Corporate Governance & Transaction Cost Theory
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Questions and Answers

What role involves searching for opportunities within the organization and initiating improvement projects?

  • Disturbance handler
  • Entrepreneur (correct)
  • Liaison
  • Monitor

Which role is responsible for transmitting information to outsiders regarding the organization's plans and actions?

  • Monitor
  • Disseminator
  • Spokesperson (correct)
  • Resource allocator

What skill is characterized by the ability to work well with others and understand interpersonal dynamics?

  • Resource management skills
  • Human skills (correct)
  • Conceptual skills
  • Technical skills

Which managerial role is primarily focused on providing corrective action in response to unexpected disturbances?

<p>Disturbance handler (C)</p> Signup and view all the answers

What involves allocating organizational resources and making significant decisions?

<p>Resource allocator (D)</p> Signup and view all the answers

Which informational role is responsible for processing and gathering a wide variety of information?

<p>Monitor (B)</p> Signup and view all the answers

What is a key component of managing organizational change effectively?

<p>Cultivating productive relationships (C)</p> Signup and view all the answers

Which skill involves conceptualizing and thinking abstractly about complex organizational situations?

<p>Conceptual skills (B)</p> Signup and view all the answers

What defines the core competencies of an organization?

<p>The skills and abilities necessary for business activities (D)</p> Signup and view all the answers

Which aspect of corporate strategy focuses on how an organization competes in each of its businesses?

<p>Business level strategy (B)</p> Signup and view all the answers

Which of the following is NOT a type of corporate strategy?

<p>Innovation strategy (D)</p> Signup and view all the answers

What is the primary focus of a functional strategy within an organization?

<p>To align specific business functions with overall strategies (B)</p> Signup and view all the answers

What does a competitive advantage primarily refer to?

<p>The unique qualities that distinguish an organization (C)</p> Signup and view all the answers

Which business units are described as having their own competitive strategies?

<p>Strategic Business Units (SBUs) (B)</p> Signup and view all the answers

Which of the following is an example of a goal for an organization?

<p>Increasing customer satisfaction (A)</p> Signup and view all the answers

What does a growth strategy involve for an organization?

<p>Expanding the market served or products offered (D)</p> Signup and view all the answers

What is NOT one of the three main human resource requirements for value chain management?

<p>Strict adherence to traditional roles (B)</p> Signup and view all the answers

Which cultural attitude is least likely to promote effective value chain management?

<p>Lack of trust (C)</p> Signup and view all the answers

What is a major obstacle to effective value chain management?

<p>Refusal to share information (B)</p> Signup and view all the answers

Which capability is essential for value chain management according to the content?

<p>Coordination and collaboration skills (A)</p> Signup and view all the answers

What role do cross-functional work teams play in quality management?

<p>They contribute to quality improvement programs (A)</p> Signup and view all the answers

What is essential for monitoring the progress of quality improvement initiatives?

<p>Establishing effective control mechanisms (A)</p> Signup and view all the answers

Which of the following is a planning activity in quality management?

<p>Setting quality improvement goals (C)</p> Signup and view all the answers

Which is NOT a characteristic of organizations with successful quality improvement programs?

<p>Rigid hierarchical structures (A)</p> Signup and view all the answers

What type of goal relates directly to the expected internal financial performance of an organization?

<p>Financial Goals (C)</p> Signup and view all the answers

Which type of plan is designed specifically for a unique situation?

<p>Single-use Plans (A)</p> Signup and view all the answers

In which approach to setting goals do top managers establish goals that become subgoals for different areas?

<p>Traditional Goal-Setting (D)</p> Signup and view all the answers

What defines Real Goals in an organization?

<p>Goals pursued through member actions (D)</p> Signup and view all the answers

Which type of plan provides general guidelines and is flexible in nature?

<p>Directional Plans (B)</p> Signup and view all the answers

What is the first step in the Management by Objectives (MBO) process?

<p>Formulation of overall objectives and strategies (D)</p> Signup and view all the answers

Which type of plan covers a time frame of one year or less?

<p>Short-term Plans (D)</p> Signup and view all the answers

Which of the following is NOT a characteristic of Specific Plans?

<p>Flexible guidelines (D)</p> Signup and view all the answers

What is a primary focus of the United Nations Global Compact?

<p>Outlining principles for business in human rights (A)</p> Signup and view all the answers

What role do top managers play in promoting ethical behavior in an organization?

<p>They set the cultural tone for ethical behavior. (C)</p> Signup and view all the answers

What can lead to ethical employees compromising their values?

<p>Unrealistic job goals (A)</p> Signup and view all the answers

What is the purpose of independent social audits?

<p>To evaluate ethical decisions and management practices. (B)</p> Signup and view all the answers

Which best describes a whistle-blower?

<p>An individual who reports ethical concerns to authorities. (A)</p> Signup and view all the answers

Which strategy can encourage ethical behavior in an organization?

<p>Implementing ethics training programs. (B)</p> Signup and view all the answers

What should a Code of Ethics primarily provide?

<p>A statement of primary values and expected behaviors. (A)</p> Signup and view all the answers

How can organizations protect employees who raise ethical issues?

