority Types
Centralization and Decentralization
52
Centralization Authority
At the top (executive)
53
Decentralization Authority
Everywhere, including lower level
54
Types of Span of control
Flatter, Wider and Taller, Narrower
55
Flatter and wider
President at top, Team members
56
Taller and Narrow
President to Manager to Subordinates
57
Mechanistic Structure
Work Specialization: Functional
Decision Making source: Centralized
Level of Administration: Tall
Departmentation: Functional
Formalization: High
58
Organic Structure
Work Specialization: Social
Decision Making source: Decentralized
Level of Administration: Flat
Departmentation: Division
Formalization: Low
59
Contingency Theory
Strategy
Organizational Size
Technology
Environmental
60
Reengineering
Radical redesign of business processes for significant performance improvements
Goals: Enhance cost, quality, service, and speed
Involves fundamental rethinking of how work is done
61
Virtual Organization
Outsourcing
Networking
Shedding Noncore Functions
62
VO Outsourcing
Hiring external organizations for certain company functions
Retains core functions while outsourcing non-core tasks
Examples: Payroll, accounting, legal services
63
Benefits of VO Outsourcing
focusing on core activities and growth
64
VO Networking
Cooperative relationships with suppliers, distributors, or competitors
Example: Close distributor relationship provides insights into customer needs
Keiretsu: Japanese version
65
Goal of VO Networking
Enhance efficiency and flexibility
66
VO Shedding Noncore Functions
IT-dependent companies need flexibility akin to virtual organizations
Collaboration with other organizations in virtual settings benefits non-IT-focused firms
67
Benefits of Virtual Organization
Cost saving
Great alternative
Fast to develop and market
Fast and flexible
68
Risks of Virtual Organization
Losing control
Lack of employee loyalty
Potential sacrifice of competitive learning opportunities
69
Downsizing
the planned reduction
70
Methods of Downsizing
Across the board cutbacks
Early retirement and voluntary severance
Delayering by cutting a level or levels of the organization
Contracting out work
Dropping product lines
71
Risks of Downsizing
Efficient departments are hurt
Loss of corporate money
Not guided
Loss of control outsourced work
Pain is not shared
72
How Downsizing can fail
Lack of strategic planning
Lack of involvement of employees
Removal of corporate money
73
Why do manager downsize
Constraining forces
Cloning forces
Learning forces
74
Constraining forces
Pressure other orgs
Increases in share prices
"leaner and meaner"
Favored by shareholders
75
Cloning forces
pressure to imitate behaviors of industry leaders
"jumping on bandwagon"
Demonstrates in tune with modern trends
76
Learning forces
Taught to the future
Education can play a role
Viewed as a legitimate activity
77
Forms of Business Ownership
Sole proprietorship
Partnership
Corporation
Cooperative
78
Benefits of Sole proprietorship
Most basic
Owned by one person
Control activities
Least expensive
All profits
Simplest
79
Disadvantages of Sole proprietorship
All legal and financial responsibility
Limited to individual skill set
May not be provided loans
Death of owner
Unlimited liability
80
Partnership
Two or more
Shared profits
Easy and inexpensive
Unlimited liability
Taxed as individuals
81
Types of Partnerships
General
Limited
82
General Partnership
At least general partner that takes all liability
General partner responsible for any mistakes of other partners
83
Limited Partnership Benefits
Excluded from management
Liable only for investment
Still at least one general partner
Greater availability of capital than general partnerships
84
Limited Partnership Disadvantages
General faces unlimited liability
Partnership depends on survival of its members
Taxed under personal income (higher tax rate)
85
Corporation Ownership
Separate legal entity, independent of its owners
Only the corporation's assets can be sued
Issues shared can be private or publicly-trades
86
Benefits of Corporation
Limited Liability
Permanency
Transferability of Ownership
Access to capital
87
Disadvantages of Corporations
Costly
Time consuming
More regulations
Separate corporate tax return to file
If publicly traded, shares can be bought causing new owners
88
Cooperative Ownership
Equal
Owned by members
Democratic system
89
Corporate Governance
A system of rules, practices and processes by
which a company is directed and controlled
90
Corporate Governance Involves
-Balances interests of stakeholders.
-Guides decision-making for leaders.
-Sets realistic goals and strategies.
