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126 Cards in this Set

  • Front
  • Back
A manager observes what?
What is management?
Management is the process of working with people to achieve organizational goals
Good managers must be both
efficient and effective
What's the difference between being efficient and being effective?
To be effective is to actually achieve organizational goals
To be efficient is to achieve those goals with the utilization of resources (on time within budget)
Within the historical perspective of management, the emphasis is on
people as instruments
Under the historical perspective of management, fill in the blanks:
______ is the key to efficiency
People are to be ___and____
There is a _____ focus
Communication and technology used to ___ people
Management by ______
used and controlled
Within the modern perspective of management, there is an emphasis on_
Within the modern perspective of management, fill in the blanks:
___&___ people are the key to success
Emphasis on ___ and ____
There is an _____ focus
Communication and technology used to ___ and ___ people
Management by ____
flexible and involved
collaboration and teams
inform and empower
What does the contemporary manager do?
Acts as an _______ _______
engages in continuous _____
uses formal and informal _____
creates and uses _____ to share and make decisions
____ and ____ results
internal consultant
communication channels
delegates and expects
What are the four major functions of managers?
What does planning as a major function of managers entail?
it's the process of determining the organization's desired future position and deciding how best to get there
What does organizing as a major function of managers entail? Give an example at psu.
It's the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs.
ex: psu > business > business units (accounting, finance, marketing, etc.)
What does leading as a major function of managing entail?
It's the process of motivating members of the organization to work together toward the attainment of organizational goals.
What does controlling as a major function of managing entail?
Give and example in the finance realm.
It's the process of monitoring and correcting the actions of the organization and its people to keep them headed toward their goals.
EX: budgets and forecasts are the most useful control mechanism.
What are Mintzberg's managerial roles and how are these three roles breoken up?
There are three goals for each category
How do you differentiate between functions and roles?
Functions are the different business units and roles are the places that people take within the functions.
What are the interpersonal roles and define each one?
Figurehead - externally symbolic duties (Smeal building)
Leader - person who creates internal vision
Liaison - builds relationships/networks internally and externally; does boundary transactions
What are the informational roles and define each one?
Monitor - scans for information; identifies potential opportunities and threats
Disseminator - communicating within (internally)
Spokesperson - communicating externally (PR)
What are the decisional roles and define each one?
entrepreneur/intrapreneur - encourages/initiates change and creativity and initiates projects that capitalize on opportunities(intrapreneur is the manager entrepreneur within a corporation)
Disturbance handler - resolves conflicts; corrective action (unexpected)
Resource allocator - distribution (expected)
Negotiator - arbitrator/facilitaor
What are the three levels of management?
What are functional managers? Give an example.
These managers are responsible for work groups that are segmented according to function. These types of managers tend to have quite strong technical skills. Ex: A manager of an accounting department
Work groups segmented by function tend to be relatively _____.
What is the greatest challenge for functional managers?
The greatest challenge for these managers lies in developing an understanding of the relationships between their work groups and the work units within the organizations.
What are general managers?
Give an example.
These managers are responsible for ensuring that several functions or parts of the organization work together effectively.
Ex: The manager of a supermarket
How are general manager's technical skills?
Because they are in charge of diverse departments, their technical skills may not be as strong as the skills of the people they manage
What is the greatest challenge for general managers?
These managers must be able to coordinate various parts of the organization in an effective way
What are the three levels of management?
First-line managers (operational)
Middle managers (tactical)
Top-level managers (executive)
What are operational employees?
These are the individuals who are not in the managerial ranks but who actually deliver the product or service of the organization
What do the first line managers do and what kind of skills are most important for them?
These managers supervise the individuals who are directly responsible for producing the organization's product or delivering its service (section chef, or account manager)
Technical skills are the most important for these kinds of managers
What do middle managers do, and what kind of skills are the most important for them?
these managers supervise the first-line managers or staff departments. These managers are typically selected because they have a strong overall strategy of the organization and a commitment to ensuring that it is implemented well. A primary objective of most middle managers is to allocate resources effectively and manage the first-line managers who supervise the work group so that the overall goals of the organization can be achieved. These kind of managers are typically involved in 3 basic activities: planning and allocating resources, coordinating interdependent groups, and managing group performance. HUMAN SKILLS tend to be the most important skill for middle management.
What do top-level managers do and what is the most important skill for them to have?
