MGMT Final Exam PDF

What are values Values: are often unspoken principles that shape decision and actions within societies organization Organizational application: leaders use values to establish organizational culture ○ Integrity: ethical decisions ○ Innovation: fostering creativity...

What are values Values: are often unspoken principles that shape decision and actions within societies organization Organizational application: leaders use values to establish organizational culture ○ Integrity: ethical decisions ○ Innovation: fostering creativity Googles don't be evil saying What are program vs non program decisions Programmed decisions: ○ They are structured or recurring decisions that can be reliably predicted Ex: restocking inventory based on present thresholds Nonprogrammed decisions: ○ They are less structured, less frequently recurring and more difficult to predict Ex: developing new product line What are the conditions which decision made - certainty State of certainty: condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative - little ambiguity and relatively little chance of making a bad decision ○ Ex: knows the exact number of pre-orders and the cost of production, so they can confidently produce that specific quantity State of risk: the availability of each alternative and its potential playoffs and costs are all associated with probability estimates - accept or reject offer, moderate ambiguity and chances of a bad decision ○ Ex: launching a new product with a 70 percent chance of success State of uncertainty: condition in which decision maker does not know all the alternatives the risk associated with each or the consequences each alternative is likely to have ○ ex:decisions early covid - ambiguous and prone to error Cross training Teaching employees multiple job roles without regular role rotation ○ Benefits Flexibility in staffing Increased understand of overall operations Improved employee satisfaction through skill diversification Product service mix How many and what kinds of products and services to offer ○ This decision flows from corporate, business, and marketing strategies ○ Managers have to make a number decision about their products and serviced starting with how many and what kinds to offer  ○ Determined in large part by corporate or business strategies Ex: tech company may decide between focusing solely on hardware or integrating software services Capacity utilization The percentage measure of how well available capacity is being used, calculated as "Actual output / Potential output" x 100, is called "Capacity Utilization Job design Defining the responsibilities and tasks associated with a job to achieve organization goals and meet employee expectations ○ Components: Responsibilities: determining what tasks are part if the job Decision making: clarifying authority and responsibility Success indicators: establish measurable outcomes ○ Ex: a machinist at caterpillar job design might specify what machines are to be operated during the construction a new piece of equipment ○ Involve defining areas of decision-making responsibilities, identifying goals and expectation, and establishing appropriate indicators of success Organizational structure The set of elements that can be used to configure an organization ○ Job Design: Determining individual responsibilities. ○ Grouping Jobs (Departmentalization): Logical arrangement of jobs, such as by function (marketing, production) or product line. ○ Reporting Relationships: Establishing hierarchies, including who reports to whom. ○ Authority Distribution: Centralized: Decision-making authority is concentrated at the top. Decentralized: Authority is distributed among various levels. Coordination: Linking department activities to ensure consistency and efficiency. Line vs. Staff Positions: ○ Line Managers: Directly contribute to achieving organizational goals (e.g., sales managers). Staff Managers: Provide advice and support (e.g., HR consultants). What is staff position Roles design to support line positions by offering expertise, advice, and assistance  ○ Ex: a legal advisor in corporation provides guidance on compliance but does not directly produce goods or services What is job specialization The degree to which the overall task of the organization is broken down and divided into smaller component parts to improve efficiency ○ The basis for mass-production assembly lines - tasks are broken down into small component elements ○ Purest form is simply a normal extension of organizational growth BENEFITS: ○ Workers performing small simple tasks will become very proficient ○ Transfer time between tasks decreases ○ More narrowly defined a job is the easier it is to develop specialized equipment ○ Employee who performs highly specialized job is absent or resigns manager can train someone new at relatively low costs NEGATIVES: ○ Workers who perform highly specialized jobs may become bored ○ So specialized that it offers no challenges ○ Anticipated benefits of specialization do not always occur Job enrichment A strategy to counteract the drawbacks of job specialization by increasing the variety and autonomy in a workers tasks ○ Attempt to increase both number of tasks a worker does ○ control the worker has over job ○ Encourages decision-making and problem-solving skills Ex: manufacturing setting, worker might not only assemble parts but inspect quality ○ Benefits: enhances motivation and job satisfaction ○ Challenges: requires training and development programs What is organizational change Any significant alteration in an organization structure, process, or culture EX: work schedules:shifting from 9-5 to flexible, implementing AI, moving from hierarchical to flat What is organizational development A strategic, people focused approach aimed to improving an organization's health and effectiveness