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Management Final Study Flashcards

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German Verbs flashcards
1
Q

Management (definition)

A

the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

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2
Q

Controlling (definition)

A

process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals

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3
Q

Good control systems should…

A

-Be flexible so managers can respond as needed
-Provide accurate information about the organization
-Provide information in a timely manner

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4
Q

3 Types of Control

A

Input Stage
Conversion Stage
Output Stage

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5
Q

Input stage (definition)

A

feedforward control (anticipate problems before they occur)

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6
Q

Conversion stage (definition)

A

concurrent control (manage problems as they occur)

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7
Q

Output Stage (definition)

A

feedback control (manage problems after they have arisen)

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8
Q

Step 1 in Organizational Control

A

Establish the standards of performance, goals, or targets against which performance is to be evaluated

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9
Q

Step 2 in Organizational Control

A

Measure actual performance

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10
Q

Step 3 in Organizational Control

A

Compare actual performance against chosen standards

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11
Q

Step 4 in Organizational Control

A

Evaluate the result and initiate corrective action if the goal is not being achieved

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12
Q
  • Must be consistent with your strategy
A

Step 1 In Organizational control

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13
Q
  • Managers can measure outputs resulting from worker behavior or they can measure the behavior themselves
A

Step 2 in organizational control

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14
Q
  • Productivity reports, profit/loss statements, sales reports, etc
A

Step 2 in organizational control

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15
Q
  • Decide if performance actually deviates
A

Step 3 in organizational control

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16
Q
  • Often, several problems combine creating low performance
A

Step 3 in organizational control

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17
Q
  • Often beneficial to find out why you succeeded as well
A

Step 3 in organizational control

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18
Q
  • Derived from strategic plans
A

Step 1 In Organizational control

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19
Q
  • Standards may be set too high or too low
A

Step 4 in organizational control

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20
Q

3 Organizational Control Systems

A

Output Control
Behavior Control
Organizational Culture/Clan Control

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21
Q

Output Control: (definition)

A

financial measures of performance, organizational goals, operating budgets

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22
Q

Behavior Control: (definition)

A

direct supervision, management by objectives, rules and standard operating procedures

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23
Q

Organizational Culture/Clan Control: (definition)

A

values, norms, socialization

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24
Q

4 Financial Measures of Performance

A

Profit Ratios
Liquidity Ratios
Leverage Ratios
Activity Ratios

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25
Q

What are the 2 Profit Ratios?

A

Return on investment
Gross profit margin (Operating margin)

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26
Q

Return on Investment (formula)

A

= net profit before taxes / total assets

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27
Q

Gross profit margin (formula)

A

= sales revenue - COGS / sales revenue

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28
Q

Profit Ratios: (definition)

A

measures how efficiently managers convert resources into profits

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29
Q

What “measures how well managers are using the organization’s resources to generate profits”?

A

Return on Investment

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30
Q

What “measures how much percentage of profit a company is earning on sales; the higher the percentage, the better a company is using its resources to make and sell products”?

A

Gross Profit Margin (Operating Margin)

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31
Q

What are the 2 Liquidity Ratios?

A

Current Ratio
Quick Ratio

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32
Q

Liquidity Ratios: (definition)

A

measures how well managers protect resources to meet short-term debt

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33
Q

Current Ratio (formula)

A

= current assets / current liabilities

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34
Q

Quick Ratio (formula)

A

= current assets - inventory / current liabilities

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35
Q

What “measures the availability of resources to meet claims of short-term creditors”?

A

Current Ratio

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36
Q

What “measures the ability to pay off claims of short-term creditors without selling inventory”?

A

Quick Ratio

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37
Q

Leverage Ratios: (definition)

A

measures how much debt or equity is used to finance operations

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38
Q

What are the 2 Leverage Ratios?

A

Debt-to-asset Ratio
Times-Covered Ratio

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39
Q

Debt-to-asset Ratio (formula)

A

= total debt / total assets

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40
Q

Times-Covered Ratio (formula)

A

= profit before interest and taxes / total interest charges

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41
Q

What “measures the extent to which managers have used borrowed funds to finance investments”?

A

Debt-to-asset Ratio

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42
Q

What “measures how far profits can decline before managers cannot meet interest charges. If this ratio declines to less than 1, the organization is technically insolvent”?

A

Times-Covered Ratio

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43
Q

What are the 2 Activity Ratios?

A

Inventory Turnover
Days Sales Outstanding

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44
Q

Activity Ratios: (definition)

A

measures how efficiently managers are creating value from assets

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45
Q

Inventory Turnover (formula)

A

= COGS / inventory

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46
Q

Days Sales Outstanding (formula)

A

= current AR / sales for period divided by days in period

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47
Q

What “measures how effectively managers are turning over inventory so that excess inventory is not carried”?

