test

Question 1

administrative management

Answer 1

A classical management
approach that attempted to identify major principles and
functions that managers could use to achieve superior
organizational performance, p 33.

Question 2

bureaucracy

Answer 2

A classical management approach
emphasizing a structured, formal network of relationships
among specialized positions in the organization, p 34.

Question 3

contingencies

Answer 3

Factors that determine the

appropriateness of managerial actions,

Question 4

contingency perspective

Answer 4

An approach to the study of
management proposing that the managerial strategies,
structures, and processes that result in high performance
depend on the characteristics, or important contingencies,
of the situation in which they are applied, p 36.

Question 5

economies of scale

Answer 5

Reductions in the average cost
of a unit of production as the total volume produced
increases, p 30

Question 6

Hawthorne Effect

Answer 6

People’s reactions to being observed
or studied resulting in superficial rather than meaningful
changes in behavior, p 34.

Question 7

human relations

Answer 7

A classical management approach
that attempted to understand and explain how human
psychological and social processes interact with
the formal aspects of the work situation to influence
performance, p 33.

Question 8

organizational behavior

Answer 8

A contemporary management
approach that studies and identifies management activities
that promote employee effectiveness by examining the
complex and dynamic nature of individual, group, and
organizational processes, p 35.

Question 9

quantitative management

Answer 9

A contemporary management
approach that emphasizes the application of quantitative
analysis to managerial decisions and problems, p 35.

Question 10

scientific management

Answer 10

A classical management approach
that applied scientific methods to analyze and determine
the one best way to complete production tasks, p 31.

Question 11

systematic management

Answer 11

A classical management
approach that attempted to build into operations the specific
procedures and processes that would ensure coordination
of effort to achieve established goals and plans, p 31.

Question 12

systems theory

Answer 12

A theory stating that an organization is a

managed system that changes inputs into outputs, p 35.

Question 13

conceptual and decision skills

Answer 13

involve the ability to identify and resolve problems for the
benefit of the organization and everyone concerned. Managers use these skills when they
consider the overall objectives and strategy of the firm, the interactions among different
parts of the organization, and the role of the business in its external environment. As you
acquire greater responsibility, you must exercise your conceptual and decision skills with
increasing frequency

Question 14

controlling

Answer 14

monitors performance and implements necessary changes. By controlling,
managers make sure the organization’s resources are being used as planned and that the
organization is meeting its goals such as quality and safety.

Question 15

Social capital

Answer 15

the goodwill stemming from your social relationships, and you can
mobilize it on your behalf. It aids career success, compensation, employment, team effectiveness,
successful entrepreneurship, and relationships with suppliers and other outsiders

Question 16

value

Answer 16

a complex
concept.51 Fundamentally, it describes the monetary amount associated with how well a
job, task, good, or service meets users’ needs. Those users might be business owners, customers,
employees, society, and even nations. The better you meet those needs (in terms
of quality, speed, efficiency, and so on), the more value you deliver. That value is strategic
when it contributes to meeting the organization’s goals.

Question 17

benchmarking

Answer 17

identifying the best-in-class performance by a company
in a given area, say, product development or customer service, and then comparing your
processes to theirs.

Question 18

buffering

Answer 18

Buffering
creates supplies of excess resources to meet unpredictable needs. On the input side, organizations
establish relationships with employment agencies to hire part-time and temporary
help during rush periods when labor demand is difficult to predict. In the U.S. labor force,
these workers, known as contingent workers, include 2.5 million on-call workers, 1.2 million
temporary help agency workers, and more than 800,000 workers provided by contract
firms, suggesting widespread use of this approach to buffering labor input uncertainties.

Question 19

competitive intelligence

Answer 19

the information
necessary to decide how best to manage in the competitive environment they have
identified

Question 20

Environmental scanning

Answer 20

means both searching
out information that is unavailable to most people and sorting through that information
to interpret what is important and what is not. Managers can ask questions such as these:
Who are our current competitors?
Are there few or many entry barriers to our industry?
What substitutes exist for our product or service?
Is the company too dependent on powerful suppliers?
Is the company too dependent on powerful customers?34

Question 21

cooperative strategies

Answer 21

Strategies used by two or
more organizations working
together to manage the
external environment.