They provide the strategic direction for the organization and they have a vision for the organization and the leadership skills necessary to guide the organization toward reaching that vision - they set up a distinctive personality or culture for their organizations. CONCEPTUAL skills are the most important
Internet and information technology, increasing globalization, increasing diversity, intellectual capital, and increased emphasis on ____
Why did traditional brick and mortar businesses add the use of the internet?
Not to replace how they did business but to compliment their existing businesses
Because of the internet, how are customers affected?
Because of this, customers can get more information and can "comparison shop" and allow them to discuss products on blogs. All of these things increase the bargaining power of customers
How has globalization affected management and what is globalization?
Combinations and partnerships have formed between businesses from various companies
Globalization is various companies moving to multiple countries and doing business in multiple countries
Because technology continues to advance and become more widespread, managers should
Because of this, managers should have strong technical skills
What's a technical skill?
-The ability to utilize tools, techniques, and procedures that are specific to a particular field
-the ability to work effectively with others
-the ability to analyze complex situations
Diversity of gender and race in the workforce presents a challenge in reaching a consensus on _________.
Common goals and the methods for achieving these goals.
Many organizations have implemented _____ because they believe that a diverse workforce provides a significant competitive advantage
aggressive diversity-training programs
What is diversity?
What is intellectual capital?
What is structural capital?
What is customer capital?
What is human capital?
-the heterogeneity of the workforce, mostly in terms of gender and race
-the total of an organization's knowledge, experience, relationships, processes, discoveries, innovations, market presence, and community influence.
-the accumulated knowledge of the organization represented by its patents, trademarks, and copyrights, proprietary databases, and systems
-the value of established relationships with customers and suppliers
-the cumulative skills and knowledge of the organization
What is ethical behavior?
What is an external environment?
What are competencies?
-behavior that is considered by most to be acceptable
-the setting in which an organization operates; the markets and industry
- the things that an organization can do well; the skills and abilities
Because the purpose of an organization is to achieve an overall goal or goals, everything that is done in the organization must be evaluated and guided so that
it is all directed to achieving the overall goal
Why study management?
because many of the skills and processes that managers use are universal. All in all, management itself is universal
What are the 3 traditional view of management?
Scientific, bureaucratic, and administrative management
What does scientific management entail? What guy should it be attributed to?
-empirical observation
-scientific model
-EFFICIENT task performance

Frederick W. Taylor
What is the view of scientific management?
It's seen as an engineering approach:
-the development of 'one best way' to accomplish a given task
-the standardization of this method (e.g. through time and motion studies)
-the selection of workers best suited to perform this task
- the training of these workers in the identified methods
How is the employee seen in scientific management?
Employee as replaceable or interchangeable, they are not expected to be creative; treats the person an an instrument to do a job "one best way" determined by management; divide up the labor and put the best person for each job with that step; micromanagement
What does the bureaucratic model entail?
What person should be attributed to this model?
-Authority and structure
-DEPERSONALIZATION, formal hierarchy
-development of ideal bureaucracy
In the bureaucratic model:
-why does depersonalization occur?
-division of labor is based upon__
-there is a well-defined hierarchy of ____
-system of rules governing the ___ and ___ of incumbents
-system of ____ for dealing with work situations
-____ of relationships

-promotion and selection based on ____
-for honorable reasons
-functional specialization
-rights and duties
The bureaucratic model was an explicit attempt to ___
to offset nepotism, favoritism, and general capriciousness and tyranny
What does the administrative management theory entail?

Who is the person to note for this model?
-classical theory of management (but the other 2 models are classic also)
-administrative issues
-board managerial principles
-this model bridges the gap between macro and micro management

Henri Fayol
How many operating principles are there for managers under the administrative management theory but what are the 4 prevalent ones?
-unity of command (1 boss)
-exception principle (work is delegated as far down as possible, but if there is an exception to the norm, then call the manager)
-span of control (subordinates per supervisor # from 1 to n)
-scalar principle (you can trace a clear, unbroken line from the bottom to the top)
What are the moderating influences?
Behavioral sciences - application of psychological principles to management decision making
Quantitative sciences - mathematical models to help with decision making
What is a system?
an organized unitary whole, comprised or 2 or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environmental suprasystem
What is the systems approach?
it considers concrete (place and name, like the registrar's office) and abstract subsystems
What are the relevant abstract subsystems in the systems approach?
