138 terms

Management 301 Textbook Notes


Terms in this set (...)

-The process of assembling and using sets of resources in a goal directed manner to accomplish tasks in an organization
Managing _________ is the biggest challenge with which managers have to deal
The development and observation of the increasing international and cross-national nature of everything from politics to business (Maintain awareness of what is happening in the world). Promotes greater involvement in international markets
Frederick W. Taylor
"Father of Modern Management"
Argued that pay wasn't the only part of the reward for employees and they should be provided feedback regularly regarding their performances
Douglas McGregor; Theory Y
Positive leadership can bring forth greater efforts and level of achievement from employees
A managerial function which involves estimating future conditions and circumstances and, based on these estimations, making decisions about the work of manager and employee
Strategic Planning
Type of planning that addresses strategic actions designed to achieve the organizations long-range goals
Tactical Planning
Type of planning that translates strategic plans into actions designed to achieve specific and shorter-term goals
Operational Planning
Type of planning that identifies the actions needed to accomplish the goals of particular units of the organization or particular product lines in their respective markets
Figurehead Role
Leader Role
Liaison Role
Interpersonal Roles
Figurehead Role
Type of interpersonal role that emphasizes ceremonial activities that a manager is expected to attend and be part of
Leader Role
Type of interpersonal role that involves influencing or directing others
Liaison Role
Type of interpersonal role that emphasizes the managers contacts with those outside the formal chain of command
Monitor Role
Disseminator Role
Spokesperson Role
Informational Roles
Monitor Role
Type of informational role that involves extensive information seeking in which managers engage to remain aware of crucial developments that may affect their units and their own work
Disseminator Role
Type of informational role that involves managers sending information out to others who have no easy access to that info otherwise
Spokesperson Role
Type of informational role where managers are frequently called upon to represent the views of the unit for which he or she is responsible
Entrepreneurial Role
Disturbance Handler Role
Resource Allocator Role
Negotiator Role
Decisional Roles
Entrepreneurial Role
Type of decisional role where managers frequently engage in activities that explore new opportunities to start new projects
Disturbance Handler Role
Type of decisional role where managers act as a judge, problem solver, or conflict manager
Resource Allocator Role
Type of decisional role where managers decide how to distribute resources
Negotiator Role
Type of decisional role where managers are responsible for knowing what resources they can or cannot commit to particular negotiated solutions
Behaviors such as: Attending required meetings, adhering to scheduled deadlines, following certain procedures, and the like
Factors that limit a managers response to various demands
Ex) time, budget, technology
Technical Skills
Having specialized knowledge about procedures, processes, and equipment, and knowing how and when to use that knowledge
Interpersonal Skills
Skills such as sensitivity, persuasiveness, and empathy
Conceptual Skills
Skills such as logical reasoning, judgement, and analytical abilities
Ethical Dilemma
Having to make a choice between two competing but arguably valid options
Ethical Lapse
A decision that is contrary to ones stated beliefs and company policies
The Utilitarian Approach
A basic approach to ethical decision making that focuses on consequences of action (make decisions that result in "the greatest good")
The Moral Rights Approach
A basic approach to ethical decision making that focuses on an examination of the moral standing of actions independent of their consequences
The Universal Approach
A basic approach to ethical decision making where managers choose a course of action that you believe can apply to all people under all situations
Ex) not taking a bribe because you'd have to be willing to let everyone use bribes to get what they want
The Justice Approach
A basic approach to ethical decision making that focuses on how equitably the costs and benefits of actions are distributed
Distributive Justice
Distribute rewards and punishments equitably based on performance. Goes along with the Justice Approach
Procedural Justice
Ensuring that those affected by managerial decisions consent to the decision making process and that the process is administered impartially. Goes along with the Justice Approach
Compensatory Justice
If distributive and procedural fail, those hurt by the inequitable distribution of rewards are compensated. Goes along with the Justice Approach
Moral Intensity
The degree to which people see an issue as an ethical one
Magnitude of Consequences
The anticipated level of impact of the outcome of a given action. Component of moral intensity
Social Consensus
The extent to which members of a society agree that an act is either good or bad. Component of moral intensity (more powerful component)
Probability of Effect
The moral intensity of an issue rises and falls depending on how likely people think the consequences are. Component of moral intensity
Ex) the higher the probability of consequence, the more intense the sense of ethical obligation
Temporal Immediacy
A function of the interval between the time the action occurs and the onset of its consequences. Component of moral intensity
Ex) the greater the interval between action and consequences, the less intensity people feel toward the issue. (Global Warming)
The physical, psychological, and emotional closeness the decision maker feels to those affected by the decision. Component of moral intensity
Concentration of Effect
The extent to which consequences are focused on a few individuals or dispersed across many
The Efficiency Perspective
The concept that a manager's responsibility is to maximize profits for the owners of the business
An indirect or unintended consequence imposed on society that may not be understood or anticipated
The Social Responsibility Perspective
Argues that society grants existence to firms; shareholders simply supply risk capital and for this reason, firms have a responsibility to society as a whole
An individual or group who has an interest in and is affected by the actions of an organization (Employee)
Belief: "We must fight against efforts to restrict or regulate our activities and profit making potential"
Focus: Maximize profits, find legal loopholes, fight new restrictions and regulations
