Management Final Exam Flashcards

Questions and Answers

What occurs when managers choose an alternative that is good enough, rather than the best possible alternative?

Satisficing (correct)

Availability bias

Maximizing

Negative frame

Optimizing

One method of weighing decision criteria uses what process where each decision is compared directly to every other criterion?

Absolute comparisons

Minimum threshold rule

Comparative ranking scales

Relative comparisons (correct)

Valences

There are 3 kinds of plans. They are single-use plans, standing plans, and what?

Operational (correct)

Actionable

Tactical

Strategic

MBO

One of the benefits of planning is how it what?

Encourages people to work harder for extended periods Signup and view all the answers

The approach to decision-making where an individual or a subgroup is assigned the role of a critic is known as what?

Devil's advocacy Signup and view all the answers

What plans direct the behavior, efforts, and priorities of operative employees for periods ranging from 1 to 6 months?

Operational Signup and view all the answers

As a company develops more environmentally-friendly products, what is the step in the rational decision-making model they must undertake?

Evaluate each alternative Signup and view all the answers

What process has Starbucks engaged in, despite Chile and Peru lacking a mass-market café culture?

Decision making Signup and view all the answers

According to the S.M.A.R.T. guidelines, goals should be what?

None of these Signup and view all the answers

Which of the following is a component of a book publisher's general environment that will indirectly influence how it does business? (Select all that apply)

A trend towards less leisure time Signup and view all the answers

What is a primary source of an organizational culture?

The company's founder Signup and view all the answers

What are two types of external organizational environments?

General and specific Signup and view all the answers

Which of the following advocacy group tactics would be most likely to cause a business to fail?

Product boycotts Signup and view all the answers

Legislations concerning the disposal of biological wastes would be part of what environment for a public hospital?

General environment Signup and view all the answers

Which of the following is one of the steps in the process that managers use to make sense of their changing environments?

Acting on threats and opportunities Signup and view all the answers

What strategy did Home Depot use to respond to demands that it be socially responsible?

Accommodative Signup and view all the answers

Why is it often difficult for an employee to assume the role of whistleblower?

Because employees fear they will be punished Signup and view all the answers

According to the stakeholder model, which primary stakeholder group is theoretically most important to the company?

All primary stakeholders are of equal importance Signup and view all the answers

What strategy is IBM using with its 'Reinventing Education' program?

Proactive Signup and view all the answers

What document did the Chicago-based Club Aluminum Company create for all employees to follow?

Code of ethics Signup and view all the answers

According to Milton Friedman, what position opposes the stakeholder model of corporate social responsibility?

The time, money, and attention diverted to social causes undermine market efficiency Signup and view all the answers

Who is an example of a primary stakeholder group for Kowalski's Markets?

Customers in Camden neighborhoods Signup and view all the answers

Which of the following about ethics is true?

Ethics is the set of moral principles or values that defines right and wrong for a person or group Signup and view all the answers

All of the following are important factors in the creation of an ethical business climate EXCEPT?

Official approval of the company's ethics code by government regulators Signup and view all the answers

What are the 3 stages of moral development identified by Kohlberg?

Pre-conventional level, conventional level, and post-conventional level Signup and view all the answers

What term describes a former Oracle vice president who reported overcharging?

Whistleblower Signup and view all the answers

What did BP Amoco's CEO say is a commitment to?

Social responsibility Signup and view all the answers

What is the responsibility of companies under the stakeholder model?

All primary stakeholders are of equal importance Signup and view all the answers

Companies are not considered unethical if they do not perform their what responsibilities?

Discretionary Signup and view all the answers

What determined that companies can be prosecuted for employee actions?

U.S. Sentencing Commission Guidelines Signup and view all the answers

Which of the following is NOT an example of a stakeholder group?

The media Signup and view all the answers

The social responsiveness strategy that could be considered essentially a public relations approach is which strategy?

Defensive Signup and view all the answers

At what level of social responsibility is GSK acting by using patent protection rules?

Economic Signup and view all the answers

IBM's 'Reinventing Education' program is an example of the positive relationship between social responsibility and what?

Economic performance Signup and view all the answers

Which of the following is an exception to ethical intensity factors?

Social commitment Signup and view all the answers

Under the stakeholder model, who most strongly affects public perceptions of a company's socially responsible behavior?

The media Signup and view all the answers

What does it mean when the U.S. sentencing guidelines use a 'carrot and stick' approach?

