PART 3: Organization models, Decision making process, management Flashcards
(122 cards)
1
Q
In a corporation, the boad of directors is selected by…
A
the stockholder
2
Q
The function of hiring and competition of senior executives, defining the dividends and option policies and helping to set broad goals are made by…
A
broad of directors
3
Q
The senior executive is tasked with overseeing the day to day administrative and operational functions of a business is called…
A
CEO
4
Q
When facebook and instagram merged it was…
A
horizontal merger
5
Q
When you read in the Nike’s website: “to bring inspiration to every athlete in the world”, this is their…
A
mission
6
Q
Assume for a moment your company sells insurance products in a large metropolitan area. The marketing team of your insurance company outline, step by step, each marketing component needed to meet the goals. This is…
A
tactical plan
7
Q
The purpose of Hay System is to provide a consistent procedure to evaluate position classification by…
A
- Measuring the content of each job compared to other jobs based on classification factors know how
- Determining its relative worth
- Establishing equitable pay relationships among all jobs
*** All of them are correct **
8
Q
Situational leadership
A
it is up the leader to change his style, not the follower to adapt to the leader’s style
9
Q
According to the “situational leadership model”, an employee with moderate to high competence and variable commitment needs to the following leadership style
A
supporting
10
Q
Which is the DISC profile of an employee whom general characteristics are good listener, team player and predictable
A
steadiness
11
Q
Which is the first step of a decision-making process
A
recognizing and defining the decision situation
12
Q
Customer acquisition is…
A
Costly and retaining customers must be a priority
13
Q
Retaining customers…
A
Increase the customer share (percentage of a customer’s total spending within a particular category that goes to a specific business or brand)
14
Q
Customer relationship focus on…
A
“Good customers”
15
Q
What are butterflies customers
A
Problematic customers
16
Q
The objective of customer experience is
A
Increase loyalty
17
Q
Touch points are
A
any interaction
18
Q
Organizaion models
Sole proprietorship
A
business owned and operated by one individual
for example restaurants, hair salon, flower shop, etc. Many of them focus on services rather than manufacture of goods
19
Q
Advantages of a sole propiertorship
A
easy and cost of formation, secrecy, the owner decides how to use/distribute the profit, flexibility and control the business, taxation and closing the business
each country has different tax advantages for motivating the entrepreneurship
20
Q
Disadvantages of a sole propiertorship
A
unlimited liability, limited sources of funds (higher interest rates), limited skills, lack of continuity (life expectancy linked to that of the owner), difficulty of the tax management
he would have to do the management, marketing, finance, accounting, bookkeeping, personnel management
21
Q
Partnership
A
association of two or more people who carry on as of a business for-profit
22
Q
Advantages of a partnership
A
easy of organization, availability of capital and credit, combined knowledge and skills, decision making
23
Q
Disadvantages of a partnership
A
unlimited liability, life of the partnership and distribution of profits
24
Q
Corporation
A
legal entity, created by the state, whose assets and liabilities are separate from its owners
typically owned by many individuals and organizations who own shares of a business called stocks
25
Corporate owners are often called...
shareholders/stockholders
26
Cooperatives
Organization composed by of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization
27
# Types of corporation
Private corporation
owned by just one or few people who are closely involved in managing the business
## Footnote
example: mercadona
28
Public corporation
corporation whose stock anyone may buy, sell or trade
29
Quasy public corporation
owned and operated by states or local government
30
Non-profit corporation
corporations that focus on providing a service rather than earning a profit but are not owned by a government entity
## Footnote
example: Red Cross
31
Inside directors are...
employees of the company
32
Outside directors are...
unaffiliated with the company (lawyers, bankers, politicians...)