Belief: "We will change when legally compelled to do so"
Focus: Maximize profits, abide by the letter of the law, change when legally compelled to do so
Belief: "We should respond to significant pressure even if we are not legally required"
Focus: Protect profits, abide by the law, react to pressure that could affect business results
Belief: "We owe it to society to anticipate and avoid actions with potentially harmful consequences, even if we are not pressured or legally required to do so"
Focus: Obtain profits, abide by the law, anticipate harmful consequences independent of pressures and laws
The "Inside-Out" Approach
Managers can look inside the company at issues that are more rather than less important as a function of the company's strategy and business activities
The "Outside-In" Approach
Managers can look outside the company at issues the company can influence
The "Outside-Out" Approach
Managers look at social issues in general terms of the extent to which they are problematic
An employee who discloses illegal or unethical conduct on the part of others in the organization
Stronger protection of past whistle-blowers = more likely there will be more whistle-blowing
The Classical/Rational Model of Individual Decision Making
A model that consists of 1) Identifying Decision Situations, 2) Developing Objectives and Criteria, 3) Generating Alternatives, 4) Analyzing Alternatives, 5) Selecting Alternatives, 6) Implementing the Decision, 7) Monitoring and Evaluating Results
**This model assumes the decision maker is completely rational, although research shows that people are not as rational as this model assumes**
Subjectively Expected Utility (SEU) Model
A model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome
Bounded Rationality Model
A model that assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information-processing capabilities than they possess
A rule that guides the search for alternatives into areas that have a high probability for yielding success
Ex) hiring someone that already does the job you're hiring for
The tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results
The Retrospective Decision Model
A decision making model that focuses on how decision makers attempt to rationalize their choices after they are made
Implicit Favorites
Alternatives that someone wants
Confirmation Candidate
A second-best alternative
Perceptual Distortion
Highlighting the positive features of the implicit favorite over the positive features of the confirmation candidate
Intuitive Decision Making
The primary subconscious process of identifying a decision and selecting a preferred alternative
Programmed Decision
A standard response to a simple or routine problem
Non-Programmed Decision
A decision about a problem that is either poorly defined or novel
Standard Operating Procedures
Established procedure for action used for programmed decisions that specifies exactly what should be done
Gresham's Law of Planning
Managers have a tendency to let their programmed activities overshadow their non-programmed activities
A mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action
Illusion of Invulnerability
Symptom of Groupthink where group members often reassure themselves of obvious dangers, become overly optimistic, and are willing to take extraordinary risks
Symptom of Groupthink where group members collectively rationalize and discount warning signs that should lead them to reconsider earlier decisions
Illusion of Morality
Symptom of Groupthink where groups ignore the obvious ethical or moral consequences of their decisions
Ex) Tobacco companies ignore the consequences that result from smoking cigarettes and still sell them
Stereotyping the Enemy
Symptom of Groupthink where members often stereotype leaders of opposition groups in harsh terms and refuse to listen to their opinions or negotiate with them
Symptom of Groupthink where minimizing the seriousness of the doubts members raise which puts tremendous pressure on them to agree to the groups consensus
Illusion of Unanimity
Symptom of Groupthink where members assume that individuals that remain silent agree with them
Peer Pressure for Conformity
Symptom of Groupthink; Same as Self-Censorship where members put pressure on other members to agree
Symptom of Groupthink which involves protecting the leader and other members of the group from adverse information that can conflict over the correctness of a course of action
Devil's Advocate
A group member whose role is to challenge the majority position
Escalating Commitment
The tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant evidence emerges indicating that the original decision was incorrect
Ex) Sticking with a stock even after its price goes way down
Prospective Rationality
A belief that future courses of action are rational and correct
Multiple Advocacy
A process to improve decision making by assigning several group members to represent the opinions of various constituencies that might have an interest in the decision
Dialectical Inquiry
A process to improve decision making by assigning a group member or members the role of questioning the underlying assumptions associated with the formulation of a problem
A process of generating many creative solutions without evaluating their merit
Nominal Group Technique
A process of having group members record their proposed solutions, summarize all proposed solutions, and independently rank solutions until a clearly favored solution emerges
Delphi Technique
A decision making technique that never allows decision participants to meet face-to-face but identifies a problem and offers solutions using a questionnaire
Competitive Advantage
A firms ability to provide value to customers that exceeds what competitors can provide
Provide Superior Value
They Have Rarity
Difficult to Imitate
Competitive advantage is created by meeting these criteria
Strategic Vision
A view of the firm over the long term that describes what it should achieve in the future
-Usually only about a sentence in length
Mission Statement
A statement that articulates the fundamental purpose of the organization
-Usually much longer than the strategic vision
General Environment
Sociocultural, technological, economic, political-legal, and global forces that can influence the effectiveness of an organizations strategy
Sociocultural Forces
Forces consisting primarily of the demographics or cultural characteristics of the societies in which an organization operates
Institutional Forces
The countries rules, policies, and enforcement processes that influence individuals' and organizations' behaviors that operate within a country's borders
Physical Forces
Involve infrastructure that can affect existing and potential business operations in a country such as roads, telecommunications, air links, etc.
