Midterm prep Flashcards
Lesson 6-
What is Ethics?
They are principles, values, and beliefs that define what if right and wrong behavior.
What are public goods?
any product or service that is available to all residents of a society,
Governments provide public goods and what do citizens provide back?
Taxes and Payments
how can ethical behavior be supported?
-by learning individuals level of moral development, personal values,
- a formal statement of an organizations values in the ethical rules. It expects its employees to follow
-leadership those who upload the shared values and set the cultural tone,
- job goals, and performance, appraisal,
-ethics training to increase awareness of ethical issues in businesses,
-social, audits to evaluate decisions and management practices in terms of the approved code of ethics
What are the external factors that cause organizations face to change?
-changing consumer needs and wants
-New governmental laws
-changing technology
-Economic changes
What are the internal factors that cause organizations face to change?
-new business strategy
-changing composition of workforce
-new equipment
-change employee attitude
What is the calm Waters metaphor?
The calm waters metaphor represents intermittent disruptions that can be easily regulated.
There are three stages of change process created by Curt Lowens:
These three stages are equilibrium, unfreeze change, and freeze
What does the white water Rapids metaphor mean?
The metaphor of white-water rapids for change is much more powerful. It means that the process of change will be rough and need to be adjusted quickly.
What do managers change?
-They change strategy: by modifying approach to ensuring the organization success
-Structure: structural components and design
-Technology work process methods equipment
-people, attitudes, expectations, perceptions, and behavior
What is organizational change?
It is seen as an altercation of people, structure or technology in an organization
Who is more resistant to organizational change?
-Change replaces the known with uncertainty
-people rely on habits on programmed responses
-fear of losing something already possessed
-Believe that the changes incompatible with the goals in interest of the organization
What are the tools used to reduce resistance to organizational change?
-this is education
-Communication
-participation
-facilitation and support
-negotiation
-manipulation in co-optation( to make someone a member through the choice of the present members)
-Coercion(the practice of persuading someone to do something by using force or threats.)
What is creativity?
The ability to combine ideas in a unique way or to make unusual associations between ideas
Creativity is the ability to form novel and valuable ideas or works using the imagination.
What is innovation?
Taking creative ideas and turning them into useful products or work methods
What is innovative organization?
n engages everyone throughout the organization in the task of developing and implementing new ways to reach the organization’s goals
What does innovation require?
Innovation requires right corporate environment, which should include several components
What are the components to stimulating innovation?
-Organizational structure, which includes flexibility, abundance of resources minimal time pressure high. Enter unit communication.
-culture, which includes positive feedback focus on tolerance of conflict tolerance of risks, low external controls and open system focus
-human resources which includes employee, trainings and talent development and encouraging, creative ideas and people.
What is disruptive innovation?
Describes innovations and product services or processes that radically change and industries rules of games
What is sustaining innovation?
Describe small incremental changes in establish products rather than dramatic breakthroughs
what are examples of disruptive innovators?
1) Establish compact disc it’s disruptive innovator would be apple iTunes
2) Portable distrucptive innovator Sony Walkman
what is classical view of social responsibility?
The view that management only social responsibility is to maximize profits
what is social obligation?
Social obligation is when company engages in social actions because of its obligation to meet certain economic and legal responsibilities. The organization does what it is obligated to do and nothing more.
What does Milton Friedman state?
He states that managers primary responsibility is to do business in what best interest stockholders which only concern is financial
What is socioeconomic view?
The view that managers, social responsibilities go beyond making profits to include protecting and improving societies welfare
What is social responsiveness?
social responsiveness is a person or institution’s obligation to contribute to the welfare or environment of their community or society.
what is social responsibility
Is a businesses intention beyond its legal and economic obligations to do the right things and acting ways that are good for society
what are the arguments for social responsibility?
1) public expectations expectations(public opinions, now support businesses pursuing economic and social goals)
2) long run profits(socially responsible companies seem to have more secure, long run profits)
3) public image(businesses can create a favorable public image by pursuing social goals)
4) stockholder interests (social responsibility will improve a business is stock price in the long run)
5) possession of resources(businesses have the resources to fight against global challenges)
What are the arguments against social responsibility?
