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710 terms

FBLA MDM Master Set

STUDY
PLAY
Baby boom
refers to the high birth rate period from 1945-1965
Baby bust
refers to the low birth rate period following the baby boom period
Business
an organization that produces or distributes a good or service for a profit
Business ethics
a collection of principles and rules of conduct based on what is right and wrong for an organization
Capital goods
buildings tools machines and other equipment that are used to produce other goods but do not directly satisfy human wants
Capitalism
an economic political system in which private citizens are free to go into business for themselves to produce whatever they choose to produce and to distribute what they produce as they please
Command economy
an economic system in which the method for determining what, how, and for whom goods and services are produced is decided by a central planning authority
Commercial business
firms engaged in marketing in finance and in furnishing services
Communism
forced socialism where all or almost all the productive resources of a nation are owned by the government
Comparable worth
paying workers equally for jobs with similar but not identical job requirements
Competition
rivalry among sellers for consumers' dollars
Consumer goods
products produced for sale to individuals and families for person use
Demand
refers to the number of similar products that will be bought at a given time at a given price
Domestic goods
products made by firms in the United States
Downsize
cutting back on the goods and services provided and thereby shrinking the size of a firm and the number of employees
Economic system
an organized way for a country to decide how to use its productive resources
Economic want
the desire for scarce material goods and services
Economics
the body of knowledge that relates to producing and using goods and services that satisfy human wants
Effectiveness
occurs when an organization makes the right decisions in deciding what products or services to offer customers or other users
Efficiency
occurs when an organization produces needed goods or services quickly at low cost
Empowerment
(1) letting workers decide how to perform their work tasks and offer ideas on how to improve the work process; (2) the authority given to individual employees to solve problems on the job with available resources
Entrepreneur
a person who starts manages and owns a business
Factors of production
land labor capital goods and management—the four basic resources that are combined to create useful goods and services
Finance
deals with all money matters related to running a business
Foreign good
products made by firms in other countries
Franchise
a legal agreement between a company and a distributor to sell a product or service under special conditions
Franchisee
the distributor of a franchised product or service
Franchisor
the parent company of a franchise agreement that provides the product or service
Glass ceiling
an invisible barrier to job advancement
Global competition
the ability of profit-making organizations to compete with other businesses in other countries
Gross Domestic Product (GDP)
the total market value of all goods produced and services provided in a country in a year
Industrial business
firms that produce good that are often used by other businesses or organizations to make things
Intrapraneur
an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product process or service
Labor
the human effort either physical or mental that goes into the production of goods and services
Labor force
most people aged 16 or over who are available for work whether employed or unemployed
Labor participation rate
the percentage of the labor force either employed or actively seeking employment
Manufacturing firm
businesses that produce goods
Marketing
the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives
Market economy
an economic system that determines what how and for whom goods and services are produced by coordinating individual choices through arrangements that aid buying selling goods and services
Mass production
an assembly process in which a large number of products is produced each of which is identical to the next
Mixed economy
an economic system in which a combination of a market and a command economy is blended together to make decisions about what how and for whom goods and services are produced
Monopoly
exists when competition is lacking for a product or service or when producers are in a position to control the supply and price of goods or services
Output
the quantity or amount produced within a given time
Privatization
when a state or country transfers its authority to provide a good or service to individuals or businesses
Service firm
business that provide assistance to satisfy specialized needs through skilled workers
Social responsibility
the duty of a business to contribute to the well-being of society
Socialism
an economic-political system in which the government controls and regulates the means of production
Stakeholders
the owners customers suppliers employees creditors government the general public and other groups who are affected by a firm's action
Supply
refers to the number of similar products that will be offered for sale at a particular time and at a particular price
Total Quality Management (TQM)
a commitment to excellence that is accomplished by teamwork and continual improvement
Underground economy
income that escapes being recorded in the GDP
Utility
the ability of a good or service to satisfy a want
Assessed valuation
the value of property determined by tax officials
Bankruptcy
a legal process that allows selling assets to pay off debts
Business plan
a written description of the business and its operations with an analysis of the opportunities and risks it faces
Charter
an official document granted by a state giving power to run a corporation
Cooperative
a business owned and operated by its user-members for the purpose of supplying themselves with goods and service
Copyright
similar to a patent in that the federal government gives an author the sole right to reproduce, publish, and sell literary or artistic work for the life of the author plus 70 years
Corporation
a business owned by a group of people and authorized by the state in which it is located to act as though it were a single person
Creditors
those to whom money is owed
Dividends
profits distributed to stockholders on a per-share basis
Excise tax
a sales tax that applies only to selected goods and services such as gasoline
Income tax
a tax levied against the profits of business firms and against earning of individuals
Interstate commerce
business operations and transactions that cross over state lines
Intrastate commerce
business transacted within a state
Licensing
a way to limit and control those who plan to enter certain types of businesses
Partnership
a business owned by two or more persons
Patent
an agreement in which the federal government gives an inventor the sole right for 20 years to make use and sell an invention
Progressive tax
tax based on the ability to pay
Property tax
a levy on material goods owned
Proportional tax
tax rate remains the same regardless of the amount on which the tax is imposed
Proxy
a written authorization for someone to vote in behalf of the person signing the proxy
Regressive tax
taxation wherein the actual tax rate decreases as the taxable amount increases
Sales tax
a tax levied on the retail price of goods and services at the time they are sold
Shares
equal parts of the division of ownership of a corporation
Sole proprietorship
a business owned and managed by one person
Stockholder
owners of a corporation
Trademark
a distinguishing name symbol or special mark placed on a good or service that is legally reserved for the sole use of the owner
Bricks-and-mortar business
businesses that complete most of their business activities at a physical location rather than through the Internet Browser - a program that permits you to navigate and view Web pages
Channel of communication
the means by which a message is conveyed
Chief information officer (CIO)
the top computer executive
Communication
refers to the sharing of information which results in a high degree of understanding between the message sender and receiver
Communication network
a structure through which information flows in a business
Conflict
a situation that develops when one person interferes with the achievement of another's goals
Controlling
evaluating results to determine if the company's objectives have been accomplished as planned
Decision support system (DSS)
a system that helps managers consider alternatives in making specific decisions
Ergonomics
a science of adapting equipment to the work and health needs of people
Executive information system (EIS)
combines and summarizes ongoing transactions within the company to provide top-level executives with information needed to make decisions about company goals and direction
Firewall
a system using special software that screens people who enter or exit a network by requesting passwords
Internet service provider (ISP)
a service that provides Internet access
Manager
a person who completes all four management functions on a regular basis and has authority over other jobs and people
Management
the process of accomplishing the goals of an organization through the effective use of people and other resources
Management information system (MIS)
integrates data from various departments to make it available to help managers with daily business operations
Personal digital assistant (PDA)
a small computer-like device that can send and receive messages wirelessly
Search engine
a program that assists in locating information on the Internet
Telecommunications
allowing employees to work at home using computers rather than at the business
Accountability
the obligation to accept responsibility for the outcomes of assigned tasks
Achievement need
take personal responsibility for work; set personal goals; want immediate feedback on work
Affiliation need
concerned about relationships with others; work to get along well and fit in with a group