33
What is a Joint Venture
A partnership established for a specific project or for limited time
34
What is a limited liability company
provides limited liability, as in a corporation, profits are not taxed thus the owners only pay tax on the revenue once and protects your assets
35
What is a cooperative
an organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization
36
Mergers
when two companies (usually corporations) combine to form a new company
37
Acquisition
occurs when one company purchases another, generally by buying most of its stocks
38
# Acquisitions
Tender offer
an offer to purchase some or all of shareholders shares in a corporation
## Footnote
are typically made publicly and invite shareholders to sell their shares for specified price and within a particular window of time. The price offered is usually at a permium to the market place
39
Friendly offer
both groups are agreeing the purpose deal
40
Hostile offer
the second company does not want to be taken over
41
The acquired company may become a...
subsidiary of the buyer or its operations and assets may be merged with those of the buyer
42
What does the government does to protect customers from monopolistic practices
scrutinizes mergers and acquisitions
43
Horizontal merger
when firms make and sell similar
## Footnote
example Facebook and Instagram; Bankia and Caixabank
44
Vertical merger
companies operating at different but related levels of an industry
## Footnote
example Google and Chrome
45
Conglomerate merger
two firms of unrelated industries merge
## Footnote
example Samsung (electronics, military, hardware, apartments, ships...)
46
Entrepeneuship
process of creating and managing a business to achieve desired objectives
47
Common elements of entrepeneurship
* self-motivation
* understand what you offer (how your product/service fits to the market)
* take risk
* know how to network (able to connect with others and recognize partnership opportunities)
* basic money management and skills and knowledge and passion
48
Small business
Any independently owned and operated business that is not dominant in its cooperative are and does not employee more than 500 people
49
What is PYME
small and medium companies
50
What is the role of small business
Efficiency:
* produce 16 time more patents per employee than larger patenting firms
* employ nearly half of all private sectors employees
* pay 42% of the US private payroll
51
# small businesses per industries
Retailers
acquire goods from producers and wholesalers and sell them to customers
52
Retailers attract new entrepeneurs because...
a new retail store does not have to invest large sums of money
53
# small business per industries
Wholesalers
supply products to industrial, retail, and institutional users for resale or for use in making other products
54
# small business per industries
Services
businesses that do not actually produce tangible goods
## Footnote
example real state, insurance and personal agencies, barbershops, etc
55
Entrepeneurs in services also include individuals such as...
beauticians, psychologists, doctors, lawyers or veterinarians
56
# small business per industries
Manufacturing
not usual for small business, although they have an advantage over large firms because they can customize products to meet specifics customers needs and wants
## Footnote
custom artwork, jewlery, clothing or furniture
57
# small business per industries
High technology
businesses that depend heavily on advanced scientific and engineering knowledge
## Footnote
fields like computers, biotechnology, genetic engineering, robotics
58
Advantages of small businesses
* you are your own boss
* choose whom you work with
* cost: small business hire other firms (to supply services: accounting, advertising, legal counseling)
* flexibility to adapt to changing market demands
* fast decisions (the owner-only one layer of management)
* focus your efforts on a specific group of customers
* reputation for quality and service
59
Disadvantages of small business
* high stress level
* overcome challenges in starting the business
60
What are the 3 major reasons of small business failure
* undercapitalization
* managerial inexperience or incompetence
* inability to cope with growth
61
# starting s small business
Equity financing
the owner is the source of money
62
Venture capitalism
people/organizanizations that agree to provide some funds for a new business in exchange for an ownership interest or stock. They try to purchase cheap stock and then sell the stock for a profit after the business has grown successfully
63
External financing
banks, family, friends...
