SEU - Principles of Management Chapter 1

Questions and Answers

Which of the following are keys to successful control systems? (Select all that apply)

They are timely, accurate & objective (correct)

They are too rigid

They are strategic & results oriented (correct)

They encourage self-control (correct)

What is the formula for productivity?

Goods produced divided by services produced

Inputs divided by outputs

Labor divided by capital

Outputs divided by inputs (correct)

Effective control systems require too much employee participation.

False

What does ERP stand for?

Enterprise Resource Planning Signup and view all the answers

Every situation is ______, so be flexible.

different Signup and view all the answers

Which of the following is NOT a key to managerial success?

Stick to strict rules Signup and view all the answers

Name one barrier to control success.

Too much control Signup and view all the answers

Match the following principles with their descriptions:

Find your passion = Pursue what you love Be flexible = Adapt to different situations Treat people as if they matter = Value your team Fine-tune your people skills = Improve interpersonal interactions Signup and view all the answers

What is management defined as?

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources. Signup and view all the answers

What are the challenges to being a star manager? (Select all that apply)

Managing for competitive advantage Signup and view all the answers

Top managers make ________ decisions about the overall direction of the organization.

long-term Signup and view all the answers

What are the three types of managerial roles?

Interpersonal roles, informational roles, decisional roles. Signup and view all the answers

What is the historical perspective of management composed of? (Select all that apply)

Quantitative Signup and view all the answers

Quality assurance focuses on the performance of workers urging them to strive for 'zero defects.'

True Signup and view all the answers

SWOT analysis involves careful monitoring of an organization’s internal and external ________.

environments Signup and view all the answers

What is the purpose of a business plan?

Outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success. Signup and view all the answers

Why do companies expand internationally? (Select all that apply)

New markets Signup and view all the answers

What does TQM stand for?

Total Quality Management Signup and view all the answers

Match the following management perspectives with their definitions:

Classical = Focus on efficiency and productivity Behavioral = Emphasizes the importance of understanding human behavior Quantitative = Stresses the use of mathematical models to improve decision making Contemporary = Integrates various approaches to address current management challenges Signup and view all the answers

What is groupthink?

A situation where members strive for unanimity. Signup and view all the answers

What are the four purposes of work teams?

Advice teams, production teams, project teams, action teams. Signup and view all the answers

Match the following team purposes with their descriptions:

Advice teams = Broaden information base Production teams = Perform day-to-day operations Project teams = Creative problem solving Action teams = Specialized tasks requiring coordination Signup and view all the answers

Which conflict is beneficial to an organization?

Functional conflict Signup and view all the answers

What is a characteristic of small teams?

Better morale Signup and view all the answers

What is person-organization fit?

The extent to which an individual's personality and values match the culture of an organization. Signup and view all the answers

Which type of organizational culture values flexibility and collaboration?

Clan culture Signup and view all the answers

What is the purpose of performance appraisal?

To assess employee performance Signup and view all the answers

Dysfunctional conflict benefits an organization's performance.

False Signup and view all the answers

What is strategic human resource planning?

A strategy for understanding and predicting employee needs. Signup and view all the answers

The three levels of organizational culture are observable artifacts, espoused values, and ______.

basic assumptions Signup and view all the answers

Which style is used for managing conflict by splitting the difference?

Compromising Signup and view all the answers

What is referent power?

Derived from one’s personal attraction. Signup and view all the answers

What do trait approaches to leadership attempt to identify?

Distinctive characteristics that account for the effectiveness of leaders. Signup and view all the answers

Which of the following are considered 'Dark Side' traits? (Select all that apply)

Narcissism Signup and view all the answers

What are task-oriented leadership behaviors focused on?

To ensure that people, equipment, and other resources are used efficiently to accomplish the mission. Signup and view all the answers

What is initiating-structure leadership?

Leader behavior that organizes and defines what employees should be doing to maximize output. Signup and view all the answers

Define transactional leadership.

Focusing on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance. Signup and view all the answers

Which of the following is a component of relationship-oriented leadership?

Consideration Signup and view all the answers

Laissez-faire leadership is characterized by a strong sense of responsibility for leading.

False Signup and view all the answers

What does the contingency leadership model determine?

Whether a leader's style is task-oriented or relationship-oriented and if that style is effective for the situation. Signup and view all the answers

What key behaviors are associated with transformational leadership?

Inspirational motivation, idealized influence, individualized consideration, intellectual stimulation. Signup and view all the answers

Which of the following are barriers to communication? (Select all that apply)

Physical barriers Signup and view all the answers

What is nonverbal communication?

Messages sent outside of the written or spoken word. Signup and view all the answers

List one downside of the digital age regarding communication.

