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Questions and Answers
Which of the following is NOT one of the four main functions of managers?
Which of the following is NOT one of the four main functions of managers?
What does the 'Hawthorne Effect' refer to in management?
What does the 'Hawthorne Effect' refer to in management?
According to classical management theories, how should worker performance be primarily motivated?
According to classical management theories, how should worker performance be primarily motivated?
Which of the following statements best represents the 'unity of command' principle?
Which of the following statements best represents the 'unity of command' principle?
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What is a key characteristic of bureaucratic management?
What is a key characteristic of bureaucratic management?
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What management approach emphasizes the importance of social interaction within organizations?
What management approach emphasizes the importance of social interaction within organizations?
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Which role of managers is primarily concerned with the allocation of resources?
Which role of managers is primarily concerned with the allocation of resources?
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In which management approach is the concept of self-management most prominently featured?
In which management approach is the concept of self-management most prominently featured?
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What is emphasized in Mary Parker Follett's management philosophy?
What is emphasized in Mary Parker Follett's management philosophy?
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Which of the following is a key benefit of scientific management?
Which of the following is a key benefit of scientific management?
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What is the primary factor that motivates individuals to fulfill higher-level needs according to Maslow?
What is the primary factor that motivates individuals to fulfill higher-level needs according to Maslow?
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According to Herzberg, what are motivators primarily associated with?
According to Herzberg, what are motivators primarily associated with?
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What concept does McGregor's theory suggest about managers' impact on motivation?
What concept does McGregor's theory suggest about managers' impact on motivation?
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Which of the following statements describes the expectancy theory of motivation?
Which of the following statements describes the expectancy theory of motivation?
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In equity theory, how do individuals determine the fairness of their returns?
In equity theory, how do individuals determine the fairness of their returns?
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What is a key principle of Barnard's view on organizational authority?
What is a key principle of Barnard's view on organizational authority?
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What do satisfiers refer to in Herzberg's theory?
What do satisfiers refer to in Herzberg's theory?
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What occurs according to the satisfaction-progression principle in Maslow's hierarchy?
What occurs according to the satisfaction-progression principle in Maslow's hierarchy?
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What is a key factor that may limit a customer's power in a monopoly?
What is a key factor that may limit a customer's power in a monopoly?
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What happens when there is a lack of differentiation among companies in a market?
What happens when there is a lack of differentiation among companies in a market?
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Which of the following is NOT a reason for high exit barriers in an industry?
Which of the following is NOT a reason for high exit barriers in an industry?
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What does the VRIO model stand for?
What does the VRIO model stand for?
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What does cost leadership focus on in business-level strategies?
What does cost leadership focus on in business-level strategies?
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What is a limitation of the Five-Forces Model?
What is a limitation of the Five-Forces Model?
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Which component is included in the SWOT model?
Which component is included in the SWOT model?
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Which factor does NOT impact the severity of competition among existing firms?
Which factor does NOT impact the severity of competition among existing firms?
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What characterizes an organization that is learning-oriented?
What characterizes an organization that is learning-oriented?
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Which of the following is a method organizations can use to facilitate change?
Which of the following is a method organizations can use to facilitate change?
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What does the Five-Forces Model primarily address?
What does the Five-Forces Model primarily address?
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What is the impact of switching costs on buyers' power?
What is the impact of switching costs on buyers' power?
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What factor contributes to the threat posed by new entrants in an industry?
What factor contributes to the threat posed by new entrants in an industry?
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Which statement about suppliers' bargaining power is correct?
Which statement about suppliers' bargaining power is correct?
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What is a characteristic of double-loop learning?
What is a characteristic of double-loop learning?
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How do capital requirements affect new entrants in an industry?
How do capital requirements affect new entrants in an industry?
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Which concept refers to the importance of a product to a buyer in terms of their power over a company?
Which concept refers to the importance of a product to a buyer in terms of their power over a company?
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What is meant by 'cost disadvantages independent of scale'?
What is meant by 'cost disadvantages independent of scale'?