through planned behavioral interventions two assumptions ○ 1. People have a desire to grow and develop ○ 2. employees need to be accepted by others within the organization Exs: teambuilding, leadership coaching, conflict resolution workshops Various types of change Planned change: change that is designed and implemented in an orderly and timely fashion in anticipation for future events ○ Ex: company restructures its departments ahead of launching new line Reactive change: a piecemeal response to circumstances as they develop ○ Ex: sudden remote work implementation during pandemic ○ Planned change is almost always preferable Reduces disruptions and ensure alignment with long term Allows for proper resource allocation and employee training Resistance to change how we overcome - Opposition to change within an organization often due to: - Self interest: fear of losing control - Misunderstand and distrust: poor communication or lack of trust - Intolerance for change: inability to adapt due to comfort with status quo - Ex: avon products faced resistance from ts managers when considering reducing dividends to stockholders - Overcoming: - Effective communication: explain the reasons for change and benefits - Participation and involvement: involve employees in change process to build trust - Support: offer resources and training to help employees - Incentives: align the change with rewards (promotions) - Gradual implementation: introduce changes in phases Labor relations is the process of dealing with employees who are represented by a union Key activities ○ Negotiation collective bargaining agreements ○ Addressing grievances or disputes ○ Ensuring compliance with labor laws Ex: company negotiates with a union to address employee concerns about safety in the workplace Ranking vs rating with respect to evaluating employees Ranking - compares employees directly with one another and orders them from best to worst ○ useful for top and bottom performers ○ Difficult to distinguish employees in middle ○ Focus on overall performance w/o detailed feedback Ex: ranking 10 sales associates based on quarterly sales ○ Critics: does not provide actionable insights for improvement  Rating - compares each employee against a fixed standard rather than with other employees ○ BARS - a sophisticated and useful rating method identify relevant performance dimensions then generate anchors Ex: a customer service representative rates on metrics like response time ERRORS IN RATING - Recency error: tendency to base judgements on the subordinates most recent performance because it is most easily recalled - Halo error: allowing assessment of an employee on one dimension to spread to rating of employee on other dimensions - Bias: Eros can also occur because of race, sex, or age discrimination What is trademark law revision 1988 Which of the following federal laws does NOT have a direct impact on human resource management? The answer is: Trademark Law Revision Act of 1988. Title 7 1964 civil right - US law that prohibits discrimination in employment on the basis of race, color, religion, sex, or national origin - EX: company refusing to hire women for executive roles could be investigated Types of communication Oral: face-to-face conversation, group discussion, and other circumstances in which the spoken word is used to transmit meaning ○ Pro: prompt feedback, builds personal connections ○ Con: inaccuracy if wrong words to convey meanings ○ Ex: team meetings to discuss projects Nonverbal: any communication exchange that does not use words or uses words to carry more meaning than the strict definition of the words themselves ○ Images, setting, and body language ○ pros: adds depth to oral or written communication, conveys emotions ○ Cons: can be misinterpreted, cultural differences may lead to misunderstandings ○ Ex: managers crossing their arms - sign of disapproval Written: memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning ○ Pro: very accurate and provides permanent record ○ Cons:inhibit feedback, lack of immediate feedback ○ Ex: sending an email outlining quarterly goals to the team Vertical communication: flows up and down the organization usually along reporting lines Upward communication: typically requests, info, responses, complaints, suggestions & financial info - More subject to distortion (may withhold info that makes them look bad) - Bigger difference in status and distrust the more likely the subordinate is to suppress of distort Downward communication: typically consists of how something is to e done donde, the assignment of new responsibilities, performance feedback - Can be and should be 2-way in nature Horizontal communication: involves colleagues and peers at the SAME LEVEL - Facilitates coordinated among interdependent units - Can be used for joining problem solving - Plays a major role in work teams w members drawn from several departments Types of power Legitimate Power: ○ Definition: Authority granted through an organization’s hierarchy. ○ Example: A CEO issuing directives to department heads. Reward Power: ○ Definition: The ability to give or withhold rewards, such as bonuses, promotions, or recognition. ○ Example: A manager promising a bonus for meeting a sales target. Coercive Power: ○ Definition: The ability to enforce compliance through threats (psychological, emotional, or physical). ○ Example: A supervisor threatening termination for poor performance. Referent Power: ○ Definition: Power derived from personal traits that inspire loyalty, admiration, or identification. ○ Example: A charismatic leader influencing employees through their vision. Expert Power: ○ Definition: Power stemming from specialized knowledge or skills. ○ Example: An IT specialist advising on cybersecurity protocols. Communication process Definition: The sequence of steps through which information is shared between a sender and a receiver. Steps: 1. Sender: Initiates the message based on a need or intention.  