Question 22

divestiture

Answer 22

occurs when a company sells one or more businesses

Question 23

prospectors

Answer 23

are more likely than others to engage in strategic

maneuvering.4

Question 24

defenders

Answer 24

Companies that stay within a
stable product domain as a
strategic maneuver

Question 25

independent strategies

Answer 25

``` Strategies that an organization acting on its own uses to change some aspect of its current environment. ```

Question 26

strategic | maneuvering

Answer 26

By making a conscious effort to change the boundaries of its competitive environment, a firm can maneuver around potential threats and capitalize on arising opportunities.38 Managers can use several strategic maneuvers, including domain selection, diversification, merger and acquisition, and divestiture

Question 27

Domain selection

Answer 27

entrance by a company into another suitable market or industry. For example, the market may have limited competition or regulation, ample suppliers and customers, or high growth.

Question 28

Diversification

Answer 28

occurs when a firm invests in different types of businesses or products or when it expands geographically to reduce its dependence on a single market or technology. Apple successfully diversified its product line when it added the iPod, iTouch, iPad, and iPhone to its offerings of personal computers.

Question 29

empowerment

Answer 29

``` The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. ```

Question 30

final consumer

Answer 30

when you buy | a pair of Nike running shoes or lunch at Panera Bread.

Question 31

Intermediate consumers

Answer 31

buy raw materials or wholesale products and then sell to final consumers, as when Lenovo, Dell, and Hewlett Packard buy processors from Intel to use in their laptop computers.

Question 32

smoothing

Answer 32

Leveling normal fluctuations at the boundaries of the environment. For example, during winter months in the north, when automobile sales drop off, it is not uncommon for dealers to cut the price of their in-stock vehicles to increase demand.

Question 33

flexible processes

Answer 33

Methods for adapting the technical core to changes in the environment. For example, firms increasingly try to customize their goods and services to meet the varied and changing demands of customers. Even in manufacturing, where it is difficult to change basic core processes, firms are adopting techniques of mass customization that help them create flexible factories. Instead of massproducing large quantities of a “one-size-fits-all” product, organizations can use mass customization to produce individually customized products at an equally low cost.

Question 34

open systems

Answer 34

systems—that is, they are | affected by and in turn affect their external environments.

Question 35

inputs

Answer 35

goods or services from their environment

Question 36

outputs

Answer 36

The products and services | organizations create

Question 37

Organization culture

Answer 37

``` The set of important assumptions about the organization and its goals and practices that members of the company share. It is a system of shared values about what is important and beliefs about how the world works. In this way, a company’s culture provides a framework that organizes and directs people’s behavior on the job.54 ```

Question 38

Organizational climate

Answer 38

The patterns of attitudes and behavior that shape people’s experience of an organization. For example, an organization’s climate might include clear performance standards, frequent conflict, great trust in leaders, and open communication between supervisors and their employees

Question 39

scenarios

Answer 39

create alternative combinations of different factors into a total picture of the environment and the firm

Question 40

switching costs

Answer 40

the fixed costs buyers face if they change suppliers. For example, once a buyer learns how to operate a supplier’s equipment, such as computer software, the buyer faces both economic and psychological costs in changing to a new supplier.

Question 41

supply chain management

Answer 41

extended enterprise, we mean the managing of the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers

Question 42

cognitive conflict

Answer 42

differences in perspectives or judgments about issues. The most constructive type of conflict is cognitive conflict. Issue-based differences in perspectives or judgments.

Question 43

affective conflict

Answer 43

emotional and directed at other people. Affective conflict is likely to be destructive to the group because it can lead to anger, bitterness, goal displacement, and lower-quality decisions.

Question 44

bounded rationality

Answer 44

``` A less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. ```

Question 45

coalitional model

Answer 45

Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions. decision making arises when people disagree on goals or compete with one another for resources. The decision process becomes political as groups of individuals band together and try collectively to influence the decision.