<p>By assuring them there are no personal or career risks. (B)</p> Signup and view all the answers

What is the primary goal of Human Resource Planning?

<p>To have the right number and types of employees at the right time (D)</p> Signup and view all the answers

Which of the following is NOT considered a high-performance work practice?

<p>Micromanagement of employees (B)</p> Signup and view all the answers

What is the role of labor unions in human resource management?

<p>To represent workers and protect their interests through collective bargaining (B)</p> Signup and view all the answers

What does a job analysis typically include?

<p>Describing the job duties, environment, and specifications (C)</p> Signup and view all the answers

Which external factor can directly influence the Human Resource Management process?

<p>Economic conditions (B)</p> Signup and view all the answers

How can high-performance work practices improve organizational performance?

<p>By increasing individual autonomy and decision-making power (B)</p> Signup and view all the answers

What do both the job description and job specification convey to managers during recruitment?

<p>The necessary qualifications and responsibilities for the job (C)</p> Signup and view all the answers

What is a characteristic of decentralized decision making in high-performance work practices?

<p>Decisions are typically made closer to the operational front lines (D)</p> Signup and view all the answers

What is primarily focused on ensuring activities are accomplished as planned?

<p>Controlling (C)</p> Signup and view all the answers

Which management function involves determining how tasks will be accomplished?

<p>Organizing (B)</p> Signup and view all the answers

Which managerial level is primarily responsible for making decisions that affect the entire organization?

<p>Top Managers (D)</p> Signup and view all the answers

What does effectiveness in management primarily refer to?

<p>Attaining organizational goals (C)</p> Signup and view all the answers

Which of the following is NOT one of the four primary management functions?

<p>Evaluating (B)</p> Signup and view all the answers

Which interpersonal role involves motivating subordinates and handling staffing?

<p>Leader (B)</p> Signup and view all the answers

What is the distinct characteristic of organizations?

<p>They have a deliberate structure and mutual dependency (C)</p> Signup and view all the answers

Which term best describes the skill of doing things correctly to maximize output?

<p>Efficiency (C)</p> Signup and view all the answers

What is the main focus of Total Quality Management (TQM)?

<p>Continuous improvement and customer satisfaction (D)</p> Signup and view all the answers

Which statistical technique is often used in quality management for measuring critical variables?

<p>Statistical Process Control (B)</p> Signup and view all the answers

What approach involves using mathematical and statistical solutions to enhance decision-making?

<p>Quantitative Approach (D)</p> Signup and view all the answers

Which of the following best describes the Behavioral Approach to organizational behavior?

<p>Study of actions of individuals in the workplace (D)</p> Signup and view all the answers

What is a key characteristic of the systems approach in contemporary management?

<p>Identifying interrelated and independent parts (D)</p> Signup and view all the answers

Which concept emphasizes that quality management requires empowering employees in the quality improvement process?

<p>Employee involvement (B)</p> Signup and view all the answers

What was the primary outcome of the Hawthorne Studies?

<p>Understanding the impact of worker conditions on productivity (A)</p> Signup and view all the answers

What is the first step in the decision-making process?

<p>Identifying a problem (B)</p> Signup and view all the answers

What does a continuous improvement philosophy in quality management imply?

<p>Commitment to ongoing enhancements in processes and outcomes (B)</p> Signup and view all the answers

What does assigning weights to decision criteria help determine?

<p>The order of importance of criteria (C)</p> Signup and view all the answers

In which step of the decision-making process is each alternative's strengths and weaknesses appraised?

<p>Analyzing alternatives (C)</p> Signup and view all the answers

What is indicated by the highest total weight among alternatives during the decision-making process?

<p>The best alternative has been selected (D)</p> Signup and view all the answers

At which step do managers implement their decisions and communicate to those involved?

<p>Implementing an alternative (D)</p> Signup and view all the answers

What does evaluating decision effectiveness involve?

<p>Judging the soundness based on outcomes (C)</p> Signup and view all the answers

How is a problem defined in the context of decision-making?

<p>As an obstacle hindering goal achievement (C)</p> Signup and view all the answers

What is the purpose of developing alternatives in the decision-making process?

<p>To find solutions without immediately evaluating them (B)</p> Signup and view all the answers

What organizational structure is best suited for companies focusing on tightly controlling costs?

<p>Mechanistic Structure (B)</p> Signup and view all the answers

As an organization grows larger, its structure is likely to shift towards which type?

<p>Mechanistic Structure (D)</p> Signup and view all the answers

Which production type is characterized by low formalization and low centralization?

<p>Unit Production (C)</p> Signup and view all the answers

In which type of environment are mechanistic organizational structures most effective?

<p>Stable environments (A)</p> Signup and view all the answers

Which organizational design is characterized by low departmentalization and centralized authority?

<p>Simple Structure (C)</p> Signup and view all the answers

What is the primary characteristic of process production within organizational structures?

<p>High formalization and high centralization (D)</p> Signup and view all the answers

Which structure is most appropriate for organizations pursuing unique and innovative offerings?

<p>Organic Structure (B)</p> Signup and view all the answers

What impacts the choice of organizational structure based on external conditions?