2. Encoding: Translates the message into a suitable form (e.g., words, images). 3. Transmission: Sends the message through an appropriate channel (e.g., email, speech). 4. Receiver: Decodes and interprets the message. 5. Feedback: Response from the receiver to ensure understanding. Barriers: Internal Noise: Distractions within a person, such as stress or illness, that hinder effective communication. ○ Example: An employee who is sick may misinterpret instructions during a meeting. What is psychological contract Unwritten expectations between an employee and organization regarding contributions and rewards. Perception management individual Process of interpreting and shaping environmental information. ○ Selective perception: filtering out info that contradicts beliefs ○ Strategic perception: influencing how information is received Attribution Attribution- the process of observing behaviors and attributing cause to it - assigning causes to the observed behaviors Attrition - Natural process of which leave workforce What are various function of management Management involves four basic activities—planning and decision making, organizing, leading, and controlling. Planning: Definition: Setting goals and deciding how to achieve them. Example: A company sets a goal to increase sales by 20% and develops a marketing strategy to target new demographics. Organizing: Definition: Arranging resources and tasks to implement the plan effectively. Example: Assigning roles to team members and allocating a budget to support the marketing strategy. Leading:  Definition: Motivating and guiding team members to work toward the organization’s goals. Example: A manager inspires employees through clear communication and recognizes their contributions to keep them engaged. Controlling: Definition: Monitoring progress and making adjustments to stay on track toward goals. Example: Regularly reviewing sales data to ensure the marketing strategy is effective, making changes if necessary. What is operation manager concerned with creating and managing the systems that create an organization's products and services. Typical responsibilities of operations managers include production control, inventory control, quality control, plant layout, and site selection. What is negotiation The process in which two or more parties (people or groups) reach agreement on an issue even though they have different preferences regarding that issue What are levels of management and various functions Top-Level Management Role: Sets goals, policies, and strategic direction; represents the organization externally. Titles: President, CEO, Vice President. Functions: Strategic planning, decision-making, policy formulation. Middle-Level Management Role: Implements top management’s plans; supervises and coordinates departments. Titles: Plant Manager, Operations Manager, Division Head. Functions: Coordination, execution, departmental oversight. First-Line Management Role: Supervises employees and daily operations. Titles: Supervisor, Coordinator, Office Manager. Functions: Direct supervision, task assignment, performance monitoring. What is chester barnard theory - acceptance theory of authority The idea is that bosses only have authority if workers agree to follow their orders. Workers decide this based on whether the orders make sense, fit their job, match their  values, and are doable. If the order seems normal and fair, they’ll usually go along with it.\ Formal organizations are made up of informal groups. These informal groups evolve to become informal organization. The group's beliefs and values establi administrative management Focuses on overarching policies, strategic planning, and organizational structure. It's about guiding the organization as a whole toward long-term goals. ○ Henry Fayol most influential administrative management theorists - he identified the four basic managerial functions of planning, organizing, leading and controlling Theory x and theory y Theory X is a pessimistic and negative view of workers and is consistent with the views of scientific management ○ Ppl don't like to work and avoid it and managers have to control them, need to be directed and do not want responsibility Theory Y is more positive and represent the assumptions that human relations advocates make ○ People do not naturally dislike work, internally motivated, seek and accept responsibility under favorable conditions DOuglas Mcgregor's theory x and theory y model - Two different sets of beliefs and assumptions - Theory x is pessimistic and congruent with scientific management - Theory Y is positive and represents human relations movement ideas Quantitative management quantitative management perspective focuses on decision making, economic effectiveness, mathematical models, and the use of computers Techniques: statistics, computer simulations ○ Ex:linear programming to optimize supply chain logistics What is a gantt chart A Gantt chart is a simple tool used to schedule tasks. It shows what needs to be done and when. Use: Helps plan work for individuals or teams. Example: Planning a product launch by organizing tasks like design, testing, and marketing into a timeline. What is a board of directors what they do A corporate board of directors is a governing body elected by the stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests. ○ Ex: approving a major company strategy or appointing a CEO Internal environment Conditions and forces present within an organization make up its internal environment. Naturally, not every aspect of these settings is equally significant to every frim ○ Ex:company culture External environment Everything that could have an impact on a company outside its