Autocratic leader
one who gives direct clear and precise orders with detailed instructions as to what when and how work is to be done
Centralized organization
all major planning and decision making is done by a group of top managers in the business
Decentralized organization
a business is divided into smaller operating units and managers are given almost total responsibility
Democratic leader
one who encourages workers to share in making decisions about work-related problems
Empowerment
letting workers decide how to perform their work tasks and offer ideas on how to improve the work process
Executive
a top-level manager who spends almost all of his or her time on management functions
Flattened organization
one with fewer levels of management than traditional structures
Human relations
how well people get along with each other when working together
Implementing
helping employees to work effectively
Leadership
the ability to influence individuals and groups to achieve organizational goals
Leadership style
the general way a manager treats and directs employees
Line organization
all authority and responsibility may be traced in a direct line from the top executive down to the lowest employee level in the organization
Matrix organization
combines workers into temporary work teams to complete specific projects
Mission statement
a short specific statement of the purpose and direction of the business
Motivation
the set of factors that cause a person to act in a certain way
Motivators
factors that increase job satisfaction
Open leader
a manager who gives little or no direction to workers
Operational planning
short -term planning that identifies specific activities for each area of the business
Organization chart
a visual device that shows the structure of an organization and the relationships among workers and divisions of work
Organizing
determining how plans can most effectively be accomplished; arranging resources to complete work
Planning
analyzing information and making decisions about what needs to be done
Policies
guidelines used in making decisions regarding specific recurring situations
Power need
desire to influence and control others and to be responsible for a group's activities
Procedure
a list of steps to be followed for a performing certain work
Process improvement
efforts to increase the effectiveness and efficiency of specific business operations
Situational leader
one who understands employees and job requirements and matches actions and decisions to the circumstances
Span of control
the number of employees who are directly supervised by one person
Standard
a specific measure by which something is judged
Strategic planning
long-term planning that provides broad goals and directions for the entire business
Supervisor
a manager whose main job is to direct the work of employees
SWOT analysis
an examination of an organization's internal strengths and weaknesses as well as opportunities and threats from its external environment
Unity of command
means that no employee has more than one supervisor at a time
Variance
the difference between current performance and the standard
Work team
a group of individuals who cooperate to achieve a common goal
Accounting
A systematic process of recording and reporting the financial information resulting from business transactions
Accounting equation
Asset's = Liabilities + Capital
Accounts payable
Money owed for credit purchases
Accounts receivable
the amount owed by customers
Actuaries
persons who calculate insurance rates
Assets
things owned, such as cash and buildings
Balance sheet
a financial statement that lists the assets, liabilities, and capital of a business
Bank
an institution that accepts demand deposits and makes commercial loans
Beneficiaries
persons who receive a life insurance payment on the death of an insured person
Bond
a long-term written promise to pay a definite sum of money at a specified time
Bonding
provides payment of damages to people who have losses resulting from the negligence or dishonesty of an employee or from the failure of the business to complete a contract
Book value
the value of a share of stock that is found by dividing the net worth (assets minus liabilities) of the corporation by the total number of shares outstanding
Budget
a financial plan extending usually for one year
Capacity
earning power
Capital
what a business is worth after subtracting liabilities from assets
Certificate of Deposit (CD)
a savings account that requires an investor to deposit a specified sum for a fixed period at a fixed interest rate
Certified Public Accountant (CPA)
a person who has met a state's education, experience, and examination requirements in accounting
Character
an indication of one's moral obligation to pay debts
Check
a written order on a financial institution to pay previously deposited money to a third party on demand
Collateral
property a borrower pledges to assure repayment of a loan
Commercial bank
a financial institution that provides many services, such as handling time and demand deposits and commercial and consumer loans
Commercial loan
a loan made to a business
Common stock
ownership that gives holders the right to participate in managing the business by having voting privileges and by sharing in the profits (dividends) if there are any
Conditions
relate to economic and other matters such as the economic health of an community or nation and the extent of business competition that affects credit decisions
Consumer loan
a loan made to an individual
Debit card
allows a person to make cash withdrawals from ATMs, pay bills by phone from bank accounts, and pay for onsite purchases such as food and household items
Deductible
an arrangement that permits the insured to bear part of the loss in return for a lower premium
Demand deposit
money put into a financial institution by depositors and which can be withdrawn at any time without penalty
Depreciation
decrease in the value of an asset due to wear and age
Direct deposit
allows business to electronically transfer employees' paychecks directly from the employer's bank account to employees' bank accounts
Disability insurance
offers payments to employees who are no longer able to work because of accidents or illnesses
Electronic Fund Transfer (EFT)
transferring money by computer rather than by check
Endorsement
the signature--usually on the back--that transfers a negotiable instrument
Equity capital
money invested in the business by its owner or owners
Financial statements
reports that summarize financial data over a period of time
Fixed assets
material assets that will last a long time
Health insurance
provides protection against the expenses of health care
Health Maintenance Organization (HMO)
a cooperative agreement between a business and a group of physicians and other medical professionals to provide for the health care needs of the employees of the business
Income statement
a financial document that reports total revenue and expenses for a specific period
Initial Public Offering (IPO)
the first time a company sells stock to the public
Installment credit
credit used when a customer makes a sizable purchase and agrees to make payments over an extended but fixed period of time
Insurance
a risk management tool that limits financial loss from uncontrollable events in exchange for regular payments
Insurance agent
people who represent the insurance company and sell insurance to individuals and businesses
Insurance rate
the amount charged for a certain value of insurance
Insured
the persons or organization covered by the insurance policy
Investment companies
an organization that specializes in the sale of a variety of stocks, bonds, and other securities
Lease
a contract that allows the use of an asset for a fee
Liabilities
claims against assets or things owed—the debts of a business
Liability insurance
provides protection for risks involved in operating a business
Life insurance
provides money that is paid upon the death of the insured to a person or people identified in the insurance policy
Liquidity
refers to the ease of turning an investment into cash without significant loss
Malpractice insurance
a type of liability insurance that protects against financial loss arising from suits for negligence in providing professional services
Market value
the value at which stock is bought and sold on any given day
Money market account
a type of savings account in which the deposits are invested in short term, government-backed securities
Mutual fund
pools the money of many small investors for purchases of stocks and bonds
Obsolescence
decrease in the value of an asset because it is out of date or inadequate
Par value
a dollar value shown on a share of stock, which is an arbitrarily assigned amount that is used for bookkeeping purposes
Peril
the cause of a loss for a person or organization
Policy
the written agreement, or contract, between the insurer and the policyholder
Preferred Provider Organization (PPO)
health care available from a selected set of physicians and health care facilities through negotiated contracts between the health care providers and the insurers
Preferred stock
ownership that gives holders preference over the common stockholders when distributing dividends or assets
Premium
a payment by the policyholder to the insurer for protection against a risk
Prime rate
the lowest rate of interest; the rate at which large banks loan large sums to the best-qualified borrowers
Promissory note
an unconditional written promise to pay a certain sum of money, at a particular time or on demand, to the order of one who has obtained the note
Retained earnings
profits that are put aside to run a business
Revolving credit plan
a credit plan that combines the features of regular charge credit and installment credit
Risk
the uncertainty that a loss may occur
Savings account
an account that allows customers to make deposits, earn interest, and make withdrawals at any time without financial penalties
Secured loan
a loan that requires the borrower to pledge something of value as security
Securities
stocks and bonds
Smart card
