Principles of Management

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Management is defined as the pursuit of organizational goals

  • with passion and effectiveness
  • efficiently and effectively. (correct)
  • efficiently and in a detailed-oriented manner.
  • correctly and with synergy.

What are the four principal functions of management?

  • planning, organizing, leading, and controlling (correct)
  • staffing, planning, profiting, and delegating
  • staffing, planning, motivating, and delegating
  • scheduling, organizing, leading, and mentoring

When a cross-town competitor closed suddenly, the number of customers at Janie's Gun Gallery increased dramatically. Janie inspired her team to put in extra effort to meet every customer's needs. Which of the four key management functions was Janie using?

  • organizing
  • leading (correct)
  • controlling
  • planning

As the yardmaster for Onion Pacific Railroad, Tamar regularly performed the management process. When Tamar assigned engineers to train routes, he was _____ and when he calculated how many trains arrived on time he was _____.

<p>organizing; controlling (A)</p> Signup and view all the answers

Jorge is an associate for a large retailer. Sometimes Jorge works alone answering customer questions or moving inventory. Other times, he works with other associates to rearrange displays or complete large orders. Jorge is probably a(n)

<p>nonmanagerial employee. (D)</p> Signup and view all the answers

As a child in the 1950s, Matthew did not wear a seatbelt when riding in a car. In fact, he would lay in the window above the backseat of his family's sedan and then roll down into the floor when his dad pushed the brake pedal quickly. In the early 1980s, while he was a manager of a courier service, Matthew learned that seatbelts prevented fatalities in car crashes and kept the driver in place to better control the vehicle. Even though it was not yet legally required in the state, Matthew issued a company policy that all drivers and anyone riding in company vehicles must wear seatbelts. Matthew's management style is best described as

<p>evidence-based. (C)</p> Signup and view all the answers

As some of the earliest management theories, scientific management and administrative management comprise the __________ viewpoint.

<p>classical (B)</p> Signup and view all the answers

Alejandro is the type of manager who completely focuses on efficiency, and he assumes workers are rational. Alejandro is probably applying the __________ viewpoint.

<p>classical (C)</p> Signup and view all the answers

Kalini, a package delivery service manager, is interested in implementing __________. To do this, Kalini will study the routes that drivers take through a congested city in order to identify ways that delivery staff can make the most deliveries in each two-hour period.

<p>scientific management (C)</p> Signup and view all the answers

According to Taylor's principles, which of these might help to improve workers' productivity?

<p>Carefully select workers according to their abilities and give workers training. (B)</p> Signup and view all the answers

The manager of a private limousine service is interested in implementing the principles of administrative management, which involves

<p>managing the total organization. (A)</p> Signup and view all the answers

Brenden, the department manager, feels that his employees lack the motivation to consistently meet department goals. To better understand human actions and to motivate his employees toward achievement, Brenden needs to adopt the __________ viewpoint.

<p>behavioral (D)</p> Signup and view all the answers

Order the phases of thought in the behavioral viewpoint from earliest to most recent.

<p>early behaviorism, human relations movement, behavioral science (C)</p> Signup and view all the answers

Hugo Munsterberg is known as

<p>the father of industrial psychology. (D)</p> Signup and view all the answers

If publishing at a newspaper company is arranged so that editors, editorial assistants, and reporters coordinate to determine which stories should be published, this community arrangement would align with ideas brought forth by

<p>Mary Parker Follett. (C)</p> Signup and view all the answers

Kira, the general manager of a travel agency, believes that her workers are responsible and capable, and that they can be trusted when given responsibility. Kira is an example of a __________ manager.

<p>Theory Y (A)</p> Signup and view all the answers

Riley recently became a top manager at a technology firm that is attempting to rehabilitate its image and return to profitability after a very public scandal. Which of the following actions should Riley take to promote high ethical standards?

<p>Set policies that demonstrate organizational support for ethical behaviors. (B)</p> Signup and view all the answers

Jackson, the owner of a t-shirt shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's __________ performance.