A

Inventory Turnover

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48
Q

What “measure how efficiently managers are collecting revenues from customers to pay expenses”?

A

Day sales outstanding

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49
Q

Organizational Goals…

A

should be specific, difficult, but not impossible

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50
Q

S.M.A.R.T Goals

A

Specific, Measurable, Attainable, Relevant, Timely

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51
Q

Operating Budgets (definition)

A

A blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effectively and efficiently

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52
Q

Problems with Output Control

A

Managers must create output standards that motivate at all levels

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53
Q

Each division is evaluated on its own budgets for cost, revenue, or profit

A

Operating Budgets

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54
Q

Considerations for Output Control

A

-Within the boundaries of biblical ethics
-managing people, not numbers
-cutting can hurt operations

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55
Q

Managers who…

A
  • Actively monitor and observe the behavior of their subordinates
  • Teach subordinates the behaviors that are appropriate and inappropriate
  • Intervene to take corrective action as needed
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56
Q

Management by Objectives (MBO): (definition)

A

a goal-setting process in which managers and subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate their attainment of those goals

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57
Q

Bureaucratic Control: (definition)

A

control through a system of rules and standard operating procedures that shapes the behavior of divisions, functions, and individuals

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58
Q

Problems with Bureaucratic Control

A
  • rules are easier to make than discard
    (slows organizational reaction time)
  • Firms lose flexibility, new ideas, and ability to solve new problems
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59
Q

Organizational Culture: (definition)

A

the shared set of beliefs, expectations, values, norms, and work routines that influence how members of an organization interact with one another and work together to achieve organizational goals

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60
Q

Clan Control: (definition)

A

control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations

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61
Q

Organization Change: (definition)

A

movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness

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62
Q

4 Steps in the Organizational Change Process

A
  1. Assess the need for change
  2. Decide on the change to make
  3. Implement the change
  4. Evaluate the change
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63
Q

Benchmarking: (definition)

A

process of comparing one company’s performance on specific dimensions with the performance of other high-performance organizations

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64
Q

Motivation: (defintion)

A

Psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence

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65
Q

Direction: (definition)

A

possible behaviors the individual could engage in

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66
Q

Effort: (definition)

A

how hard the individual will work

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67
Q

Persistence: (definition)

A

whether the individual will keep trying or give up

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68
Q

Motivational Factors

A

Feeling “in” on things, good working conditions, good wages, job security, promotion/growth opportunities, interesting work, personal loyalty to workers, sympathetic help with personal problems, tactful discipline, full appreciation for work done

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69
Q

Extrinsically Motivated Behavior

A

Behavior that is performed to acquire material or social rewards or to avoid punishment

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70
Q

Intrinsically Motivated Behavior

A

Behavior the tis reformed for its own sake

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71
Q

Outcome

A

Anything a person gets from a job or an organization
Pay, job security, autonomy, accomplishment

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72
Q

Input

A

Anything a person contributes to his or her job or organization
Time, effort, skills, knowledge, work behaviors

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73
Q

Expectancy Theory: motivation will be high when workers believe that…

A

High levels of effort will lead to high performance
High performance will lead to the attainment of desired outcomes

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74
Q

Effort (expectancy):

A

a person’s perception about the extent to which his or her effort will result in a certain level of performance

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75
Q

Performance (instrumentality):

A

a person’s perception about the extent to which performance at a certain level will result in the attainment of outcomes

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76
Q

Outcomes (valence):

A

how desirable each of the outcomes available from a job or organization is to a person

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77
Q

Need Theories

A

Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs

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78
Q

Basic premise is that people are motivated to…

A

obtain outcomes at work to satisfy their needs

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79
Q

Maslow’s Hierarchy of Needs (High to Low)

A

Self-Actualization Needs
Esteem needs
Belongingness Needs
Safety Needs
Physiological Needs

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80
Q

Herzberg’s Motivation-Hygiene Theory:

A

focuses on outcomes that lead to higher motivation and job satisfaction and those outcomes that can prevent dissatisfaction

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81
Q

Motivator needs relate to the nature of the work itself and how challenging it is…

A

These needs motivate workers to greater performance

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82
Q

Hygiene needs are related to the physical and psychological context in which the work is performed…

A

These needs do not motivate to better performance, but their absence demotivates

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83
Q

Mclellan’s Need for Achievement:

A

a strong desire to perform challenging tasks well and meet personal standards for excellence