walls is considered the external environment ○ Ex:competitor strategies, market trends Socio Cultural environment Includes the customs, morals, values, and demographic characteristics of the society in which the organization functions Determine the products, services, and standards of conduct that the society is likely to value ○ Ex: fast food companies adapting menus to local tastes What is ethics Ethics are defined as one's personal beliefs about whether a behavior, action, or decision is right or wrong ○ Whether a behavior is ethical or unethical is often determined by generally accepted social norms ○ Organizations do not have ethics people do Three areas of concern Organization → Employees (e.g., fair pay). Employees → Organization (e.g., honesty). Both → Economic Agents (e.g., treating customers fairly). Informational justice The perceived fairness of information, knowledge, and data ○ Ex: transparent communication during layoffs Distributive Justice Fairness of outcomes (e.g., pay, rewards). Principles: Equity, equality, need. Focus: What is received. Procedural Justice Fairness of decision-making processes. Principles: Consistency, bias suppression, accuracy, voice, correctability, ethicality. Focus: How decisions are made. Interpersonal Justice Fairness of treatment during interactions. Key factors: Respect, courtesy, empathy. Focus: Quality of communication and relationships. What is social responsibility Definition: Obligations to protect and enhance societal well-being. Nature: Interactions with the natural environment, e.g., waste disposal. Examples: ○ Bike incentives for Clif Bar employees. ○ Ronald McDonald House for families. Arguments For: 1. Businesses should solve problems they help create. 2. They have resources to address societal issues. 3. They are societal partners. Arguments Against: 1. Businesses should focus on profit. 2. Involvement gives excessive power. 3. Lack of expertise in social programs. Organizational Approaches: 1. Obstructionist: Avoids solving social/environmental problems. ○ Example: Ignoring pollution issues. 2. Defensive: Meets legal requirements only. ○ Example: Meeting minimum safety standards. 3. Accommodative: Exceeds obligations in some cases. ○ Example: Disney matching employee charitable contributions. 4. Proactive: Actively seeks to contribute. ○ Example: Ronald McDonald House. What is whistle blowing Whistle-blowing is the disclosure by an employee of illegal or unethical conduct within the organization ○ Ex:reporting financial fraud within a company What is competition Awareness of competitors, market trends, customer demands; researching products, services, and new technologies  ○ Ex: a tech company analyzing rival smartphones to improve its design and features What is infrastructure Physical and organization structures like schools, highways, hospitals, communication systems, distribution networks, forming part of economic environment ○ Impact: undeveloped infrastructure hinders business entry Ex:lack of roads and ports in brazil's amazon restricts resource access What is organizational stability Strategic planning by leadership to allocate resources (inventory, time, funding) for business activities ○ Ex: a company ensuring funding for both daily operations and long-term projects What is autonomy The degree of control the worker has over how the work is performed ○ Relevance: apart of the job characteristics approach Ex:a developed setting their own schedule and choosing tools for project Import export strategy Exporting: making the product in the firms domestic marketplace and selling it in another country Importing: bringing a good, service, or capital into a firm's home country from abroad import/export has several advantages - easiest way of entering a market, usually sold as is, no need to adapt the product Ex: selling american-made clothing in european markets Strategic plan General plan to achieve strategic goals, focusing on resource allocation, priorities, and action steps ○ Ex: a company planning to expand into international markets over five years Tactical plan Definition: Specific plans to implement parts of the strategic plan, often involving upper and middle management, with a shorter time frame. Steps to Develop: 1. Understand strategic goals. 2. Define resource and time requirements. 3. Identify HR commitments. Steps to Execute: 1. Evaluate actions against goals. 2. Distribute resources and information.  3. Monitor communication and activities. Example: Developing a marketing campaign to support a strategic goal of increasing brand recognition. Missions statement An organization's mission is a statement of its "fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms." ○ Ex: “to inspire and nurture the human spirit- one person, one cup, one neighborhood at a time” (starbucks) Types of goals ○ Strategic goals Set by and for top management for the organization; focus on broad, general issues Ex: starbucks strategic goal of increasing profitability of each coffee store by 20 percent ○ Tactical goals Set by and for middle managers their focus is on how to operationalize actions necessary to achieve the strategic goals Ex: managers planning store promotions to achieve starbucks profitability goals ○ Operational goals Set by and for lower-level managers their concern is with shorter-term issues associated with the tactical goals Ex: boost profitability of a certain number of stores in each of the next five years Diversification strategy Diversification describes the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another Single-Product Strategy Produces/sells only one product or service. Example: A company manufacturing only electric cars. Related Diversification Engages in related businesses. Example: A cosmetics brand expanding into skincare products. Unrelated Diversification Operates in unrelated businesses.  