MGT 3200 Test 1 Flashcards
what is management
the process of achieving desired results through the efficient use of human and material resources and through the utilization of effectiveness and efficiency
what are the 2 key concerns of management
effectiveness and efficiency
what is effectiveness concerned with
doing the right thing at the right time in the right way; goal attainment
what is efficiency concerned with
reducing waste or minimizing rescue costs since many resources are scarce
how are effectiveness and efficiency related
effective companies tend to be efficient; the more concerned a company is with efficiency the harder it is the be effective
what is your most important resource as a manager
human resources
is management an art or a science
both
when is mgt considered a science
academic discipline
when is mgt considered an art
practical
how did mgt become important and why is it still significant today
industrial revolution changed how work was performed; dividing up labor causes a need for managers; owners used to do all the managing
what was the basic change in the industrial revolution
from skilled craftsmen to use of machinery and division of labor; skilled labor decreased
what happened to productivity (supply), prices, and demand as a result of the industrial revolution?
production increased, prices decreased, demand increased
what was the pivotal event of our time, according to Drucker
the switch from owner/manager to professional manager
why do most businesses fail?
poor management
what does a first line manager do? what are the names associated with them
ensures the plans developed by top managers and middle managers are implemented by laborers with minimum costs; foreman supervisor
what does a middle manager do? what names are associated with them
taking the plans from top level management and put them into action for 1st line management; INTEGRATE AND INTERPRET; plant manager, department head
what does a top manager do? what are the names associated with them
plan and legitimize for the whole organization; CEO, CFO etc
what is corporate downsizing and what level of management is affected?
cutting costs by reducing people, efficiency oriented; often done by eliminating middle management levels
what is the difference between a line manager and a staff manager
line have power over production and they exist at all levels of management; staff gives support and guidance, often middle managers
what is the difference between functional and general managers?
functional specializes 1 area, usually 1st line managers; general manages many areas, jack of all trades, increases as you go up the pyramid
what is the difference between an administrator and a manager
administrator is non profit companies; manager is
what are the 5 functions of management
planning, organizing, staffing, leading, controlling
what is planning
setting goals and steps necessary to get there
what is organizing
dividing up work and making sure they work together
what is staffing
recruiting and selecting employees
what is leading
motivate, communicate, resolve conflicts
what is controlling
giving and getting feedback
what does planning has primacy mean
first thing you must do; gives directions to all of the other functions
what are the 3 aspects of controlling?
monitor performance, compare actual results with hoped for results for feedback on performance, taking corrective action if actual performance is less than hoped for
what are the siamese twins of management
planning and controlling
what are the most important function for each level of management
1st- staffing and leading
middle-organizing
top- planning
what are the 3 managerial roles mintzberg identified
interpersonal, informational, decisional
what is interpersonal
to develop and maintain positive relationships with others
what is informational
receive information and then analyze it
what is decisional
using information to solve problems or to take advantage of opportunities
what gives rise to the 3 managerial roles according to mintzberg
a managers authority gives rise to status
what are the 3 managerial skills identified by katz
technical, human, conceptual
what is technical
knowledge; most important 1st line
what is human
ability to work well with others; important at all levels
what is conceptual
ability to problem solve; important at top management
what skills are the most difficult to develop and why
conceptual because you need to be smart, have experience, and it takes time to develop this skill
according to luthans, are effective managers successful managers in general?
NO; effective managers were not usually promoted rapidly through the organization; the ones that networked were the ones that moved up
what % of effective managers are successful?
10%
what activity do effective managers spend the majority of their time on?
manage down; communication
what activity do successful managers spend the majority of their time on
networking; not what you know but who you know
what are the 3 basic characteristics of an open system
input, transformation, output
what is input
raw material from suppliers
what is transformation
production of goods
what is output
finished goods and services
what is the cyclonical nature of the transformation process?