The guidelines offer lower fines to companies that take proactive steps Signup and view all the answers

To encourage ethical decision-making, managers should do what?

Managers should do all the choices Signup and view all the answers

What are integrity tests that indirectly estimate employee honesty?

Personality-based Signup and view all the answers

What is social responsibility?

A business's obligation to pursue policies, make decisions, and take actions that benefit society Signup and view all the answers

Which of the following organizations are covered by the U.S. sentencing commission's guidelines?

All of these Signup and view all the answers

What is a possible outcome of planning?

Planning may harm individual and organizational performance Signup and view all the answers

What type of operational plan saves managers time by being reused?

Standing plan Signup and view all the answers

What process involves recognizing different coffee-drinking habits in markets?

Rational decision making Signup and view all the answers

What is the basic purpose of option-based planning?

To leave commitments open by maintaining slack resources Signup and view all the answers

How does a company benefit from planning?

Intensified effort, persistence, direction, and creation of task strategies Signup and view all the answers

What method is commonly used for increasing goal commitment?

Encouraging worker participation in goal setting Signup and view all the answers

What is the process of choosing a solution from available alternatives?

Decision making Signup and view all the answers

What should Allianz consider first when converting to a European company?

Identify problems arising from tax and regulatory issues Signup and view all the answers

Budgets are an example of what type of planning?

Operational Signup and view all the answers

What type of plans specify how a company will use resources to accomplish specific goals?

Operational Signup and view all the answers

What management technique is used to develop and carry out plans?

Management by objectives (MBO) Signup and view all the answers

Which of the following statements describes one of the facts learned in studies of managers who succeed?

Arrivers are sensitive to the feelings of others Signup and view all the answers

After Millard Fuller ended his service as president of Habitat for Humanity International, what functions did he most likely perform?

He performed ceremonial duties like greeting company visitors Signup and view all the answers

The chairs of the accounting, marketing, and communications departments at a typical university are assuming the roles of what?

First-line managers Signup and view all the answers

A business school administrator determining what classes will be offered is involved in which classical management function?

Organizing Signup and view all the answers

Which of the following statements describe a significant fact learned from studies of managers who succeed?

Derailers are insensitive Signup and view all the answers

Robert Rothschild Farm boosted morale by hosting its first employee appreciation week. It used which management function to boost morale?

Middle manager Signup and view all the answers

The management function used when Southern Living magazine mailed warnings to subscribers was?

Controlling Signup and view all the answers

According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a pay reduction?

Negotiator Signup and view all the answers

Creating a competitive advantage through people relies heavily on which skill?

Motivation to manage Signup and view all the answers

In the decisional role of what, do managers adapt to incremental change?

Entrepreneur Signup and view all the answers

Team leaders typically manage which of the following?

Manage external and internal relationships Signup and view all the answers

An accountant with what skills has the ability to create a budget and determine unnecessary expenses?

Technical skill Signup and view all the answers

What is the accomplishment of tasks that help fulfill organizational objectives?

Effectiveness Signup and view all the answers

At the death of her husband, Miriam McAllister became CEO with expectations to perform only ceremonial duties. What role was assumed?

Figurehead Signup and view all the answers

After a year in a management role, new managers typically realize their job is what?

People management Signup and view all the answers

When using techniques to change organizational culture, what is the key to success?

Behavioral substitution and behavioral addition Signup and view all the answers

Environmental uncertainty is affected by what?

Uncertainty Signup and view all the answers

Which of the following statements about corporate cultures is true?

Corporate cultures are very difficult to change. Signup and view all the answers

Study Notes

Manager Types and Studies

Arrivers demonstrate sensitivity to the feelings of others, while derailers often struggle with strategic thinking.
A key difference between managers who succeed (arrivers) and those who fail (derailers) includes multiple fatal flaws in managing people.

Management Roles and Functions

Once a president becomes a figurehead, their primary role involves ceremonial duties, such as greeting visitors.
First-line managers directly supervise non-managerial employees, including department chairs in universities.

Classical Management Functions

Organizing involves determining class schedules, room assignments, and teaching responsibilities in academic settings.
The planning function involves setting specific organizational goals, such as increasing revenue or reducing losses after financial distress.

Decision Making and Mistakes

Derailers are characterized by insensitivity, which distinguishes them from successful managers.
Arrivers make mistakes by failing to admit wrongdoing or inform stakeholders of delays.

