Management Exam
Terms
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- Profiles of Organizational Culture
- With a profile, ALL dimensions of the company are represented instead of labeling the company with its dominant dimension. Strong Comprehensive Profile - strong in every area
- 'Rational' Type in Competing Values Model
- Leadership Style: Production and Achievement oriented, decisive. Bonding: Goal orientation, production, competition
- Consistent Administration Canon
- Rules should be clearly stated and consistently and impartially enforced
- Principles of Effective Goals
- Avoid too many goals.. Use I want to (action verb) (measurable goal) by (deadline)
- Paradigm
- A set of rules and regulations that define boundaries
- Universalism
- The ethical system stating that all people should uphold certain values that society needs to function
- "8 I's of Table 9.1"
- Best alliances are true partnerships in which both parties meet these criteria: Individual Excellence, Importance, Interdependence, Investment, Information, Integration, Integrity
- 3 Layers of Culture
- Artifacts Layer of Culture, Espoused Values Layer of Culture and Basic Underlying Assumptions layer
- Effect of a Paradigm on Creativity
- Good: Tells you where / how to look for solutions. Bad: Limits creativity outside of the boundaries
- Organization Chart
- The reporting structure and division of labor in an organization
- Tragedy of Commons
- Commons - tract of land shared by communities on which they grazed their animals. Problem develops as more herders add more animals (short term interest) eventually leading to the destruction of the commons.
- Integration (within an Organization Chart)
- The degree to which differentiated work units work together and coordinate their efforts
- Why control systems based solely on bureaucratic and market mechanisms are insufficient
- 1. Employees jobs have changed (have more variability in jobs) 2. Nature of Management has changed (managers now know less about jobs than employees) 3. Employment relationship has changed (employees interested more in being fully engaged in work as opposed to simply their paycheck)
- Egoism
- An ethical system defining acceptable behavior as that which maximizes consequences for the individual
- Carrying Capacity
- The ability to sustain a population
- Theory of Five Rights
- Principle: Human beings have moral rights that should be respected in all decisions and actions. Managers should allow employees certain freedoms and a right to privacy
- Smoothing
- Leveling normal fluctuations at the boundaries of the environment (Ex. during winter, car dealerships cut prices of in stock vehicles to increase demand)
- The Genius of the 'And'
- Ability to achieve multiple objectives simultaneously
- Internal Resource Analysis
- Assesses strengths and weaknesses of major functional areas within organizations (Finance, Human Resources, Marketing etc)
- Artifacts Layer of Culture
- Most visual and sensory layer of culture; contains symbols, heroes, stories, slogans, ceremonies and physical artifacts
- Differences between monochronics and polychronics
- Monochronic: need for personal space, more regard for punctuality and the view of time as linear and finite. Polychronic people tend to be less punctual, need less personal space and view time as cyclical, infinite
- 'Adhocracy' Type in Competing Values Model
- Leadership Style: Innovator, entrepreneur, risk taker. Bonding: Flexibility, risk, entrepreneur
- Icarus Paradox
- Effectiveness can be dangerous.. Effective can lead to confidence which can lead to hubris.
- Organizational Effectiveness
- Concerned with attaining goals; subjective term. The extent to which an organization achieves its goals
- Distributive Justice Canon
- Treat people similarly who are similar in job relevant ways.. employees who work same job with same performance should receive the same pay
- Span of Control
- The number of subordinates who report directly to an executive or supervisor (Optimal span / # of subordinates - 5 workers)
- Double Effect Principle
- Master ethical theory. Includes the intent to achieve the good effect and requires that the good effect be much greater than the bad effect. Should be consulted when a decision doesn't fit any one of the 3 canons.
- Conglomerate Diversification
- A strategy used to add new businesses that produce UNRELATED products or are involved in related markets and activities
- Merger
- One of more companies combine with one another
- Unfreezing Stage
- Management realizes that its current practices are no longer appropriate and the company must break out of (unfreeze) its present mold by doing things differently.