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What type of business ownership features a single individual controlling all operations and taking full legal responsibility?
What type of business ownership features a single individual controlling all operations and taking full legal responsibility?
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Which type of strategic alliance involves one firm having partial ownership in another?
Which type of strategic alliance involves one firm having partial ownership in another?
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What distinguishes a limited partnership from a general partnership?
What distinguishes a limited partnership from a general partnership?
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What is a defining characteristic of a corporation?
What is a defining characteristic of a corporation?
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Which term refers to two or more firms combining resources to create a new independent entity?
Which term refers to two or more firms combining resources to create a new independent entity?
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Which function is primarily the responsibility of the board of directors in corporate governance?
Which function is primarily the responsibility of the board of directors in corporate governance?
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In the context of non-profit organizations, what is typically a primary focus of the board of directors?
In the context of non-profit organizations, what is typically a primary focus of the board of directors?
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What does vertical integration primarily allow a firm to do?
What does vertical integration primarily allow a firm to do?
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Which of the following best describes a cooperative?
Which of the following best describes a cooperative?
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What type of business ownership usually pools resources from partners to share profits?
What type of business ownership usually pools resources from partners to share profits?
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Which term refers to an agreement where firms work together without equity ownership?
Which term refers to an agreement where firms work together without equity ownership?
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What role do chief executive officers or executive directors serve in an organization?
What role do chief executive officers or executive directors serve in an organization?
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What is a key benefit of a corporation related to ownership?
What is a key benefit of a corporation related to ownership?
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Study Notes
Managing the Workforce
- Managers' functions: Planning, organizing, controlling, leading
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Managers' roles:
- Interpersonal: Figurehead, leader, liaison
- Informational: Monitor, disseminator, spokesperson
- Decisional: Entrepreneur, disturbance handler, resource allocator, negotiator
Classical Approach of Management
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Scientific Management (Frederick Taylor):
- Standardize work: Compartmentalized tasks, observe & measure, one best method. Benefits: easy training, consistent performance, minimal discretion for workers
- Supervise workers: Managers specialize, separate mental & physical work, workers lack self-management
- Motivate workers: Money as primary motivator, performance-based pay
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Administrative Management (Henry Fayol):
- Divide work: Simplifying tasks & assigning to specific workers, manager instructs and enforces.
- Unity of command: Each employee reports to one boss for clear instructions.
- Company goals: Organizational objectives take precedence over individual interests.
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Bureaucratic Management (Max Weber):
- Rules & procedures: Stable & documented for consistent behavior
- Hierarchy of authority: Fixed positions with clear power & authority levels.
- Impersonality: Rules, not personalities, govern behavior, professional not personal.
- Selection & promotion: Hiring based on ability, not favoritism, promotions based on performance.
Behavioural Approach of Management
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Human Relations Movement (Elton Mayo):
- Hawthorne Effect: Subjects changing behavior because of being observed.
- Organizations as social systems: Managers should recognize the social interaction in management
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Mary Parker Follet:
- Coordination: Central to management, encourage productivity through involvement, not just coercion.
- Self-management: Workers involved in decisions affecting their work.
- Collaboration: Managers and workers as partners, promoting self-management.
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Chester Barnard:
- Manager's critical functions: Establish communication, motivate employees to achieve shared goals, authority earned through understanding, benefit perception.
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Modern Behavioural Science & Motivation-Based Perspectives:
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Motivation:
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Need-based theories (Maslow, Herzberg, McGregor):
- Maslow: Unfulfilled needs drive behavior, satisfaction and progression toward higher needs.
- Herzberg: Divides needs into satisfiers (external factors like work environment) and motivators (internal factors like responsibility).
- McGregor: Manager's view of employees' needs influence motivation levels.
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Cognitive-based theories:
- **Expectancy theory: ** Effort leads to good performance, performance leads to reward, reward is valued.
- **Equity theory: ** Individuals compare their contributions and rewards to others, fairness is key.