a credit and debit card with a memory that stores financial, health, credit, and other kinds of data that can be read by computers
Stock
a share of ownership in corporation
Stock index
a kind of average of the prices of selected stocks considered to be representative of a certain class of stocks or of the economy in general
Stockbroker
a professional who buys and sells corporate securities for customers through a stock brokerage firm and gives investment advice
Treasury bond
securities sold in $1,000 to $1 million amounts with maturities ranging from 10 to 30 years
Treasury note
securities sold by the US government in amounts of $1,000 up to $5,000 that generally mature in one to ten years
Unsecured loan
a loan that is not backed by collateral
Venture capitalist
an investor or investment group that lends large sums of money to promising new or expanding small companies
Working capital
the difference between current assets and current liabilities
Advertising
all forms of paid promotions that deliver a message to many people at the same time
Advertising media
the methods of delivering the promotional message to the intended audience
Brand
a name, symbol, word, or design that identifies a product, service, or company
Buying
obtaining goods to be resold
Channels of distribution
the routes products and services follow, including the activities and participating organizations, while moving from the producer to the consumer
Cost of goods sold
the cost to produce the product or buy it for resale
Discounts
reductions from the price of the product to encourage customers to buy
Distribution
the set of activities required to transport and store products, and make them available to customers
Financing
providing money that is needed to perform various marketing activities, such as obtaining credit when buying and extending credit when selling
Gross profit
term used to indicate the difference between the selling price and the cost of goods sold
Human resource planning
determines the types of jobs that are required for each part of the production procedure and the number of people needed for each job
Inventory management
determines the quantities of materials and supplies needed for production and the amount of finished products required to meet customer orders
List price
the original price that the seller posts on the product
Manufacturing
a special form of production in which raw and semi-finished materials are processed and converted into finished products
Markdown
any amount by which the original selling price is reduced before an item is sold
Market
the types of buyers a business wishes to attract and where such buyers are located
Market research
the study of a company's current and prospective customers
Marketing
the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
Marketing mix
the blending of all decisions that are related to the four elements of marketing
Marketing plan
a detailed written description of all marketing activities that a business must accomplish in order to sell a product
Markup
the amount added to the cost of a product to determine its selling price
Net profit
the difference between the selling price and all costs and expenses of the business
Operating expenses
the costs of operating a business
Price
the amount of money given to acquire a product
Product
all attributes that customers receive in exchange for the purchase price
Product development
the process f developing or improving a product or service
Product research
research done to develop new products or discover improvements for existing products
Production
involves making a product or providing a service
Promotion
providing information to consumers that will assist them in making a decision to purchase a product or service, or the advancement of an employee within a company to a position with more authority and responsibility
Researching
studying buyer interests and needs testing products, and gathering facts needed to make good marketing decisions
Retailers
businesses that sell directly to final customers
Sales promotions
any promotional activities other than advertising and personal selling intended to motivate customers to buy
Selling
providing personalized and persuasive information to customers to help them buy the products and services they need
Selling price
the actual price paid for a company's products by the customer
Services
activities of value that do not result in the ownership of a physical product, or intangible products that result from a high degree of labor input and that satisfy consumer needs
Storing
holding goods until needed by consumers, such as on shelves, in storage rooms, or in warehouses
Target markets
groups of customers with very similar needs to whom the company can sell its product
Transporting
moving goods from where they are made to where consumers can buy them
Wholesalers
businesses that buy products from businesses and sell them to retailers or other businesses
Bonus
bonus paid at the end of a specific period of time for performance that exceeds the expected standard
Cafeteria plan
a benefit program in which employees can select the benefits that meet their personal needs
Career development
a program that matches the career planning of employees with the employment needs of businesses
Career path
a progression of related jobs with increasing skill requirements and responsibility
Career plan
identifies the jobs that are a part of the employee's career path, the training and development needed to advance along the career path, and a tentative schedule for the plan's activities
Compensation
the money or other benefits people receive for work
Cross training
employees are trained to perform more than one job in the company even though they typically perform only one
Discharge
the release of an employee from the company due to inappropriate work behavior
Employee benefits
all forms of compensation and services the company provides to employees in addition to salaries and wages
Employee turnover
the rate at which people enter and leave employment in a business during a year
Exit interview
a formal interview with an employee who is leaving a company to determine the person's attitudes and feelings about the company's policies and procedures, management, and operations
Flextime
a plan that lets employees choose their own work hours, within specifies limits
Human resource management
all activities involved with acquiring, developing, and compensating the people who do the company's work
Job description
a list of basic tasks that make up a job
Job design
the kind of work and the way the work is organized
Job enlargement
making a job more interesting by adding variety to the tasks
Job enrichment
encouraging employee participation in decision making
Job security
the likelihood that employment will not be terminated
Job sharing
an employment plan that allows two people to share one full-time job
Job specification
a list of the qualifications a worker needs to do a job
Layoff
a temporary or permanent reduction in the umber of employees resulting from a change in business conditions
Organizational development
carefully planned changes in the structure and operation of a business so it can adjust successfully to the competitive environment
Pension plan
a company sponsored retirement plan that makes regular payments to employees after retirement
Performance review
the process of assessing how well employees are doing their jobs
Performance standards
specific statements of the expected results from critical business activities
Portfolio
an organized collection of information and materials that represents a person's accomplishments
Promotion
(1) providing information to consumers that will assist them in making a decision to purchase a product or service (2) the advancement of an employee within a company to a position with more authority and responsibility
Salary
compensation paid on other than an hourly basis, such as weekly or monthly
Transfer
the assignment of an employee to another job in the company that involves the same type of responsibility and authority
Wage
compensation paid on an hourly basis
E-commerce
doing business online
Self-directed work team
a team in which members together are responsible for the work assigned to the team
Long-term capital
capital that is borrowed for longer than a year
Long-term notes
loans written for periods of 1 to 15 years
No-fault insurance
each insurance company is required to pay the losses of its insured when an accident occurs, regardless of who might have been responsible for the loss
Non-bank financial institution
an institution that offers on demand deposits or commercial loans, but not both
Treasury bill (T-bill)
short-term security sold by the federal government to finance the cost of running the government
Profit-sharing plan
a benefit plan that pays employees a small percentage of the company's profits at the end of the year
Management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
Planning
involves analyzing information, setting goals, and making decisions about what needs to be done
Organizing
Concerned with determining how plans can be accomplished most effectively and arranging resources to complete work.
Implementing
the effort to direct and lead people to accomplish the planned work of the organization.
Controlling
the process of measuring performance and taking action to ensure desired results
Manager
a person who completes all four management functions on a regular basis and has authority over other jobs and people
Supervisor
a person who stands over or above someone in rank; a manager in charge of someone else
Executive
Top-level manager
Mid-Manager
A manager who completes all of the management functions, but spends more time on one of the functions or is responsible for a specific part of the company's operations.
Subordinate
subject or submissive to authority or the control of another
Performance Review
Procedure that evaluates the work and accomplishments of an employee and provides feedback on that performance.
Work Schedules
A plan for performing work or achieving an objective by specifying the order and allotted time for each part.