<p>Environmental Uncertainty (D)</p> Signup and view all the answers

What is one way that employees learn about their organization's culture?

<p>By telling and listening to stories (C)</p> Signup and view all the answers

Which of the following best describes a strong organizational culture?

<p>Culture where key values are intensely held and widely shared (D)</p> Signup and view all the answers

What role do material symbols play in organizational culture?

<p>They create the organization's personality and convey expectations (B)</p> Signup and view all the answers

Which of the following is a key characteristic of culture as a descriptive term?

<p>It articulates how members perceive their environment (A)</p> Signup and view all the answers

How do rituals contribute to an organization's culture?

<p>By expressing and reinforcing important values and goals (D)</p> Signup and view all the answers

What aspect of language functions in organizational culture?

<p>It identifies culture members' acceptance and commitment (C)</p> Signup and view all the answers

Which of the following statements is true about organizational culture?

<p>Culture is shaped largely by the collective experiences of its members (D)</p> Signup and view all the answers

What is one intended outcome of corporate storytelling within an organization?

<p>To celebrate significant accomplishments and learnings (C)</p> Signup and view all the answers

Which personality type is characterized by a chronic sense of urgency and competitiveness?

<p>Type A personality (A)</p> Signup and view all the answers

What is the role of a realistic job preview during the selection process?

<p>To minimize stress by clarifying job expectations (D)</p> Signup and view all the answers

Which structural variable is essential for fostering innovation within an organization?

<p>Organic-type structure (B)</p> Signup and view all the answers

What is a key cultural variable that supports innovation?

<p>Tolerating risk and encouraging experimentation (B)</p> Signup and view all the answers

What best describes the role of an idea champion in an organization?

<p>To actively support and implement new ideas (D)</p> Signup and view all the answers

Which of the following statements is true regarding the connection between design thinking and innovation?

<p>Design thinking emphasizes a deep understanding of customer requirements. (B)</p> Signup and view all the answers

How do organizations minimize extreme time pressures on creative activities?

<p>By minimizing time pressures on creativity (A)</p> Signup and view all the answers

What does encouraging a focus on ends rather than means promote within an organization?

<p>Consideration of alternative approaches to goals (C)</p> Signup and view all the answers

What is meant by efficiency in management?

<p>Maximizing output with minimal inputs (B)</p> Signup and view all the answers

Which management function involves motivating team members to achieve goals?

<p>Leading (B)</p> Signup and view all the answers

What characteristic is common to organizations?

<p>Having a deliberate structure (D)</p> Signup and view all the answers

Which role is primarily concerned with staffing and training subordinates?

<p>Leader (C)</p> Signup and view all the answers

What is the first management function in achieving an organization’s stated purposes?

<p>Planning (A)</p> Signup and view all the answers

What is the primary focus of top managers in an organization?

<p>Making large-scale decisions that affect the organization (B)</p> Signup and view all the answers

Which term best describes 'doing the right things' in management?

<p>Effectiveness (C)</p> Signup and view all the answers

What is a key responsibility of middle managers?

<p>Managing first-line managers (C)</p> Signup and view all the answers

What role do decision criteria play in the decision-making process?

<p>They are factors important for resolving the problem. (B)</p> Signup and view all the answers

Which step follows analyzing alternatives in the decision-making process?

<p>Selecting an alternative (C)</p> Signup and view all the answers

What is the purpose of allocating weights to decision criteria?

<p>To prioritize criteria based on their importance (C)</p> Signup and view all the answers

What does implementing an alternative entail in the decision-making process?

<p>Communicating the decision to involved parties (D)</p> Signup and view all the answers

What is evaluated during the final step of the decision-making process?

<p>The effectiveness of the implemented decision (A)</p> Signup and view all the answers

What is a critical factor to determining stakeholder partnerships according to the framework?

<p>The criticality of the stakeholder and environmental uncertainty (B)</p> Signup and view all the answers

How is the effectiveness of a decision ultimately assessed?

<p>By comparing anticipated vs. actual outcomes (C)</p> Signup and view all the answers

What is a characteristic of programmed decisions?

<p>They can be addressed using established procedures or rules. (C)</p> Signup and view all the answers

Under which decision-making condition can managers make accurate decisions?

<p>Certainty (A)</p> Signup and view all the answers

Which of the following is a type of nonprogrammed decision?

<p>Developing a new product line (C)</p> Signup and view all the answers

What does a strategy primarily define for an organization?

<p>The plans for competing and achieving business goals (A)</p> Signup and view all the answers

Which component is essential for a business model?

<p>Clear understanding of customer value and profitability (C)</p> Signup and view all the answers

Which statement correctly describes programmed decisions in terms of their characteristics?

<p>They can be solved using predefined guidelines. (A)</p> Signup and view all the answers

What approach is described by using design thinking in managing problems?

<p>Applying creative problem-solving techniques (B)</p> Signup and view all the answers

What is the primary role of big data in decision making?

<p>To provide comprehensive analytics for informed decisions (B)</p> Signup and view all the answers

What is the primary distinction of a virtual organization?

