Midterm Study Guide Flashcards
Intellectual Capital
The collective brainpower or shared knowledge of a workforce that transforms human creativity, insight, and decision making into performance.
Intellectual Capital = Competency × Commitment.
Competency: personal talents or job-related capabilities
Commitment: how hard you work to apply your talents and capabilities to important tasks.
Knowledge Workers
Someone whose mind is a critical asset to employers.
High concept (creative, ideas) and high touch (joyful, good relations)
Tech IQ
The ability to use technology and to stay updated as technology continues to evolve.
Globalization
The worldwide interdependence of resource flows, product markets, and business competition.
Job Migration
Occurs when firms shift jobs from a home country to foreign ones.
Ethics and Ethical Expectations
Set moral standards of what is “good” and “right” in one’s behavior.
Corporate Governance
The active oversight of management decisions and performance by a company’s board of directors.
Workforce Diversity
Describes workers’ differences in terms of gender, race, age, ethnicity, religion, sexual orientation, and able-bodiedness.
Prejudice
The display of negative, irrational attitudes toward people who are different from us.
Glass Ceiling Effect
An invisible barrier limiting career advancement of women and minorities.
Shamrock Organization
Operates with a core group of full-time long-term workers supported by others who work on contracts and part-time.
Free Agent Economy
People change jobs often and take “gigs” on flexible contracts with a shifting mix of employers.
Organizations as Open Systems
Transforms resource inputs from the environment into product outputs.
Value Creation
Organizations create value when they use resources to produce good products and take care of their customers. Adding value allows a business to earn a profit
Performance Effectiveness
An output measure of task or goal accomplishment.
Performance Efficiency
An input measure of resource cost associated with goal accomplishment.
Levels of Management
Board of directors
Top Managers: Guide performance of organization as a whole
Middle Managers: Oversee the work of large departments of divisions
Team Leaders: Report to middle managers and supervise groups of non-managerial workers
Accountability
The requirement to show performance results to a supervisor.
Quality Work Life (QWL)
The overall quality of human experiences in the workplace.
Upside-Down Pyramid
iew of organizations shows customers at the top being served by workers who are supported by managers.
Customers
^ Serve ^
Frontline workers
^ Support ^
Team leaders and managers
^ Support ^
Top managergs
4 Functions of Management
PLanning: Setting performance objectives and deciding how to achieve them
Organizing: Arranging tasks, people, and other resources to accomplish the work
Leading: Inspiring people to work hard to achieve high performance
Controlling: Measuring performance and taking action to ensure desired results
Mintzberg’s Managerial Roles
Figurehead
Leader
Liason
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Katz’s Essential Management Approaches
Technical skills (more lower-level managers), Human skills (even middle-level managers), and Conceptual skills (more top-level managers)
Classical Management Approaches
Assumption: People are rational
Scientific, Administrative, and Bureaucratic
Scientific Management
Frederick W. Taylor
Emphasizes careful alignment of worker training, incentives, and supervisory support with job requirements.
Motion study is the science of reducing a task to its basic physical motions.
Administrative Principles
Henri Fayol
Foresight
Organization
Command
Coordination
Control
Bureaucracy
Max Weber
A rational and efficient form of organization founded on logic, order, and legitimate authority.
Division of labor, formal rules and procedures, Merit based careers, impersonality, Hiearchy of authority
Behavioral/Human Resource Management Approaches
Assumption: People are social and self actualizing
Organizations as Communities
Maslow’s Hierachy of Needs
Personality and Organizations
Theory X and Y
Hawthorne Studies
Organizations as Communities
Charles Clinton Spaulding
Father of African American Management
Contributions come from all levelsand work together in order to achieve common goals
Mary Parker Follett
Laboring in harmony without one party dominating
Employee ownership, profit sharing, gain-sharing
Maslow’s Hierachy of Needs
Abraham Maslow
Based on deficit principle (satisfied needs do not motivate behavior) and progressive principle (needs are activated only when the next-lower-level need is satisfied)
Self Actualization (higher order)
Esteem (higher order)
Social (lower order)
Safety (lower order)
Physiological (lower order)
Personality and Organizations
Chris Argyris
If you treat people as grown-ups, that’s the way they’ll behave
Mismatch signs
Theory X and Theory Y
Douglas McGregor
Theory X: assumes people dislike work, lack ambition, act irresponsibly, and prefer to be led.
Theory Y: assumes people are willing to work, like responsibility, and are self-directed and creative.