Work Coach
an experienced manager who meets regularly with a new manager to provide feedback and advice
What-if Decisions
explore consequences of specific choices using computer software
Problem
Difficult situation requiring a solution
Symptom
A sign or indication of something that appears to be the problem
true
Top managers are responsible for creating a climate for change in an organization.
true
A management study discovered that companies, which invest in their people, will create long-term competitive advantages difficult for other companies to duplicate.
top mannagement
Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas The new brands grabbed a combined market share of less than 1 percent. Coke's and PepsiCo's ____ would be responsible for determining that the product should be deleted from each of their product lines.
monitor and disseminator
During a meeting of the Ambulatory Care Nursing Association (ACNA) board of directors, a commitment was made to ask members for their feedback about their experiences with and perceptions of ACNA. The head of the organization said, "The essence of being a leader is to make sure the organization knows itself." Then she volunteered to conduct the environmental scanning and share what she learned with the others. What informational roles is she assuming?
entrepreneur
In the decisional role of ____, managers adapt themselves, their subordinates, and their units to incremental change.
controlling
Hormel Foods had to recall 104,000 pounds of Stagg canned chili—labeled "hearty beef with a kick of green chilies"—after the kick turned out to come instead from the ground-up parts of a plastic handheld calculator. The recall was the application of which management function?
middle managers
Typical responsibilities for ____ include coordinating and linking groups, departments, and divisions within a company.
spokesperson
As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing fixtures to operate information booths would have the informational role of:
monitor
Connie O'Day is a middle-level manager for the publishers of Free Spirit magazine, a publication targeted to women who are not focused on finding a husband or maintaining a house and garden. She spends much of her day conducting interviews with groups of women to determine what they consider most important in their lives. She also keeps an eye on the sales and content of other women's magazines. Which informational role does O'Day perform?
management
____ is defined as getting work done through others.
middle managers
It is the responsibility of ____ to develop intermediate plans, or plans designed to produce results within six to eighteen months.
effectiveness
Volkswagen
Bernd Pischetsrieder, chief executive of Volkswagen, announced restructuring plans for the company. VW is Europe's largest carmaker and needed to make itself profitable once again. To do so, VW cut thousands of jobs in the ensuing years through natural attrition, early retirement, and buying workers out of their contracts. The carmaker also considered whether its component parts factories in Brunswick, Kassel, and Wolfsburg were helping VW accomplish its organizational goal. Pischetsrieder blamed much of the company's problems on restructuring that was done in 1993. He insisted that the company is missing a whole generation of managers because its former CEO eliminated a whole layer of management. Now, 45 percent of managers were expected to go into retirement in the following three or four years.

Refer to Volkswagen. VW is examining the ____ of its component parts factories.
false
First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing strategies for achieving these objectives.
true
First-line managers are the only managers who do not supervise other managers.
inefficient
Coca-Cola and PepsiCo spent a total of $75 million to launch two sodas, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse. The new brands grabbed a combined market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to increase their market share, the introductions were notably:
true
The motivation to manage tends to be higher among managers at higher levels in the organization than it is among managers at lower levels in the organization.
first line manager
A ____ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules.
encourage, monitor, and reward the performances of their employees
First-line managers will most likely have to:
top manager
Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which is run as an independent unit, has experienced excessive financial losses the last three years. The ____ for the company would be expected to develop the long-term plans needed to make the company profitable.
technical skill
An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.
true
According to the principles of scientific management, work and responsibility for the work, should be divided equally between workers and management.
false
According to Chester Barnard, for many managerial requests or directives, there is a zone of indifference in which managers don't really care if the request is met or the directive is performed.
subsystems
Kraft Foods has created five global product divisions (beverages, snacks, cheese and dairy, convenience meals, and grocery) and two marketing divisions (one for North America and the other for everything else). According to the systems approach to management, these seven divisions are examples of ____.
compromise
According to Mary Parker Follett, if managers use ____ to settle or reduce conflict, each of the parties involved give up some of what they want.
used motion studies to eliminate unnecessary or repetitive motions from the work process
Frank and Lillian Gilbreth are important to management because they ____.
true
The contingency approach to management holds that there is not one best way to manage an organization.
closed systems
This type of system functions without interacting with their environment.
domination, compromise, and integration
Mary Parker Follett believed managers typically deal with conflict in one of three ways:____.
system
A(n) ____ is a set of interrelated elements or parts that function as a whole.
false
Frank and Lillian Gilbreth studied the psychology of groups.
false
A systems approach to management encourages managers to view each division as a separate, vital organism.
Scientifically train, teach, and develop these employees to help them reach their full potential.
Refer to ISG. What advice should the shift supervisor at the steel plant in charge of the six college students take from the teachings of Frederick Taylor?
true
One of Taylor's scientific management principles concerned how workers should be selected.
Henri Fayol
____ is best known for developing the five functions of managers and the fourteen principles of management.
conflict could be beneficial
In a departure from mainstream management thinking, Mary Parker Follett believed ____.
true
Management ideas and practices have been used from the earliest times of recorded history.
false
According to Fayol's 14 principles of management, esprit de corps is a source of major organizational conflict.
creating the principles of scientific management
Frederick Taylor is famous for____.
synergy
____ occurs when 1 + 1 = 3.
acting on threats and opportunities
Which of the following is one of the steps in the process that managers use to make sense of their changing environments?
false
Successful organizational cultures seem to be based solely upon consistency (i.e., "strength" of the organizational culture).
resource scarcity
____ is the degree to which an organization's external environment has an abundance or scarcity of critical organizational resources.
economic
Suppose that a Mexican car manufacturer wants to export cars to Guatemala. Knowing that the distribution of income within Guatemala is highly unequal and that about 75 percent of the population is below the poverty line would be a(n) ____ component in the manufacturer's general environment.
true
After the company founders are gone, stories and heroes can help to sustain the founder's values, attitudes, and beliefs in the organizational culture.
external
All events outside a company that have the potential to influence or affect it occur in the ____ environment.
true
Under conditions in which the rate of both environmental change and complexity go up while environmental resources become scarce, environmental uncertainty can be expected to increase.
bisible artifact
A mace is commonly used at a university or college convocation ceremony. The mace was originally a weapon, then became the symbol of government, and now has become the symbol of authority of the institution to grant diplomas or degrees. In terms of organizational culture, the mace is an example of a(n) ____.
allowing employees to personalize their cubicles
Milsand Corp. used office cubicles for its employees. Employees were not allowed to personalize their cubicles. If Milsand wanted to change its organizational culture, it could begin by ____.
high buyer dependence on a supplier
The creation of Ingram Distribution allows booksellers to streamline the ordering and return procedures of their books. Ingram made all the books bookstore owners wanted available in one centralized warehouse. Many new bookstore owners would be unwilling and/or unable to return to the method of ordering books from the individual publishers. This is an example of the creation of ____.
behavioral substitution
In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called ____.
product boycott
____ is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company's product or service.
organizational culture
The ____ is the set of key values, beliefs, and attitudes shared by members of an organization.
develop and sustain their organizational culture
Managers should NOT use environmental scanning to ____.
a video game manufacturer
Which of the following companies is most likely operating in a dynamic environment?
local health inspectors
A fast-food restaurant chain that is famous for its small, square hamburgers. Which of the following would be an industry regulation component of its specific environment?
uncertainty
Environmental ____ is affected by environmental complexity, change, and resources.
false
Extensive research demonstrates clearly that organizational culture is strongly related to organizational success.
doing an incomplete job of identifying competitors
Companies doing a competitive analysis typically err by ____.
true
The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.
quota
To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) ____.
a problem with franchising in different cultures
When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.
false
The North American Free Trade Agreement (NAFTA) is a regional trade agreement between Canada and the United States. No other nations have signed this trade agreement.
true
Multinational corporations are corporations that own businesses in two or more countries.
lives and works outside of his or her own country
An expatriate is someone who ____.
false
When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.
easy acess to growing markets
The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is ____.
tariffs
As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.
false
Global new ventures bring a good or service to market in one foreign market at a time.
joint venture
In Canada, two automobile companies have entered into a ____ to create CAMI Automotive. One firm's management runs the plant, which makes the other's cars. The agreement gives one access to the other's dealers to sell its brand of vehicles.
licensing
Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____.
direct foreign investment
____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
To what extent should the company standardize or adapt business procedures?
One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
true
Direct foreign investment is an increasingly important and common method of conducting global business.