Porter's 5 Forces
Environmental forces that can significantly influence the performance of organizations in an industry
Consist of: Rivalry among competitors, difficulty of a firm to enter an industry, potential for substitutes, customers, suppliers
Nature of Rivalry Among Competitors
Porters First Force. Understand the strength of competitors relative to your firm
Ex) Car industry: Compact/everyday car segment is largely based on price but the luxury segment is based on quality and features of the car
Difficulty of Firms to Enter an Industry
Porters Second Force. New entrants increase competition which leads to lower profit margins because customers have more choice
Entry Barriers
Obstacles that make it difficult for firms to enter a particular type of industry
Potential for Substitutes
Porters Third Force. Focuses on the extent to which alternative products or services can substitute for existing products or services
Fewer Substitutes = Greater Profits
Porters Fourth Force. Managers focus efforts on satisfying their needs. When they have more power, they can attract greater value
Porters Fifth Force. If one or a few of them control a valuable good necessary for the products or services provided by the firm, they will have considerable power
Value Chain
The set of key activities that directly produce or support the production of a firm's products and service offered to customers
Primary Activities
Activities that are directly involved in the creation of a product or service, and distributing it to the customer
Support Activities
Activities that facilitate the creation of a product or service and its transfer to the customer
Inbound Logistics
A Primary Activity involved in the Value Chain. Consists of activities that are designed to receive, store, and then disseminate various inputs related to the firms products or services
Ex) In the beer industry, getting hops, barley, and malt to the brewing sites
A Primary Activity involved in the Value Chain. Includes a variety of activities that transform inputs into the products or services of the firm
Ex) Producing the beer for different markets/bottling and labeling
Outbound Logistics
A Primary Activity involved in the Value Chain. Include activities that move the product or service from the firm to the customers.
Ex) Process orders, schedule delivery trucks, and distribute products
Marketing and Sales
A Primary Activity involved in the Value Chain. Designed to inform potential customers about the products and services
A Primary Activity involved in the Value Chain. Activities designed to do what is necessary to ensure that the product satisfies the customer after the purchase and to increase the probability of a repeat purchase
A Support Activity involved in the Value Chain. The activity of procuring usable and consumable assets. The purchase of machinery and replacement parts are examples
Technology Development
A Support Activity involved in the Value Chain. Technology and the means by which a company applies it to tasks effects all 5 primary activities
Human Resource Management
A Support Activity involved in the Value Chain. Process of acquiring, training, evaluating, compensating, and developing human resources is present in all 5 primary activities
Firm Infrastructure
A Support Activity involved in the Value Chain. Consists of planning, finance, accounting, legal, government relations, and other activities
Core Competence
An interrelated set of activities that can deliver competitive advantage in thee short term and into the future
Cost Leadership Strategy
A strategy to gain competitive advantage by making a product or service different from those of its competitors
Strategic Scope
The scope of a firms strategy or breadth of focus
Ex) Focusing on a specific segment of customers (Ferrari)
Focus Strategy
A strategy that targets a particular market segment. Could use either Cost Leadership or Differentiation
Customer Segment
A group of customers that have similar preferences or place similar value of product features
Ex) Car gas mileage vs. performance
Integrated Differentiation-Cost Leadership Strategy
A set of actions designed to differentiate the firm's product in the market place while also maintaining a low-cost position relative to its competitors
Multipoint Competition Strategy
Involves competing with firms across markets by using strengths in one market to overcome weaknesses in another market
Strategic Plans
Plans that focus on the broad future of the organization and incorporate both external and internal environmental demands and internal resources into manager's actions
Tactical Plans
Plans that translate strategic plans into specific goals for specific parts of the organization
Operational Plans
Plans that translate tactical plans into specific goals and actions for small units of the organization and focus on the near term
Corporate Level
Business Level
Managers focus on how they are going to compete effectively in the market
Functional Level
Managers focus on how they can facilitate the achievement of the competitive plan of the business
Tools to assess the business environment
Contingency Plan
A plan that identifies key factors that could affect the desired results and specifies what actions will be taken if things change
Identifying the best practices by your competitors and non-competitors and the results that they produced
A tool used to quantify and allocate resources to specific activities
Capital Expenditure Budget
A tool that specifies the amount of money to spend on specific items that have long-term use and require significant amounts of money
Expense Budget
A budget that includes all primary activities on which a unit or organization plans to spend money and the amount allocated for the upcoming year
Proposed Budget
A budget that outlines how much money an organization needs; submitted to a superior for budget review committee
Approved Budget
A budget that specifies what the manager is actually authorized to spend money on and how much
Incremental Budgeting
An approach whereby managers use the approved budgets of the previous year and then presents arguments for why the upcoming budget should be more or less
Zero-Based Budgeting
An approach that assumes all funding allocations must be justified from zero each year
Specific > Measurable > Commitment > Realistic > Time-bound
Goal Setting Criteria (SMART)
What Managers Do