Business Concepts Quiz

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Questions and Answers

What is operational planning primarily concerned with?

Creating an organizational structure

Formulating short-term action steps to meet subunit goals (correct)

Measuring performance across social, environmental, and economic dimensions

Designing long-term strategies for competition

Which of the following best describes organizational citizenship behaviors (OCBs)?

Strategies for optimizing team performance

Formal roles assigned within a team structure

Extra-role performance behaviors beneficial to the organization (correct)

Mandatory tasks outlined in job descriptions

What is the focus of strategic management?

Designing organizational structures

Formulating and communicating strategy for effective decision making (correct)

Implementing short-term action plans

Assessing the strengths and weaknesses of individual employees

Which planning type is described as developing relatively concrete means to implement the strategic plan?

Tactical planning Signup and view all the answers

What does 'process loss' refer to in group interactions?

Any aspect that inhibits good problem-solving Signup and view all the answers

Which of the following best defines the triple bottom line?

A measure of business performance across social, environmental, and economic dimensions Signup and view all the answers

What is the primary goal of organizational design?

To develop an effective organizational structure Signup and view all the answers

Who are considered stakeholders in an organization?

Any individual or group with an interest or concern regarding the organization Signup and view all the answers

What is the primary definition of accounting profit?

The revenue generated exceeding the accounting costs incurred for inputs. Signup and view all the answers

What does corporate social responsibility (CSR) primarily focus on?

Considering the interests of various stakeholders and improving quality of life. Signup and view all the answers

How is group performance measured?

By the group’s inputs minus any process loss to achieve the final output. Signup and view all the answers

What best defines environmental scanning?

The ongoing evaluation of an organization's internal and external environments. Signup and view all the answers

What is the role of a general manager?

To manage a specific revenue-producing unit or business unit. Signup and view all the answers

What best describes intrapreneurs?

Employees who engage in entrepreneurial activities within an existing organization. Signup and view all the answers

In-role performance primarily addresses which aspect?

Productivity and quality related to specific job standards. Signup and view all the answers

What is a key aspect of contemporary job design?

Ensuring employee empowerment, job enrichment, and teamwork. Signup and view all the answers

What does centrality in a social network indicate?

The extent to which a given actor is at the middle of the network Signup and view all the answers

What is a bridging tie in a network context?

A tie that offers non-redundant information and resources Signup and view all the answers

Which principle highlights the trading of favors between individuals with similar backgrounds?

Principle of similarity Signup and view all the answers

In the context of a communication network, what does density measure?

The number of direct connections among network members Signup and view all the answers

What is indicated by an access network?

Who can tap into others' knowledge and expertise Signup and view all the answers

How does a career network typically function?

It reflects those who can help in job searching or promotions. Signup and view all the answers

What does the term 'nodes' refer to in a social network?

The points or actors within the network Signup and view all the answers

What is the primary focus of problem-solving networks?

To facilitate dialogue that helps in resolving work-related problems Signup and view all the answers

What does equity sensitivity describe in workplace relationships?

The expectation of equitable relationships and distress over perceived inequity Signup and view all the answers

Which of the following best describes continuous schedules in reinforcement?

Reinforcement given after every instance of positive behavior Signup and view all the answers

In ERG theory, what do existence needs refer to?

Basic survival and safety requirements Signup and view all the answers

What is the primary function of feedback in an organizational context?

To provide communication about behavior effects on others Signup and view all the answers

What does the concept of distributive justice pertain to?

The perceived fairness of outputs received from the organization Signup and view all the answers

What motivates individuals according to expectancy theory?

The rewards they expect to receive after an effort Signup and view all the answers

What is a characteristic of benevolents in a workplace setting?

They give with the anticipation of receiving something in return Signup and view all the answers

Which schedule describes reinforcement occurring after a specific number of correct behaviors?

Fixed ratio schedule Signup and view all the answers

Which term refers to the process by which an individual is motivated to take action to achieve their goals?

Motivation Signup and view all the answers

Which job redesign technique allows employees more control over how they perform tasks?

Job enrichment Signup and view all the answers

What do objectives specifically refer to in the context of organizational goals?

Precise, time-based actions Signup and view all the answers

Which of the following defines hygiene factors in a workplace?

Factors causing dissatisfaction among workers Signup and view all the answers

In equity theory, what does the term 'referent' refer to?

The comparison person or group used for input-output ratio Signup and view all the answers

How does procedural justice influence employee perceptions?

Via fair decision-making procedures Signup and view all the answers

Which aspect of job characteristics model leads to increased employee responsibility?

Autonomy Signup and view all the answers

Which concept measures an organization’s impact on economic, social, and environmental performance?

Triple bottom line Signup and view all the answers

What is the primary purpose of reinforcement schedules in behavior modification?