North American Free Trade Agreement
The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.
cooperative
The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
false
The phase model of globalization means that companies made the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, followed by wholly owned subsidiaries, and finishing with strategic alliances.
false
One of the disadvantages of global joint ventures is that, unlike licensing and franchising, they do not help companies to avoid tariff and nontariff barriers to entry.
postconventional level
According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas.
primary stake holder
When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, the Indian government immediately ordered Coke to stop production. The Indian government served as a(n) ____.
whistleblower
In May 2005, U.S. Attorney Michael J. Sullivan announced that the United States had settled civil claims arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection with billing the federal government for software training services. The U.S. government learned about the overcharging from a former Oracle vice president. The vice president acted as a(n) ____.
ethical intensity
____ is strong when decisions have large, certain, immediate consequences and when we are physically or psychologically close to those affected by the decision.
economic performance
IBM has a long-standing "Reinventing Education" program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. In the process, the program is actually helping to shape a market of significant interest to IBM. IBM views the program as an investment rather than as a charitable contribution. This is an example of the positive relationship between social responsibility and ____.
economic
Historically, ____ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business.
they can affect public perceptions and opinions
Secondary stakeholders are important to a company because ____.
preconventional level, conventional level, and postconventional level
The three stages of moral development identified by Kohlberg are ____.
false
All four areas of social responsibility for companies (economic, legal, ethical, and discretionary) are equally important to a company's overall level of social responsibility
false
All adults reach the postconventional stage of morality.
true
The concept of magnitude of consequences is the total harm or benefit derived from an ethical decision
false
With regard to the question, "Does it pay to be socially responsible?," research has clearly demonstrated that there is an inherent relationship between social responsibility and economic performance of a company.
preconventional
Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he feels he is being paid less than he should. In terms of Kohlberg's stages of moral development, Doug is operating at which level?
false
According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.
the U.S. Sentencing Commission Guidelines
If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.
true
The categories of social responsibility for a company are economic, legal, ethical, and discretionary
Ethics is the set of moral principles or values that defines right and wrong for a person or group.
Which of the following statements about ethics is true?
true
The media would be an example of a secondary stakeholder group for an organization
true
The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.
All of these are reasons why teamwork can be more satisfying than traditional work.
Which of the following is a reason teamwork can be more satisfying than traditional work?
true
Cognitive conflict is strongly associated with improvements in team performance, and affective conflict is strongly associated with decreases in team performance.
virtual team
According to the U.S. Department of Transportation, the construction of tunnels is one of the greatest challenges encountered during road construction. The technique of tunneling has not kept pace with the development of other technical fields. The USDOT has created a national team of tunnel experts to develop road tunnel engineering principles and maintenance practices in the United States through the use of telecommunications and information technology. This group of tunnel experts will comprise a(n) ____.
false
A work team is a small number of people who have been assigned responsibility for pursuing a common purpose, achieving performance goals, and improving interdependent work processes.
true
A preference for teamwork (i.e., collectivism), team level, and team diversity can help companies choose the right team members.
performing
A team has finally matured into a fully-functioning team at the ____ stage of development.
sharing the financial value of performance gains
An organization that rewards its team members through gainsharing is ____.
bureaucratic immunity
The achievement of stretch goals is made easier when the team members have ____.
members must learn to express themselves in new contexts
The major drawback to the use of virtual teams is ____.
had the authority to solve problems related to the correct identification of orthopedic parts
Many orthopedic parts are almost identical in size and shape. Stryker Howmedica Osteonics in New Jersey used a semi-autonomous work group to develop Product Recognition Technology that makes sure parts are identified correctly and orders are filled correctly. This group ____.
gainsharing
____ is a compensation system in which companies share the financial value of performance gains such as productivity, cost savings, or quality with their workers.
by creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements
How are organizations using teams to help increase customer satisfaction?
stretch goals
E-Lab (the "E" stands for experience) has project teams perform field research for its clients. One team had to spend time riding in the back seat of a squad car, accompanying cops on drug raids, as part of research for a new communications device for police departments. Another team studied how people get sick with a cold to create a new over-the-counter cold remedy. Often clients give team members extremely ambitious goals which the team members initially have no idea how to solve. In other words, project teams are given ____.
true
In general, skill-based pay is most effective for managing the performance of self-managing and self-directing teams.
false
A company engaged in cross training is using individual team members to teach other members how to do all or most of the jobs they can perform.
true
Companies are making greater use of teams because teams have been shown to increase (1) customer satisfaction, (2) product and service quality, (3) speed and efficiency in product development, and (4) employee job satisfaction.
always resolve issues by consensus
Which of the following is NOT one of the recommendations for minimizing the occurrence of affective conflict and having a good fight?
work teams
Allen-Edmonds is keeping its shoe manufacturing business in the United States by investing in new machinery and creating new processes. The strategy is a gamble and the outcome is uncertain. To cut costs and improve efficiency, the company's old assembly line is being replaced by a system of employees working in groups, with each person doing several jobs, and each trained to do the others' tasks. Allen-Edmonds is using ____.
false
The autonomy continuum shows how five kinds of teams differ in terms of autonomy. The correct sequence from low team autonomy to high team autonomy is (1) traditional work groups, (2) employee involvement groups, (3) semi-autonomous work groups, (4) self-designing teams, and (5) self-managing teams.
cohesiveness
____ is the extent to which team members are attracted to a team and motivated to remain with it.
chain of command
An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____.
duplication
The primary disadvantage of customer departmentalization is ____.
delegation of authority
____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.
modular organizations
Except for the core business activities that they can perform better, faster, and cheaper than others, ____ outsource all remaining business activities to outside companies, suppliers, specialists, or consultants.
true
In a decentralized organization, workers closest to problems are authorized to make the decisions necessary to solve the problems on their own.
decentralization
An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____.
fuctional
____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise.
false
The most common matrix combines customer and functional forms of departmentalization.
false
Departmentalization is a method of organizing work and workers into separate units responsible for particular business functions or areas of expertise
false
Cross-department coordination tends to be very easy in organizations with functional departmentalization.
a low degree of task identity
Elena works in a data processing department for a large credit reporting service and is bored. She spends her days inputting an endless stream of monotonous data into much larger data bases. According to the job characteristics model (JCM), one of the primary reasons for her boredom is ____.
virtual
The composition of a ____ organization is always changing.
mechanistic
A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.
true
The coordination of departmental activities tends to be more difficult with the geographic approach to departmentalization than with the other approaches.
false
In matrix departmentalization, as in other forms of departmentalization, most employees report to a single boss.
increasing reciprocal interdependence
In essence, reengineering changes organizations by ____.
Mechanistic organizations work best in stable, unchanging business environments
Which of the following statements about mechanistic organizations is true?
reengineering
In recent years, the Air Force Weather Agency (AFWA) has undergone a radical change in how it determines and shares local weather conditions with pilots. Before the local base weather station was responsible for warnings. The quality of this information varied. Now AFWA provides the same high standard of weather information to all pilots. This is an example of ____?
departmentalization
Refer to Yahoo!. One of the causes of the precipitous drop in the value of Yahoo's stock was the company's inability to subdivide work and workers into separate organizational units responsible for completing particular tasks. For example, Yahoo has no sales unit to cultivate and call on advertising customers. Yahoo caused itself trouble when it decided to not engage in ____.
complex matrix
In a(n) ____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.
organizational innovation
When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of ____.
is a philosophy and collection of planned change interventions
Organizational development ____.
change agent
Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.
discontinuous change
When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter?
incremental change
During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.
creativity
Mike Domek is the owner of the Florida-based Tickets Now.com. Domek's company tapped a market that Ticketmaster had neglected: He specialized in locating and securing premium seating and tickets to sold-out events. Domek used ____ to locate and serve a profitable market.
