Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Intro to business > Week 4: Module 5 > Flashcards

Week 4: Module 5 Flashcards

1
Q

What does MBO stand for?

A

Stands for Management By Objective. This means that the organizational goals are broken down into small individual goals for each manager.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what does the Muller and Dess hierarchy look like

A
  1. Vision
  2. Mission
  3. Goal
  4. Objectives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does the vision in Muller & Dess hierarchy mean?

A

This describes what the organization should look like in the future.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does the mission stage in Muller & Dess hierarchy mean?

A

This is a statement of the organization’s key values defining the purpose of the organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does the goal stage in Muller & Dess hierarchy mean?

A

This is a generalized and broad statement of what the organization wants to achieve.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does the objectives stage in Muller & Dess hierarchy mean?

A

This is the operationalization of goals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does bounded rationality mean?

A

This concept means that people try to make rational decisions, but strategic choices are limited by selective information and ignoring other strategies once a plan of action has been developed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why is there any organization?

A

There is a cost through price mechanism on the market, transaction costs. Organizations reduce or eliminate those transaction costs between members of organization and therefore gains efficiency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why is there not one large organization?

A

There are limits to the internal production of one organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How is the size of a firm determined?

A

The size of the firm is the result of finding the optimal balance between internal and external relations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a divisional structure?

A

A divisional structure focuses on one product/project and tasks decision-making responsibility with one general manager. This results in the standardization of outcomes.

Communication and collaboration are essential to avoid duplication.
This structure causes tensions between division management. Therefore organizations sometimes change to a matrix organization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is outsourcing?

A

Subcontracting of formerly internally performed activities to outsiders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does integration mean?

A

The incorporation of activities that used to be performed by third parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the considerations of integration?

A
  1. Relative resources and capabilities internally vs externally
  2. Risk of opportunism: market players will direct efforts in their self-interest.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a functional structure?

A
  1. Departments focusing on functions and take over from owner-manager
  2. Conflicting goals
  3. Expansion requires more decision-making per product (autonomy crisis)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When do market relationships fail?

A
  1. There are just a few players
  2. Activity is complex and constantly changing
  3. Activity is asset specific and therefore it’s difficult to retain value.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the characteristics of the economists view on the goal of an organization?

A
  1. Actioncs can fairly certain be liked to consequences
  2. Parties strive to maximize net revenue
  3. Rational decision making
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Describe the goal formation process.

A
  1. Coalition files general terms
  2. Goals are stabilized and elaborated
  3. Coalition agreements chage due to context
  4. Process of change to experience
  5. Bargaining process
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Opposing forces in goal setting process

A

Corporate goals set by top management are likely different from those of employees and interest groups.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are structural choices the organization has to make?

A
  1. Hierarchy
  2. Integration and differentiation (specialization)
  3. Centralization vs decentralization (coordination)
  4. Rewards (incentives)
  5. Boundary spanning
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Name the cause of bureaucratic costs and four examples

A

Bureaucratic costs are caused by the increased complexity of organizations. Examples are:

Communication, measurement, customer and location problems.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the matrix structure?

A

Organization is divided in groups by product and function. This increases complexity and costs, but does provide quick responses and synergies.

Offers great customer focus and there is skillgathering around specific project. Efficiencies are easy to be gained.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the flexible organization?

A

A flexible organization, or adhocracy, have structures of teams focusing on specific projects for short period of time and then they form other teams for new projects. Decisions are made when needed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a virtual organization?

A

An organization that focuses on using technology and digital tools to create an extremely flexible organization. All nonessential activities are outsourced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a leadership-crisis

A

At first, businesses are operated by an owner-manager. Once the business scales up and the owner-manager needs to make too many decisions, a leadership-crisis erupts. It is time ti switch to another organizational structure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are interest groups

A

Groups of indivuals/ divisions within organization that have the same interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is a coalition

A

A collaboration among certain interest groups to ensure their interests are pursued.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What are the dangers of goal-setting?

A
  1. Creates an environment in which organizational politics while thrive
  2. Multiple goals, where coalitions will compete against each other for self gain.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the definition of structure?

A

Grouping activities together to optimize effort to achieve goals of dominant coalition.

30
Q

Which factors influence structure?

A
  1. Interconnected relationship between structure and strategy
  2. Teechnology
  3. Size: bigger means more bureaucracy
  4. Changes in environment: fast change needs organic structure
  5. Interest groups: will of shareholders and coalitions
31
Q

What is a holding company structure?

A

More informal and divisional company. Usually occurs through high product diversifications through acquisitions.

32
Q

What are the trends in organizational structure

A
  1. Downsizing
  2. Delayering
33
Q

What are the effects of downsizing?

A
  1. Less career opportunities and thus more job change
  2. More responsibility and workload for managers
  3. Less/loyalty and commitment
34
Q

Why are organizations downsizing?

A
  1. Bureaucracies are inefficient and expensive
  2. Downsizing and delayering inmprove communication and speeds up decision-making
  3. More flexibility and responsiveness
  4. Cost-cutting
35
Q

What is a numerically flexible organization?

A

Organization that is able to rapidly change head count

36
Q

What is a functional flexible organization?

A

ORganization that is able to perform different tasks if needed

37
Q

What is a financially flexible organization?

A

Organization that offers differentiated pay to promote functional and numerical flexibility.

38
Q

What is a sole proprietor?

A

Someone who starts a business and takes on full responsibility. Often just starting out and profits are all for owner. Ownership and control are combined.

39
Q

What is a partnership?

A

Ownership type common in accountancy, law and dentistry. This has unlimited personal liability and onwnership is based on invested capital.
Problems may occure when partners pursue own interest

40
Q

What is technological determinism?

