MGT 3404 Principles of Management Quiz

Course Information

• Course name: MGT 3404, Principles of Management
• Course is about the functions of management in today's organizations
• The course work forms the foundation for future management courses and life experiences

Course Administration

• Course materials are accessible through Canvas
• Canvas website address: https://canvas.vt.edu/courses/207389

Class Expectations

• Be on time
• Be prepared to learn

Instructor Expectations

• Regular Zoom office hours and one-on-one meetings will be available
• Feedback on improvements for class are welcomed
• Much of the class content will not be found in the textbook

What is Management?

• Planning, organizing, leading, and controlling human and other resources efficiently and effectively are fundamental components of management
• Managers are responsible for directing and overseeing the use of organizational resources to meet company goals.
• Organizational resources include individuals (skills, energy, knowledge), information, raw materials, machinery, and financial capital

Why Study Management?

• Good management positively impacts the well-being of society
• Understanding management helps students develop managerial abilities in their lives and organizations
• Management provides a pathway to a fulfilling career with a good salary

What is Commerce?

• Commerce is the exchange of goods and services

Value Generation Dynamics

• The value created in an exchange is determined by the buyer's perceived value
• The sales price determines the distribution of the value generated in the transaction between the cost of the product to the seller and the profit.

Productivity

• Productivity is the overall output divided by the resources required to produce that output
• High productivity fosters economic growth and development, increases individual wages without inflation, and reduces costs, making organizations more competitive

Profit Equation

• Profit (Π) = Quantity Sold (Q) X (Sales Price (P) – Variable Cost (Cv)) – Fixed Costs (CF)

Organizational Performance

• Efficiency refers to how resources are effectively used to achieve a goal.
• Effectiveness is a measure of the appropriateness of the goals and how successfully they are achieved

Efficiency, Effectiveness and Performance

• High-performing organizations are both efficient and effective.

Multiple Choice Questions

• Question 1: The exchange of goods and services is best described as:

  • Commerce

• Question 2: What factor determines how value is divided between a buyer and seller?

  • Buyer's perceived value

• Question 3: What is the definition of productivity?

  • Outcomes divided by resources used to generate those outcomes.

• Question 4: Which of the following options correctly represents the profit equation?

  • Π = Q * (P – Cv) – CF

• Question 5: If forced to choose ONLY one quality, which would you prefer as a manager?

  • Effective first, then efficient