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Need-based theories (Maslow, Herzberg, McGregor):
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Learning Organizations:
- Adapting to environment: Continuously learning and evolving based on external changes.
- Learning from people: Value and leverage the knowledge of the organization's members.
- Contributing to wider learning: Sharing knowledge with the wider community or context.
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Types of organizational learning:
- Single-loop learning: Adjust actions within existing framework if goals are not achieved.
- Double-loop learning: Examine underlying assumptions and values to adapt and change the framework itself.
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Motivation:
Strategic Business Management
- Strategy: Actions taken to achieve organizational goals.
- Strategic management: Analysis, decisions, implementation, and evaluation to create and sustain competitive advantages.
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Five Forces Model:
- Threat of new entrants: New competitors with resources and desire for market share. Barriers to entry: economies of scale, capital requirements, switching costs, access to distribution channels, cost disadvantages.
- Threat of substitutes: Greater variety of alternatives increases threat.
- Threat of suppliers: Suppliers with critical resources and limited alternatives can influence companies by increasing prices or lowering quality.
- Threat of buyers: Powerful buyers can negotiate lower prices, better quality, or superior service.
- Rivalry among existing firms: Impacts competition based on differentiation, number of competitors, and exit barriers.
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Limitations of the Five Forces Model:
- Doesn't explicitly address technological change or government regulations
- Assumes all incumbents experience the same power relationships with each force
Internal Environment: VRIO Model
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VRIO Framework: Analyzes an organization's internal resources and capabilities for competitive advantage
- Value: Do resources provide value to customers?
- Rarity: Are the resources unique and scarce to competitors?
- Imitability: Are the resources difficult or costly for competitors to copy?
- Organization: Is the organization structured to exploit the resources and capabilities effectively?
External Environment: SWOT Model
- SWOT analysis: Evaluates how an organization's internal strengths and weaknesses interact with external opportunities and threats.
Different levels of Strategy
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Business-Level Strategies:
- Competitive strategies within a given market.
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Types:
- Cost leadership: Achieving competitive advantage by minimizing costs.
- Differentiation: Creating unique and valuable products or services.
- Focus: Targeting a narrow market segment with cost leadership or differentiation.
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Corporate-Level Strategies:
- Strategies across multiple businesses or markets.
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Types:
- Growth Strategies: Expanding through market penetration, market development, product development, or diversification.
- Stability Strategies: Maintaining the current position in the market.
- Renewal Strategies: Responding to declining performance by retrenchment or turnaround.
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Means to Diversify:
- Internal development: Creating new products or services in-house
- Mergers & acquisitions: Combining with other firms.
- Strategic alliances: Collaboration between firms with shared goals (non-equity, equity, joint ventures).
Corporate Governance
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Forms of Business Ownership:
- Sole Proprietorship: Owned and managed by one person, owner assumes all liabilities.
- Partnership: Two or more individuals share a common ownership and liabilities.
- Corporation: Legal entity separate from its owners, offers limited liability, permanence, transferability of ownership, and access to capital.
- Cooperative: Owned and controlled by its members, democratic structure, profits are shared among members.
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Components of Corporate Governance:
- Shareholders: Ultimate control, elect board members.
- Board of Directors: Oversees management, provides legitimacy, accountability, and responsible ownership.
- Management: Hired by the board to run the company.
- Employees: Hired to perform operational tasks.
The Non-Profit Organization:
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Sectors of the Economy:
- Private Sector: Generates profit through goods/services.
- Public Sector: Provides essential societal functions (government).
- Non-Profit Sector: Purpose beyond profit generation, may generate revenue but reinvest it back into the organization.
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Governance of a Non-Profit Organization:
- Board of Directors: Focuses on mission, values, stakeholder needs, performance, strategic leadership, and vision for the organization.
- Chief Executive Officer/Executive Director: Leads the organization, can utilize transactional leadership or transformational leadership.
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Description
This quiz covers key concepts in management, including the functions and roles of managers, as well as classical approaches to management such as scientific and administrative management. Test your understanding of these foundational principles that guide effective workforce management.