<p>It consists of a small number of full-time employees and utilizes outside specialists as needed. (C)</p> Signup and view all the answers

Which of the following statements best describes a task force?

<p>A temporary committee formed to tackle a specific issue affecting multiple departments. (B)</p> Signup and view all the answers

What is a characteristic of open innovation?

<p>Engaging external collaborators, including customers and competitors, to foster innovation. (D)</p> Signup and view all the answers

Which of the following describes a compressed workweek?

<p>Employees work longer hours per day in exchange for fewer workdays each week. (A)</p> Signup and view all the answers

How does operations management contribute to an organization’s success?

<p>By transforming resources into goods and services efficiently. (D)</p> Signup and view all the answers

What distinguishes manufacturing organizations from service organizations?

<p>Manufacturing organizations only produce physical goods. (C)</p> Signup and view all the answers

Which employment type is defined as contingent upon demand for services?

<p>Contingent workforce workers. (D)</p> Signup and view all the answers

What defines job sharing as a flexible work arrangement?

<p>Two employees sharing responsibilities for one full-time job. (A)</p> Signup and view all the answers

What is the primary focus of the classical view of social responsibility?

<p>To maximize profits (B)</p> Signup and view all the answers

Which approach involves firms taking environmental responsibility beyond legal requirements?

<p>Activist Approach (D)</p> Signup and view all the answers

What does SRI stand for in the context of investing?

<p>Socially Responsible Investment (D)</p> Signup and view all the answers

Which of the following is NOT a component of the socioeconomic view of social responsibility?

<p>Maximizing profits (C)</p> Signup and view all the answers

Which approach primarily considers customer preferences for environmentally friendly products?

<p>Market Approach (B)</p> Signup and view all the answers

What is the primary ethical consideration for managers making decisions?

<p>Considering who is affected by the results (D)</p> Signup and view all the answers

What does social responsiveness require from a firm?

<p>Responding to social needs actively (B)</p> Signup and view all the answers

Which of the following reflects a firm taking a legal (light green) approach to green management?

<p>Adhering to laws and regulations without challenge (A)</p> Signup and view all the answers

What does the Balanced Scorecard measure?

<p>Performance in financial, customer, internal processes, and people/innovation/growth (D)</p> Signup and view all the answers

What is the primary goal of benchmarking?

<p>To identify best practices for superior performance (C)</p> Signup and view all the answers

Which of the following statements about workplace privacy is true?

<p>Employers have the right to track employees in company vehicles (C)</p> Signup and view all the answers

What does organizational culture influence?

<p>The behavior of members within the organization (A)</p> Signup and view all the answers

What is a significant aspect of controlling customer interactions?

<p>Using the Service Profit Chain as a guiding principle (B)</p> Signup and view all the answers

Which aspect of corporate governance involves the interests of shareholders?

<p>Boards of Directors serving independent interests (B)</p> Signup and view all the answers

Which of these is NOT a dimension measured by the Balanced Scorecard?

<p>Industry standards (D)</p> Signup and view all the answers

What challenge do managers face regarding controls in a global context?

<p>Cross-cultural differences affecting corrective actions (C)</p> Signup and view all the answers

Flashcards

Who are the Corporate Governance?

These individuals are responsible for overseeing managers and ensuring the company's long-term viability. They ensure ethical conduct and focus on the company's overall success.

Who are the Shareholders?

These are the individuals who own the company, contribute finances, and may have established, inherited, or bought shares. They have a stake in the company's performance and decisions.

Who are the Managers?

These individuals possess the authority to establish goals, make decisions, and direct the work of others within an organization. They are responsible for leading and coordinating teams.

Who are the legal representatives of the company?

The board of directors, they act as legal representatives of the company. They have the authority to make decisions on behalf of the company and are accountable to the shareholders.

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Who implements the company's strategy?

First-line managers are responsible for putting the organization's strategy into action. They directly supervise employees and ensure day-to-day operations run smoothly.

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Who sets the organization's goals?

Senior managers are responsible for setting an organization's plans and objectives. They provide overall direction and vision for the company.

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Which managers put the organization's strategy into action?

First-line managers are directly involved in executing the company's strategy. They supervise employees and ensure day-to-day operations run smoothly.

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Which managers set the organization's plans and objectives?

Senior managers are responsible for creating the organization's plans and objectives. They provide the overall direction and vision for the company.

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What is efficiency?

The ability to achieve the best results while using the least amount of resources is known as efficiency.

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What are the primary goals of an organization?

The goal of an organization is to achieve both effectiveness and efficiency. Effectiveness is the ability to accomplish organizational goals, while efficiency is about using resources wisely.

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What is the role of middle managers?

Middle managers are responsible for bridging the gap between senior managers and first-line managers. They translate the overall vision into actionable plans and monitor progress.

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What are first-line managers responsible for?

First-line managers are often the most directly involved in employee supervision and performance management. Their role is to provide guidance and support to their teams.

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How is the effectiveness of an organization measured?

The effectiveness of an organization is measured by how well it achieves its goals, considering factors like productivity, customer satisfaction, and profitability.

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What is Corporate Social Responsibility (CSR)?

Corporate social responsibility (CSR) is a commitment by a company to operate ethically and sustainably, considering the impact on its stakeholders, including employees, customers, and the environment.

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What are ethical considerations for managers?

Managers are expected to demonstrate ethical behavior and act responsibly when making decisions, considering both the company's interests and the well-being of its stakeholders.

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What is a company's mission statement?

A company's mission statement outlines its purpose, values, and goals. It provides a clear direction for the organization and guides its decisions and actions.

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What is a company's vision statement?

A company's vision statement describes its aspirations for the future. It paints a picture of what the company wants to achieve and become.

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What is a company's organizational culture?

A company's organizational culture reflects its values, beliefs, and behaviors. It shapes the way people work together and interact within the organization.

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What is a company's organizational structure?

A company's organizational structure defines the hierarchy and relationships within the organization. It determines reporting lines, responsibilities, and decision-making processes.

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What is a company's business strategy?

A company's business strategy outlines its overall plan to achieve its goals. It considers the competitive environment, market trends, and the company's resources and capabilities.

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What is the planning function of management?

The planning function involves setting goals and objectives, developing strategies, and creating action plans to achieve desired outcomes.

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Capabilities

An organization's unique skills and abilities that help it carry out its business activities.

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Core Competencies

The core skills and strengths that an organization relies on to create value and gain a competitive edge.

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Competitive Advantage

What sets an organization apart from its competitors, giving it a distinct advantage.

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Corporate Strategy

A plan outlining which businesses a company is in or wants to be in.

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Mission (of a company)

A succinct statement that describes the organization's core purpose and reason for existence.

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Goals (of a company)

Target outcomes or desired achievements for an organization.

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Strategic Business Unit (SBU)

A separate and independent unit within a larger organization that has its own set of competitors, products, and market.

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Functional Strategy

Plans for each functional area (e.g., marketing, finance) of a business, aiming to support corporate and business strategies.

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Liaison

This role connects the organization to its external environment by establishing and using a network of outside contacts and informants who provide favors and information. Think of them as the organization's 'eyes and ears' for the outside world.

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Monitor Role

This role involves actively seeking and receiving diverse internal and external information to develop a comprehensive understanding of the organization and its surrounding environment.

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Disseminator Role

This role involves conveying to the organization's members any relevant information obtained from external sources or from subordinates within the organization.

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Spokesperson Role

This role involves communicating the organization's plans, policies, actions, and outcomes to external stakeholders. They are the face of the organization to the outside world.

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Entrepreneur Role

This role involves identifying and pursuing opportunities for improvement and change within the organization and its external environment.

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Disturbance Handler Role

This involves dealing with unexpected disruptions or crises that can affect the organization, taking corrective actions to address them.

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Resource Allocator Role

This role involves allocating the organization's resources, including financial, human, and material resources, to support its operations and objectives.

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Negotiator Role

This role actively participates in significant negotiations, representing the organization's interests and advocating for its best outcomes.

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Are ethical standards universal?

Ethical standards are not universal, and what is considered acceptable in one culture may be unethical in another.

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What is the United Nations Global Compact?

The United Nations Global Compact provides guidelines for companies to operate ethically on a global scale.

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Why is employee selection important for ethical behavior?

Hiring the right people with a strong moral compass and values is crucial for ethical conduct within a company.

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What is a code of ethics?

A written document outlining an organization's core values and ethical expectations for its employees.

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How do leaders influence ethical behavior?

Leaders set the tone for ethical behavior, and their actions speak louder than words.

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How do job goals impact ethical behavior?

Unrealistic goals can pressure employees to compromise ethical values.

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Why is it important to evaluate both ends and means?

Ethical behavior requires evaluating both the outcome and the process used to achieve it.

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What is the purpose of independent social audits?

Independent social audits help organizations detect and prevent unethical behavior by evaluating decisions against the company's code of ethics.

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Directional Plans

Plans that set out general guidelines and leave room for flexibility. They provide a focus without locking managers into specific goals or actions.

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Specific Plans

Plans that are explicitly defined and leave no room for interpretation. They state objectives clearly, eliminating ambiguity.

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Single-use Plans

Plans designed to address a one-time situation or unique challenge. They are not intended for recurring use.

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Standing Plans

Plans that are ongoing and provide guidance for activities repeated regularly. They include policies, rules, and procedures.

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Strategic Plans

They are designed to guide the entire organization and establish overall goals. Think big picture.

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Operational Plans

They focus on a specific operational area of the company, such as marketing or finance, and define how to achieve specific objectives in that area.

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Long-term Plans

These plans cover a longer timeframe, typically three years or more, and set goals for the organization's future direction.

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Short-term Plans

These plans have shorter timeframes, usually a year or less, and focus on achieving immediate objectives and goals.

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What is quality?

The ability of a product or service to reliably do what it's supposed to do and meet customer expectations.

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Planning for quality

Managers must have quality improvement goals, strategies, and plans to achieve those goals. This sets a clear direction for improvement efforts.

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Organizing for quality

Organizing for quality often involves using cross-functional work teams and self-directed or empowered work teams to improve quality.

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Controlling for quality

Monitoring and evaluating the progress of quality improvement initiatives is essential. This might involve tracking inventory control, defect rates, or other operational areas.

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What is a common organizational barrier to value chain management?

A refusal or reluctance to share information can hinder value chain management. This can lead to silos and lack of collaboration.

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What are some core HR requirements for value chain management?

The ability to adapt job designs, hire effectively, and provide ongoing training are essential for value chain management.

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What kind of cultural attitude is needed for successful value chain management?

Trust, open communication, and a willingness to collaborate are crucial for effective value chain management. These qualities are important both internally and with external partners.

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What are some cultural attitudes that can hinder value chain management?

Intellectual property, like trade secrets, is sensitive information that companies need to protect. Fear of losing control over decision-making can also create a barrier.

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Disruptive Innovation

Products, services, or processes that revolutionize an industry and change its fundamental rules. They often disrupt established players and create new markets.

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High-Performance Work Practices

A set of practices aimed at maximizing both individual and organizational performance. These practices empower employees, encourage collaboration, and promote continuous improvement.

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Human Resource Planning (HRP)

The process of ensuring that the organization has the right number and types of employees with the necessary skills and knowledge to perform the work at the right time.

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Job Description

A written statement that details the job's duties, responsibilities, and working conditions.

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Job Specification

A written statement that specifies the qualifications, skills, and experience required to perform a job successfully.

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Labor Union

An organized group of workers that represents their interests and seeks to protect them by negotiating collectively with employers.

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Job Analysis

A process that defines jobs and identifies the behaviors needed to perform them effectively.

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People-Oriented HR

An organization with a people-centric approach to HR management that emphasizes employee well-being and development.

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Efficiency

Getting the most output from the least amount of inputs; doing things right.

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Effectiveness

Achieving organizational goals; doing the right things.

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Organization

A group of people who work together to achieve a common purpose.

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Leading

The process of motivating and leading people to achieve organizational goals.

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Controlling

The process of monitoring activities to ensure they are completed as planned.

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Figurehead Role

Performing routine duties of a legal or social nature, representing the organization.

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Leader Role

Motivating and directing subordinates, managing their work and performance.

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Middle Manager

Managing the work of first-line managers, acting as a bridge between top and lower levels.

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Decision

A choice made from two or more alternatives, aiming to solve a problem or reach a goal.

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Problem

An obstacle that hinders achieving a desired goal or purpose.

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Decision-Making Process

This involves a series of steps to effectively resolve a problem.

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Decision Criteria

Factors that are important to resolving a problem, such as costs, risks, and desired outcomes.

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Allocating Weights to Criteria

Assigning a weight to each decision criterion based on its importance, putting them in priority order.

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Developing Alternatives

Exploring various possible solutions to a problem before analyzing their strengths and weaknesses.

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Analyzing Alternatives

Evaluating the strengths and weaknesses of each alternative, based on how well they address the decision criteria.

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Implementing an Alternative

Putting the chosen alternative into action and communicating the decision to those involved, ensuring commitment.

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Organizational Behavior (OB)

The study of how people behave at work, focusing on their actions and interactions within an organization.

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The Hawthorne Studies

A series of experiments in the 1920s and 1930s that revolutionized how we understand worker behavior, revealing the importance of social factors and employee motivation.

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The Quantitative Approach

A management approach using statistical methods, models, and simulations to improve decision-making, planning, and control.

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Total Quality Management (TQM)

A philosophy of management that centers on continuous improvement, customer satisfaction, and employee empowerment.

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System

A set of interconnected parts working together to achieve a common purpose. In organizational context, this refers to the organization itself as a system with input, transformation process, and output.

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Corporate Social Responsibility (CSR)

A company's commitment to operate ethically and sustainably, considering the impact on its employees, customers, and the environment.

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Code of Ethics

A written document outlining an organization's core values and ethical expectations for its employees.

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What is organizational culture?

The shared beliefs, values, and assumptions that guide an organization's behaviors and actions. It's like the unwritten rules that shape how people interact and make decisions.

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What is a strong organizational culture?

The ability to influence the behavior of others through shared, intensely held values. This makes employees act in a way that aligns with the company's core principles.

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How do stories help employees understand the company's culture?

Narratives about significant events, people, mistakes, and successes that help shape the organization's identity and values. They highlight what's important to the company.

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What are rituals in organizational culture?

These are specific practices that symbolize and reinforce the company's values and goals. They can be formal ceremonies, celebrations, traditions, or everyday rituals.

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What are material symbols in organizational culture?

These represent the visual and tangible aspects of the company's culture. These can include the office design, employee dress code, and even the company's vehicles.

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How does language shape organizational culture?

This is the language specific to a company or workgroup. It helps people understand the culture and identify with it. It's like a 'secret language' for insiders.

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Type A Personality

A personality type characterized by a sense of urgency, competitiveness, and ambition. They often experience more stress.

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Type B Personality

A personality type marked by relaxed, easygoing behavior, and a tolerance for change. They tend to experience less stress.

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Creativity

The ability to combine ideas in a unique way, or to make unusual connections. It's the spark of creativity.

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Innovation

Transforming creative ideas into useful products, services, or work methods.

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Organic Structure

Organizational structures that encourage open communication, flexibility, and adaptability. They are conducive to innovation.

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Tolerating Ambiguity

A work environment where embracing uncertainty and experimentation is encouraged, allowing for new ideas to flourish.

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Idea Champion

An individual who enthusiastically champions new ideas, overcoming resistance and driving implementation.

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Design Thinking

A problem-solving approach that focuses on understanding customer needs and developing solutions that meet them.

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Organic Organization

An organizational design that adapts and changes quickly to meet new situations. It's flexible, allows for innovation, and works best for companies in dynamic environments.

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Mechanistic Organization

A structure with clear roles, lots of rules, and centralized decision-making. Good for companies focused on efficiency and control. Harder to adjust quickly to changes.

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Size and Structure

As a company gets bigger, it tends to become more structured: more specialized jobs, more departments, tighter controls, and more rules. Think of a small startup evolving into a large corporation.

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Technology and Structure

Organisations must adapt their structures to the way they work; the complexity of their technology impacts how they are organised. Some technologies require more rules and control, others require flexibility.

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Simple Structure

A type of organization with little specialization, wide-ranging responsibilities, and decentralized decision-making. It's informal and flexible, suitable for smaller organizations or those with less complex tasks.

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Functional Structure

Groups jobs based on their shared skills or areas of expertise. Think of departments like marketing, finance, and engineering. Good for efficient use of specialized skills but can lead to 'silo' effects, where departments work independently.

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Divisional Structure

Divides the organization into separate units, each focused on a specific product, customer, or geographic region. Think of a large corporation with different divisions for different industries.

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Decision-Making Under Certainty

A situation where a manager can accurately predict the outcome of each choice because all information is available and the consequences of each alternative are known.

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Decision-Making Under Risk

A situation where a manager can estimate the likelihood of outcomes resulting from various choices, but the exact outcome is uncertain.

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Nonprogrammed Decision

A decision that is unique, non-recurring, and requires a customized solution due to the novelty or complexity of the problem.

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Programmed Decision

A decision that is made frequently, has a clear solution, and can be handled by a routine approach.

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Strategies

The overall plans that guide an organization's goals, strategies, and actions. They outline the company's direction and how it will achieve its objectives.

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Big Data and Decision-Making

The ability to understand and analyze vast amounts of data to identify patterns, trends, and insights that can inform decision-making and improve outcomes.

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Business Model

Plans that define how a company will make money, focusing on customer value and financial viability.

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Benchmarking

The process of searching for and adopting the best practices from other companies, whether competitors or not, to improve performance.

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Organizational Culture

The shared values, beliefs, traditions, and ways of doing things that influence how members of an organization behave.

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Service Profit Chain

The sequence of service interactions from employees to customers, ultimately leading to profitability.

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Corporate Governance

The system used to govern a corporation to protect the interests of its owners, ensuring ethical conduct and long-term viability.

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Balanced Scorecard

A performance measurement tool that evaluates a company's performance beyond just financial metrics, considering factors such as customers, internal processes, and employees.

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Employee Theft

The unauthorized taking of company property by employees for personal use.

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Workplace Violence

Any act of violence that occurs in the workplace, including physical assault, threats, or harassment. It's a serious issue affecting many workers each year.

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Quality

The ability of a product or service to reliably perform its intended function and meet customer expectations. Higher quality leads to customer satisfaction.

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What is a 'decision'?

A decision is a choice made from two or more alternatives. It's the process of selecting one option over others, aiming to solve a problem or reach a goal.

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What is a 'problem'?

A problem is an obstacle, something that makes it difficult to achieve a desired goal or purpose. It's the roadblock you need to overcome.

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What is the 'decision-making process'?

This is a structured process of identifying a problem, exploring alternatives, and choosing the best solution. It helps you make informed and effective decisions.

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What are 'decision criteria'?

These are the key factors that are important to resolving a problem. They help you determine what matters most.

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What is 'allocating weights to criteria'?

This is a crucial step in which you assign a weight or importance to each decision criterion. This lets you prioritize the most important factors.

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What is 'developing alternatives'?

This is the exploration of possible ways to solve a problem. It's about coming up with different solutions before you analyze them.

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What is 'analyzing alternatives'?

This is the critical analysis of each alternative, evaluating its strengths and weaknesses based on the decision criteria. This helps you choose the best solution.

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What is 'implementing an alternative'?

This is the final stage where you put the chosen alternative into action. It's about making the decision work in practice.

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What is Operations Management?

The transformation process that converts resources (like materials, labor, and information) into finished goods and services.

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What are Manufacturing Organizations?

Organizations that produce physical goods, like cars or clothing.

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What are Service Organizations?

Organizations that produce nonphysical products in the form of services, like healthcare or consulting.

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What is Open Innovation?

Opening up the search for new ideas beyond the organization's boundaries and allowing innovations to easily transfer inward and outward.

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What is Telecommuting?

Work arrangement in which employees work at home and are linked to the workforce by computer.

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What are Compressed Workweeks?

A workweek where employees work longer hours per day but fewer days per week.