Emotions are often poorly communicated or miscommunicated via email. Signup and view all the answers

What does total quality management (TQM) focus on?

Continuous quality improvement, training, and customer satisfaction. Signup and view all the answers

What is a balanced scorecard?

A tool that gives top managers a comprehensive view of the organization via four indicators. Signup and view all the answers

What does a liquidity ratio indicate?

How easily a firm’s assets can be converted to cash. Signup and view all the answers

What becomes the new competitive advantage?

Knowledge Signup and view all the answers

Which of the following describes reactive change?

Making changes as problems arise Signup and view all the answers

Proactive change is also known as planned change.

True Signup and view all the answers

Which type of change involves the introduction of a practice that is new to the organization?

Innovative change Signup and view all the answers

What is Lewin’s Change Model used for?

For understanding forces for change in organizations. Signup and view all the answers

What is a change agent?

A consultant who helps organizations deal with old problems Signup and view all the answers

The three kinds of change include adaptive change, innovative change, and ______ change.

radically innovative Signup and view all the answers

Name one reason employees resist change.

Fear of failure Signup and view all the answers

Which of the following is NOT one of the Big Five Personality Dimensions?

Dominance Signup and view all the answers

What are the three innate needs according to Deci & Ryan’s Self-Determination Theory?

Competence, autonomy, and relatedness Signup and view all the answers

What does Herzberg’s Two-Factor Theory propose?

Satisfaction and dissatisfaction arise from different factors. Signup and view all the answers

The three needs in McClelland’s Acquired Needs Theory are achievement, affiliation, and ______.

power Signup and view all the answers

What is motivation?

The psychological processes that arouse and direct goal-directed behavior. Signup and view all the answers

Intrinsic rewards are payoffs received from others for performing tasks.

False Signup and view all the answers

Which of the following theories emphasizes needs that motivate people?

Content perspectives Signup and view all the answers

Match the leadership styles with their characteristics:

Manager = Coping with complexity Leader = Coping with change Signup and view all the answers

Study Notes

Chapter 01: The Exceptional Manager

Management integrates people’s work to achieve organizational goals efficiently and effectively through planning, organizing, leading, and controlling resources.
Efficient management focuses on the wise use of resources, while effective management ensures goals are met through correct decision-making.
Seven challenges for managers include competitive advantage, diversity, globalization, information technology, ethical standards, sustainability, and personal fulfillment.
Hierarchical levels of management: Top managers (long-term decisions), middle managers (implement policies and oversee first-line managers), first-line managers (short-term decisions), team leaders (facilitate team activities), general managers (oversee multiple activities), functional managers (specific organizational functions).
Types of organizations: profit, nonprofit, mutual-benefit.
Skills for exceptional managers: technical (job-specific knowledge), conceptual (analytical and holistic thinking), human (interpersonal cooperation), and soft skills (motivation and communication).
Managerial roles include interpersonal (people interaction), informational (data communication), and decisional (problem-solving and opportunity capitalizing).

Chapters 02 & 03: Management Theory & Changing Work Environment

Organizations interact with external (economics, governments, customers, suppliers) and internal stakeholders (owners, boards, employees).
Historical perspectives: classical (scientific management, administrative management), behavioral (importance of human behavior), and quantitative management (analytical techniques).
Scientific management principles: study tasks scientifically, select suitable workers, provide training and incentives, and apply scientific planning methods.
Administrative management focuses on managing the organization as a whole, highlighting authority hierarchy, formal rules, labor division, impersonality, and merit-based careers.
The behavioral viewpoint values understanding human behavior and employee motivation.
Quantitative management uses mathematics and scientific approaches for decision-making.
Total Quality Management (TQM) involves continuous improvement, employee involvement, customer feedback, and adherence to standards.

Chapter 04: Global Management

Globalization leads to increased interdependence among economies and cultures.
E-commerce emphasizes the online buying and selling of goods and services, contributing to a global marketplace.
International management involves multinational and nonprofit organizations operating across multiple countries.
Management styles: ethnocentric (home country superiority), polycentric (native understanding), geocentric (recognizing value in both home and foreign practices).
Companies expand internationally to access supplies, markets, lower labor costs, financial capital, and avoid tariffs.
Methods of international expansion include outsourcing, importing, exporting, countertrading, licensing, franchising, joint ventures, and wholly-owned subsidiaries.
Trade barriers include tariffs, import quotas, and embargoes, impacting international commerce.
National culture shapes beliefs, values, behaviors, and communication practices.