A

Technology determines structure

41
Q

What are the characteristics of limited companies?

A
  1. Assets are owned by the company
  2. Shareholders can only lose invested capital
42
Q

Name two types of limited companies

A
  1. Public limited companies (plc), which are mostly large corporations
  2. Private limited companies (Ltd.) mostly for small and medium sized firm.
43
Q

What are public sector organizations?

A

Organizations owned by government. Number is decreasing due to privatization and liberalization

44
Q

What problem does the joint stock company create?

A

The problem that shareholders and managers both pursue their own interest, often at the expense of the other parties involved.

45
Q

What are the types of management and control in public sector?

A
  1. Fully owned and controlled industries: communist practice decreased through liberalization
  2. State as majority shareholder: privatized companies in which government kept control
  3. Services to population: services funded through taxation
  4. Local level government: lower level ministries
46
Q

What are the problems of public sector organization?

A
  1. Badly defined goals that conflict
  2. Financial limitations due to pricing policy and debt restrictions
  3. Impossible to satisfy all public needs simultaneously
  4. Slow and complex decision making
  5. Too bureaucratic organization structure with responsibility owed to multiple people
  6. Less innovation and motivation
47
Q

What is privatization?

A

The sale of public companies and organizations through share issued, centred around the idea that private companies are more cost-efficient and innovative.

48
Q

Agency problem

A

There is an agency problem if one party (agent) is expected to act in the interest of the principal (shareholders) against their own interest.

Solve it by incentivizing agent to act in principal’s interest.

49
Q

Characteristics of a small business

A
  1. Limited products, customers and markets with little price influence
  2. Independent
  3. Great owner-manager influence and control
  4. Difficulty raising capital due to lack of cash
  5. Short-term and reactive strategies
  6. Business systems are based on owner-manager experience.
50
Q

What is organizational culture?

A

Organizational culture are the shared basic assumptions the group learned by external adaptation and internal integration.

51
Q

What are the four types of organizational culture?

A
  1. Power culture
  2. Task culture
  3. Rule culture
  4. Person culture
52
Q

What is a power culture?

A

Power with a few people at the top, simple and quick decision making

53
Q

What is a rule culture?

A

Culture in which bureaucratic rules are central of the operation and there is slow decision making

54
Q

What is a task culture?

A

Culture that is project based and where the power and decision making mix differs per project.

55
Q

What is a person culture?

A

A culture in which the individual is central to the organization. This often occurs in professional service firms.

56
Q

Characteristics of successful firms?

A
  1. Strong culture with clear values shared among all employees
  2. Excellence: customer orientation, action-based, autonomy and a simple structure
57
Q

Wat does becoming a superfit mean for organizations?

A

Becoming a superfit means that an organization to become an institution.
Institution forming process is infusing long-term value into organization.

58
Q

What are the elements of McKinsey’s 7-s model

A
  1. Strategy
  2. Style
  3. Superordinate goals
  4. Structure
  5. Systems
  6. Skill
  7. Staff
59
Q

How do organizations become superfit?

A

Deep engagement with purpose and the community it is meant to serve.

60
Q

What is the ultimate goal of organizations?

A

The ultimate goal of any organization is to fit culture, environment, structure etc.

61
Q

What are the different types of small businesses?

A
  1. Lifestyle businesses: people prefere their own business over working for others
  2. Growth firm: entrepreneurial business seeking capital for growth
  3. Family business owned and operated by family.
62
Q

What are the benefits of owning your own small business?

A
  1. Opportunity and control
  2. Opens up path to wealth, influence and power in local community
  3. Security for family
63
Q

What are the drawbacks of having your own smal business?

A
  1. Risk of failure and loss
  2. Less lucrative than working for someone else
  3. long- stressful weeks
64
Q

What are the benefits of economic growth to small businesses?

A
  1. Future big business
  2. Offer specialist items not offered by large firms
  3. More flexibility and innovation
  4. No threat of inflation in recession
65
Q

What are the drawbacks of economic growth for small businesses?

A
  1. Exploitation by bigger companies
  2. Owner often replicates their old work in a different setting.
66
Q

What are key elements in the corporate culture?

A
  1. Beliefs and values that have been developed over time
  2. Learned by employees
  3. Guides and behavior to solve problems
  4. Manifasted in every aspect of business
67
Q

What is organizational culture?

A

organization is a unique combination of lots of variables created by the environment

68
Q

What is corporate culture?

A

Use of culture to contol people and enhance performance through development of employees. This is created by management.

69
Q

What are Peters and Waterman’s attributes of excellence?

A

1 Bias for action with clear objectives
2. Closeness to customers: goal is satisfying customer needs
3. Autonomy and entrepreneurship: small cohesive teams to boost it
4. Productivity through people: workforce involved in everything
5. Hands on; value driven: top down culture in touch with all employees
6. Stay with what they are great at
7. Simple form, lean staffing: No complex hierarchies and small workforce
8. Structure supports central direction and group autonomy.

70
Q

what is the critique on Peters and Waterman’s attributes of excellence concept>

A
  1. These excellent companies don’t perform better on stock market
  2. These attributes only work in certain conditions
  3. Environment are more important
  4. Flexible labour market makes instilling culture harder
  5. Seen as form of brainwashing
  6. Prevents change
71
Q

How can culture serve as a useful concept?

A
  1. Offers management coordination and reduces uncertainty
  2. Sense of belonging and good benefits for employees
  3. Link between rational and irrational aspects of strategy
  4. Continued success of firms with strong culture shows it’s not that bad.

Intro to business (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions