Management and Organizations Week 1 Quiz

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Questions and Answers

What is considered a natural resource in the context of production?

Ovens and cake pans

Wind harnessed to produce electricity (correct)

Ingredients for baking

The baker's creativity

Which of the following defines an entrepreneur?

A person who manages an existing business

Someone who starts a business and risks losses for profits (correct)

A factory owner without any innovation

An individual who invests in capital gains

Which characteristic is NOT typically associated with entrepreneurs?

Being risk-averse (correct)

Possessing creativity

Having self-confidence

Having a vision

What is one main reason people choose to become entrepreneurs?

To pursue their own ideas Signup and view all the answers

Which of the following is NOT one of the four factors of production?

Manufacturing facilities Signup and view all the answers

In the context of operations, what is the primary role of inputs?

To be converted into outputs Signup and view all the answers

What motivates many entrepreneurs to pursue financial rewards?

The ambition to generate income Signup and view all the answers

What characteristic allows entrepreneurs to deal with uncertainty in business?

Tolerance for ambiguity Signup and view all the answers

What is the primary duty of managers?

To make decisions Signup and view all the answers

Which role involves resolving conflicts within or out of the company?

Disturbance handler Signup and view all the answers

What does the spokesperson role primarily involve?

Transmitting information to outsiders Signup and view all the answers

Which managerial role is responsible for motivating and directing employees?

Leader Signup and view all the answers

What is the primary responsibility of all managers?

Task completion by leading others Signup and view all the answers

In what role do managers make significant decisions regarding resource allocation?

Resource allocator Signup and view all the answers

Which managerial function involves setting long-term and short-term goals?

Planning Signup and view all the answers

Which managerial role involves searching for opportunities to initiate projects?

Entrepreneur Signup and view all the answers

What does efficiency in management refer to?

Achieving the highest output with minimal input Signup and view all the answers

In which area do managers not typically get involved directly?

Performing tasks Signup and view all the answers

What does the monitor role entail in a managerial context?

Receiving and managing vast information Signup and view all the answers

Which of the following is NOT considered a managerial function?

Coordinating Signup and view all the answers

What is NOT a responsibility of the disturbance handler role?

Handling routine operations Signup and view all the answers

What kind of skills should managers possess according to their job complexity?

Conceptual, human, and technical skills Signup and view all the answers

What is the role of managers when people or processes stray off course?

To take corrective action Signup and view all the answers

Effective management is primarily associated with which of the following?

Accomplishing organizational goals Signup and view all the answers

What defines a business in its basic form?

A business involves activities that provide goods or services for profit. Signup and view all the answers

How is profit defined?

The revenue remaining after all business expenses are paid. Signup and view all the answers

What occurs when a business has expenses that exceed its revenue?

The business suffers a loss. Signup and view all the answers

What does the term 'value' refer to in a business context?

The perception of benefits relative to the price paid. Signup and view all the answers

What is the primary goal of a nonprofit business?

To provide public services rather than financial gain. Signup and view all the answers

What can lead a business to file for bankruptcy?

Extraordinary losses during a short period. Signup and view all the answers

In terms of business competition, what is most relevant?

More than one company competing for revenue creates a market. Signup and view all the answers

What is one of the primary responsibilities of an operations manager?

Overseeing day-to-day business operations Signup and view all the answers

Which function is primarily responsible for determining customers' needs and creating products to meet those needs?

Marketing Signup and view all the answers

Which of the following is NOT a characteristic of a service?

Physical possession by the consumer Signup and view all the answers

What role does the Chief Technology Officer (CTO) primarily play in an organization?

Leading Research and Development Signup and view all the answers

Which of the following is NOT considered a common characteristic of organizations?

Ownership Signup and view all the answers

In finance, what is a crucial aspect that finance managers must consider regarding borrowing?

Long-term cost of borrowing funds Signup and view all the answers

How does the marketing function typically capture market share?

Through developing a competitive pricing strategy Signup and view all the answers

Which of the following is typically a responsibility of the finance department?

Planning for financial capital needs Signup and view all the answers

What defines the deliberate structure of an organization?

It systematically limits members’ behavior Signup and view all the answers

What is the main goal of for-profit businesses?

To make a profit from goods and services Signup and view all the answers

Which of the following statements about non-profit businesses is true?

They generate income from contributions and sales Signup and view all the answers

How do profits from for-profit businesses differ from those of non-profit businesses?

For-profit profits are distributed to owners and shareholders Signup and view all the answers

What kind of taxation applies to profits generated by non-profit businesses?

Profits are exempt from taxation Signup and view all the answers

Which of the following is NOT considered a factor of production?

Sales Revenue Signup and view all the answers

What best describes the role of entrepreneurship in a business?

Organizing factors of production to exploit market opportunities Signup and view all the answers

Which of the following correctly describes non-profit organizations?

They are managed by boards or trustees to fulfill a mission. Signup and view all the answers

Which of the following best summarizes the main operational difference between for-profit and non-profit businesses?