84
Q

Mclellan’s Need for Affiliation:

A

extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other

85
Q

Mclellan’s Need for Power:

A

extent to which an individual desires to control or influence others

86
Q

Equity Theory:

A

focuses on people’s perceptions of the fairness of their work outcomes in proportion to their work inputs

87
Q

Equity:

A

justice, impartiality, and fairness to which all organizational members are entitled

88
Q

Inequity:

A

lack of fairness

89
Q

Restoring Equity

A
  • In underpayment, workers may reduce input levels to correct the ratio or seek a raise
  • In overpayment, workers may change the referent person and readjust their ratio perception
  • If inequity persists, workers will often choose to leave the organization
90
Q

Goal Setting Theory:

A

focuses on identifying the types of goals that are effective in producing high levels of motivation and explaining why goals have these effects

91
Q

Learning Theories:

A

theories that focus on increasing employee motivation and performance by linking outcomes that employees receive to the performance of desired behaviors and the attainment of skills

92
Q

Learning:

A

a relatively permanent change in a person’s knowledge or behavior that results from practice or experience

93
Q

Operant Conditioning:

A

people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences

94
Q

Positive Reinforcement:

A

giving people outcomes they desire when they perform organizationally functional behaviors

95
Q

Negative Reinforcement:

A

eliminating undesired outcomes when people perform organizationally functional behaviors

96
Q

Extinction:

A

curtailing the performance of dysfunctional behavior by eliminating whatever is reinforcing them

97
Q

Punishment:

A

administering an undesired or negative consequence when dysfunctional behavior occurs

98
Q

Social Learning Theory:

A

a theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior

99
Q

Vicarious Learning (Observational Learning):

A

learning that occurs when a learner is motivated to perform a behavior by watching another person perform and be reinforced for doing so

100
Q

Merit Pay Plan:

A

a compensation plan that bases pay on based on individual, group, and/or organization performance

101
Q

Piece-Rate Pay:

A

employee’s pay is based on the number of units that the employee produces

102
Q

Commission Pay:

A

employee’s pay is based on a percentage of sales that the employee makes

103
Q

Scanlon Plan:

A

focuses on reducing expenses or cutting costs

104
Q

Profit Sharing:

A

employees receive a share of an organization’s profits

105
Q

Employee Stock Option:

A

a financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions

106
Q

Leadership:

A

the process by which a person exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals

107
Q

Biblical examples of Leadership:

A

(Nehemiah 4:6) (1 Samual 17:29)

108
Q

John C. Maxwell -

A

“Everything rises and falls on leadership.”

109
Q

Leader:

A

an individual who is able to exert influence over other people to help achieve group or organizational goals

110
Q

Personal Leadership Style:

A

-The specific ways in which a manager chooses to influence others shape the way that manager approaches the other tasks of management
-The challenge is for managers at all levels to develop an effective personal management style

111
Q

Leadership styles may vary among different countries or cultures:

A

European managers tend to be more people-oriented than American or Japanese managers
Japanese managers are group-oriented, while US managers focus more on profitability
Time horizons are also affected by cultures

112
Q

Sources of Managerial Power

A

Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
Empowerment

113
Q

Legitimate Power:

A

the authority that a manager has by virtue of his or her position in an organizational hierarchy

114
Q

Reward Power:

A

the ability of a manager to give or withhold tangible and intangible rewards

115
Q

Coercive Power:

A

the ability of a manager to punish others

116
Q

Expert Power:

A

power that is based on special knowledge, skills, and expertise that a leader possesses

117
Q

Referent Power:

A

power that comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration (David illustration)

118
Q

Empowerment:

A

the process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes

119
Q

Increases a manager’s ability to get things done

A

Empowerment

120
Q

Increases workers’ involvement, motivation, and commitment

A

Empowerment

121
Q

Gives managers more time to concentrate on their pressing concerns

A

Empowerment

122
Q

Activity Classification

A

Important
Urgent

123
Q

Important:

A

an activity it important if you personally find it valuable, and if it contributes to your mission, values, and high-priority goals

124
Q

Urgent:

A

an activity is urgent if you or others feel that it requires immediate attention

125
Q

Leadership Models

A

Trait Model
Behavioral Model
Contingency Models

126
Q

Trait Model

A

Focused on identifying personal characteristics that cause effective leadership
Many “traits” are the result of skills and knowledge, and effective leaders do not necessarily possess all of these traits

127
Q

Behavioral Model:

A

identifies the two basic types of behavior that many leaders engage in to influence their subordinates

128
Q

Consideration:

A

behavior indicating that a manager trusts, respects, and cares about subordinates