-technical (knowledge, technologies, equipment)
-structural (how tasks are divided up and brought together)
-managerial (establishes goals and provides leadership, organization, planning, and control)
-goals and values
What is the contingency theory?
reflects a search for patterns of relationships and configurations among subsystems...rather than searching for the 'one-best-way' to organize and manage under all conditions; studies the functions of organizations and managers in relation to the needs and demands of other entities
What did Adam Smith argue in the "Wealth of Nations?"
economic advantages that organizations and society would gain from the division of labor (or job specialization)
What is the division of labor (job specialization?)
the breakdown of jobs into narrow and repetitive tasks
What are the 6 approaches to management?
scientific management, general administrative, quantitative, organizational behavior, systems, and contingency
Put the 6 approaches to management in chronological order
1- scientific management
2- general administrative theories
3- quantitative
4- organizational
5- systems
6- contingency
What are Taylor's 4 principles of management and what approach did he create?
1. Develop a science for each element of an individual's work, which will replace the old rule-of-thumb method
2. Scientifically select and then train, teach, and develop the worker
3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed
4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers

What contributions did Frank and Lillian Gilbreth bring to the scientific approach?
They studied work to eliminate hand and body motions. They invented a device called the microchronometer that recorded a worker's motions and the amount of time. Additionally, they developed a classification scheme to label 17 basic hand motions which they called therbligs
What did Henri Fayol do?
He identified five functions of managers: planning, organizing, commanding, coordinating, and controlling and he developed the 14 principles of management all of which have helped to form the general administrative theory
What did Max Weber do?
he described an ideal type of organization he called a bureaucracy (impersonal relationships, etc.) He accepted that this 'ideal bureaucracy' does not exist in real life.
Who were the important contributors to the quantitative approach?
A group of military officers nicknamed the "whiz kids," Robert McNamara (Secretary of Defense) and Charles "Tex" Thornton.
How do managers today use the quantitative approach?
Through budgeting, and specialized software (although they may not be able to interpret the results) However, the quantitative approach has not influenced managers today as much because many managers are unfamiliar and intimidated by quantitative tools
What is organizational behavior (OB)?
the study concerned with the actions (behavior) of people at work - people are the most important asset of an organization and should be managed accordingly
What were the Hawthorne studies?
a series of studies conducted to examine the effect of various lighting levels on worker productivity; the researchers concluded that social norms or group standards were the key determinants of individual work behavior.
What were the conclusions of the Hawthorne Studies?
That people's behavior and attitudes are closely related, that group factors significantly affect individual behavior, that group standards establish individual worker output, and that money is less a factor in determining output than are group standards, group attitudes, and security.
What is the difference between open and closed systems?
Closed systems are not influenced by and do not interact with their environment, while open systems dynamically interact with their environment. Today's systems are open.
What is the role of the manager in the systems approach?
managers coordinate work activities in the various units of the organization and they ensure that all of these interdependent units are working together so that the organization's goals can be achieved.
The systems approach recognizes that organizations are not _____
What is the role of the manager in the contingency approach?
"if, then"
The role of the manager is to recognize the primary value of the contingency approach is that it stresses there are no simplistic or universal rules for managers to follow
What are the 2 decision characteristics and what do they mean? And what is the issue when it comes to these characteristics?
Programmed - formulas/rules, when problem is frequent or repetitive
Nonprogrammed - creative problem-solving when problem is novel or unstructured (you make the money in the unstructured)
The issue is when do you choose which: depends on the nature of the problem
What is the difference between the general models for decision-making?
The normative model deals with the what things should be while the descriptive model deals with the way things are
What are the 5 different ways at dealing with a problem?
1. Perfect rationality
2. Bounded rationality
3. Trial and error/incremental
4. Coalition
5. Garbage can
What are the 6 steps in the normative model? Which step do most managers have a problem with?
((start with goals and values))
1. Define the problem (within the context of purpose/goals)
2. Generate Alternatives
3. Consider pros and cons
4. Select an alternative
5. Implement
6. Evaluate

Most managers have a problem with step onwe
What are the subparts of defining the problem?
-observe the symptoms (declined sales, increased customer complaints)
-problem diagnosis (location, time, new products or old products, nature of complaint)
-potential causes (prices, quality)
What are the issues/problems with decision-making?