<p>social, environmental, and financial (C)</p> Signup and view all the answers

An organization's internal stakeholders consist of

<p>the board of directors, employees, and owners. (C)</p> Signup and view all the answers

In her strategic planning, the CEO of a home goods manufacturing company is aiming to improve customer service by concentrating on distributors, local communities, and special-interest groups. These three groups are

<p>external stakeholders. (A)</p> Signup and view all the answers

Keisha has worked at the station next to yours in the textile factory for eight years. You have become close friends, attending each other's family events, birthday parties, and the like. Keisha sends a text message asking you to punch her timecard when you arrive for your shift because she is going to be late. You know the factory has strict policies against punching someone else's timecard, and it could be grounds for termination. You are facing a(n)

<p>an ethical dilemma. (B)</p> Signup and view all the answers

Pinpoint Diagnostic Laboratory has instituted new policies around misappropriation of assets, confidentiality of company information, and patient privacy. Also with the local elections just around the corner, management sent out reminders about political contributions and conflicts of interest. All of these policies can be found in Pinpoint's

<p>code of ethics. (A)</p> Signup and view all the answers

A national ice cream chain asked its 30 highest paid employees to take a 15% pay cut. Doing this, in response to the recent sales decline, meant no store closures and no downsizing. This could be characterized as the __________ approach to ethical dilemmas.

<p>utilitarian (C)</p> Signup and view all the answers

Globalization is the trend

<p>of the world economy toward becoming a more interdependent system. (C)</p> Signup and view all the answers

Last week Arturo, CEO of Quality Furniture in Providence, Rhode Island, traveled to Europe to visit customers. While overseas, Arturo checked his e-mail daily and showed his company's website to customers, explaining how the website will help them place orders and receive merchandise more quickly. After visiting the last customer Thursday morning, Arturo was able to return to the corporate office in Providence to meet with his board of directors that night. __________ is the “shrinking” of time and space with air travel and the electronic media.

<p>The global village (B)</p> Signup and view all the answers

According to Rosabeth Moss Kantor of the Harvard Business School, which three events of the 1980s paved the way for the global economy?

<p>The Berlin Wall came down, Asian countries opened their economies to foreign investors, and there was a worldwide trend of governments deregulating their economies. (A)</p> Signup and view all the answers

Caleb, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Caleb later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies

<p>can get started more easily and maneuver faster. (A)</p> Signup and view all the answers

Fresh Toppings is based in Sacramento, California and has restaurants in 25 countries. In the United States, Fresh Toppings would be viewed as which of the following?

<p>multinational corporation (A)</p> Signup and view all the answers

Ethnocentric managers believe that their native country, culture, language, and behavior

<p>are superior to all others. (C)</p> Signup and view all the answers

A major U.S.-based commercial construction firm has established operations in Belize. Wyatt has been managing the Belizean operations for several months, and is perplexed as to why the workers arrive late, take long lunches, and leave early on Wednesdays. He begins requiring employees to punch in and out on a time clock. Wyatt's decision to utilize a time clock, something common in U.S. workplaces, may signal that he is a(n) __________ manager.

<p>ethnocentric (B)</p> Signup and view all the answers

Manufacturing plants with low labor costs that give special privileges to their American owners in return for employing Mexican citizens are known as

<p>maquiladoras. (C)</p> Signup and view all the answers

Airbus Inc., a company that builds airplanes, typically orders parts for its airplanes from other companies. __________ is the practice Airbus Inc. is using.

<p>Outsourcing (B)</p> Signup and view all the answers

A company is licensing its products when it

<p>allows a foreign company to pay it a fee to make or distribute the first company's product or service. (C)</p> Signup and view all the answers

Pineapple Whip, a company that makes an ice cream-like treat using pineapple, sells its branding, production techniques, and proprietary flavors to other companies for a fee and a share of the profits. Pineapple Whip is engaged in

<p>franchising. (B)</p> Signup and view all the answers

Orlando, the owner of a Belgian event-planning company called Memory Makers, plans to open a marketing company that focuses on product launches, called Kick Start, in Germany. Kick Start will be totally owned and controlled by Memory Makers, which makes Kick Start a __________ of Memory Makers.