129
Q

Initiating Structure:

A

behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective

130
Q

Contingency Models:

A

whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place

131
Q

Personal characteristics can influence leader effectiveness

A

Fiedler’s Model

132
Q

Leader style is the manager’s characteristic approach to leadership

A

Fiedler’s Model

133
Q

Situation Characteristics

A

-How favorable a situation is for leading to occur
-Leader-member relations–determines how much workers like and trust their leader

134
Q

Task Structure:

A

the extent to which workers’ tasks are clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it

135
Q

Position Power

A

The amount of legitimate, reward, and coercive power leaders have by virtue of their position
When positional power is strong, leadership opportunities become more favorable

136
Q

Relationship-Oriented Style:

A

leaders are concerned with developing good relations with their subordinates and to be liked by them

137
Q

Task-Oriented Style:

A

leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment

138
Q

A contingency model of leadership proposing that effective leaders can motivate subordinates by…

A

Clearly identifying the outcomes workers are trying to obtain from their jobs
Rewarding workers for high performance and goal attainment with outcomes they desire
Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability

139
Q

House’s Path-Goal Theory

A

A contingency model of leadership proposing that effective leaders can motivate subordinates by…

140
Q

Directive Behaviors:

A

set goals, assign tasks, show how to do things

141
Q

Supportive Behavior:

A

look out for the workers’ best interest

142
Q

Participative Behavior:

A

give subordinates a say in matters that affect them

143
Q

Achievement-Oriented Behavior:

A

setting very challenging goals believing in workers’s abilities

144
Q

Leadership Substitute Model

A

A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and marks leadership unnecessary

145
Q

Possible substitutes can be found in…

A

-Characteristics of the subordinates: their skills, experience, motivation
-Characteristics of context: the extent to which work is interesting and fun

146
Q

Leadership that…

A

Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker
Makes subordinates aware of their own needs for personal growth and development
Motivates workers to work for the good of the organization, not just themselves

147
Q

Charismatic Leader

A

An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be

148
Q

Daniel Burnham

A

“Make no little plans; they have no magic to stir men’s blood.”

149
Q

Transactional Leader:

A

leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance

150
Q

The Moods of Leaders

A

-Groups whose leaders experienced positive moods had better coordination
-Groups whose leaders experienced negative moods exerted more effort

151
Q

Emotional Intelligence

A

Helps leaders develop a vision for their firm
Helps motivate subordinates to commit to the vision
Energizes subordinates to work to achieve the vision

152
Q

Servant Leaders (biblical application)

A

(Matt. 20:20-28(Jesus))

153
Q

Servant Leaders

A

Leader who has a strong desire to serve and work for the benefit of others
Shares power with followers
Strives to ensure that followers’ most important needs are met

154
Q

Group

A

Two or more people who interact with each other to accomplish certain goals or meet certain needs

155
Q

Team

A

A group whose members work intensely with each other to achieve a specific, common goal or objective

156
Q

Two characteristics that distinguish teams from groups

A

intensity with which team members work together
presence of specific overriding team goal or objective
(Luke 10:1)

157
Q

Groups and teams can help an organization gain a competitive advantage because they can…

A

-Enhance its performance
-Increase its responsiveness to customers
-Increase innovation
-Increase employees’ motivation and satisfaction

158
Q

Synergy:

A

performance gains that result when individuals and departments coordinate their actions

159
Q

Performance Enhancement:

A

making use of the synergy from employees in a group producing more or better output than employees working separately

160
Q

Factors that contribute to synergy

A

-Ability to bounce ideas off one another
-Correct each other’s errors
-Bring more new ideas to bear on problems
-Accomplish projects beyond the scope of individuals

161
Q

5 Dysfunctions of a Team

A

-Absence of trust
-Fear of conflict
-Lack of commitment
-Avoidance of accountability
-Inattention to results

162
Q

Absence of Trust:

A

the fear of being vulnerable with team members prevents the building of trust within the team

163
Q

Fear of Conflict:

A

the desire to preserve artificial harmony stifles the occurrence of productive ideological conflict

164
Q

Lack of Commitment:

A

the lack of charity or buy-in prevents team members from making decisions they will stick to

165
Q

Avoidance of Accountability:

A

the need to avoid interpersonal discomfort prevents team members from holding one another accountable

166
Q

Inattention to Results:

A

the pursuit of individual goals and personal status erodes the focus on collective success

167
Q

Individuals rarely possess the wide variety of skills needed for successful innovation

A

Teams and Innovation

168
Q

Team members can uncover each other’s flaws and balance each other’s strengths and weaknesses