customers and suppliers are most important
what is negative entropy
trying to prevent the company from dying
what is buffering the technical core
stability in production
what is role differentiation and specialization
as open systems grow and develop, organizations need more specialized departments
what is synergy
teamwork
what is equifinality
many roads lead to success
what are the 5 subsystems of an organization
production, boundary-spanning, adaptive, maintenance, managerial
what is production
transform raw materials to goods and services
what is boundary-spanning
buying from suppliers and selling to customers
what is adaptive
research and development
what is maintenance
smooth operation and upkeep of organization
what is managerial
top and middle management; plans and legitimize is top, middle organizes
what are the 2 major dependencies in the external environment and what is their threat
customer and suppliers; competition
how do customers influence organizations
can cut into your profitability, can demand lower prices/better quality
how do organizations influence customers
by advertising and creating “the need”
how much more does it cost to find a new customer than to keep and old one according to total quality management estimates
5x
what are the 3 ways to establish and maintain a positive relationship with suppliers
vertical integration (buy the supplier), long term contracts, reducing the number of suppliers
what is the law of the marketplace
organizations that cant compete will be forced to change their product line or will die out
what are the 5 forces of competition
rivalry among organizations, threat of new entrants, threat of substitutes, power of customers, power of suppliers
what is rivalry among organizations
greatest at mature, low growth
what is threat of new entrants
new entrants steal market share and drive prices down; higher the market threat, higher the competition
what is threat of substitutes
can affect what prices you can charge and due to technological innovation, can make older products obsolete
what is power of customer
powerful customers can cut into profitability, customers who make large purchases can drive down prices
what is power of suppliers
can raise prices or reduce quality of good
what are the barriers to entry in the industry
government regulations, capital requirements, high start up costs, brand loyalty to established companies, cost advantages to existing customers who buy in large quantities, distribution channels tied up and hard to break in
what happens when a new entrant comes into the marketplace/industry
increase competition, increase product supply, prices lower, and they seek market share
what determines if a supplier is powerful
if there a few places to buy or if they have too many customers
what determines if customers are powerful
if they make large purchases or if they can easily find alternative places to buy
how do powerful suppliers and customers influence organizations
they can either drive prices up or down and can cut into the organizations profitability; you don’t want to depend on them
how do substitutes affect an industry
increase competition, increase power of the customer and can make products obsolete, technological innovations
what is a product innovation and its focus
an innovation dealing with a product, good, or service; effective
what is process innovation and its focus
advancement made in technological aspect; efficient
what are the general effects of technology on an industry
increases competition, promotes product obsolescence, you have to change your product line to meet new changes in technology or rick dying out
how does the economy influence an organization
indirectly by expanding economy which raises demand and vice versa; facilitates the establishment of new enterprises; always unpredictable; managers prefer stable economic conditions with moderate, steady growth bc violent changes in economic conditions can restrict business investment and growth
what are the 4 ways government influences organizations
regulations (improve quality of life), taxation/subsidies (encourage/discourage business), direct competition, economic policy (affect ability to thrive and prosper)
what is the shadow bureaucracy
for every department in an organization theres a federal agency governing it making sure you are following regulations
what are the 3 ways organizations influence governments
lobbying, direct political action, illegal activity
what is a PAC
political action committee formed by employees and stockholders to lobby government
what are the PAC limits
direct contributions of 5K, but they can give soft money (indirect contribution)
how does society influence business
through changed in social opinions
how does business influence society
through charity and philanthropy as well as trying to legitimize their business to society
how does the international component of the environment influence organizations
it is both a threat and an opportunity
what is environmental scanning and how is it related to planning and organizational performance
monitor changes and trends in the environment; allows you to decide what goods or services to emphasize and which markets to explore and technologies to exploit
what are the 3 purposes of planning
fundamental, defensive, offensive,
what is fundamental
establish and help achieve organizational objectives
what is defensive
offset future uncertainties by reducing the risk surrounding organizational operations
what is offensive
affirmative seeking out and taking advantage of opportunities to increase organizational success
what is planning important
organizational success, sense of unity and devotion, coping with change, performance standards, managerial development
why do managers resist planning
hard work and they are afraid of failure, resists bc not rewarded by the organization, lack of immediate feedback, involves change, goes against the doer mentality
what is greshams law of planning
even when managers have the best intentions of planning, they end up neglecting it bc they end up dealing with more recent problems; wrong priorities
what does the non planner typically blame for their poor performance
bad luck
what are the 5 phases of the planning process