<p>wholly owned subsidiary (D)</p> Signup and view all the answers

Nyah knows that planning and strategic management can help focus on the most critical problems, choices, and opportunities by

<p>providing direction and momentum. (C)</p> Signup and view all the answers

An entrepreneur would create a business plan to outline which of the following?

<p>goals and strategies with success measures (D)</p> Signup and view all the answers

A mission statement expresses __________ and a vision statement expresses __________

<p>why the organization exists; what the organization wants to become (C)</p> Signup and view all the answers

Which of these represents the company's mission statement?

<p>LinkedIn: To connect the world's professionals to make the more productive and successful. (D)</p> Signup and view all the answers

The three levels of __________ are strategic, tactical, and operational.

<p>planning (C)</p> Signup and view all the answers

How often should a company revise its strategic plan?

<p>every 1 to 2 years (D)</p> Signup and view all the answers

Executives of a national insurance underwriting firm has informed its district managers of a new goal to improve customer retention. The district managers will set goals to be achieved over the next 6 to 24 months as part of __________ planning.

<p>tactical (B)</p> Signup and view all the answers

Best Bottling is a beverage copacking company that contracts its beverage manufacturing services to small and upstart beverage brands. The leaders of Best Bottling have been updating their official statements to make it clear to customers that Best Bottling values customer service, product quality, and on-time order delivery. Best Bottling is at which step in the strategic management process?

<p>Step 1: Establish the mission, vision, and values statements. (A)</p> Signup and view all the answers

Which managers would be at Level 2: Business-level strategy?

<p>retail unit managers (D)</p> Signup and view all the answers

The three key principles of __________ are the creation of a unique and valuable position, trade-offs in competing, and creating a “fit” among activities.

<p>strategic positioning (C)</p> Signup and view all the answers

Harvard Business School professor Michael Porter defines strategic positioning as

<p>attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. (B)</p> Signup and view all the answers

In order, the steps of the strategic-management process are

<p>establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control. (D)</p> Signup and view all the answers

Flashcards

Management

Pursuit of organizational goals efficiently and effectively.

Functions of Management

Planning, organizing, leading, and controlling.

Leading

Inspiring effort to meet customer needs.

Organizing & Controlling

Assigning tasks and tracking train arrivals.

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Nonmanagerial Employee

An individual contributor, not a supervisor.

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Evidence-based Management

Making decisions based on reliable data.

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Classical Viewpoint

Scientific and administrative management.

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Classical Management

Focusing on efficiency with rational workers.

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Scientific Management

Studying routes to maximize deliveries.

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Taylor's Principles

Selecting and training workers based on ability.

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Administrative Management

Managing the total organization.

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Behavioral Viewpoint

Understanding and motivating human actions.

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Behavioral thought phases

Early behaviorism, human relations, behavioral science.

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Hugo Munsterberg

Father of industrial psychology.

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Mary Parker Follett

Community aligns with editorial ideas.

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Theory Y Manager

Workers are responsible and can be trusted.

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Promoting High Ethics

Policies supporting ethical behavior.

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Triple Bottom Line

Social, environmental, and financial performance.

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Internal Stakeholders

Board, employees, and owners.

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External stakeholders

Distributors, local communities and interest groups

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Ethical Dilemma

Facing an ethical decision.

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Pinpoint's code of ethics

Policies found in a code of ethics.

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Utilitarian

30 highest paid employees to take a 15% pay cut.

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Globalization Trend

More interdependent system.

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Global Village

Shrinking space with air travel and electronic media.

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Global Economy

Berlin Wall, Asian economies open, deregulation.

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Can get started easily

Get started easily and maneuver faster

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Fresh Toppings is based in Sacramento

Multinational Corporation

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Ethnocentric Managers

Superior to all others.