64
Line of credit
(like a credit card) an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request
65
Trade credit from suppliers
the supplier delivers the goods. The company has a collection period to sell the product, and once it does so, it pays the supplier
66
# approaches to starting a small business
Buying existing business
network of customers, suppliers and distributors problems
67
Franchising
a license to sell other products or to use another's name in a business. The franchisee acquires the rights
68
Management
is the process designed to achieve an organisaiton's objectives by using its resources effectively and efficiently in a changing environment
69
Effectively means...
having the intended results
70
Efficiently means...
accomplishing the objectives with a minimum resources
71
Managers
make decisions about the use of organization's resources in order to obtain the results
72
Why resources are important?
to effectively pursue its objectives and coordinate their use to turn out a final good or service
73
Planning
the process of determining the organization's objectives and deciding how to accomplish them
74
Parts of planning
* mission
* goals
* objectives
* strategic plans
* tactical plans
* operational plans
* contingency planning
75
mission
a declaration of an organization's fundamentals purpose and basic philosophy
76
Goals
the result that a firm wishes to achieve
77
What is the difference between goals and objectvies
objectives are measurable (profit, efficiency, growth: ability to adapt and get new products to the marketplace)
78
Strategic plans
establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission
| more than one year
## Footnote
examples: purchase companies, move into international markets, add products
79
Tactical plans
short range plans designed to implement the activities and objectives in the strategic plan
| less than one yeat
## Footnote
tactical plans allow the company to react to changes in the environment while contiuing to focus on the company's overall strategy
80
Operational plans
very short plans to specify what actions individuals, work groups or departments need to accomplish in order to achieve tactical plan and strategic plan
81
Contingency planning
planning that deals with potential disasters such as oil spills, earthquakes, product intoxication, pandemic, etc.
82
# types of management
CEO's primary responsibilities
making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the broad of directors and corporate operations and being the public face of the company
| CEO reports to the board of directors
83
COO
senior executive tasked with overseeing the day-to-day administrative and operational functions of a business
| COO reports to the CEO
84
CFO
senior executive responsible for managing the financial actions of a company
| CFO reports to the COO
## Footnote
CFO's duties include tracking cash flow and financial planning as well as analyzing the company's financial strenght's and weaknesses and proposing corrective actions
85
CMO
executive who is in charge of developing and overseeing marketing and advertising plans
| CMO reports to the CEO (is part of the C-level executive team)
## Footnote
the CMO has to collaborate and keep pace with other c-executives. This is vital if the company is to adapt in today's rapidly shifting market
86
Why CMO's position is more important than it used to be
due to advances in technology and communications
87
CDO
senior executive responsible for the utilization and governance of data across the organization
88
CDO's responsibilities
governance: advising on, monitoring and governing enterprise data
* operations: enabling data usability, availability and efficiency
* innovation: driving enterprise digital transformation innovation, cost reduction and revenue generation
* analytics: supporting analytics and reporting on products, customers, operations and markets
89
CIO
person responsible for the management of technology and the usability of information within the company
| in most companies, CIO reports to CEO
## Footnote
makes sure the technology is beneficial and promotes progress in the company
90
Middle information management
members of an organization responsible for the tactical planning that implements the general guidelines established by top management. Are involved in specific operations of the organization and they spend more time in organizing
91
First line management
members of an organization who supervise both workers and the daily operations of an organization
## Footnote
responsible for implementing the plans established by middle managers and directing and controlling worker's performance on the job
92
What does HR ensures
smooth functioning of an organization
## Footnote
The role of HR depends on the company's behaviour (growth, stability or decrease)
93
# HR: 1. job desing and job analysis
Job design involves...
describing duties, responsibilities and operations of the job. It will help you determine the kind of candidate you want for the job
94
Job analysis involves...
describing the job requirements such as skills, qualification and work experience
95
Hay's guide chart profile method purpose
to provide a consistent procedure to evaluate position classifications by:
* measruring the content of each job compared to other jobs based on classification factors (know how; problem solving and accountability/impact on the results)
* determining its relative worth
* establishing equitable pay relationships among all jobs
96
# HR: 2. Employee hiring and selection
An ---- helps to source and identify the ideal candidates for interview and selection
Human Resources System
97
The candidates are then subjected to a ---- process to filter out the most suitable candidates from the pool of applicants
comprehensive screening
98
The screen candidates are then taken through different interview rounds to...
