Management Concepts Overview

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Questions and Answers

What is the first step in the decision making process?

Identifying criteria

Weighing criteria

Evaluating decision

Identifying problem (correct)

Which bias involves giving undue weight to information that comes readily to mind?

Framing bias

Select perception

Overconfidence

Availability bias (correct)

What does the rational model of decision making emphasize?

Intuitive decisions based on experience

Emotional influences in decision making

Accepting good enough solutions

Rationality that aims to maximize value (correct)

Which of the following is NOT one of the common decision making errors and biases?

Market saturation bias Signup and view all the answers

What is the main limitation of the bounded reality approach in decision making?

It limits decisions due to the ability to process information Signup and view all the answers

What is the primary focus of centralization in an organization?

Decision making at upper levels Signup and view all the answers

Which organizational structure continuously involves employees in projects?

Project structure Signup and view all the answers

What does formalization refer to in an organizational context?

Standardization of jobs and guidance by rules Signup and view all the answers

In which structure do specialists from different functional areas collaborate temporarily on projects?

Matrix structure Signup and view all the answers

Which factor is NOT typically associated with the degree of centralization or decentralization in an organization?

Number of employees Signup and view all the answers

What is a primary characteristic of entrepreneurial ventures?

They pursue growth and profitability. Signup and view all the answers

Which type of entrepreneur primarily starts a business out of necessity?

Necessity based Signup and view all the answers

What is an important aspect of the entrepreneurial mindset regarding risk?

Acceptance of risk and uncertainty Signup and view all the answers

What distinguishes social entrepreneurs from traditional entrepreneurs?

Seeking to improve society through practical innovation Signup and view all the answers

What is a potential drawback of entrepreneurial firms in terms of innovation?

Employees significantly contribute to innovation. Signup and view all the answers

What environment is optimal for entrepreneurial firms to thrive?

Price-sensitive and interconnected markets Signup and view all the answers

Which strategy do larger companies typically adopt in response to uncertainty and competition?

Downsizing and subcontracting Signup and view all the answers

What should leadership and management prioritize in building an entrepreneurial firm?

Flexibility to maximize opportunities Signup and view all the answers

Which approach can stifle creativity due to an over-reliance on it?

Utilizing practical strategies Signup and view all the answers

What can limit creative solutions by failing to question underlying assumptions?

Narrow focus on problems Signup and view all the answers

Which of the following can prevent individuals from suggesting innovative solutions?

Fear of appearing unconventional Signup and view all the answers

What mindset can hinder exploration and idea generation in innovation?

Discomfort with uncertainty Signup and view all the answers

Which skill involves challenging conventional wisdom to foster creativity?

Questioning Signup and view all the answers

What is a common misconception about entrepreneurship?

It's an easy path to success Signup and view all the answers

What is a significant barrier to developing groundbreaking ideas?

Self-doubt in creativity Signup and view all the answers

Which activity can enhance creative thinking by connecting disparate concepts?

Associating unrelated ideas Signup and view all the answers

What is social loafing in the context of team dynamics?

Deliberate performance reduction due to decreased motivation. Signup and view all the answers

Which of the following is NOT a method for avoiding social loafing?

Formulating vague team goals. Signup and view all the answers

Which dimension of culture refers to the degree of inequality among people?

Power Distance. Signup and view all the answers

What characteristic is associated with a task culture?

Efficient allocation of people and resources. Signup and view all the answers

Which of the following best describes a personal culture?

Freedom and shared management structures prevail. Signup and view all the answers

What is an important aspect of a culture that enhances learning?

Encouraging open communication among members. Signup and view all the answers

Which of the following is a way to measure an individual's culture?

Evaluating direct criticism preferences. Signup and view all the answers

How does organizational culture typically influence employees?

It shapes norms and beliefs about appropriate behavior. Signup and view all the answers

What is an example of a characteristic of bureaucratic culture?

Highly defined roles with strict adherence to procedures. Signup and view all the answers

Which aspect of culture is associated with uncertainty avoidance?

Desire for predicting outcomes and avoiding ambiguity. Signup and view all the answers

What is the primary focus of training and development in human resource management?

Acquiring job-specific skills Signup and view all the answers

Which type of departmentalization groups employees based on major product areas?

Product Signup and view all the answers

Which element is crucial for aligning HRM with organizational goals?

Workforce agility Signup and view all the answers

What does the term 'span of control' refer to in management?

The number of employees a manager can efficiently supervise Signup and view all the answers

What type of power is based on one's expertise and special skills?

Expert power Signup and view all the answers

What is a primary goal of performance management within HRM?

To evaluate and improve employee contributions Signup and view all the answers

Which strategy is effective in retaining high-performing employees?

Providing fair pay and development opportunities Signup and view all the answers

How does diversity contribute to an organization?

By fostering innovation and improving decision-making Signup and view all the answers

What is a common aspect of onboarding in HRM?

Job orientation Signup and view all the answers

Which of the following best describes the role of HRM in relation to legal aspects?

Ensuring compliance with laws on discrimination and safety Signup and view all the answers

What is the purpose of employee relations in HRM?

To foster a positive work environment and resolve conflicts Signup and view all the answers

What aspect of HRM is essential for supporting an organization’s strategic objectives?