91
Corporate Governance Stakeholders
An individual or group that has an interest
or stake in a business
92
Corporate Governance Four Key Groups
Shareholders -> Board of directors -> Corporate officers -> Employees
93
What is Principle-Agent problem
Managerial interests are in conflict with shareholder interest
94
Solution to Principle-Agent problem
Stock option
95
Limitation to solution of principle agent problem
Managers may make short-termed based, rather than long-term
96
What is good governance
Accountability
Fairness
Transparency
Reliable Leadership
Stakeholder Engagement
97
Good Governance Accountability
Management takes responsibility for what they do and can be held accountable for their actions
98
Good Governance Fairness
Consideration is given to all stakeholder and all will be treated equally
99
Good Governance Transparency
Does not hide any information but allows processes and transactions to be observable by stakeholders
100
Good Governance Reliable Leadership
Can exist without reliable leadership
Leaders are trusted to carry out the vision and mission of the business
101
Good Governance Engagement
Requires stakeholders to be identified and engaged to make sure management is held to standard
102
Role of the Board of Directors
Approving Strategic Direction
Monitoring Strategy Implementation and Performance
Appointing and Evaluating CEO and Senior Management
Facilitating Management-Owner Relationship
103
Other Issues with Corporate Governance
Deficiencies of the Board
The need for Board Independence
Preventing fraud and Corporate scandals
104
Improving Corporate Governance
The Sarbanes-Oxley Act and Bill 198
Increased regulations and compliance reporting
Re-established corporate accountability and investor confidence
Higher duty of care in financial reporting
Aims to prevent or reduce conflict of interest
105
Strategic Management
the analysis, decisions, implementations, and evaluations a firm
undertakes to create and sustain its competitive advantages
106
What is Strategy
The plans made or the actions taken in an effort to help an organization obtain its intended purposes
107
Michael Porters' Five Force Model
Threats of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threats of Substitutes
Rivalry among existing firms
108
Limitations of the Five Force Model
Assumes power relationships are the same in each force
Time-based
109
VRIO Model
Value
Rareness
Imitability
Organization
110
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
111
Different Levels of Strategies
Business
Corporate
112
Business-level strategy
strategy a firm uses to compete in a given market. As such, which market a firm intends to operate in is a given
113
Types of Business-level strategy
Cost leadership
Product differentiation
Focus
114
Cost leadership
Economies of scale
Learning curve economies
Access to low-cost factors of production
=lower selling price
115
Product Differentiation
Perceived value
116
Focus
Targets:
particular buyer group
segment of the product line
geographic market
can also have a cost leadership or differentiation strategy
117
What is Corporate-level strategy
allocating its resources in different markets to achieve its organizational goals
118
Motives for diversification
Intrafirm dynamics
Interfirm dynamics
119
Intrafirm dynamics
include growth and managerial self interests
120
interfirm dynamics
include market power enhancement, response to
competition, and imitation
121
Types of Diversification
Related
Unrelated
Vertical Integration
122
Vertical Integration
Backwards
Forward
Raw material -> Manufacturing -> Distribution
123
Means to Diversify
Internal development
Mergers or Acquisitions
Strategic alliances
124
Types of decisions
Non-programmed
Programmed
125
Non-programmed decision
Top managers:
Determine organization’s goals
What products to offer
How to finance the operation
Where to locate facilities
126
Programmed decisions by managers
Low-level & middle managers:
Production schedules
Select new employees
Decide how to allocate pay raises
127
Programmed decisions by non-managerial employees
Non-managerial employees:
What policy to follow
Replace cartridge in the photocopier
128
Six Stage Model
1) Identify the Problem and Opportunities
2) Choose the Best Decision Style
3) Develop Alternative Solution
4) Choose the Best Solution
5) Implement
6) Evaluate Outcomes
129
Assumptions of The Rational Decision-Making Model
Complete access to all information
Clear and constant preferences
No time/cost constraints
We choose the optimal solution
130
Problems with stage 1 and 3
Definition of the situation
Influenced by psychological and sociological factors
Bounded rationality
131
Problems with stage 4
Satisficing
-Information processing and perceptual errors
132
Problems with stage 6
Escalation of commitment to a failing course of action
133
Escalation of commitment to a failing course of action
limited cognitive capacity
satisficing
Cognitive heuristics
134
Prospect Theory
Decisions involving risky prospects, can be
framed as:
A choice between losses ---> risk-seeking
135
WHY DO WE ESCALATE COMMITMENT TO A
FAILING COURSE OF ACTION?
PERCEPTUAL DEFENSE
SAVING FACE
UNCERTAIN PAYOFFS
CLOSING COSTS
FRAMING AND SUNK COSTS
136
MINIMIZING DECISION ERRORS
IMPROVING PERCEPTUAL ACCURACY IN DECISIONS
STRUCTURAL APPROACHES TO BETTER DECISIONS
137
Single Loop Learning
Error detection & correction
Deals with symptoms
Addresses current problems
Maintains status quo
138
Double Loop Learning
Examines the underlying
system
➢Looks at root causes
➢Changes status quo
➢Promotes innovation
➢Modifies policies
139
major obstacles to double loop
learning
Bureaucracies and Roles
Cognitive Scripts
140
Bureaucracies and Roles
Organizations often have “accepted practices” on how things are done
141
Cognitive Scripts
give employees a sense of how members should conduct themselves in the performance of their duties
142
Need to shift paradigms
a change in the way we think/mental frameworks