Creates a self-fulfilling prophecy: When a person acts in ways that confirm another’s expectations.
Hawthorne Studies
Incentives and workplace contitions affecting worker’s output
Hawthorne effect: The tendency of persons singled out for special attention to perform as expected.
Modern Management Approaches
Quanititative tools and data analytics
Organizations as systems
Contingency thinking
Quality management
Evidence-based management
Quantitative Analysis
A problem is encountered, it is systematically analyzed, appropriate mathematical techniques are applied, and an optimum solution is identified.
Organizations as Systems
A system of interraleted parts or subsystems that work together to achieve common goals
Organizations function as open systems that interact with their environment in a continual process of transforming inputs—people, technology, information, money, and supplies—into outputs—goods and services.
Contingency Thinking
Tries to match management practices with situational demands.
No one best way
Quality Management
W. Edwards Deming
Tally defects, analyze and trace them to the source, make corrections, and keep a record of what happens afterward.
An organization-wide commitment to continuous improvement, product quality, and customer needs.
Evidence-Based Management
Making decisions based on hard facts about what really works.
Critical Trends in the Modern Workplace
Importance of connections and networks
Commitment to ethical behavior
Broad views of leadership
Diversity in the workplace
Emphasis on human capital and teamwork
Demise of command-and-control
Influence of information technology
Respect for new workforce expectations
Changing conceptt of careers
Concern for sustainability
Collaboration
Their leaders help make the people-to-people connections that give life to collaborative organizations
Critical Thinking Attributes
Intellectual humility: WIlling to admit mistakesand alter opinions when evidence points in different direction
Confidence in reason: Go wherever the evidence leads
Intellectual curiosity: Loves exploring new topics and gaining any form of knowledge with a critical mindset
Intellectual independence: Willingness to question authority, challenge conventional wisdom, and examine options tha they disagree with
Organizational Context
The characteristics of a job, organization, or work situation that affect the way people in that situation act and interact
Organizational Strategy
The actions an organization takes to achieve long-term business goals
Rewards
Help us to understand why people do what they do
Hedonism
People seek pleasure and avoid pain
Organizational Structure
The way work is organized and coordinated. It is like the skeleton of the company, showing how work is distributed, the number and type of positions, lines of authority, and reporting relationships within and across work units.
Organizational Chart
The diagram depicting the formal structure of an organization.
Shows the hierarchy of authority: Who reports to whom, and how departments are hierarchically aligned.
Centralization
Important decisions are made at the top
Decentralization
Employees at front lines are empowered to make decisions
Functional Departmentation
Grouping individuals by skill, knowledge, and expertise.
Fosters clear assignments and responsibilities, leverages an employee’s technical training and expertise, and encourages collective knowledge and insight.
Can limit communication and knowledge sharing across functional areas, and make it harder to get a sense of the big picture, leading to more myopic decision-making.
Divisional Departmentation
Organizes work and people by products, territories, services, clients, or legal entities
Organizational Culture
The shared actions, values, and beliefs in an organization that guide the behavior of its members
Socialization
The process of watching and learning the expected norms and behaviors of the organization
Layers of Cultural Analysis
Observable Culture: The way we do thinkgs around here
Shared Values: linking together and powerful motivation; whole group
Core Value:Common cultural assptions; taken-for-granted truths that members share due to join experience
General Environment
Made up of all external conditions that can play a part in managerial decision making
Consists of economic, legal-political, sociocultural, technological, and natural environment conditions in which the organization operates.
(General Environment) Economic
Economic growth
Unemployment rate
Disposable income
Ex: Falling middle-class incomes; Long-term joblessness
(General Environment) Legal/Political
Laws and regulations
Business forms
Political trends
Ex: Education reform, Healthcare reform
(General Environment) Socio-cultural
Population demographics
Education system
Health/nutrition values
Ex: Workforce of U.S. Tech companies 6.6% Black; 1 in 4 women expereincing sexual harassment in the workplace
(General Environment) Technological
IT systems/infrastructure
Broadband Internet access
Ex: 63% of smart phone owners say employers expect more work availability; links between social media addiction and depression
(General Environment) Natural
Green Values
Recycling infrastructures
Ex:20,000 people killed; 9.0 earthquake hit japan; 80,000 residents evacuated
Innovation
The process of taking a new idea and putting it into practice
Human Sustainability
Just as there is concern for protecting natural resources, there could be a similar level of concern for protecting human resource
Health insurance for employees, avoiding layoffs, structuing to reduce stress, structuring work hours for work-family conflict
Global Economy
Resources, markets, and competition are worldwide in scope
Global Management
Involves managing business and organizations with interests in more than one country
Reasons Why Businesses Go Global
Profits—Gain profits through expanded operations
Customers—Enter new markets to gain new customers
Suppliers—Get access to materials, products, and services
Labor—Get access to lower-cost, talented workers
Capital—Tap into a larger pool of financial resources
Risk—Spread assets among multiple countries
Market Entry Strategies
Global sourcing, exporting and importing, and licensing and franchising.