To determine the timing of reinforcement delivery Signup and view all the answers

Which of the following types of needs is associated with a desire for power and influence?

Power needs Signup and view all the answers

What mechanism is most associated with increasing desired behaviors by removing negative consequences?

Negative reinforcement Signup and view all the answers

What does valence refer to in motivation theory?

The anticipated satisfaction from rewards Signup and view all the answers

Which term describes the satisfaction derived from elements that encourage performance increases?

Motivators Signup and view all the answers

Which of the following is not typically considered a hygiene factor?

Achievement Signup and view all the answers

What best describes a counterculture within an organization?

A group with shared values that oppose the overall culture Signup and view all the answers

Which organizational structure is characterized by departments grouped under a division head?

Divisional structure Signup and view all the answers

What type of culture emphasizes adaptability and experimentation with new ideas?

Innovative culture Signup and view all the answers

Which structure utilizes both vertical and horizontal team-based configurations?

Matrix structure Signup and view all the answers

What is the primary purpose of an onboarding program in an organization?

To introduce new employees to company culture and job roles Signup and view all the answers

What do people-oriented cultures primarily value?

Fairness and respect for individual rights Signup and view all the answers

What distinguishes a networked team structure from a formal hierarchy?

It is based on informal and decentralized networks Signup and view all the answers

Which culture type prioritizes measurable results and action?

Outcome-oriented culture Signup and view all the answers

Study Notes

Accounting Profit

Revenue exceeding the cost of inputs

Controlling

Ensuring performance meets established standards

Organizations considering societal impact beyond legal obligations
Responsibility towards customers, suppliers, employees, shareholders, communities, and the environment
Voluntary efforts to improve quality of life for employees, local communities, and society

Empowerment

Enabling individuals to think, behave, and control work autonomously
Independent decision-making

Entrepreneurship

Creating new ventures by identifying market opportunities
Innovating products or services to address those needs

Entrepreneur

Individuals who initiate and manage new ventures while assuming associated risks

Environmental Scanning

Continuously evaluating and forecasting internal and external environments
Proactive management of strengths, weaknesses, opportunities, and threats
Includes factors like economic conditions, competition, and customer needs

General Manager

Oversees a revenue-generating unit, such as a store, business unit, or product line

Group

A collection of individuals

Group Performance

Measured by group inputs minus any process loss that impacts final output

Intrapreneurs

Individuals driving creative, innovative, and entrepreneurial activities within existing organizations

In-Role Performance

Individual performance measured by productivity and quality standards
Satisfying job requirements

Job Design

Allocating tasks, responsibilities, and duties within a specific job
Aligning job roles with organizational goals
Contemporary job design emphasizes employee empowerment, job enrichment, and teamwork

Line Manager

Directly responsible for the products or services an organization creates

Leadership

Influencing others to inspire action
Utilizing social and informal sources of influence

Management

Solving problems creatively to achieve organizational goals through the efforts of others

Operational Planning

Short-term (less than a year) planning to execute specific actions
Aligns with strategic goals

Organizational Design

Developing an organizational structure
Allocating human resources to achieve objectives

Organizational Citizenship Behaviors (OCBs)

Voluntary behaviors that benefit the organization beyond formal job descriptions

Principles of Management

Methods for achieving objectives through others
Includes planning, organizing, leading, and controlling people, processes, and practices

Process Loss

Factors hindering effective problem-solving within a group

Strategy

Clearly articulated goals and objectives outlining an organization's long-term action plan

Strategic Management

Formulating and communicating strategy effectively
Providing decision-making guidance for day-to-day operations

Strategic Planning

Long-term (three years or more) planning by top management
Aligning organizational mission with competitive advantages
Utilizing environmental scanning and forecasting (SWOT analysis)

Stakeholders

Individuals or groups with an interest in an organization
Includes employees, investors, suppliers, customers, and society

Tactical Planning

Intermediate-range (one to three years) planning
Concrete and specific implementation strategies for the strategic plan

Triple Bottom Line

Measuring business performance across social, environmental, and economic dimensions

Team

A cohesive group working towards a shared agenda
Collaboration and teamwork are key