Strategic alignment of HR practices with organizational goals Signup and view all the answers

Which characteristic is NOT typically associated with a simple organizational structure?

High departmentalization Signup and view all the answers

What role does technology play in modern HRM?

It enables data-driven hiring and management decisions Signup and view all the answers

Study Notes

Management 1

5 forces analysis examines competitive forces in an industry. Factors include: bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and rivalry among existing competitors.
Competitive strategies include cost leadership (industry-wide or focused on a specific segment) and differentiation.
Stakeholders are all actors with an interest in an organization. Stakeholder management involves identifying relevant stakeholders, evaluating their importance, and implementing measures tailored to their needs.

Management 2

Problem identification involves comparing current reality with standards (past performance, previously set goals, or other organizations).
Decision-making processes involve identifying problems, identifying criteria, weighing criteria, generating alternatives, analyzing alternatives, selecting alternatives, implementing alternatives, and evaluating decisions.
Common decision-making errors and biases include overconfidence, availability bias, immediate gratification bias, representation bias, anchoring effect, randomness bias, selective perception, sunk costs error, confirmation bias, self-serving bias, and framing bias.
Approaches to decision-making include rational model (perfect world) and bounded reality (realistic limitations on information processing).
Structured problems are straightforward with clear goals and complete information.
Unstructured problems are unfamiliar, new, and have ambiguous or incomplete information.
Programmed decisions are routine and rely on previous solutions.
Non-programmed decisions require custom solutions and are usually made at higher levels of an organization (e.g., new organizational strategies).
Group decision making offers more complete information, diverse perspectives, and increased acceptance and legitimacy. However, it can be time-consuming and susceptible to minority domination or groupthink.

Management 3

Innovation is change that creates a new dimension of performance, encompassing both technological and methodological improvements.
Why innovation? It creates opportunities, sustains competitive advantage, and fosters market entry, growth, and organizational survival. Correlation exists between market performance and new products/services.
Shifts occur in the economic field affecting how people think, believe, expect, and earn.
Legislation introduces new pathways or limits for companies.
Competitor threats include introduction of products the company does not offer that could represent a major threat.
Potential strategic advantages from innovation are: novel products/services, novel processes, and complexity (e.g., in technology).
There is a correlation between innovation and good ideas, but good ideas are not enough to make inventions commercially successful.
Innovation Types are broken down into different categories as follows: Product, Process, Position/Marketing, and Paradigm.
Innovation success requires balancing good ideas and the ability to make those ideas work technically and commercially. Organizations often find that the public sector bears more of the risk than the private sector.

Management 4

Entrepreneurship is not just about ideas, easy tasks, or simply small businesses. Entrepreneurs create ventures (EVs).
EVs are characterized by innovative practices, growth, and profitability. They may start small but frequently pursue growth and can develop from small businesses to even larger ventures.
Types of entrepreneurs include those who start companies due to opportunity or necessity, serial entrepreneurs (who create multiple companies), and those who create portfolios (invest in multiple companies).
Entrepreneurial mindset includes a need for independence and control over destiny, achievement-seeking behavior, and optimism. They are willing to accept risk and uncertainty.
What entrepreneurs do includes identifying opportunities, strategizing, launching a venture, and managing it for growth

Management 5

Internal organization involves work specialization (dividing tasks), vertical division of labor (delegation), and departmentalization.
Delegation refers to transferring decision-making authority from one level to another.
Simple structure has low departmentalisation, wide spans of control, centralized authority, and little formalization.
Departmentalization is the formation of equal, independent organizational units. Types of departmentalization include functional, product, customer, geographic, and process-based.
Authority, responsibility, and power are important in organizational structures. Authority is linked with the managerial position, Responsibility with the authority, while Power is related to the ability to influence decisions.
Span of control is the number of subordinates efficiently managed by a supervisor. Factors to consider include employee experience, the complexity and standardization of tasks, and the physical proximity of employees.
Centralization is the extent to which decision-making power is held by top managers. Decentralization is the extent to which decisions are made by lower-level managers. Different situations call for particular degrees of centralization vs. decentralization.
Formalization describes how standardized jobs are and how employees' behaviour is regulated by rules and procedures within the organization.

Management 6

Organizational culture is comprised of shared values, beliefs, norms, and assumptions that influence organizational behaviours.
Organizational culture dimensions include individual vs. collectivism, power distance, uncertainty avoidance, masculinity vs. femininity, and different types of cultures (eg., Power culture, Role culture, task culture, and personal culture) relevant to organizations.
Culture measurement and impacts are important.
Changing culture is significant for organizational success.
Individual behaviour within the organizational context is important to measure and describe.
Employee engagement includes respect, work type, work-life balance, good customer service, and base pay.
Personality (big-five factors) can affect employee behaviour and engagement.
Motivation theories are significant as part of understanding the way employees behave in organizations and are motivated. The needs hierarchy (Maslow) is one of these relevant frameworks.

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Description

This quiz covers essential management concepts including the 5 forces analysis, competitive strategies, and stakeholder management. It also delves into problem identification and decision-making processes critical for effective management. Test your understanding of these foundational principles in management.