creativity
____ refers to the production of novel and useful ideas.
competitive advantage
Refer to Gore. When introduced, Gore-Tex fabric gave its manufacturer W. L. Gore a _____.
shortens the innovation process
The use of milestones in the experiential approach to innovation ____.
true
The typical S-curve pattern of innovation indicates that both early and late in the technology cycle, increased effort (i.e., money, research and development) brings only small improvements in technological performance.
coercion
Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?
group compensation
Which of the following is NOT one of the components of creative work environments?
generational change
When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version, ____ is said to have occurred.
creative work environment
Kodak is a company name associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) ____.
design iteration
Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used ____ to produce the best possible tiller before introducing it to the market.
knowledge, tools, and techniques
A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline.
results drive
An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestlé USA used ____ change to reinvent the company
false
Resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise.
technological discontinuity
Kodak is a company name associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n) ____.
positioning
Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text.
external growth
When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of ____.
external growth
When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of ____.
true
The three positioning strategies are cost leadership, differentiation, and focus.
prospecting
Because of slowing sales, Arm & Hammer started promoting innovative uses for its baking soda. By searching for new market opportunities, the manufacturer of Arm & Hammer is using which type of adaptive strategy?
sorporate level strategy
The term ____ refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
core capabilities
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Since then, the company has maintained a technological leadership in the production of bike and bike accessories and an organizational culture that encourages innovation. Technological leadership, as well as its organizational culture, are the company's ____.
grand strategies
Which of the following is an example of a common approach to corporate-level strategy?
bargaining pwer of suppliers
According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified?
retrenchment
The purpose of a ____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.
strategic dissonance
An organization is experiencing ____ when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.
core firm
Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a ____.
false
Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors.
false
Most companies compete directly with all the firms in their industry.
assess the need for strategic change
The first step in the strategy-making process is to ____.
false
A competitive advantage becomes a sustainable competitive advantage when other companies have found it very expensive to duplicate the what the firm is providing to customers
distinctive competence
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. This ability is its ____.
growth
McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.
low resource similarity
Under conditions of ____, a competitive attack by the stronger rival is more likely to produce sustained competitive advantage.
operational
____ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.
options based
____ planning keeps options open by making small, simultaneous investments in many alternative plans.
true
Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years.
options based planning
____ can help organizations to maintain flexibility as they plan.
decreasing a type conflict
The nominal group technique improves group decision making by ____.
identified its problem as the fact that demand for its beer exceeds its ability to supply it
Refer to Yuengling. In the first stage of the planning process for Yuengling, it should have ____.
planning
After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal?
relative comparisons
One method of weighing decision criteria uses ____, which is a process where each decision is compared directly to every other criterion.
middle managers
Who is responsible for the creation of tactical plans?
gathering and providing performance feedback
Which of the following is an accepted method for tracking progress toward goal achievement?
policies and procedures
____ are types of standing plans.
intensified effort, persistence, direction, and creation of task strategies
How does a company benefit from planning?
true
Planning can impede change, create a false sense of certainty, and lead to the detachment of planners.
true
Groupthink is more likely to occur in a highly cohesive group that is insulated from others and has no established procedure for systematically defining problems and exploring alternatives.
true
Tactical plans specify how a company will use its resources, budgets, and people to accomplish specific goals within its mission.
false
Planning is a three-step process which involves setting goals, then next developing effective action plans, and finally tracking progress toward goal achievement.
false
The rational decision-making model assumes that managers make decisions under conditions of uncertainty.
decision making
____ is the process of choosing a solution from available alternatives.
Planning gives direction to managers and employees.
Refer to Krispy Kreme. How does Krispy Kreme benefit from planning?
Select an open-minded group leader
Which of the following is NOT one of the rules for effective brainstorming?
use more positive reinforcement
After their first year of managerial experience, managers tend to:
inefficient
Coca-Cola and PepsiCo spent a total of $75 million to launch two sodas, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse. The new brands grabbed a combined market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to increase their market share, the introductions were notably
conceptual skills and the motivation to manage
Which skills increase in their importance to success as managers' rise through the managerial ranks?
top manager
Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which is run as an independent unit, has experienced excessive financial losses the last three years. The ____ for the company would be expected to develop the long-term plans needed to make the company profitable.
manage internal and external relationships
Team leaders typically
monitor
Connie O'Day is a middle-level manager for the publishers of Free Spirit magazine, a publication targeted to women who are not focused on finding a husband or maintaining a house and garden. She spends much of her day conducting interviews with groups of women to determine what they consider most important in their lives. She also keeps an eye on the sales and content of other women's magazines. Which informational role does O'Day perform
false
Managers are responsible for doing the basic work in the company.
negotiator
According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open?
true
Upper-level managers may actually spend more time dealing with people than lower-level managers.
management
____ is defined as getting work done through others
is a derailer
As the shift supervisor at a car wash, Jacob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate any tasks to the other employees. He will more than likely never be a middle or top manager because he
first line manager
A ____ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules
establish a positive organizational culture that encourages employees to be passionate about their clients
A top manager for a management consulting firm would
middle managers
It is the responsibility of ____ to develop intermediate plans, or plans designed to produce results within six to eighteen months.
planning
To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Creating this program was primarily the function of which management function? Which management function was used to create this program
false
Technical skill refers to the ability to see the organization as a whole, how the different parts affect each other, and how the company fits into or is affected by its environment.
setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives
Which of the following typically is NOT performed by top managers?
efficiency
Refer to Krispy Kreme. The building of the Effingham plant increased the ____ of the Krispy Kreme operation.
people management
After a year as a manager, new managers typically realize their job is
manage external and internal relationships
Team leaders typically
soldiering
____ occurs when workers deliberately slow down their pace or restrict their work outputs.
frank and lilian gilbreth
Which management theorist would most likely have said, "The greatest waste in the world comes from needless, ill-directed, and ineffective motions"?
organization
Chester Barnard defined a(n) ____ as "a system of consciously coordinated activities or forces of two or more persons."
false
One of the most commonly used operations management tools is cognitive mapping which is used to better understand the psychology of the workers.
inventory
What is the term used for the amount and number of raw materials, parts, and finished products that a company has in its possession?
true
One of the limitations of bureaucratic management is the resistance of bureaucracies to change.
unity of command
According to Henri Fayol's fourteen principles of management, ____ requires that each employee should report to and receive orders from just one boss
false
According to Chester Barnard, for many managerial requests or directives, there is a zone of indifference in which managers don't really care if the request is met or the directive is performed.
false
A systems approach to management encourages managers to view each division as a separate, vital organism.
true
Management ideas and practices have been used from the earliest times of recorded history
domination
According to Mary Parker Follett, ____ is the easiest way to deal with conflict for the moment, but it is not usually successful in the long run
true
Because of Eli Whitney's ideas for increasing production in a gun-manufacturing operation, most products are manufactured today using standardized, interchangeable parts.
false
Mary Parker Follett believed that managers could best deal with conflict through compromise
true
One of the advantages of a systems view of management is that it forces managers to be aware of how the environment affects specific parts of the organization.
eli whitney
Who is responsible for the fact that most products are manufactured using standardized, interchangeable parts.
false
Technological management involves managing the production of goods and services
open systems
Nearly all organizations that interact with their environments and depend on them for survival are viewed as ____.
henri fayol
____ is best known for developing the five functions of managers and the fourteen principles of management.
false
Managers often prefer economic statistics to business confidence indices as tools for managerial decision making because of their inherently greater accuracy.
product liability
Which of the following is NOT a potential legal risk associated with traditional managerial decisions like recruiting, hiring, and firing employees?
opportunistic behavior
A high degree of buyer or seller dependence can lead to ____ in which one party benefits at the expense of the other.