-lack of structure
-risk (seriousness of error)
-uncertainty (likelihood of error)
-psychosocial conflict (approach-avoid is fine, problem comes with approach-approach, or avoid-avoid -- like do I lay off 400 people or keep losing money?)
-Organizational conflict (people have status, so you are reluctant to disagree with them or you don't have the resources to carry out your way)
What is synergy?
the cooperative interaction among 2 or more agents that creates an enhanced effect - you get more out than you put in, like 1+1=3
Because your behavior as a human changes when there is a crisis, managers should...
plan ahead!
What are the managerial crisis elements?
1. Strategic Actions - integrate crisis scenarios into your planning
2. Technical and structural actions - crisis management team and budget
3. Evaluation and diagnosis - audit, threats in advance
4. Community action- media plan, who talks to the press
5. Psychological/Cultural Actions- who gets counselors for employees; human and emotional support; survivor guilt
Although the decision-making model shows the steps proceeding in a logical, sequential order, managerial decision making ____
often unfolds in a quite disorderly and complex manner because managers are influenced at each step in the decision-making process
An assessment of opportunities and problems will be only as accurate as...
the information on which it is based
What is fundamental to the evaluating alternatives step?
to assess the value or relative advantages and disadvantages of each alternative under consideration
What is the result of the evaluating alternatives step?
the ranking of alternatives
What are the keys to effective implementation?
1-sensitivity to those who will be affected by the decision
2- proper planning and consideration of the resources necessary to carry out the decision
How is a decision successful in terms of the people it will affect? And how can a manager guarantee its success?
the decision must be accepted and supported by the people who are responsible for its implementation.
Involving employees in the early stages of the decision process so that they will be motivated and committed to its successful implementation.
Why do implementation problems occur?
They occur often as a result of poor understanding and lack of commitment to decisions on the part of middle management
To plan properly for implementation, managers need to perform the following activities:
1-list the resources and activities required to implement each activity or task
2- estimate the time needed for each activity or task
3- draw up a chronological schedule of the activities and tasks that must be carried out to make the decision fully operational
4-Assign responsibility for each activity or task to specific individuals
5- determine how things will look when the decision is fully operational
What are the keys to effective implementation?
Planning and sensitivity to those affected by the decision
Why must managers monitor and evaluate feedback?
Observe it as objectively as possible to see if further corrective action is necessary
What are the assumptions about the rational-economic decision-making model (normative)?
1- the decision maker is assumed to have perfect information
2- the decision maker operates accomplish objectives that are known and agreed and has an extensive list of alternatives
3- the decision maker will be rational, systematic, and logical
4- the decision maker will work in the best interest of the organization
5- ethical dilemmas do not arise in the decision-making process
In ethical dilemmas, what must managers decide upon?
Whether or not to do something that will benefit themselves or the organization but may be considered unethical and perhaps illegal
Are ethical dilemmas going to happen more or less in the future and why?
They are going to happen more because of the changes being made in the business world (globalization, different cultures, the environment)
What are the assumptions of the behavioral decision model (descriptive)?
1- bounded rationality affects decision-making process (people only have limited ability to process information)
2- experience-based intuition will affect the decision-making process
3- decision makers will accept a satisfactory (satisficing) decision
4- escalation of commitment may occur
What is bounded rationality?
is a concept that explains why people with the exact same information can make different decisions; recognizes that people are limited by such organizational constraints as time, information, resources, and their own metal capacities
What is intuition? What do many experts think today about intuition?
An unconscious analysis based on past experience. Many experts feel that US companies place too much emphasis on decision analysis and suggest that managers should trust their feelings and experience more often.
What is satisficing? Where do managers tend to satisfice a lot?
The search for and acceptance of something that is satisfactory rather than perfect or optimal. Managers tend to satisfice a lot in selecting alternatives.
What is the escalation of commitment?
the tendency to increase commitment to a previously selected course of action beyond the level that would be expected if the manager followed an effective decision-making process.
What is a reason for managers following the escalation of commitment?
Individuals feel responsible for negative consequences and try to justify their previous decisions; they believe consistency is a desirable behavior; that if they change course, others may regard the original decision as a mistake or a failure
What is ethics?