Chapter 05: Planning

Planning involves formulating future actions to achieve goals and setting directions for the organization.
A business plan outlines goals, strategies, and success standards; a business model details operations and revenue.
Strategic management involves all managers in strategy formulation and implementation for effective direction.
Importance of planning: offers direction, encourages innovation, and fosters competitive advantages.
SMART goals are specific, measurable, attainable, results-oriented, and time-bound.

Chapter 06: Strategic Management

Strategic positioning aims for sustainable competitive advantage by engaging in distinct activities compared to rivals.
Key strategic principles: establish unique positions, recognize trade-offs, and create cohesion among business activities.
SWOT analysis assesses internal strengths and weaknesses against external opportunities and threats.
Grand strategies include growth, stability, and defensive approaches.
Porter’s competitive strategies focus on cost-leadership, differentiation, cost-focus, and focused-differentiation.
The BCG matrix evaluates business units based on growth rates and market share.
Core business processes: understanding people, strategy formulation, and defining operations.

Chapter 07 & 13: Decision Making & Group Dynamics

Rational decision-making incorporates various models: participative management, satisficing, incremental, and intuition-driven approaches.
Decision-making styles vary: directive (efficient and practical), analytical (in-depth analysis), conceptual (broad perspectives), behavioral (supportive and warm).
Group decision-making benefits: diverse knowledge, varied perspectives, intellectual stimulation, and enhanced commitment but may suffer from groupthink, domination by few, and goal displacement.
Distinction between groups and teams: all teams are groups, but not all groups are teams; teams have a dedicated purpose with complementary skills.
Work teams serve various functions, such as advice teams, production teams, and project teams.### Action Teams and Group Development
Action teams achieve specialized tasks requiring coordination; examples include hospital surgery teams, airline cockpits, and police SWAT teams.
Small teams (2-9 members) enhance interaction and morale but face resource limitations.
Large teams (10-16 members) provide more resources and labor division but can suffer from less interaction and lower morale.

Conflict in Organizations

Conflict involves perceived opposition of interests between parties.
Functional conflict enhances organizational objectives, while dysfunctional conflict impairs performance.
Types of conflict include:
- Personality conflict: based on personal disagreements.
- Intergroup conflict: arises from goal inconsistencies and jurisdiction ambiguities.
- Multicultural conflict: occurs due to cultural differences.

Stimulating Constructive Conflict

Encourage competition among employees.
Transform organizational culture and procedures.
Introduce outsiders for fresh perspectives.
Use programmed conflict methods:
- Devil's advocacy: assigns a critic role to encourage debate.
- Dialectic method: opposing views are debated to clarify proposals.

Conflict-Handling Styles

Avoiding: hoping issues resolve themselves.
Accommodating: yielding to others' preferences.
Forcing: insisting on one's way.
Compromising: seeking a middle ground.
Collaborating: working together for mutual benefit.

Organizational Culture and Structure

Person-organization fit gauges alignment between individual values and organizational culture.
Organizational culture comprises shared assumptions that shape perceptions and behaviors.
Four types of organizational culture:
- Clan culture: collaborative and flexible.
- Adhocracy culture: innovation-driven and adaptable.
- Market culture: competition and results-oriented.
- Hierarchy culture: structured and controlled.

Levels of Organizational Culture

Observable artifacts: visible elements like dress and awards.
Espoused values: explicitly stated beliefs and norms.
Basic assumptions: core values resistant to change.

Learning Organizational Culture

Symbols convey meaning.
Stories emphasize key values.
Heroes exemplify organizational ideals.
Rites and rituals celebrate significant milestones.

Organizational Structure Elements

Common purpose: unifies and aligns employees.
Coordinated effort: integrates individual actions towards collective goals.
Division of labor: task allocation among individuals.
Hierarchy of authority: ensures proper task assignments.
Span of control: number of direct reports a manager oversees.
Authority and delegation: interplay of power and accountability.

Traditional Structure Designs

Simple structure: centralized authority with minimal rules.
Functional structure: grouping by occupational specialties.
Divisional structure: grouping by products, customers, or regions.
Matrix structure: combining functional and divisional command lines.
Horizontal design: teams or groups facilitate collaboration across tasks.

Organizational Change and Innovation

Fundamental change drivers: market segmentation, competition, offshore influences, and knowledge economy evolution.
Disruptive innovation starts from simple applications and progresses to disrupt established markets.
Two types of change:
- Reactive: responding to challenges as they arise.
- Proactive: planned anticipatory changes.

Organizational Development (OD)

OD techniques implement planned changes for effectiveness.
Change agent: facilitates organizational change using behavioral science knowledge.
OD can manage conflict, revitalize, and adapt organizations.