Actors: Individuals, groups, or organizations that make up the network.
Access Network: Shows who has access to knowledge and expertise within the network.
Activity: Measures an individual's level of participation within the network.
Bridging Tie: Offers distinct and non-redundant information and resources.
Career Network: Individuals who can assist in job searches or promotions.
Centrality: Measures an actor's position at the center of the network.
Communication Network: Informal structure of an organization, representing patterns of interaction.
Control: Measures an actor's influence over information flow within the network.
Conflict: Arises due to communication breakdowns, conflicting goals, power struggles, or personality clashes.
Density: Reflects how many individuals are connected directly within the network.
Direct Ties: Direct connections between two actors.
Indirect Ties: Connections between actors through intermediary actors.
Information Network: Shows whom individuals consult for work-related advice.
Knowledge Network: Captures awareness of each other's knowledge and skills.
Network Ties: The connections or relationships between actors.
Nodes: Individual actors or points within the network.
Networking: Activities undertaken to build an individual's social network.
Problem-Solving Networks: Identify who individuals go to for collaborative problem-solving.
Principle of Reciprocity: Trading favors of equal value with others.
Principle of Exchange: Trading favors with diverse individuals, offering greater value through resource differences (knowledge, capabilities, skills).
Principle of Similarity: Relationships develop naturally among those with shared backgrounds, values, and interests.
Social Capital: Resources accessible through personal and professional networks, including ideas, information, money, and trust.
Social Network Analysis (SNA): Mapping and measuring relationships and flows between actors, including people, groups, organizations, computers, websites, etc.
Strong Ties: Exist between individuals with close relationships and frequent resource exchanges.
Weak Ties: Exist between individuals who know each other, at least by reputation, but have limited resource exchanges.

Organizational Behavior Study Notes

Autonomy
- Refers to the degree of freedom an individual has in deciding how to perform work tasks.
Balanced Scorecard
- A management tool used to track an organization's performance across various aspects.
- It uses leading, pacing, and lagging measures to assess progress.
Benevolents
- Individuals who give without expecting anything in return.
Corporate Social Responsibility (CSR)
- Involves companies managing business processes to positively impact society.
Continuous Schedules
- Rewarding behavior every time it is demonstrated.
- An example is sales commissions earned for each successful sale.
Distributive Justice
- Perceiving fairness in the outputs received from an organization.
Esteem Needs
- Belong to Maslow's Hierarchy of Needs and refer to the desire for respect, importance, and appreciation.
ERG Theory
- A model of motivation proposed by Clayton Alderfer.
- It simplifies Maslow's Hierarchy of Needs, categorizing them as Existence, Relatedness, and Growth.
- Existence needs correspond to physiological and safety needs.
- Relatedness needs align with social needs.
- Growth needs correspond to esteem and self-actualization.
Equity Theory
- Explains motivation based on the perception of fairness in comparison to others, focusing on input-output ratios.
- Inequity can lead to tension and motivates individuals to take action to reduce perceived unfairness.
Equity Sensitivity
- The tendency to experience distress when feeling over or under-rewarded in comparison to others.
Entitleds
- Individuals who expect to receive significant rewards without contributing much effort.
Expectancy
- The belief that high effort levels will lead to desired outcomes.
Extinction
- A method of modifying behavior by ignoring undesired behaviors to reduce their frequency.
Feedback
- Communication about behaviors and their impact on individuals, colleagues, clients, and the organization.
Fixed Ratio Schedules
- Rewards are given after a specific number of desired behaviors.
- For instance, a bonus may be awarded after reaching a $10,000 sales target.
Fixed Interval Schedules
- Reinforcements are provided after a fixed period of time.
- An example is a monthly sales bonus.
Goals
- Outcome statements defining an organization's objectives, both programmatically and organizationally.
Hygiene Factors
- Job aspects that can lead to dissatisfaction.
- Examples include company policies, supervision, working conditions, salary, safety, and job security.
High Need for Affiliation
- Individuals with a strong desire to be liked and accepted by others.
Interactional Justice
- The perception of fair and respectful treatment in interpersonal interactions.
Instrumentality
- The belief that job performance is linked to rewards or other desired outcomes.
Job Specialization
- Dividing tasks into simple components and assigning them to employees to increase efficiency.
- This often leads to repetitive work.
Job Rotation
- A technique that involves moving employees between different jobs at regular intervals.
- Aims to build skills, cross-train, and reduce monotony.
Job Enlargement
- Adding more diverse tasks to an employee's responsibilities.
Job Enrichment
- Redesigning jobs to give workers more control over their tasks, leading to greater responsibility and experience.
Job Characteristics Model
- Identifies five core job dimensions that influence employee motivation and satisfaction.
- These dimensions are skill variety, task identity, task significance, autonomy, and feedback.
- They contribute to three critical psychological states (meaningfulness, responsibility, and knowledge of results) which can lead to positive work-related outcomes.
Lifestyles of Health and Sustainability (LOHAS)
- A group of consumers focused on ethical and sustainable practices related to health, environment, social justice, personal development, and sustainable living.
Measures
- Specific metrics employed to evaluate performance against objectives.
Motivation
- The process that drives an individual to act and achieve goals.
Motivators
- Job elements that contribute to worker satisfaction and encourage higher performance.
- Examples include achievement, recognition, interesting work, increased responsibility, advancement, and growth opportunities.
Need for Power
- A drive to influence others and control the environment.
Negative Reinforcement
- Increasing the frequency of desired behaviors by removing negative consequences.
Objectives
- Precise, time-bound, quantifiable actions that support the achievement of goals.
Organizational Behavior Modification (OB Mod)
- A structured application of reinforcement theory to change employee behaviors.
- It follows a five-stage process:
  - Identifying the behavior to be modified.
  - Measuring the baseline level.
  - Analyzing antecedents and outcomes.
  - Implementing an intervention.
  - Evaluating and sustaining the behavior.
Performance Management Systems
- Continuous improvement processes that assist employees in developing performance plans and achieving goals.
Performance Evaluation
- A constructive feedback process that evaluates employee performance.
Physiological Needs
- Basic needs for survival, including the requirement for air, food, and water.
Procedural Justice
- The perception that fair decision-making procedures are used.
Positive Reinforcement
- Increasing the frequency of desired behaviors by rewarding them with positive consequences.
Punishment
- A method of reducing the frequency of undesired behaviors by imposing negative consequences.
Reinforcement Schedules
- The timing and frequency of reinforcement delivery influence behavior.
Relatedness Needs
- The desire for social connection, love, and belonging.
Referent (Equity Theory)
- A comparison person or group used to evaluate one's input-to-output ratio.
Reinforcement Theory
- Emphasizes the idea that behavior is driven by its consequences.
- Describes four methods to modify behavior:
  - Positive reinforcement.
  - Negative reinforcement.
  - Extinction.
  - Punishment.
- Two methods increase desired behaviors, while the other two decrease undesired behaviors.
Safety Needs
- The desire for security, safety, and protection from threats.
Social Needs
- The need for connection, love, and lasting relationships.
Self-Actualization
- The realization of one's full potential and becoming all that one can be.
SMART Goals
- Effective goals are "S"pecific, "M"easurable, "A"ttainable, "R"elevant, and "T"ime-bound.
Skill Variety
- The degree to which a job requires a variety of skills and abilities.
Triple Bottom Line (TBL)
- Measures an organization's economic, social, and environmental performance.
- It is closely related to corporate social responsibility.
Task Identity
- Completing a piece of work from start to finish.
Task Significance
- The impact of a job on others' work, health, or well-being.
Valence
- The anticipated value or satisfaction derived from rewards associated with an outcome.
Variable Ratio Schedules
- Delivering rewards on a random pattern, for instance, awarding a sales bonus based on the manager's mood.