true
Advocacy groups cannot directly regulate organization practices.
technological
More premature babies than ever before are surviving due to improvements in medical knowledge and care. This improved survival rate can be attributed to the ____ component of hospitals.
a competitive analysis
____ involves deciding who your competitors are, anticipating competitors' moves, and determining competitors' strengths and weaknesses.
economic
Suppose that a Mexican car manufacturer wants to export cars to Guatemala. Knowing that the distribution of income within Guatemala is highly unequal and that about 75 percent of the population is below the poverty line would be a(n) ____ component in the manufacturer's general environment.
as predictors of future economic activity when making business decisions
Managers often prefer to use business confidence indices ____.
adaptability
According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed by innovation and must respond to threats from new technologies by building outside ventures. Digital Equipment is described as having one of those organizational cultures. The company squandered the opportunities presented by the PC revolution even though it was well equipped to build cheap PCs. The company did not have ____.
general and the specific
What are the two types of external organizational environments?
false
When used together, the combination of behavioral substitution, behavioral addition, and changing visible artifacts is extremely likely to achieve the desired changes in organizational culture.
resource scarcity
In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of ____ is likely to be particularly salient for many companies.
political/legal
Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the ____ component of the general environment.
simple; complex
In terms of environmental complexity, ____ environments have few environmental factors, whereas ____ environments have many environmental factors.
the fact most consumers prefer eating out rather than at home
For a fast-food restaurant chain that is famous for its small, square hamburgers. Which of the following would be a component of its socio-cultural environment?
buyer dependence
An increase in ____ can lead to opportunistic behavior in which one party benefits at the expense of the other.
behavioral substitution and addition
When using ____techniques to change organizational culture, the key to success is to choose behaviors that are central to and symbolic of the old culture that is changing and the new culture you want to create.
knowledge, tools, and techniques
Technology is the ____ used to transform inputs (raw materials, information, etc.) into outputs (products or services).
true
The two types of integrity testing currently used by employers are overt integrity tests and personality-based integrity tests.
true
Stakeholders are people or groups with an interest in a company's actions.
false
The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.
whistleblower
In May 2005, U.S. Attorney Michael J. Sullivan announced that the United States had settled civil claims arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection with billing the federal government for software training services. The U.S. government learned about the overcharging from a former Oracle vice president. The vice president acted as a(n) ____.
examining the loss incurred by the victims
According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)?
true
Probability of effect is the chance that something will happen and then result in harm to others
Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.
Which of the following statements about social responsibility is true?
magnitude of consequences
Shell Oil Company's plan to sink an abandoned offshore oil-storage buoy had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted, and many employees looked for positions in other companies. The plan caused much greater harm than Shell's managers had ever imagined it would. In other words, the plan had a much greater ____ than predicted.
whistleblower
Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf actions can be described as a(n) ____.
act
The last step in the basic model of ethical decision making is to ____.
stakeholder
According to the ____ model, management's most important responsibility is long-term survival (not just maximizing profits). Long-term survival, according to this model, is achieved by satisfying the interests of multiple corporate stakeholders
accommodative
The Rainforest Action Network, a national advocacy group, launched a bruising PR campaign to stop Home Deport from selling old-growth lumber. After two years of bad publicity and resistance to new store locations, Home Depot surrendered. Today, its suppliers are working with environmental and forestry groups to certify that their wood products are not from endangered areas. Home Depot used a(n) ____ strategy to respond to demands that it be socially responsible.
true
Ethics is the set of moral principles or values that defines right and wrong for a person or group
false
All four areas of social responsibility for companies (economic, legal, ethical, and discretionary) are equally important to a company's overall level of social responsibility.
true
Concentration of effect is how much an act affects the average person.
proactive
IBM has a long-standing "Reinventing Education" program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. IBM is using a(n) ____ strategy to show its social responsibility
true
A company using a reactive strategy to respond to demands for social responsibility will do less than society expects.
true
The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.
true
Unlike licensing, franchising, or joint ventures, wholly owned affiliates are 100 percent owned by the parent company.
a government import standard
The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of ____.
false
It appears that all companies follow the phase model of globalization when entering foreign markets
cooperative
The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
false
Global new ventures bring a good or service to market in one foreign market at a time
true
Global business is defined as the buying and selling of goods and services by people from different countries.
political and policy uncertainty
What are the two types of political risk that affect companies conducting global business?
maastrich treaty
The signing of the ____ created a regional trading zone in Europe
uncertainty avoidance
The term ____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
joint venture
A ____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.
how well an expatriate's spouse and family adjust to the foreign culture
The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.
exporting; cooperative contracts; strategic alliances; wholly-owned affiliates
Which of the following represents the correct sequence for the phase model of globalization?
tariff
In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) ____.
exporting
Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market.
purchasing power
A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy?
licensing
Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____.
policy uncertainty
The Japanese government decreed that Japanese snow was different from all others and required that all snow equipment marketed in the country be made in Japan for safety reasons. The elimination of non-Japanese companies from the market is an example of how ____ can influence global business.
political uncertainty
Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a bloody civil war resulting from a change in rulers. This is an example of how ____ can influence global business.
options based
____ planning keeps options open by making small, simultaneous investments in many alternative plans.
strategic plans
Top management is responsible for developing long-term ____ that make clear how the company will serve customers and position itself against competitors in the next two to five years.
tactical
A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.
false
Both absolute comparisons and relative comparisons are methods for identifying decision criteria
false
A strategic objective is a statement of a company's purpose or reason for existing.
problem
In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Tthe company recognized this unauthorized bottler as a(n) ____.
true
Both proximal and distal goals are used to provide additional motivation and rewards for employees.
false
Developing a purpose statement is the sole responsibility of middle management.
relative comparison
One method of weighing decision criteria uses ____, which is a process where each decision is compared directly to every other criterion.
problem
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).
rational decision making
Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification.
choosing a goal and developing a method or strategy to achieve that goal
Planning is ultimately based upon ____.
false
Planning is a three-step process which involves setting goals, then next developing effective action plans, and finally tracking progress toward goal achievement.
policies and procedures
____ are types of standing plans
standing plan
The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.
a false sense of certainty based on faulty assumptions
According to the text, which of the following is a pitfall of planning?
production blocking
Which of the following is a disadvantage of face-to-face brainstorming that is overcome by electronic brainstorming?
false
The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.
rules and regulations
Which of the following is the most specific type of standing plan?
a type conflict
____ is the emotional reaction that can occur when disagreements become personal rather than professional.
strategic reference point
For companies whose main products will not be seen by consumers and whose skills lie in productivity anonymity, a ____ could be to create a brand image to create a distinctive competence.
true
The three steps of the strategy-making process are (1) assess the need for strategic change, (2) conduct a situational analysis, and (3) choose the strategic alternatives.
growth
McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.
true
A strategic group is a group of other companies, within an industry, that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.
true
Strategic dissonance is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.
true
Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.
unrelated diversification
Starbucks, the operator of Starbucks coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of ____.
retrenchment
Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a ____ strategy.
false
Companies that succeed are often constantly re-examining strategies or competitive practices that have been successful in the past in order to ascertain their probable future success.
false
When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.
external growth
When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of ____.
potential for long term profitablility
According to Harvard professor Michael Porter, five industry forces (character of rivalry, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, and the bargaining power of buyers) determine an industry's overall attractiveness and its ____.
other firms with an industry
In a situational analysis, a strategic group is a group of ____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.
focus
The positioning strategy that is always paired with one of the other two positioning strategies to produce a specialized product or service is ____.