1) violation of profit maximization(business is being socially responsible, can damage its economic interests)
2) dilution of purpose(pursuing social goals, dilutes businesses, primary purpose, and made disoriented managers)
3) costs(many socially responsible actions do not cover their cost, and someone must pay those costs)
4) lack of skills(business leaders, lack the necessary skills to address, social issues)
5) misleading society(some businesses may provide false or misleading info, socially related actions)
What is the Paris agreement?
The Paris agreement is a political initiative signed by 196 countries that the UN conference on the climate change on 12th December 2015:
It aims to hold the increase in the global average temperature well below two Celsius above pre-industrial levels
What is the 17th system sustainable development goals?
These were adopted by the UN on 25th of September of 2015:
It is a universal call to action to end poverty protect the planet and ensure that by 2030 all people enjoy peace and prosperity
what is the climate pact?
It is a initiative signed by 200 nations at the UNCOP 26 conference in Glasgow in 2021 November 13:
It is a range of agreed items to build resilience to climate change to emissions into provide the necessary finance
What is green management?
It’s when managers consider the impact of their organization on the natural environment
What is legal approach?
Doing what is required legally illustrate social obligation, organization, exhibit, environmental sensitivity, they obey laws, rules, and regulations, and do not move be
what is market approach
It illustrates respond to environmental preferences of customers, whatever customers demand in terms of environmentally, friendly products will be what the organization provides or delivers
What is stakeholder approach?
When an organization works to meet environmental demand of multiple stakeholders, such as employees, suppliers, or community
What is activist approach?
When an organization looks way to protect the Earth natural resources this approach reflect the highest degree of environmental sensitivity and illustrate social responsibility
What’s true regarding companies in global markets?
Companies that operate in global markets have higher sales growth and profitability than strictly domestic businesses
what is the economic union?
an agreement between two or more nations to allow goods, services, money and workers to move over borders freely. The countries may also coordinate social and financial policies to support this common market.
what is common market?
Members also allow free, trading free movement of labor and capital
what is common union
Members agreed to maintain commentary against the rest of the world
What is comprehensive economic cooperation agreement?
Members agree on free trades of good services investment, e-commerce, intellectual property and etc.
What is free trade agreement, also known as FTA
a group of countries agrees to lower their tariffs (a tax or duty to be paid on a particular class of imports or exports.
)or other barriers to facilitate more exchanges with their trading partners.
what is preferential trade agreement
Members agree upon a write of entry to certain products facilitated by reducing duties(an import fee (tariff) charged on goods entering a country, as specified in the country’s tariff schedule.)
What is multinational cooperation?
It is any type of international company that maintains organizations in multiple countries
What is domestic cooperation?
Centralizes management and other decisions to the local country
What is global company?
company is one that operates in at least one country other than its home country
What are the components of going global?
1) Global sourcing
2) exporting/ importing
3) licensing/ franchising
4) strategic partnership
5) foreign subsidy
what is global sourcing
Purchasing materials or labor for needs from other countries
what is exporting and importing?
Export is making products domestically and selling them abroad
On the other hand, importing is acquiring products abroad and selling them domestically
what is licensing and franchising?
Licensing is giving another organization, the right to make or sell its products using its technology
franchising on the other hand is giving the right to use its name and operating methods
what is strategic partnership?
It is a partnership between domestic and foreign company to share resources and knowledge and developing new products or building production facilities
what is foreign subsidy?
Is directly investing in a foreign country by setting up a separate in independent production facility or office
What are the challenges of going global?
Doing business in a new country requires the following assessment of local environment:
1) political/ environment environment
2) economic environment
3) cultural environment
What does global management need ?
1) of openness/ globalization: economic, independence of trading countries, Americanization with standardization and etc.
2) challenges, managing and global work: cultural, religious differences and compatible, values principles and etc.
3) sanctions: restrictive measures against the country to accomplish political and security goals
What are the global mindset of global leader must have to be effective in a cross culture environment?
1) intellectual capital(knowledge of international business)
2) psychological capital(open to new ideas and experiences)
3) social capital (ability to build trusting relationships with people who are different from you)
what are sanctions?
They are imposed by states or institutions on foreign government/ countries, regime entities, and individuals a strong action taken in order to make people obey a law or rule, or a punishment given when they do not obey
what are sanctions for
?
1) they protected, economic, and national security
2) advance foreign policy/ political objectives
3) change behavior(stop war violation or international law, etc.)
4) they limit economic potential, and development of other country
What are the main forms of economic sanctions?