Innovation in Organizations

Seeds of innovation include diligence, curiosity, necessity, and resource combinations.
Common myths about innovation de-emphasize the systematic process and the singular "Eureka!" moment.
Types of innovation:
- Product innovation: alterations in product function or aesthetics.
- Process innovation: improvements in manufacturing or delivery methods.
- Core innovations: enhancements for existing customer needs.
- Transformational innovations: groundbreaking products for new markets.

Facilitating Innovation

Successful innovation requires the right culture, skilled workforce, and adequate resources.### Reward Systems and Resistance to Change
Resistance to change arises from emotional and behavioral reactions to perceived threats to job routines.
Factors contributing to employee resistance:
- Individual predispositions and peer influence.
- Fear of the unknown and cultural disruptions.
- Mistrust within the organization and inter-personality conflicts.
- Concerns over job security and loss of status.
- Issues with timing and lack of rewarding incentives.

Personality and Individual Behavior

Personality: Stable traits and behaviors that define a person's identity.
Big Five Personality Dimensions:
- Extroversion: Outgoingness and sociability.
- Agreeableness: Trust and cooperation with others.
- Conscientiousness: Dependability and achievement orientation.
- Emotional stability: Relaxation and security in stressful situations.
- Openness to experience: Intellectual curiosity and creativity.

Core Self-Evaluations

Core self-evaluations influence workplace behavior:
- Self-efficacy: Confidence in one's abilities.
- Self-esteem: Overall self-worth.
- Locus of control: Perception of control over personal fate.
  - Internal locus: Believing one's actions affect results.
  - External locus: Attributing outcomes to external factors.
- Emotional stability: Security in handling stress and emotions.
- Emotional intelligence: Awareness and management of one's emotions and those of others.

Organizational Behavior

Focuses on explaining and predicting workplace behavior to enhance management and employee motivation.
Values and Attitudes:
- Values: Guiding principles that influence thoughts and behaviors.
- Attitude components:
  - Affective: Emotional response.
  - Cognitive: Beliefs and understanding.
  - Behavioral: Intended actions.

Cognitive Dissonance

Psychological discomfort caused by conflicting attitudes and behaviors.
Methods to reduce cognitive dissonance include changing attitudes, minimizing the importance of inconsistencies, or highlighting consistent beliefs.

Perception

The process of interpreting the environment.
Distortions in perception:
- Stereotyping: Generalizing traits based on group membership.
- Halo effect: Single-trait impression affecting overall perception.
- Recency effect: Valuing recent information over prior data.
- Causal attributions: Inferring causes behind actions.

Important concepts:
- Employee engagement: Commitment and enthusiasm at work.
- Job satisfaction: Overall feelings about work aspects.
- Organizational commitment: Identification with company goals.

Diversity in the Workplace

Diversity encompasses differences in age, gender, race, religion, and more.
Internal dimensions include factors like gender and race that significantly affect personal experiences throughout life.

Motivation

Motivational factors energize and direct behavior toward achieving goals.
Extrinsic vs. Intrinsic rewards:
- Extrinsic: Rewards from external sources.
- Intrinsic: Satisfaction derived from the task itself.

Theories of Motivation

Content Perspectives on Motivation focus on fulfilling specific needs:
- Maslow’s Hierarchy: Five levels ranging from physiological needs to self-actualization.
- McClelland’s Acquired Needs Theory: Needs for achievement, affiliation, and power.
- Herzberg’s Two-Factor Theory: Differentiates between hygiene factors (dissatisfaction) and motivating factors (satisfaction).

Reinforcement Perspectives

Behavior modification through reinforcement theory:
- Positive Reinforcement: Encouraging behavior through rewards.
- Negative Reinforcement: Strengthening behavior by removing negative factors.
- Extinction: Weakening behavior by ignoring it.
- Punishment: Discouraging behavior by introducing negative consequences.

Leadership Styles

Leadership: The ability to guide and influence others.
Distinctive styles include:
- Transactional Leadership: Focus on structure, reward, and punishment based on performance.
- Transformational Leadership: Inspiring employees to prioritize organizational goals.

Contingency and Path-Goal Leadership Models

Contingency Model: Evaluates the effectiveness of a leader's style based on situational factors like leader-member relations and task structure.
Path-Goal Model: Effective leaders clarify paths to achieve goals, adjusting styles to motivate team members.

Passive Leadership

Laissez-faire leadership: Leadership marked by avoidance of responsibility and decision-making.
Characterized by inaction and lack of guidance for team members.

These notes summarize key points regarding motivation, personality, leadership, and workplace behavior to enhance understanding of effective management principles and strategies.

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Explore the key concepts of Chapter 1 in the Principles of Management course. This chapter focuses on what makes a manager exceptional, detailing essential practices and skills. Test your understanding of managerial roles and their significance in effective management.