strategic reference points
____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage
grand strategies and the portfolio strategy
The two major approaches to corporate-level strategy are ____.
retrenchment
In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was ICI using?
those companies have, for the moment, stopped trying to duplicate the advantage
A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.
core capabilities
In any organization, the ____ are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.
is a philosophy and collection of planned change interventions
Organizational development ____.
coercion
Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?
unfreezing, change intervention, and refreezing
The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____.
change agent
Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.
change forces; resistance forces
According to social psychologist Kurt Lewin, ____ lead to differences in the form, quality, or condition of an organization over time, while ____ support the status quo, or the existing state of conditions in an organization.
speed innovation through early identification of new ideas or problems that would typically not have been generated until much later
The purpose of multifunctional teams is to ____.
technological substitution
Discontinuous change in an innovation stream is characterized by ____.
change
A company has experienced organizational ____ when its form, quality, or condition changes over time.
s curve
Nearly all technology cycles follow the typical ____ pattern of innovation.
creativity; organizational innovation
When organizations successfully implement creative ideas, ____ must necessarily come before ____.
declaring victory too soon
According to John Kotter, which of the following actions will adversely influence refreezing efforts?
the sources of innovation
Companies need to excel at managing ____ in order to successfully manage innovation streams.
true
An innovation stream begins with a technological discontinuity, which is a scientific advance or a unique combination of existing technologies creating a significant breakthrough in performance or function.
generational change
Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in ____.
incremental change
Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through ____.
true
The term innovation streams refers to patterns of innovation over time that can create sustainable competitive advantage.
design iteration
Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used ____ to produce the best possible tiller before introducing it to the market.
duplication
The primary disadvantage of customer departmentalization is ____.
functional
Disadvantages of ____ departmentalization include slower decision making, the development of managers and workers with narrow experience and expertise, and makes it more difficult for cross-departmental coordination.
mechanistic
In a(n) ____ organization, the normal procedure for dealing with any matter lying outside the boundaries of one individual's functional responsibility is to refer it to the point in the system where such responsibility is known to reside, or, failing that, to lay it before one's superior
customer
A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses ____ departmentalization.
feelings of intrinsic motivation
Novo Nordisk is a European manufacturer of pharmaceuticals. An employee , Rikke NedergaardBischoff, who is a clinical-development scientist, contends that Novo upholds the standards expected of public institutions without the stifling bureaucracy. She says, "There's a great deal of empowerment at Novo Nordisk." Novo Nordisk provides NedergaardBischoff with ____.
accountability
When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____.
empowerment
____ is a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination.
vertical loading
According to the job characteristics model, ____ means pushing some managerial authority down to workers.
mechanistic
A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.
virtual organization
In the automobile industry, three car manufacturers and a variety of suppliers and distributors have formed a network to create economies in production through outsourcing. It is intended for this ____ to cut as much as $3,000 from the costs of producing one car.
true
An organic organization, is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.
job enlargement
An organization that has increased the number of different tasks that a worker performs within one particular job has engaged in ____.
true
A virtual organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.
departmentalization
Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses ____.
reengineering
In recent years, the Air Force Weather Agency (AFWA) has undergone a radical change in how it determines and shares local weather conditions with pilots. Before the local base weather station was responsible for warnings. The quality of this information varied. Now AFWA provides the same high standard of weather information to all pilots. This is an example of ____?
reciprocal, pooled, and sequential
The three types of task interdependence are
false
Cross-department coordination tends to be very easy in organizations with functional departmentalization.
affective conflict
____ undermines team effectiveness by preventing teams from engaging in the kinds of activities that are critical to team effectiveness.
project
A group in Great Britain has been established to improve the employment, retention, and promotion prospects of blacks and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. This ____ team has two years to gather information and create a plan.
false
One of the disadvantages of project teams is their lack of flexibility.
norms
The group of medical specialists that work in the neonatal unit of a large teaching hospital has assumed that one of the ____ they should follow is to explain to students the "whys" of specific procedures as they are performed. There is no hospital rule mandating that the students be told an explanation.
true
Conflicts and disagreements often characterize the second stage of team development, which is called storming.
forming
A group in Great Britain has been established to improve the employment, retention, and promotion prospects of black and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. At its inception, this group was in the ____ stage of team development.
false
Since teams that get stuck in the storming stage will be strained but productive, it is important for team leaders to focus the team on balancing cognitive and affective conflict.
true
The presence of someone with expertise in a group will often cause other group members to withhold efforts.
de norming
In the stages of team development, a team moves from growth to decline during the ____ stage
skill based pay; gainsharing
In general, ____ is most effective for self-managing and self-directing teams performing complex tasks, while ____ works best in relatively stable environments where employees can focus on improving the productivity, cost savings, or quality of their current work system.
conflict managemnt training
Which of the following is NOT necessary for stretch goals to effectively motivate teams?
team diversity
E-Lab (the "E" stands for experience) has project teams perform field research for its clients. These project teams are composed of students of theology, actors, and musicians as well as the more traditional marketing experts and statisticians. E-Lab teams benefit from ____.
functional or cross functional
Teams can be broadly classified as either ____.
true
Self-designing teams have all the characteristics of self-managing teams, but they can also control and change the design of the teams themselves, the tasks they do and how they do them, and who belongs to the teams.
true
Structural accommodation means giving teams the ability to change organizational structures, policies, and practices if it helps them meet their stretch goals.
self- designing teams
The highest level of team autonomy is found in ____.
project team
Many orthopedic parts are almost identical in size and shape. Stryker Howmedica Osteonics in New Jersey used a semi-autonomous work group to develop Product Recognition Technology that makes sure parts are identified correctly and orders are filled correctly. This group would be classified as a(n) ____.
ample resources are available
Which of the following statements describes a circumstance under which teams ought to be used?
Middle Management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
decision-making role
making changes in policies or resolving conflicts in a work place; Refers to the tactical and strategic decisions made by managers. They have access to the necessary information to take such decisions and have the formal authority to do so.
decentralization
the spread of power or management decision making to local branches
centralization
the act of consolidating power under a central control
Theory y
Assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity
Theory z
management theory incorporating Japanese emphasis on collective decision making and concern for employees with American emphasis on individual responsibility
Wheeler-Lea Act of 1938
law guards against false advertising
Contract
a binding agreement between two or more persons that is enforceable by law
Profit
Total revenue minus total cost
foreign Intermediary
a wholesaler or agent market products for companies wanting to do business aboard
Lagerst Exporter in the world
USA
Brainwriting
Technique in which a group is presented with a problem situation and member anonymously write down ideas, then exchange papers with others, who build on the ideas and pass them on until all members have participated.
semi-autocratic Management
subordinates may or may not be informed of the decision
Retrenchment
plan to reverse negative trends in a company
CAD software
used in art and architecture and engineering and manufacturing to assist in precision drawing
Span of Control
also known as span of management
unity of command
confusion will result if 2 people are reported at once
line organization
authority starts at the top and moves down the line
group norms
Expectations, established through interaction, about how members should behave
interest work group
informal group who's members share a purpose or concern
management information system
the function that plans for, develops, implements, and maintains IT hardware, software and applications that people use to support the goals of an organization; business function
Theory Z
assumes people are lazy and will avoid working if they can
patent
an official document granting a right or privilege
trademark
a formally registered symbol identifying the manufacturer or distributor of a product
copyright
a document granting exclusive right to publish and sell literary or musical or artistic work
Clayton Act of 1914
made it illegal to charge different prices to different wholesale customers
quotas
established limits by governments on the number of immigrants who can enter a country each year
semi-autocratic
decisions made alone with added input from subordinates