1) trade barriers
2) asset freezes
3) travel bans
4) arms embargoes( used to coerce states and non-governmental actors to improve their behaviour in the interests of international peace and security.)
5) restrictions on financial transactions
(Topic of international sanctions)
What does doing business globally require?
1) sanction screening(company screen, customers counterpart other reference data, and transactions info to avoid deals with prohibited persons)
2) internal control(company, screen lists of restricted or prohibited individuals in person maintained by OFA in other states)
3) risk mitigation tool(a very screening methods manual automated transaction based etc. are used to check compliance with sanctions)
What are views of management?
1) external: organizational environment
2) internal: organizational culture
What is the omnipotent view?
-managers are directly responsible for an organization, success or failure
What is symbolic?
-much of an organization, success or failure is due to external forces outside of managers control
what is external environment
It refers to factors or forces to the organization that affect its performance ustomers, competition, economy, technology, political and social conditions, and resources are common external factors that influence the organizatio
how does environment challenge managers?
1) impact on jobs and employment
2) environmental uncertainty
3) managing stakeholder relationships
what are stakeholders?
are any constituencies organizations environment are affected by organization, decisions, and actions
This includes internal: employees, shareholders, and etc.
As well as external: customers, competitors, media, suppliers, authorities units, and etc.
What is organizational culture?
Refers to shared values principles, traditions, and ways of doing things that influence the way organizational members act
What are strong cultures?
1) values deeply held in widely shared
2) culture convey consistent what is important
3) most employees can tell stories about history or heroes
4) employees strongly, identify with culture
5) strong connection between shared values and behaviors
What are weak cultures?
1) values limited to a few people usually top management
2) culture contradictory about what’s important
3) employees have little knowledge of history or heroes
4) employees have identification with culture
5) connection between shared values and behaviors
is true about organizations with strong cultures
Their employees are more loyal, and they have high organizational performance
What does organizational culture include?
1) attention to detail
2) outcome orientation
3) people orientation
4) team orientation
5) aggressiveness
6) stability
7) innovation, and risk taking
how do employees learn about organizational culture
They learn through stories, rituals, material, artifacts, and symbols, language, and organizational culture
What is the origin source of organizational culture?
I philosophy of organization, founders, which lead to selection criteria which lead to top management, which then lead to organizational culture
or top management socialization, and then organizations culture
What is the classical approach to management
1) emphasizes making organizations and workers as efficient as possible
2) believe that employees have economic and physical needs and that the social need and need for job satisfaction either it doesn’t exist or is unimportant
3) for the universal principles of operations for organ
4) advocates, high specialization of labor, centralized decision-making, private maximization
What are two major theories of classical approach?
Scientific management and administrative theory
What is scientific management?
1) use of scientific methods to define the one best way for a job to be done
2) scientific methods are based on motion studies
3) considers provision of wage incentives to workers for increased output
4) And includes principles of tourism
What are the principles of taylorism?
a) Develop science for each element of individuals work to replace the old rule of the method
b) scientifically selected then train teach in develop the worker
c) cooperate with the workers to ensure that all work is done in accordance with the scientifically developed methods
d) divide working responsibility equally between management and workers, so that the managers apply scientific management principles and operations, and the workers perform the tasks
what are some problems with taylorism?
1) considers an employee only as a performer of a simple operation and function as a matter of achieving the goals of the organization
2) do not appreciate the context of our workers other than the material ones
3) regards, workers as uninformed and unknowledgeable, and ignore their ideas and suggestions
What does Vladimir Lenin state about taylorism?
He believed that taylorism
was “a scientific” system of sweating and man’s enslavement by the machine
What is the administrative theory?
attempts to find a rational way to design an organization as a whole.
1) considers management as an activity to all businesses
2) identifies five functions that managers perform: planning, organizing, commanding, coordinating and controlling
3) also introduces 14 fundamental principles of management
what are the 14 fundamental principles of management?
1) division of work
2) authority
3) discipline
4) unity of command
5) unity of direction
6) subordination of interests
7) remuneration(money paid for work or a service)
8) centralization(the concentration of control of an activity or organization under a single authority.)
9) scaler chain(the chain of all supervisors from the top management to the person working in the lowest rank.)
10) Order
11) Equity
12) Stability of tenure of personnel
13) Initiative
14) esprit de corps(a feeling of pride and mutual loyalty shared by the members of a group.)