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What is Flextime?

A scheduling system in which employees are required to work a specific number of hours a week but free to vary those hours within certain limits.

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What is Job Sharing?

The practice of having two or more people split a full-time job.

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Classical View of Social Responsibility

The idea that a company's only responsibility is to maximize profits for its owners.

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Social Obligation

A business meets its economic and legal obligations, but does not go beyond what's required.

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Socioeconomic View of Social Responsibility

Management's responsibility goes beyond profits to include protecting and improving society's welfare.

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Social Responsiveness

A company takes action in response to a social need.

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Social Responsibility

A company takes proactive steps to improve society, seeing it as their duty.

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Green Management

Managers consider the impact of their organization on the environment.

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Legal (or Light Green) Approach

A company's approach to social responsibility that focuses solely on meeting legal requirements.

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Market Approach

A company's approach to social responsibility that prioritizes customer preferences for environmentally friendly products.

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Study Notes

Exam Topic 1: Corporate Governance and Management

  • Corporate Governance: Supervising managers to ensure company longevity.
  • Shareholders: Individuals owning company shares (stocks); responsible for contributing money or goods for launching a firm. Inherit or purchase shares to take ownership.
  • Administrators: Individuals with authority to set company objectives, make decisions, and direct the work of others.
  • Legal Representatives: Board of Directors/Directors are the company's legal representatives.

Exam Topic 2: Transaction Cost Theory

  • Transaction Cost Theory: Defines a firm as contracts between individuals; a framework for contractual relationships.
  • Agency Theory: Evaluates the firm's performance as an economic agent.
  • Ex Ante/Ex Post Costs: Costs associated with theory (ex ante costs are incurred before a decision, ex post are after). Ex ante costs include contract formalization and control costs. Ex post costs encompass information, negotiation, and warranting costs.
  • Resources and Capabilities Theory: Views the firm as a technical-economic unit from a neoclassical perspective.
  • Types of Firm Resources: Financial, physical, human, technological, operational, strategic, and general resources.

Exam Topic 3: Stages of Decision Making

  • Decision Stages:
    • Problem Identification
    • Design Stage (information is the basic input)
    • Choosing Alternatives (uncertainty about consequences)
    • Coordinating Decisions
    • Control
  • Information as Input: Essential input at the design stage of decision-making.
  • Synthesis and Integration: Crucial abilities needed in managing the design stage.
  • Uncertainty about Consequences: A defining characteristic of the choice stage.

Exam Topic 4: Definition of Culture

  • Multilevel Definition of Culture: Proposed by Schein, explicit/visible levels (symbols, rites, stories), implicit (unobservable assumptions, beliefs), and the level of values.
  • Levels of Culture: Explicit/visible level (cultural productions and creations), implicit (assumptions and beliefs), and the level of values.
  • Corporate Culture: Cultural productions/creations, values, and beliefs shared in an organization.

Exam Topic 5: Corporate Social Responsibility (CSR)

  • Code of Ethics: Principles, values, and rules for company employees and managers, guiding their behavior.
  • CSR: Encompasses a company's ethical commitment to stakeholders (different interest groups).
  • Types of CSR: Shareholder (focus on shareholder value), reciprocal (mutual benefit for company and society), altruistic (doing good without expecting a return), citizen (based on compliance).
  • Stakeholders: Individuals or groups having an interest in the company (customers, suppliers, etc.)

Exam Topic 6: Organizational Design

  • Formal Organization: Structured system of technical and social methods where resources are designed and used to meet company objectives.
  • Organizational Design: A framework combining technical and social design facets to organize a firm's resources.
  • Organizational Design Variables: Aspects of organizational design, such as hierarchy, differentiation, integration, and administrative systems.
  • Elements of an Organization: Work, people involved, formal organization, informal organization, integration, differentiation, and control.
  • Formal Organization Elements: People, differentiation, integration, control, and administrative systems.

Exam Topic 7: Operations Management

  • Operations Management Objectives: Cost, quality, time, design, and flexibility.
  • Strategic Operations Decisions: Relate to product/service planning, location of facilities, plant layout, capacity, and process decisions.
  • Product Attributes: Tangible (objectively valued) and intangible (subjectively valued) attributes; these are crucial to decision making.
  • Production Processes: Categorized as artisanal, mass/serial (or continuous), project, and batch.
  • Plant Layout Design Types: Fixed-position, product/functional, process, and others.

Exam Topic 8: Human Resources Management

  • HR Management Approaches: HR management, Strategic HR management, Human resources management.
  • HR Support Functions: Cover recruitment, human resources development, human resource motivation, human resources training, human resources attraction, and HR Information systems - the support function relating to information.
  • Recruitment Phases: Orientation. training, selection, and orientation.

Exam Topic 9: Multiple Choice Questions

  • Multiple choice questions cover the identified topics.

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Related Documents

Introduction To Management PDF
Exam Topic 1 Questions PDF

Description

Explore key concepts of corporate governance and transaction cost theory in this quiz. Understand the roles of shareholders, administrators, and legal representatives, as well as the principles of agency theory and costs involved. Test your knowledge on these foundational topics in business management.

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