Question 46

garbage can model

Answer 46

occurs when people aren’t sure of their goals, or disagree about the goals, and likewise are unsure of or in disagreement about what to do. This situation occurs because some problems are so complex that they are not well understood and because decision makers move in and out of the decision process because they have so many other things to attend to as well.

Question 47

contingency plans

Answer 47

alternative courses of action that can | be implemented depending on how the future unfolds.

Question 48

Maximizing

Answer 48

The maximizing decision realizes the greatest positive consequences and the fewest negative consequences. A decision realizing the best possible outcome

Question 49

Satisficing

Answer 49

choosing the first option that is minimally acceptable or adequate. When you satisfice, you compare your choice against your goal, not against other options. Satisficing means that a search for alternatives stops after you find one that is okay. You do not expend the time or energy to gather more information. Instead you make the expedient decision based on readily available information.

Question 50

optimizing

Answer 50

Optimizing means that you achieve the best possible balance among several goals. Perhaps, in purchasing equipment, you are interested in quality and durability as well as price. So instead of buying the cheapest piece of equipment that works, you buy the one with the best combination of attributes, even though there may be options that are better on the price criterion and others that are better on the quality and durability criteria

Question 51

ready-made solutions

Answer 51

use ideas they have tried before or follow the advice of others who have faced similar problems.

Question 52

Custom-made solutions

Answer 52

New, creative solutions designed specifically for the problem.

Question 53

dialectic

Answer 53

A structured debate comparing two conflicting courses of action

Question 54

illusion of control

Answer 54

one can influence events even when one has no | control over what will happen.

Question 55

Framing effects

Answer 55

A decision bias influenced by the way in which a problem or decision alternative is phrased or presented. how problems or decision alternatives are phrased or presented and how these subjective influences can override objective facts

Question 56

discount the future

Answer 56

That is, in their evaluation of alternatives, they weigh short-term costs and benefits more heavily than longer-term costs and benefits.A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.

Question 57

Groupthink

Answer 57

people choose not to disagree or raise objections | because they don’t want to break up a positive team spirit

Question 58

goal | displacement

Answer 58

new goals emerge to replace the original ones.A decision-making group loses sight of its original goal and a new, less important goal emerges.

Question 59

Programmed decisions

Answer 59

``` Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations. ```

Question 60

nonprogrammed decisions

Answer 60

new, novel, complex decisions having no certain outcomes. They have a variety of possible solutions, all of which have merits and drawbacks. New, novel, complex decisions having no proven answers.

Question 61

Business strategy

Answer 61

defines the major actions by which an organization builds and strengthens its competitive position in the marketplace

Question 62

low-cost strategy

Answer 62

Businesses using a low-cost strategy attempt to be efficient and offer a standard, no-frills product. Walmart Stores expresses its low-price strategy with the slogan “save money, live better.”

Question 63

differentiation strategy

Answer 63

With a differentiation strategy, a company attempts to be unique in its industry or market segment along some dimensions that customers value. This unique or differentiated position within the industry often is based on high product quality, excellent marketing and distribution, or superior service. A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

Question 64

concentration

Answer 64

``` A strategy employed for an organization that operates a single business and competes in a single industry. ```

Question 65

vertical integration

Answer 65

strategy involves expanding the domain of the organization into supply channels or to distributors. The acquisition or development of new businesses that produce parts or components of the organization’s product.

Question 66

concentric diversification

Answer 66

involves moving into new businesses that are related to the company’s original core business. A strategy used to add new businesses that produce related products or are involved in related markets and activities.

Question 67

conglomerate | diversification

Answer 67

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities. For example, General Electric Corporation has diversified from its original base in electrical and home appliance products to such wide-ranging industries as health, finance, insurance, truck and air transportation, and even media with its ownership of NBC (now owned with Comcast).