What does ideal bureaucracy include?
1) formal rules and regulations
2) impersonality
3) authority hierarchy
4) written based decision-making
5) formal selection
6) division of labor
What does administrative theory include?
1) develops a theory of of authority structures and relations are based on ideal. Type of organization, called the bureaucracy.
2) considers organizations based on rational authority, more efficient and adaptable to changes
What does behavioral approach?
1) research the actions of people at work
2) refers to the way the individuals behaving group settings
3) consider social and psychological aspects and deals with relations when managing people motivating leading building trust or working with the team managing conflict, etc.
4) based on belief that people are the most important asset of the organization and should be managed accordingly
what were the outcomes of the Hawthorn studies?
1) social norms are the key to determinants of individual work behavior
2) group standards establish individual worker output
3) money is less a factor in determining output than our group standards, group attitudes, and security
4) provided the foundation for the current theories of motivation, leadership group behavior, and development and numerous other behavioral approaches
what is the contemporary approach to business management?
1) concerned with the decentralization of authority( involves a system within an organization in which the top, middle, and lower levels of management participate in decision-making)
2) supports the increased flexibility
3) makes emphasis on Company culture
4) looks for the increased independence of managers
what are the two theories that compromise the contemporary approach?
1) the system theory
2) the contingency theory
what does the system theory state?
1) the system is a set of interrelated interdependent parts, arranged in a manner that produces a unified whole
2) as managers coordinate work activities in various parts of organization, they ensure that all these parts are working together, so the organization goals can be achieved
3) organization as an open system
What are the main approach to management
There are four approaches to management
1) classical approaches, which includes scientific management and general administrative
2) quantitative approach
3) behavioral approach, which includes the Hawthorne studies
4) the contemporary approach which includes systems approach and contingency approach
What is contingency approach
The contingency approach is a management theory that suggests there is no single best way to manage an organization.
What is quantitative approach of management
involve the use of numbers symbols, mathematical expressions, and other elements of quantities, and serve as supplements to the judgment and intuitions of the decision makers..
What is a manager
A manager is someone who coordinates an overseas the work of other people in a specific area so that organizational goals can be accomplished
what does managing mean?
1) guiding: in organization, project identified critical issues and crafting responses
2) coordinating: the systems and conditions so that others can perform tasks properly
3) creating: organizational value
What is the difference between a manager and an entrepreneur?
An entrepreneur is the owner of a company whose source of income is profit
On the other hand of manager is the higher employee who receives income in the form of salary
What are the levels of management
1) top management
2) middle management
3) front line manager
4) non-managerial employee
Who is the top manager?
Is a manager near the upper levels of the organization structure who is responsible for making organization, wide decisions and establishing the goals and plans that affect the entire organization. Typical titles can include.: managing director, executive vice president and etc.
what does the middle manager do?
Is a manager between the lowest levels and the top levels of organization who manage the work of first line managers. They include regional, project leader, Store manager, division manager
who is the Frontline manager?
Is the manager at the lowest level of management who manages the work of nonmanagerial employees. Includes.: supervisor, district manager, department manager, office manager,etc
what do managers do?
Involves coordinating and overseeing the work activities of others in a specific area so that their act activities are completed efficiently and effectively
what does efficiency mean?
Refers to getting the most output from the least amount of inputs
What is effectiveness?
Refers to the completing activity so that organization goals are attained
While efficiencies concerned with the means of getting things done
Effectiveness is concerned with the ends or attainment of organizational goals
Management functions include:
Planning ,organizing, leading , and controlling
what are the skills of management?
- Technical skills: job specific knowledge and technical needed to professionally perform work tasks
- Human.(interpersonal) skills.: involves the ability to work well with other people individually and in a group
- Conceptual skills: are the skills used to think and conceptualize about abstract and complex situations
What are managers required to do in today’s world?
Managers are required to do things different, create customer, responsive organization, managers are required to care about followers and public image, managers are required to manage in sustainable way, responding strategically to a wide range of environmental and societal challenges
economic union
an agreement between two or more nations to allow goods, services, money and workers to move over borders
what is common market?
an agreement between two or more countries removing all trade barriers between themselves, establishing common tariff and allowing free movement of labor, capital.
Regional trading agreements
A treaty signed and signed by two or more countries to encourage the free movement of blood services across the border of its members