Example: A company owning a hotel chain and a food processing business. What is scope The range of management processes applicable to various settings, including profit-seeking and non-profit organizations. Ex: management strategies in hospital vs tech startup What is emergent strategy a developed pattern of actions in the absence of a mission or goals or despite mission or goals- usually reactions to something that happened in the organization's environment ○ Ex: Netflix transitioning from DVD rentals to streaming due to changing consumer behavior What is decision making process 1.) Recognize and define the problem. 2.) Identify alternatives. 3.) Choose the best alternative. 4.) Implement the choice. Example: Deciding between outsourcing production or expanding in-house facilities. What is an inducement When a manager offers something in exchange for support. ○ Ex: offering a promotion in return for meeting a key deadline What is motivation The reason or reasons one has for acting or behaving in a particular way ○ Ex: employees motivated by recognition or financial incentives What is two-factor theory Suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors Motivation Factors: Lead to satisfaction. ○ Examples: Achievement, recognition, responsibility. Hygiene Factors: Prevent dissatisfaction but don’t create satisfaction. ○ Examples: Pay, job security, working conditions. Application: Improving both factors enhances employee morale and productivity. How do we reduce frequency of behavior we don't want Punishment ○ Weakens undesired behavior through discipline  ex:Disciplining an employee for repeated tardiness. Extinction ○ Used to weaken behavior by removing reinforcement Ex: ignoring inappropriate jokes to stop their recurrence What is compressed work schedule working a full 40-hour week in fewer than the traditional five days ○ Ex: working four 10-hour days instead of five 8-hour days What is merit pay pay awarded to employees on the basis of the relative value of their contributions to the organization. Employees who make greater contributions are given higher pay than those who make lesser contributions. EX: higher pay for employees exceeding sales targets What is leader vs manager Manager Focuses on controlling resources and optimizing processes. Example: Monitoring team performance to meet deadlines. Leader Inspires and empowers people to achieve a common goal. Example: Motivating a team with a vision for future success. What is impression management Efforts to enhance one's image in others eyes, often to boost self-esteem ○ Ex: dressing professionally for an important meetings What is a group or team Definition: Two or more people interacting to achieve a common goal. Purpose: Ranges from sharing information to solving problems or fulfilling social needs. Types of Groups 1. Informal Group: Created by members for non-organizational purposes. ○ Example: Employees forming a book club. 2. Task Group: Created by the organization for specific purposes. ○ Example: A project team for launching a product. 3. Team: A group functioning as a unit with minimal supervision.  ○ Example: An agile development team. 4. Virtual Team: Members collaborate remotely via online tools. ○ Example: A global marketing team working across time zones. Types of Teams 1. Problem-Solving Team: Knowledge workers addressing specific problems. ○ Example: Engineers solving a design issue. 2. Management Team: Managers from various functions collaborating. ○ Example: Sales and production managers strategizing supply chain improvements. 3. Work Team: Responsible for daily tasks. ○ Example: Assembly line workers. 4. Virtual Team: Interacts in a digital space. ○ Example: Software developers coding collaboratively online. 5. Quality Circle: Workers and supervisors discussing workplace issues (declining in popularity). ○ Example: A team brainstorming ways to improve safety protocols. Why do ppl join groups Function Groups: Join organizations to fulfill practical needs (e.g., employment for income). Informal Groups: Interpersonal Attraction: Drawn to others in the group. Group Activities: Attracted by enjoyable activities. Group Goals: Motivated by shared objectives. Need Satisfaction: Fulfills the need for affiliation. Instrumental Benefits: Membership provides other advantages (e.g., networking). What is group cohesiveness The extent to which members are loyal and committed to the group; the degree of mutual attractiveness within the group ○ Factors that increase cohesiveness Intergroup competition - when two or more groups are in direct competition Assign members to group who are likely to be attracted to one another Provide opportunities for success Establish goals that all members are likely to accepts Allow ample opportunities for interaction  ○ Factors that reduce cohesiveness Large group size. Goal disagreements. Intragroup competition. Domination by certain members. Negative experiences from group membership. High cohesiveness + High performance norms: Leads to the highest group performance because members are engaged and aligned with strong goals. High cohesiveness + Low performance norms: Results in the lowest performance as the group is united but focused on unproductive behaviors. Low cohesiveness + High performance norms: Produces moderate performance, as individual efforts align with strong norms despite lack of unity. Low cohesiveness + Low performance norms: Yields low performance, with no unity or commitment to achieving goals. What is group leadership and how does it work Formal Leader: Officially appointed or elected leader of the group. ○ Example: A manager assigned to lead a project team Informal Leader: Engages in leadership activities without formal recognition. ○ Example: A team member naturally guiding discussions and decisions.