And what is business ethics
The code of moral principles and values that govern the behavior of a person or group with respect to right and wrong
--the code of moral principles that govern the behavior of the individuals and groups with respect to organizational right and wrong
What are the following:
Virtue Ethics
- uphold certain values, regardless of the immediate result
- results
- intentions, not results
- relevant other people's opinions define ethics
- mature person
What are the models of ethical decision-making?
1. Utilitarian Approach
2. Individualism Approach
3. Moral Rights Approach
4. Justice Approach
What is the utilitarian approach? What does the decision-maker do in this approach? What could be the negative of this approach? And who should be remembered with this approach?
Moral decisions are those which produce the greatest good for the greatest number; consequentialist approach
The decision maker optimizes satisfaction for the greatest number of people
The negative would be tyranny of the majority (as in the majority is corrupt)
John Stuart Mill
What is the individualism approach and what is another name for it? What is the negative of using this approach?
Acts are ethical when they promote the individual's best long-term interest; Egoism; unfettered capitalism. The negative is that acting in your own self-interest can be to the disadvantage of someone else
What is the moral rights approach? What is the problem with this approach?
People have fundamental rights and liberties that cannot be taken away - the ethically correct decision is the one that best maintains the rights of those affected.
The problem with this approach is that we need to define what those rights ARE, and whose rights prevail?
What is the justice approach? What are the 3 subsets of it?
Distributive Justice requires that different treatment of people not be based on arbitrary characteristics (like grades, ABCDF, are not arbitrary, you earn them)
Procedural justice requires that rules be clearly stated and consistently and impartially enforced (like the syllabus)
Compensatory justice argues that the party responsible should compensate injured individuals (like in a car accident)
What is CSR?
Corporate Social Responsibility
-a business's obligation to pursue policies, make decisions, and take actions that benefit society
What are the corporate responses to societal demands and what kind of model is it?
Obstructive (reactive)- denying (Target)
Defensive - take a legal defense and say prove it (Second Chance Body Armor)
Accomodative- accept responsibility, respond, be progressive
Proactive- BEFORE THE FACT, seek to learn what is best to do what is right; conscience of a corporation
DESCRIPTIVE (behavioral)
What does the pyramid of CSR look like and what kind of model is it?


NORMATIVE (rational economic)
What are the danger signs, or factors that encourage unethical behavior?
1- Emphasis on SHORT-TERM revenues and profits
2- Unwillingness to take an ethical stand (silent bystander)
3- Ethics as a PR tool
4- Shareholders overemphasized with relation to stakeholders
Most behavior is governed within ____, and not law or free will.
Draw out the pyramid, Ask 2 Questions, and Matrix models for ethical decision making.
Draw it on paper and look at page 82 of the book for the answers.
What is the shareholder model and who came up with it?
A view of CSR that holds that an organization's overriding goal should be profit maximization for the benefit of shareholders
Why does Friedman think that is is irresponsible for companies to try to meet the needs of all shareholders?
Because organizations cannot act effectively as moral agents for all company shareholders; it's highly unlikely that they have common views on what social causes a company should or should not support. When we maximize profits for shareholders, then they can use their time and increased wealth to contribute to social causes of their choice.
The second major problem for Friedman is that time, money, and attention diverted to social causes undermine market efficiency
What is the difference between a primary and secondary stakeholder?
Primary stakeholders are groups on which the organization depends for its long-term survival; secondary stakeholders are people such as the media and special interest groups can influence or be influenced by the company
Although there is not a complete agreement, a majority of opinion makers would argue that companies must be socially responsible to their
Companies can best benefit their stakeholders by fulfilling their _____, _______, _______, and _____________ responsibilities.
economic, legal, ethical, and discretionary
What is economic responsibility?
the expectation that a company will make a profit by producing a valued product or service
What is legal responsibility?
the expectation that a company will obey society's laws and regulations
What is ethical responsibility?
the expectation that a company will not violate accepted principles of right and wrong when conducting its business; eg you can't ask people to believe what isn't true
What are discretionary responsibilities?
the expectation that a company will voluntarily serve a social role beyond its economic, legal and ethical responsibilities; companies aren't considered unethical if they don't perform them
Why is meeting ethical responsibilities more difficult than meeting economic or legal responsibilities?
because different stakeholders may disagree about what is or is not ethical
There is not an inherent connection between CSR and ______.
economic performance; CSR can sometimes cost a company significantly