Managerial Skills and Roles

Both conceptual and technical skills play essential roles, with lower-level managers emphasizing technical skills for task execution.
Managerial roles include negotiators and liaisons, with specific functions such as convincing stakeholders or managing cross-department relationships.

Organizational Effectiveness and Culture

Effectiveness refers to accomplishing tasks that fulfill organizational objectives.
Behavioral addition and substitution techniques are used to modify corporate culture, emphasizing symbolic changes.

Environmental Analysis

The general environment encompasses factors like economic, technological, and socio-cultural trends affecting organizations.
Resource scarcity becomes prominent in competitive job markets with high demand for qualified candidates.

Advocacy Groups and Business Tactics

Advocacy groups employ various tactics, including media advocacy and product boycotts, to influence corporate behavior.
Each tactic can vary in aggressiveness, with public communications being the least aggressive.

Dynamic and Simple Environments

Organizations operating in a simple environment face few external factors influencing their operations.
Dynamic environments, like the video game industry, are characterized by rapid change and innovation.

Components Influencing Corporate Behavior

Components of specific environments include competition (e.g., Pepsi-Cola) that directly affects business strategy.
Changes in the socio-cultural environment, like attitudes toward travel after 9/11, significantly impact industries such as tourism.

Founder Influence and Organizational Culture

The company's founder significantly shapes the organizational culture, establishing foundational values and practices.
Organizational culture evolves and can become resistant to change, complicating efforts to implement new behaviors.

Environmental Complexity and Managerial Sense-making

Management must maintain awareness of changing environments by identifying threats and opportunities for strategic adjustment.### Acting on Threats and Opportunities
Home Depot faced significant public relations challenges due to the Rainforest Action Network's campaign against old-growth lumber sales, leading to a strategy adjustment towards certification of sustainable wood sources.
Accommodative strategies involve adjusting business practices to meet social responsibility demands.

Whistleblowing and Ethical Challenges

Fear of punishment is a major deterrent for employees considering whistleblowing.
An organization's ethical framework is critical in shaping employee behavior and decision-making.

Stakeholder Model

All primary stakeholders hold equal theoretical importance according to the stakeholder model.
Investors, customers, employees, and suppliers are recognized as primary stakeholders in corporate governance.

IBM's "Reinventing Education" program exemplifies a proactive strategy to enhance educational outcomes while fulfilling social obligations.
A code of ethics helps guide employees' professional conduct within organizations.

Friedman argued that diverting resources to social causes detracts from market efficiency, opposing stakeholder theory.

Ethical Factors in Business

An ethical business climate is influenced by leadership examples, reporting systems for ethical violations, and consistent punishment for misconduct.
True ethical behavior cannot solely rely on legality; it involves moral principles guiding right and wrong.

Stages of Moral Development

Kohlberg outlines three stages of moral development: pre-conventional, conventional, and post-conventional levels.

Whistleblower Protections and Consequences

Whistleblowers can expose unethical practices without facing repercussions under certain guidelines.

Social responsibility emphasizes businesses' obligation to make decisions and take actions that benefit society rather than just focusing on shareholders.

Global Business Practices

Businesses such as GlaxoSmithKline adopt economic social responsibility strategies, focusing on market performance while addressing global health issues.

Ethical Decision-Making

Ethical intensity is shaped by factors like proximity of effect, probability of effect, and temporal immediacy, while social commitment is not a factor.
Encouraging employee participation in goal-setting enhances commitment to organizational objectives.

Strategic and Operational Planning

Different types of planning include tactical, operational, single-use, and standing plans, each serving unique functions within an organization.
Operational plans direct employee actions and priorities over short-term periods.

Satisficing vs. Optimizing

Managers may choose satisfactory solutions (satisficing) instead of pursuing the best outcomes (optimizing) in decision-making processes.

Role of Stakeholder Influence

Secondary stakeholders, like media, can impact a company's strategy and public perception significantly.

Importance of Ethical Climate

For effective decision-making and an ethical environment, organizations must implement training, establish a code of ethics, and promote a culture of integrity.

Decision-Making Frameworks

Rational decision-making involves systematic problem identification, evaluating alternatives, and making informed choices.

S.M.A.R.T. Goals

Goals set under the S.M.A.R.T. guidelines should be specific, measurable, achievable, relevant, and time-bound for effective strategy execution.

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Description

Test your knowledge of key concepts in management with these flashcards focused on the differences between successful managers and those who derail. Each card provides insights from studies on manager effectiveness, helping you prepare for your final exam.