Organizational Culture

Aggressive cultures value competitiveness and outperforming competitors.
Counterculture refers to a group with shared values and beliefs that differ significantly from the overall organizational culture.
Detail-oriented cultures emphasize precision and paying attention to detail.
Innovative cultures are flexible, adaptable, and experiment with new ideas.
Outcome-oriented cultures value achievement, results, and action.
People-oriented cultures value fairness, supportiveness, and respecting individual rights and dignity.
Stable cultures are predictable, rule-oriented, and bureaucratic.
Strong cultures have a majority of employees who agree on the company's values.
Team-oriented cultures encourage collaboration and cooperation among employees.

Organization Design

Divisional structure groups functional departments under a division head. Each functional group has its own marketing, sales, accounting, manufacturing, and production team.
Functional structure is based on departments and expertise areas, such as R&D (research & development), production, accounting, and human resources.
Geographic structure is based on the locations of customers that a company serves.
Matrix structure combines vertical and horizontal team-based structures, with individuals reporting to multiple leaders.
Networked team structure uses horizontal teams within an informal, flexible, and decentralized network, rather than hierarchical lines of authority.
Virtual structure is boundaryless and relies heavily on information communication technologies (ICTs). The headquarters may be the only stable part of the organization, with tasks, positions, and projects often outsourced.

Other Key Concepts

Formal orientation program indoctrinates new employees into the company culture, introduces them to their new jobs and colleagues.
Macro, General, or External Environment is the big picture world where an organization exists, including political, economic, social, technological, legal, and environmental factors that affect the business. Leaders have limited control over these factors.
Mentor is a trusted person who provides career-related advice and support to employees.
Mission statement outlines the company's purpose, describing who it is and what it does.
Onboarding is the process of teaching new employees the attitudes, knowledge, skills, and behaviors needed to succeed within the organization.
Rituals are repetitive activities that reinforce corporate values, increase motivation and morale, and create a sense of identification with the organization.
Values are shared principles, standards, and goals.

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Description

Test your knowledge on key business concepts including accounting profit, corporate social responsibility, and entrepreneurship. This quiz covers essential definitions and principles that are crucial for understanding modern business practices.