establishing objectives, developing premises, decision making, implementing a course of action, evaluating results
what is establishing objectives
what do you want to do
what is developing premises
what factors are going to affect goal attainment
what is decision making
select the best course of action to accomplish objectives
what is implementing a course of action
assign and direct personnel to carry out the plan
what us evaluating results
compare actual results with hoped for results
what provides the basis for phase 1: establishing objectives
your environmental scans; avoid threats and exploit opportunities
what are SMART goals
S-specific M-measurable for feedback A- achievable, yet challenging R-revevant(important) T-trackable
what is contingency planning
developing multiple future scenarios and the plans to accommodate each scenario using a what if
what is the benefit and drawback of contingency planning
benefit is it allows you to act rather than react; drawback is it requires more time and resources than normal planning
what are the keys to effective implementation of a plan
tied to the budgetary system, make sure you have the resources to carry it out; a clearly communicative plan; motivate employees
what function of management is phase 5: evaluation results
monitor performance; actual vs hoped for results
what is the basic dilemma in planning
commitment increases, but willingness to plan and flexibility decreases
what are the different failures to avoid in planning
top down delegation is not good, not supportive environment, plans are too rigid and complex, failure to manage your plan, unrealistic expectations, getting bogged down in the details of planning
what is the crystal ball syndrome
believing that planning is solely about predicting the future; neglects implementations and evaluation
what is the cure all syndrome
planning should cure all problems (wrong)
what is the persian messenger syndrome
kill the messenger; neglects evaluating results bc no feedback, when you punish the person who brings the bad news; instead you should reward this person for their fair evaluation bc it helps keep the plan in line
what is the focus of strategic planning
establish and maintain a positive long term relationship with the external environment
what are the 4 components of a well thought out strategy
scope, resource development, distinctive competence, synergy
what is scope
decide where the organization is going to complete; which range of markets do you want to do business in
what is resource development
how to spend your resources to achieve the goals
what is distinctive competence
competitive advantage; sets you apart from the competition
what is synergy
different aspects of the company compliment each other
what is corporate strategy
what businesses you want to own; one strategy
what is business level strategy
how you plan on competing with each business; multiple strategies
what are the 4 elements of strategy formulation
analysis of the mission statement, analysis of the internal environment, analysis of the external environment, analysis of the corporate culture/managerial value system
what are the benefits of the mission statement
provide a target for your strategic plans, source of motivation for your employees, legitimacy to the organization
what is a SWOT analysis
strengths, weaknesses, opportunities, and threats; combination of internal and external analysis
what is the goal of the business portfolio matrix approach
own that mix of businesses that will maximize market share and profitability
what levels of strategy does the business portfolio matrix approach deal with
corporate and business level
how are sbus classified in the business portfolio matrix approach
based on market shares and market growth, will determine how we deal with them; sbu= businesses we own
what business strategy is used for a cash cow
hi market share and low growth; make huge profits; invest minimum amount needed to keep market share
what business strategy is used for star
hi market share, low growth; invest all your money to grow market share before it matures
what business strategy is used for dog
low market share and low growth; keep them if they’re profitable, but as soon as they start to loose money get rid of them
what business strategy is used in new venture
low market share and high growth, if you think it could become a star, invest heavily; if not, get rid of it
what are the 3 generic strategies identified by porter
differentiation, cost leadership, focus
what is differentiation
make an image that your product is different than all others so you can demand a high price
what is cost leadership
increase sales by minimizing the cost per unit and your prices
what is focus
concentrate your efforts on a specific audience
what is the basic idea behind the adaption model of strategy
strategy must be aligned with its environment for it to be effective
what is a defender
demand products not growing; cash cows, stable environment, effective production; lots of rules and regulations
what is a prospector
demand growing, expansion; new venture or star, develop, innovate; few rules and regulations; creativity
what is an analyzer
environment moderately changing
what is a reactor
worst strategy; reacts to environment; no set strategy, no set production process or organization designs; inefficient
how does each strategy type in the adaption model answer the entrepreneurial engineering and administrating questions
.
how are the strategies in the business portfolio matrix approach and the adaption model of strategy related to one another
defender-cash cow
prospector- new venture and star
analyzer- cash cow, new venture, and star
reactor- dog, not all dogs are reactors
what does the article, when competitive advantage is neither, say about competitive benchmarking as a strategy
focusing so much on beating the competition can cause you to lose customers
what does the article, avoid pricing yourself shot, say about competing on price as a strategy for attracting customers
try and develop a better relationship with your customer and when you just have cheap prices your product is no longer valued; impossible to compete on quality, service and price, chose 2/3