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Wyatt

Ethnocentric

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Study Notes

  • Management is defined as pursuing organizational goals efficiently and effectively.
  • The four principal functions of management involve planning, organizing, leading, and controlling.
  • When Janie inspired her team to put in extra effort to meet every customer's needs after a competitor closed, she used leading.
  • When Tamar assigned engineers to train routes and calculated how many trains arrived on time, representing organizing and controlling.
  • Jorge, an associate for a large retailer, is most likely to be a nonmanagerial employee.
  • Matthew's management style is best described as evidence-based, as he implemented a seatbelt policy based on evidence of its benefits, pre-legal requirement.
  • Scientific and administrative management comprise the classical viewpoint as some of the earliest management theories.
  • Alejandro, who focuses on efficiency and assumes workers are rational, is applying the classical viewpoint.
  • Kalini is interested in implementing scientific management to identify ways that delivery staff can make the most deliveries in each two-hour period.
  • According to Taylor's principles, workers' productivity can be improved by carefully selecting workers according to their abilities and giving them training.
  • The manager who is interested in implementing the principles of administrative management involves managing the total organization.
  • Brenden needs to adopt the behavioral viewpoint to understand human actions and motivate his employees toward achievement.
  • The phases of thought in the behavioral viewpoint from earliest to most recent are early behaviorism, human relations movement, and behavioral science.
  • Hugo Munsterberg is known as the father of industrial psychology.
  • Editors, editorial assistants, and reporters coordinate to determine which stories should be published, aligns with Mary Parker Follett's ideas.
  • Kira is an example of a Theory Y manager, believing that her workers are responsible, capable, and can be trusted when given responsibility.
  • Riley should set policies that demonstrate organizational support for ethical behaviors to promote high ethical standards after a public scandal.
  • The triple bottom line measures an organization's social, environmental, and financial performance.
  • Internal stakeholder consist of the board of directors, employees, and owners.
  • Distributors, local communities, and special-interest groups are considered external stakeholders.
  • Facing a request to punch a friend's timecard when it violates company policy represents an ethical dilemma.
  • New policies around misappropriation of assets, confidentiality, patient privacy, and political contributions are in Pinpoint's code of ethics.
  • Asking employees to take a pay cut to avoid store closures with recent sales decline may be characterized as utilitarian.
  • Globalization is the trend of the world economy toward becoming a more interdependent system.
  • Arturo's ability to travel to Europe, check e-mails, show his company's website, and return to the corporate office in Providence to meet with director is the global village.
  • The Berlin Wall came down, Asian countries opened their economies to foreign investors, and there was a worldwide trend of governments deregulating their economies paved the way for the global economy.
  • Caleb wants to stay small because if he decides to add new products, small companies can get started more easily and maneuver faster.
  • Fresh Toppings, based in Sacramento, California, with restaurants in 25 countries, would be viewed as a multinational corporation in the United States.
  • Ethnocentric managers believe that their native country, culture, language, and behavior are superior to all others.
  • Wyatt beginning to require the employees to utilization a time clock, something common in U.S. workplace, may signal that he is an ethnocentric manager.
  • Manufacturing plants with low labor costs and that give special privileges to their American owned in return for employing Mexican citizens are known as maquiladoras.
  • Airbus Inc. is using outsourcing because they order parts for its airplanes from other companies.
  • A company is licensing its products when it allows a foreign company to pay it a fee to make or distribute the company's product or service.
  • Pineapple Whip is engaged in franchising because they sells its branding, production techniques, and proprietary flavors to other companies for a fee and a share of the profits.
  • Nyah knows that planning and strategic management can help focus on the most critical problems, choices, and opportunities by providing direction and momentum.
  • An entrepreneur would create a business plan to outline goals and strategies with success measures.
  • A mission statement expresses why the organization exists, and a vision statement expresses what the organization wants to become.
  • LinkedIn's statement about connecting the world's professionals to make them more productive and successful is a mission statement.
  • The three levels of planning are strategic, tactical, and operational.
  • A company should revise its strategic plan every 1 to 2 years.
  • District managers will set goals to be achieved over the next 6 to 24 months as part of tactical planning.
  • Best Bottling is in step 1 of the strategic management process and needs to establish the mission, vision, and values statements.