test and analyze their skills, knowledge and work experience required for the job position
99
# HR. 3. employee training and development
The role of HR should be to ensure that...
new employees acquire the specific knowledge and skills to perform their task efficiently
## Footnote
very crucial role in preparing employees for bigger tasks and responsibilities --> leads to the development of employees at work
100
# HR: 4. Compensation and benefits
The role of HRM is to...
formulate attractive yet efficient benefits and compensation packages to attract more employees into the workplace without disturbing the finances of the company
| compensation is related with the job design (Hay Chart)
101
# HR: 5. employee performance management
Performance management ensures that...
the output of employees meets the goals and objective of the organization
## Footnote
- enabling real-time feedback and coaching employees to boost efficiency among them
- conducting performance reviews monthly or quarterly to discuss the positives and the improvement areas of employees
102
# skills nedded by managers
Specialized knowledge and training needed to perform jobs that are related to particular areas of management...
Technical skills
| most needed by first-line managers and least critical to top-level manag
103
The ability to think in abstract terms to see how parts fit together to form the whole; think creatively
Conceptual skills
| most needed by all managers (particularly by top-level managers)
104
The ability to identify relevant and critical factors, understand the relationship between the issues and perceive the underlying causes of a situation
Analytical skills
| needed by top-level managers
105
The ability to deal with people, both inside and outside the organization
Human relations skills
| important in organizations that provide services
106
Ability to influence employees to work towards organizational goals
leadership
107
# Leadership: communicate effectively --> nonverbal communication
It **repeats** and often strenghts the message you're making verbally
repetition
108
# Leadership: communicate effectively --> nonverbal communication
It can **contradict** the message you're trying yo convey, thus indicting to your listener that you may not be telling the truth
contradiction
109
It can **subsitute** for a verbal message
| facial expresion often conveys a more vivid message than words ever can
subsitution
110
It may add to or **complement** your verbal message
## Footnote
as a boss, if you pat an employee on the back in addition to giving praise, it can increase the impact of your message
complementing
111
It may **accent** or underline a verbal message
## Footnote
for example pounding the table can underline the importance of your message
accenting
112
How to develop employees
* create individual development plans
* provide performance metrics
* provide opportunities outside of job function
* give constructive feedback
113
# leadership styles
He/she makes all the decisions and then tell employees what must be done and how to do it
autrocratic leadership
114
# leadership styles
Involve their employees in decisions. Present a situation and encourage their subordinates to express opinions and contribute ideas
democratic leadership
115
# leadership styles
Are passionate about goals and mission of the company, display corporate values in the workplace and form long-term relationships with stakeholders
free rains leadership (Laissez-Faire)
116
Passionate about goals and mission of the company, display corporate values in the workplace and form long-term relationships with stakeholders
autentic leader
117
Situational leadership style has been developed and studied by...
Kenneth Blanchard and Paul Hersey
118
Situational leadership refers to...
when the leader of an organization must adjust his style to fit the development level of the followers he's trying to influence
## Footnote
is up to the leader to change his style, not the follower to the leader's style
119
# Dr. William Moulton Marston at Harvard university
method of identifying predictable actions and personality traits within human behaviour
## Footnote
at home or in the workplace, behavior and personality are often misunderstood and become areas of stress affecting your work productivity and happiness
DISC
| dominance, influence, steadiness and conscientiousness
## Footnote
a powerful and profoundly simple tool to understanding people
120
When employees are provided with the ability to take on responsibilities and make decisions about their jobs
Participative corporate cultures (mature organizations)
121
The employee empowerment philosophy, managers are important for
* guiding employees
* encourage the participation in decision making
* training in
* setting goals
* making major decisions
122
6 steps that leads to more effective decision making
* recognizing and defining the decision situation
* developing options to resolve the situation
* analyzing the options
* selecting the best option
* implementing the decision
* monitoring the consequences of the decision