For-profits aim for profit distribution while non-profits reinvest surplus for their mission. Signup and view all the answers

Study Notes

Course Information

Course Title: Management and Organizations
Course Description: Basic Concepts in Management
Week: 1
Instructor: Asst. Prof. Dr. Birol Baysak
Institution: Istanbul Gelisim University

Source Materials and Recommended Reading

Kocel, T., (2003). Business Management. Beta Publications.
Simsek, M. S., & Celik, A. (2015). Management and Organization. Egitim Bookstore.
Kast, F. E., & Rosenzweig, J. E. (1974). Organization and Management: A Systems Approach. McGraw-Hill.
Robbins, S. P., De Cenzo D. A., Coulter, M. (2016). Fundamentals of Management. Pearson
Kadri Mirze, Introduction to Business. Literatur Publishing, 2002.

Learning Objectives

Define the objectives of business.
Describe the role of entrepreneurs in starting businesses.
Describe the role of managers in administering business operations.
Detail different management levels and required skills for managers.
Outline non-managerial employee roles within a business structure.
Describe the general and industrial environment of a business.
Explain the business-environment relationship and environmental changes.
Explain how managers adapt their organizations to environmental changes.

Basic Concepts of Business

Business is an organization providing goods or services to meet customer needs and wants profitably.
Any activity that provides goods or services to consumers, intending to earn a profit.
Businesses are needed to provide necessary goods and services.

Our Relationships with Businesses

Daily interactions with various businesses
Examples: Hospitals where we were born, schools we attended, supermarkets, stores, restaurants, cafes, hostels, hotels, insurance companies, banks, gyms, cinemas

Goods and Services

Goods are tangible products like food, electronics, or tools.
Services are intangible actions or work done for payment, for example, repair services, healthcare, or entertainment.

Profit, Loss, and Value

Profit = Revenue – Expenses
Loss occurs when expenses exceed revenue.
Value is the customer's perceived benefit in exchange for their cost.

Practice Question 1

The correct option describing a business is that it is an activity that produces goods or services for customers with the purpose of making profits.

Practice Question 4

Defining value is the perceived benefits of a product, service, or business to a customer, in proportion to the cost.

Basic Concepts of Business: Non-profit Organizations

Non-profit organizations provide goods or services.
Their objective is not profit but contributing to the community, or a cause.

For-profit vs. Non-profit Businesses

For-profit businesses generate income to sustain and increase profits.
Non-profit businesses generate income to achieve their mission's goals.

Resources and Factors of Production

Resources are inputs required for producing outputs.
Resources are also known as Factors of Production.

Basic Concepts of Business: Factors of Production (Baking a Cake)

Natural resources (e.g., electricity)
Labor (baker)
Capital (ovens, pans, ingredients)
Entrepreneurship (individual or bakery)

An Entrepreneur

An entrepreneur is an individual who starts a business.
They risk loss (time, money, and reputation) for profit.
Their benefit is earning profit for producing desirable goods or services.

Why Do People Become Entrepreneurs?

They want to be their own boss.
They want to pursue their ideas.
They want financial rewards.

Characteristics of Entrepreneurs

Being their own boss
Creative personalities
Having an internal locus of control
Self-confidence
Optimistic
Having high energy
Having vision
Tolerance to failures
Tolerance for ambiguity
Desire to achieve

Practice Question 5

The four factors of production needed for businesses to operate are natural resources, labor, capital, and entrepreneurship.

Understanding Functional Areas

Management plans, organizes, controls, and leads an organization.
Operations converts resources to products.
Marketing identifies and satisfies customer needs.
Finance plans, obtains, and manages funds.
Research and Development provides knowledge and ideas to help the company remain competitive.

Operations

Operations is where resources are converted to outputs.
Operations is the heart of a business; it ensures that goods and services meet customer needs.
The operations manager oversees daily tasks, and raw materials, and scheduling to produce goods or services.

Marketing

Marketing identifies customers' requirements and creates products and services to satisfy those needs.
Marketing includes promotion, delivery methods, competitive pricing strategies, and online presence.

Finance

Finance involves planning for, obtaining, and managing funds within a company.
Finance managers determine short and long-term financial needs.
Finance departments answer questions regarding funds raising and implications.

Research and Development (R&D)

R&D is an essential core function for manufacturing businesses.
It's staffed with scientists and specialists; their goal is to provide knowledge and ideas to remain competitive.
R&D is managed by the CTO or equivalent manager.

Organization

Organization is a structured collection of people working together toward a specific objective.
Organizations have goals, people, and structure.

Goals
People to achieve the goals.
Structure, including systematic operation rules, that shapes behavior.

What Is Management?

Management is the process that gets tasks done effectively and efficiently.
Efficiency means doing things correctly & producing maximum outputs with least inputs.
Effectiveness is about doing things right, ensuring organizational goals are met.

What Is Management? Efficiency and Effectiveness

Efficiency: Doing things right
Effectiveness: Doing things efficiently

Managerial Functions

Planning: Setting short- and long-term goals and strategies to execute the goals.
Organizing: Executing organizational operations through resources use.
Controlling: Ensuring operations and processes stay on course.
Leading: Leading work teams and guiding the organization's interaction with communities, suppliers, and customers.

Issues a Manager Should Consider

Resources that are available
Tasks needed to be done, assigning tasks to the right person.

Management Levels

Different managerial jobs at various levels in a company's pyramid.
Levels include top, middle, and lower management.
Managers perform their tasks in various departments, like marketing, manufacturing, finance, HR, and R&D.

Managerial Roles

Managers have several roles, including interpersonal (e.g., figurehead, leader, liaison), informational (e.g., monitor, disseminator, spokesperson), and decisional (e.g., entrepreneur, disturbance handler, resource allocator, negotiator).