  • Retail unit managers would be at Level 2: Business-level strategy.
  • The three key principles of strategic positioning are the creation of a unique and valuable position, trade-offs in competing, and creating a “fit” among activities.
  • Michael Porter defines strategic positioning as attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.
  • The steps of the strategic-management process are to establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control.
  • Zene is assessing current reality when he eats dinner at a lot of restaurants because he wants to know what is going on.
  • Breyona is engaged in SWOT analysis when she keeping a close eyes on her company's internal and external environments to identify better ways of doing business.
  • A SWOT analysis is a search for the strengths, weaknesses, opportunities, and threats influencing an organization's competition.
  • In a SWOT analysis, organizational strengths are skills and capabilities that give a company advantages in executing its strategies.
  • A forecast is a projection of the future.
  • Scenario analysis is the process wherein alternative possible plans are created and then the one that best fits the situation is applied.
  • Denelle is conducting a trend analysis when she reviews holiday sales from the last five year.
  • Benchmarking is the process by which a company compares its performance with that of high-performing organizations.
  • Michael Porter proposed that business-level strategies originate with the threats of new entrants, substitute products or services, bargaining power of suppliers and buyers, and competitive rivalries.
  • Bella Blooms should be concerned about the threat of rivalry among competitors when natural supply has dramatically increased its marketing to farmers.
  • According to Porter, the cost-focus and focused-differentiation strategies have in common that both focus on narrow markets.
  • Organizations endeavoring to keep their costs below competitors while targeting a wide market are utilizing a cost-leadership strategy.
  • Planet Pantry is pursuing a differentiation strategy because they sell high-quality products and grocery items that are unique to its highly populated area, and it offers frequent cooking classes showcasing global cuisine.
  • In management, being effective means using resources wisely and cost-effectively. T/F
  • When Deshi is setting employee schedules, assigning sections and work responsibilities, and ordering extra inventory, he is engaged in the leading function of the management process. T/F
  • Juliana is engaged in the controlling management function when she is comparing the goals of the clinics in her region with their recent sales. T/F
  • As a manager of a high-end jewelry design brand, Reyhan makes strategic long-term decisions about his company's overall direction and is a middle manager. T/F
  • Breyona is a middle manager. T/F
  • Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical. T/F
  • Human skills consist of the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together. T/F
  • Organizations can gain a competitive advantage simply by selling products and services at a lower price than competitors. T/F
  • An industrial food-processing factory has been applying the behavioral science approach to management for over 100 years. T/F
  • Data Byte Computer Repair has a clear hierarchy of authority and division of labor. T/F
  • Jake takes issue with the classical viewpoint because he believes it promotes an exhausting amount of outside feedback, much of which is not credible. T/F
  • A local grocer routinely develops and acquires new knowledge.T/F
  • Over half of younger workers believe that companies operate to meet society's needs first. T/F
  • The employees are internal stakeholders of the factory. T/F
  • The task environment of the local bowling alley consists of just two groups, customers and stockholders T/F
  • Boutique Inn and Red Raven Resort can be considered strategic allies. T/F
  • The general environment, or macroenvironment, includes six forces: economic, utilitarian, socialization, demographic, procedural, and governmental. T/F
  • Best Foods Grocery management noticed an increase in the number of ethnic minority families in its surrounding neighborhoods. T/F
  • Lego committed $150 million to convert its operations entirely to renewable energy. T/F
  • Emma takes advantage of the fact that Dembe is sleep-deprived and will be more likely to engage in unethical behavior. T/F
  • U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility. T/F
  • Later that day, Kevin texted Natalia. T/F
  • an example of a multinational corporation.T/F
  • T/F
  • assistant store manager acts like she knows it all. T/F
  • world's largest economy. T/F
  • Today's global world is different.T/F
  • Multi Domestic Corporations (MDCs) prioritize local responsiveness over global integrity.T/F
  • A company may enter into a strategic alliance to create a new company. T/F
  • T/F
  • business model. T/F
  • cost leadership strategy. T/F
  • High costs and imitation are some of the disadvantages of differentiation strategy. T/F
  • offer a narrow segment something unique. T/F
  • its saying its code of ethics. T/F
  • operational planning. T/F
  • tactical planning. T/F
  • strategic goal. T/F
  • competitive advantage. T/F
  • T/F
  • T/F
  • T/F
  • T/F
  • T/F
  • T/F
  • T/F

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