Exporting
Local products are sold abroad to foreign customers
Importing
Involves the selling in domestic markets of products acquired abroad
Global Sourcing
Materials or services are purchased around the world for local use
Licensing
A local firm pays a fee to a foreign firm for rights to make or sell its products
Franchising
A fee is paid to a foreign business for rights to locally operate using its name, branding, and methods
Joint Venture
Operates in a foreign country through co-ownership by foreign and local partners
Strategic Alliance
A partnership in which foreign and domestic firms share resources and knowledge for mutual gains
Foreign Subsidiary
A local operation completely owned by a foreign firm
Reginal Economic Alliances
Link member countries in agreements to work together for economic gains
Global Corporation
A multinational enterprise (MNE) or multinational corporation (MNC) that conducts commercial transactions across national boundaries
Transnational Corporation
A global corporation or MNE that operates worldwide on a borderless basis
Corruption
Involves illegal practices to further one’s business interests
Sweatshops
Employ workers at very low wages for long hours in poor working conditions
Child Labor
The employment of children for work otherwise done by adults
Culture
A shared set of beliefs, values, and patterns of behavior common to a group of people
Culture Shock
The confusion and discomfort a person experiences when in an unfamiliar culture
Cultural Intelligence
The ability to adapt, adjust, and work well across cultures
Ethnocentrism
The tendency to consider one’s culture superior to others
Low Context Cultures
Emphasize communication via spoken or written words
High Context Cultures
Rely on nonverbal and situational cues as well as on spoken or written words in communication
Monochronic Cultures
People tend to do one thing at a time
Polychronic Cultures
Time is used to accomplish many different things at once
Proxemics
How people use space to communicate
Hofstede’s Dimentions of National Culture
Four cultural dimensions: power distance, uncertainty avoidance, individualism–collectivism, and masculinity–femininity. Later studies added a fifth called time orientation
Technological Competency
The ability to understand new technologies and to use them to their best advantage
Information Competency
The ability to locate, gather, and organize information for use in decision making
Analytical Competency
The ability to evaluate and analyze information to make actual decisions and solve real problems
Data Mining
The process of analyzing data for patterns, predictions, insights useful for decision makers
Big Data
Exists in huge quantities and is difficult to process without sophisticated mathematical and computing techniques
Systematic Thinking
Approaches problems in a rational and analytical fashion
Intuitive Thinking
Approaches problems in a flexible and spontaneous fashion
Programmed Decisions
Applies a solution from past experience to a routine problem
Non-Programmed Decisions
Straightforward and clear with respect to information needs
Crisis Decision Making
Occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately
-Figure out what is going on
-Remember that speed matters
-Remember that slow counts, too
-Respect the danger of the unfamiliar
-Value the skeptic
-Be ready to “fight fire with fire”
Certain Environment
Offers complete information on possible action alternatives and their consequences
Risk Environment
Lacks complete information but offers “probabilities” of the likely outcomes for possible action alternatives
Uncertain Environment
Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives
The Decision Making Process
Begins with identification of a problem and ends with evaluation of results
-Find and define the problem
-Generate and evaluate alternative solutions
-Choose a preferred course of action
-Implement the decision
-Evaluate results
Double check ethical reasoning at each step
Classical Decision Making Model
Describes decision making with complete information
Behavioral Decision Making
Describes decision making with limited information and bounded rationality
Bounded Rationality
Acts with cognitive limitations
Satisficing
The choice of the first satisfactory alternative that comes to one’s attention
Decision Making Pitfalls
Huristics
Framing Error
Availability Bias
Representative Bias
Anchoring and Adjustment Bias
Confirmation Error
Escalating Commitment
Availability Bias
Bases a decision on recent information or events
Representative Bias
Bases a decision on similarity to other situations
Anchoring and Adjustment Bias
Bases a decision on incremental adjustments from a prior decision point
Framing Error
Trying to solve a problem in the context in which it is perceived
