M1 Chapter 1

Question 1

Effectiveness

Answer 1

how well the stated objectives or goals of the firm are met.

Question 2

Efficiency

Answer 2

the prudent use of resources

Question 3

The four main management functions:

Answer 3

1) Planning
2) organizing
3) leading
4) controlling

Question 4

Planning

Answer 4

the process of determining organizational direction to achieve a desired performance

Question 5

Goal

Answer 5

desired future state of the organization

Question 6

Plan

Answer 6

a “roadmap” for how to meet the goal

Question 7

Organizing

Answer 7

involves the deployment of resources, the assignment and grouping of tasks, the delegation of responsibility, and the implementation of hierarchical and reporting channels

Question 8

Human Capital

Answer 8

skills, knowledge and networks that an organization’s people possess

Question 9

Synergy

Answer 9

the sum of the whole being greater than the sum of the parts.

Question 10

scalar chain

Answer 10

a reporting chain extending from bottom to top for every individual within the organization

Question 11

Leading

Answer 11

involves the use of power and persuasion to motivate and unite people in the attainment of organizational goals

Question 12

Controlling

Answer 12

the process of monitoring the progress and correcting the deficiencies of the organization as it moves towards the fulfillment of its goals

Question 13

Value

Answer 13

The spread between what sell something for, and what the customer values it at.

Question 14

Margin

Answer 14

The spread between what it costs us to make something and what we can sell it for

Question 15

Competitive Advantage

Answer 15

what sets an organization apart from the competition

Question 16

Differentiation Strategy

Answer 16

A strategy in which an organization sets its products or services apart by offering something new or different

Question 17

Cost leadership

Answer 17

Being able to offer lower prices than other companies

Question 18

Niche/focus

Answer 18

where a firm focuses on a subset of a larger industry or a particular customer base of a larger industry

Question 19

Skills managers need

Answer 19

Conceptual Skills
Human Skills
Technical Skills
other: Ethnical Skills!

Question 20

Conceptual Skills

Answer 20

the ability of a manager to see the organization as a whole and how each of the functions of the organization works in concert to achieve organizational goals

Question 21

Human Skills

Answer 21

skills that allow us to relate to other people

Question 22

Technical Skills

Answer 22

skills required to perform a specific task, such as those that are responsible for equipment on an assembly line, manufacturing processes, accounting, engineering, etc.

Question 23

Mintzberg’s Three types of managerial roles:

Answer 23

1) Interpersonal Role
2) Informational Role
3) Decisional Role

Question 24

Sub roles of interpersonal role

Answer 24

1) Figurehead sub-role

2) Leader sub-role

Question 25

Interpersonal Role

Answer 25

Managers must interact with individuals both inside and outside the organization

Question 26

Figurehead sub-role

Answer 26

a manager is the official representative of the organization or department – giving awards, hosting parties, signing documents

Question 27

Leader sub-role

Answer 27

includes communicating, training, motivating, and re-directing constituents

Question 28

Informational Role

Answer 28

Mintzberg felt this was the most important as accurate information is essential for good decision-making.

Question 29

Sub roles of Informational Role

Answer 29

Monitor sub-role
Disseminator Sub-role
Spokesperson sub-role

Question 30

Monitor sub-role

Answer 30

involves gathering of information from a variety of sources about anything that affects the company including competition, technology changes, market changes, and new products and services.

Question 31

Disseminator sub-role

Answer 31

forwards pertinent information to others, primarily within the organization, including his subordinates

Question 32

Spokesperson sub-role

Answer 32

responsible for transmitting information to people outside of the organization.

Question 33

Sub-roles of decision role

Answer 33

Entrepreneur sub-role
Disturbance handler sub-role
Negotiator sub-role

Question 34

Decision role

Answer 34

must be an entrepreneur, disturbance handler, resource allocator, and negotiator

Question 35

Entrepreneur sub-role

Answer 35

be an agent for change and innovation

Question 36

Disturbance handler sub-role

Answer 36

must fix problems between individuals or departments

Question 37

Negotiator sub-role

Answer 37

is the formal representative of the organization with primarily those outside the organization such as a vendor.

Question 38

Organizational skills

Answer 38

the ability to multitask, to shift focus from one task to another to another in rapid succession, to prioritize those tasks and follow up on the most important first

Question 39

Span of management

Answer 39

the number of subordinates that report to a supervisor.

Question 40

Outsourcing

Answer 40

Also known as offshoring - the assignment of labor or production to an external organization (including international), usually with the intent to save money