A

Teams and Innovation

169
Q

One team member’s ideas can be a catalyst for others’ ideas

A

Teams and Innovation

170
Q

Team members are more motivated and satisfied than if they were working alone

A

Teams and Innovation

171
Q

Team members can see the effect of their contribution to achieving team and organizational goals

A

Teams and Innovation

172
Q

Teams provide needed social interaction and help employees cope with work-related stressers

A

Teams and Innovation

173
Q

The Types of Groups and Teams

A

Formal Group
Informal Group
Top-Management Team
Research and Development Team
Command Groups
Task Forces
Self-Managed Work Team

174
Q

Formal Group:

A

a group that managers establish to achieve organizational goals

175
Q

Informal Group:

A

a group that managers or non-managerial employees form to help achieve their own goals or to meet their own needs

176
Q

Top-Management Team:

A

a group composed of the CEO, the president, and the heads of the most important departments

177
Q

Research and Development Team:

A

a team whose members have the expertise and experience needed to develop new products

178
Q

Command Groups:

A

subordinates who report to the same supervisor, also called a department or unit

179
Q

Task Forces:

A

a committee of managers or non-managerial employees from various departments or divisions who meet to solve a specific, mutual problem; also called an “ad hoc” committee

180
Q

Self-Managed Work Team:

A

a group of employees who supervise their own activities and monitor the quality of the goods and services they provide

181
Q

Keys to Effective Self-Managed Teams

A

-Give the team enough responsibility and autonomy to be self-managing
-The team’s tasks should be complex enough to include many different steps
-Select members carefully for their diversity, skills, and enthusiasm
-Managers should guide and coach, not supervise
-Determine training needs and be sure it is provided

182
Q

Virtual Team

A

-A team whose members rarely meet face-to-face
-Interact using email, computer networks, telephone, fax, and videoconferences
-Reduces travel expenses; increase global coordination

183
Q

Friendship Groups:

A

an informal group composed of employees who enjoy one another’s company and socialize with one another

184
Q

Interest Groups:

A

an informal group of employees seeking to achieve a common goal related to their membership in an organization

185
Q

Group Dynamics

A

The characteristics and processes that affect how a group or team functions

186
Q

Group size affects how a group performs

A

-Normally, small groups (2 to 9 members) interact better and tend to be more motivated
-Larger groups can be used when more resources are needed and division of labor is possible

187
Q

The Stages of Group Development

A

-Forming
-Storming
-Norming
-Performing
-Adjourning

188
Q

Forming:

A

group members get to know each other and reach common goals

189
Q

Storming:

A

group members disagree on direction and leadership. Managers need to be sure the conflict stays focused

190
Q

Norming

A

close ties and consensus begin to develop between group members

191
Q

Performing:

A

the group begins to do its real work and group dynamics create a high level of productivity

192
Q

Adjourning:

A

usually for task forces that are temporary; sometimes for major transitions; can be formal or informal

193
Q

Group Norms

A

-Shared guidelines or rules for behavior that most group members follow
-Developed during the norming stage
-May be formal or informal

194
Q

Conformity and Deviation

A

members conform to norms or obtain rewards, imitate respected members, and because they feel the behavior is right

195
Q

Moderate conformity/moderate deviance

A

= high performance

196
Q

Low conformity/high deviance and high conformity/low deviance

A

= low performance

197
Q

High group cohesiveness may result in three major consequences

A

-Higher level of participation
-Willingness to conform to group norms
-Stronger emphasis on group goal accomplishment

198
Q

Group Size:

A

smaller groups allow for high cohesiveness; low cohesiveness groups with many members can benefit from splitting into two groups

199
Q

Effectively Managed Diversity:

A

diverse groups often come up with better solutions

200
Q

Group Identity:

A

encouraging a group to adopt a unique identity and engage in competition with others can increase cohesiveness

201
Q

Cohesiveness increases with success;

A

finding ways for a group to have some small successes increases cohesiveness

202
Q

Factors Leading to Group Cohesiveness

A

Group Size
Effectively Managed Diversity
Group Identity

203
Q

Motivating group members to achieve organizational goals

A

-Members should benefit when the group performs well–rewards can be monetary or in other forms such as special recognition
-Individual compensation is a combination of both individual and group performance

204
Q

Social Loafing

A

-the human tendency to put forth less effort in a group than when they work alone
-More dedicated employees assume the extra load
-Resentment of loafers reduces group cohesiveness

205
Q

Factors that Reduce Social Loafing

A

-Making individual contributions to a group identifiable when possible
-Emphasizing the valuable contributions of individual members
-Keeping group size at an appropriate level

206
Q
A

German (12 decks)

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