- Authority
- The person has the power and the right to make decisions, give orders, draw on resources and do anything necessary to fulfill the responsibility
- Seven Deadly Sins of Performance Measurement to Avoid
- Vanity - using measures sure to make managers and organization look good. Provincialism - limiting measures to functional or departmental responsibilities rather than organization's overall objectives. Narcissism - measuring from the employee's, manager's or company's point of view rather than customer's. Laziness - not expending effort to analyze what's important to measure. Pettiness - measuring just one component of what affects business performance. Inanity - failig to consider the way standards will affect real world human behavior and company performance. Frivolity - making excuses for poor performance rather than taking performance standards seriously
- Level 5 Hierarchy
- Level 1 - Highly capable individual. Lvl 2 - Contributing team member. Lvl 3 - Competent Manager. Lvl 4 - Effective Leader. Lvl 5 - Level 5 executive
- Environmental Scanning
- Searching out information that is unavailable to most people and sorting through that information to interpret what's important and what's not
- Macro Environment
- Forces affecting all organizations
- Strategy
- The organization's goals, and the plans and decisions it adopts to achieve them
- Concentric Diversification
- A strategy used to add new businesses that produce related products or are involved in related markets and activities
- Business Ethics
- The study of morality as it applies to business
- Three Dynamics of Strategic Management
- 1. Every company starts with the establishment of mission, vision and goals. 2. You can work under any other area at any time. 3. Strategic process is neverending
- Effect of Goal Statements on Organizational Performance
- A specific, attainable goal delivers best results (truck example)
- Matrix Organization
- An organization composed of dual reporting relationships in which some managers report to two superiors - a functional manager and a divisional manager. Dual line of command
- Competitive Intelligence
- Information that helps managers determine how to compete better (answers to questions posed by environmental scanning)
- Forecasting
- Method for predicting how variables will change in the future
- Basic Underlying Assumptions Layer of Culture
- Beliefs about the most fundamental aspects of reality (time, space and human nature). Unconscious, taken for granted
- Benchmarking
- The process of comparing an organization's practices and technologies with those of other companies
- Restitution Canon
- An individual who commits an injustice is responsible for the costs of the victim's suffering, but not for matters over which he has no control.
- Difference between Network Org. and Dynamic Network
- Dynamic network held together by contracts that stipulate results expected rather than by hierarchy and authority.
- 'Hierarchy' Type in Competing Values Model
- Leadership Style: Coordinator, organizer, administrator. Bonding: Rules, policies and procedures, clear expectations
- Buffering
- Creating supplies of excess resources in case of unpredictable needs
- Accountability
- The expectation that employees will perform a job, take corrective action and report upward on the status and quality of their performance
- Diversification
- A firm's investment in a different product, business or geographic area
- Organizational Efficiency
- An absolute, objective measurement; generally boils down to a percentage of ratio. Organization's Inputs and Outputs; measures use of resources
- Views of Adam Smith and Milton Friedman
- Both agree that managers act as agents for shareholders and, as such are obligated to maximize the present value of the firm. Friedman disagrees on the second view, that managers should be motivated by principled moral reasoning
- Organizational Culture
- The set of shared values, beliefs and behaviors learned as a member of a social group. Characteristics: learned, shared and transmitted
- Stakeholders
- Groups and individuals who affect and are affected by the achievement of the organization's mission, goals and strategies. Include buyers, suppliers, competitors, government agencies, unions etc..
- Environmental Analysis
- Examines forces in the environment such as economic conditions and technological factors. Critical task of analysis is forecasting future trends.
- Espoused Values Layer of Culture
- Publicly announced values, law of the queue, inaccuracies (inherent part of culture; occasional deviance is expected)
- High Involvement Organization
- Type of organization in which top management ensures that there is consensus about the direction in which the business is heading.
- Dynamic Network
- Temporary arrangements among partners that can be assembled and reassembled to adapt to environment
- 'Group' Type in Competing Values Model
- Leadership Style: Mentor, facilitator, parent figure. Bonding: Loyalty, tradition, interpersonal cohesion
- Polychronicity Study Findings
- Found that polychronic people tend to multitask and that polychronicity has a positive correlation with orientation to change in general
- Refreezing Stage
- Strengthening the new behaviors that support the change.
- Moving Stage
- Begins with establishing a vision of where the company is heading and instituting the change
- Utilitarian Theory
- Principle: Do the consequences of certain actions produce the greatest good for the greatest number of people?
- Differentiation (within an Organization Chart)
- An aspect of the organization's internal environment created by job specialization and division of labor
- Network Organization
- A collection of independent, mostly single function firms that collaborate on a good or service
- Theory of Justice
- Actions should produce an equitable distribution of the benefits and burdens of working together.
- Divestiture
- A firm selling one or more businesses
- Competitive Environment
- Forces affecting organizations within an *industry*
- Utilitarianism
- An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers
- The Tyranny of the 'Or'
- The belief that things must be either A or B and cannot be both; that only one goal can be attained and not another
- Time Horizons and Performance Study
- Found that future and past time horizons are positively correlated with performance. Total horizon span is positively correlated with earnings per share
- Relationship between organizational environment and organizational change
- Organizations change because their environments continually change
- Relativism
- Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people
- Competing Values Model
- States that the dimensions and values of a company contributes to the company culture. Dimensions: Internal, External, Flexibility and Control
- Vertical Integration
- The acquisition or development of new businesses that produce parts or components of the organization's product
- Effective (S.M.A.R.T) Goals
- Specific, Measurable, Acceptable, Realistic and Challenging, Timed (probably most important)
- Responsibility
- Indicates that a person is assigned a task that he or she is supposed to carry out
- S.W.O.T. Principles
- Matches internal strengths with external opportunities. Examines strengths and weaknesses internally and opportunities and threats externally