Question 68

resources

Answer 68

inputs to production (recall systems theory) that can be accumulated over time to enhance the performance of a firm. Resources can take many forms, but they tend to fall into two broad categories: (1) tangible assets such as real estate, production facilities, raw materials, and so on, and (2) intangible assets such as company reputation, culture, technical knowledge, and patents as well as accumulated learning and experience. Inputs to a system that can enhance performance

Question 69

core capability

Answer 69

(also referred to as “competence”) is something a company does especially well relative to its competitors. A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

Question 70

corporate strategy

Answer 70

``` identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities. ```

Question 71

Functional strategies

Answer 71

implemented by each functional area of the organization to support the business strategy.. ``` Strategies implemented by each functional area of the organization to support the organization’s business strategy. ``` The typical functional areas include production, human resources, marketing, research and development, finance, and distribution.

Question 72

Tactical planning

Answer 72

Tactical plans focus on the major actions a unit must take to fulfill its part of the strategic plan. For example, if the strategy calls for the rollout of a new product line, the tactical plan for the manufacturing unit might involve the design, testing, and installation of the equipment needed to produce the new linetranslates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources, as d

Question 73

Operational planning

Answer 73

identifies the specific procedures and processes required at | lower levels of the organization.

Question 74

strategy

Answer 74

A pattern of actions and resource allocations designed to achieve the organization’s goals

Question 75

situational analysis

Answer 75

``` A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration. ```

Question 76

plans

Answer 76

The actions or means managers intend to use to achieve organizational goals

Question 77

strategic | control system

Answer 77

``` designed to support managers in evaluating the organization’s progress with its strategy and, when discrepancies exist, taking corrective action. A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action. ```

Question 78

Strategic planning

Answer 78

A set of procedures for making decisions about the organization’s long-term goals and strategies; see also planning. involves making decisions about the organization’s long-term goals and strategies. Strategic plans have a strong external orientation and cover major portions of the organization.

Question 79

Strategic goals

Answer 79

Major targets or end results relating to the organization’s long-term survival, value, and growth.

Question 80

Strategic management

Answer 80

``` A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies ```

Question 81

strategic vision

Answer 81

points to the future—it provides a perspective on where the organization is headed and what it can become. The long-term direction and strategic intent of a company.

Question 82

SWOT analysis

Answer 82

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. Strengths and weaknesses refer to internal resources. Opportunities and threats arise in the macroenvironment and competitive environment.

Question 83

ethnocentrism

Answer 83

The tendency to judge others by the standards of one’s group or culture, which are seen as superior

Question 84

expatriates

Answer 84

Parent-company nationals who are sent to work at a foreign subsidiary.

Question 85

host-country nationals

Answer 85

Natives of the country where an overseas subsidiary is located.

Question 86

third-country nationals

Answer 86

Natives of a country other than the home country or the host country of an overseas subsidiary.

Question 87

failure rate

Answer 87

The number of expatriate managers of an overseas operation who come home early.

Question 88

global model

Answer 88

designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where the mix of costs and skills is most favorable.

Question 89

inpatriates

Answer 89

A foreign national brought in to work at the parent company.

Question 90

inshoring

Answer 90

moving work back to the United States

Question 91

insourcing

Answer 91

Producing in-house one or more of an organization’s goods or services.

Question 92

multinational model

Answer 92

uses subsidiaries in each country in which the company does business and provides a great deal of discretion to those subsidiaries to respond to local conditions. Each local subsidiary is a self-contained unit with all the functions required for operating in the host market.

Question 93

international model

Answer 93

``` managers use their organization’s existing core capabilities to expand into foreign markets. As the grid suggests, it is most appropriate when there are few pressures for economies of scale or local responsiveness. Pfizer is an example of a company operating in the international model. An organizational model that is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model. ```

Question 94

North American Free Trade Agreement (NAFTA)

Answer 94

combined the economies of the United States, Canada, and Mexico into the world’s largest trading bloc with nearly 444 million U.S., Canadian, and Mexican consumers and a total output of $17 trillion