Principles of Management

Mid-term Exam Review

 Mid-Term Exam Format
 15 multiple choice (30%)
 10 True/False (10%)
 8 short answer (40%)
 10 definitions (20%)
 Pool of Definitions
 Efficiency
 Effectiveness
 Outsourcing
 Global Organization
 External locus of control
 Organizational culture
 Stakeholders
 Reputation
 Societal ethics
 Vertical integration
 Glass ceiling
 Schema
 Bias
 Stereotype
 Brand Loyalty
 Economies of Scale
 Folkways
 Differentiation strategy
 Low-cost strategy
 Time Horizon
 Ch.1 Concepts
 Organizational Performance
 Efficiency & Effectiveness
 Managerial Functions
 Levels of Management
 Mintzberg’s Managerial Roles
 Competitive Advantage
 Management Theories
 Scientific management theory
 Administrative management theory
 Fayol’s principles
 Ch.2 Concepts
 Big 5 personality traits
 Terminal vs. Instrumental Values
 Organizational citizenship behaviors
 Emotional intelligence
 Organizational culture
 Attraction-selection-attrition framework
 Factors that maintain and transmit organizational
culture
 Ch.3 Concepts
 Ethical dilemmas
 Ethics and the Law
 Stakeholders and ethics
 Manager’s relationship to stakeholders and
ethics
 Rules for ethical decision making
 Ch.4 Concepts
 Diversity
 Sources of Diversity
 Managerial Roles and Effective
Management of Diversity
 Distributive justice
 Schemas, stereotypes, biases
 Overt discrimination
 Ch.5 Concepts
 Organizational environment
 Task Environment
 Role of National Culture
 Hofstede’s Model of National Culture
 Ch.6 Concepts
 In general, you should know all major
concepts from Ch.6
 Topics
Managers and Manager as a Ethics Diversity Global Planning &
Managing/ Person Environment Strategy
Theory

$100 $100 $100 $100 $100 $100

$200 $200 $200 $200 $200 $200
$300 $300 $300 $300 $300 $300
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$500 $500 $500 $500 $500 $500
$600 $600 $600 $600 $600 $600
 Managers and Managing
$100
 What are the 4 functions of management?

 Planning, Organizing, Leading, Controlling

 Managers and Managing
$200
 What are the 3 levels of management?

 First-line managers (supervisors), middle

managers, top managers
 Managers and Managing
$300
 Measure of how efficiently and effectively
managers use resources to satisfy customers
and achieve goals

 Organizational Performance
 Managers and Managing
$400
 2 parts
 A) Measure of how well or how
productively resources are used to achieve a
goal
 B) Measure of the appropriateness of the
goals managers have selected for the
organization to pursue
 A) Efficiency B) Effectiveness
 Managers and Managing
$500
 Name 3 of Fayol’s Principles of Management

 Division of labor, authority and responsibility,

unity of command, line of authority,
centralization, unity of direction, equity, order,
initiative, discipline, remuneration of personnel,
stability of tenure of personnel, subordination of
individual interest to the common interest, esprit
de corps
 Managers and Managing
$600
 Identify the building blocks of competitive
advantage

 Efficiency, Innovation, Quality,

Responsiveness to Customers
 Manager as a Person
$100
 Behaviors that are not required of
organizational members but that contribute
to and are necessary for organizational
efficiency, effectiveness, and gaining
competitive advantage

 Organizational citizenship behaviors (OCB)

 Manager as a Person
$200
 Define Attraction-Selection-Attrition
framework

 When founders hire employees for their

new ventures, they tend to be attracted to
and choose employees who are similar to
themselves
 Manager as a Person
$300
 The ability to understand and manage one’s
own moods and emotions and the moods
and emotions of other people

 Emotional Intelligence
 Manager as a Person
$400
 Identify the factors that maintain and
transmit organizational culture

 Values of the founder, Socialization,

ceremonies and rites, stories and language
 Manager as a Person
$500
 What is the difference between terminal
values and instrumental values?

 A terminal value is a personal conviction

about life long goals and objectives, while
an instrumental value is a personal
conviction about ways of behaving
 Manager as a Person
$600
 Identify the “Big Five” personality traits

 Extraversion, Negative Affectivity,

Agreeableness, Conscientiousness,
Openness to experience
 Ethics
$100
 Identify the stakeholders in an organization

 Stockholders, employees, managers,

suppliers, distributors, community,
customers
 Ethics
$200
 The concept that an ethical decision should
produce the greatest good for the greatest
number of people

 Utilitarian Rule
 Ethics
$300
 Define “Tragedy of the commons”

 The pursuit of individual self-interest with

no consideration for the interests of society
leads to disaster for each individual and the
whole society
 Ethics
$400
 When a person must decide between two
different courses of action, knowing that
whatever he or she chooses will result in
harm to one and a benefit to the other is
called____________

 Lesser of two evils

 Ethics
$500
 What are the four approaches to social
responsibility?

 Obstructionist approach, defensive

approach, accommodative approach,
proactive approach
 Ethics
$600
 How does ethical behavior affect an
organization?

 Ethical behavior leads to increases in

efficiency and effectiveness, which
increases company performance
 Diversity
$100
 Dissimilarities among people due to age,
gender, race, ethnicity, socio-economic
background, etc. is called__________

 Diversity
 Diversity
$200
 The principle that dictates that distribution
of pay raises, promotions, job titles,
interesting job assignments, office space
and other organizational resources is
called_____________

 Distributive Justice
 Diversity
$300
 Systematic tendencies to use information
about others in ways that result in
inaccurate perceptions is called________

 Biases
 Diversity
$400
 A metaphor alluding to the invisible barriers
that prevent minorities and women from
being promoted to top corporate positions is
called___________

 Glass ceiling
 Diversity
$500
 Knowingly and willingly denying diverse
individuals access to opportunities and
outcomes in an organization is
called______

 Overt discrimination
 Diversity
$600
 Name 3 roles of management and how
managers use those roles to manage
diversity effectively

 See page 126

 Global Environment
$100
 The set of forces and conditions originating
with suppliers, distributors, customers and
competitors

 Task environment
 Global Environment
$200
 What are the 5 dimensions of Hofstede’s
Model of National Culture

 Individualism vs. Collectivism, Power

distance, achievement vs. nurturing
orientation, uncertainty avoidance, short-
term vs. long-term orientation
 Global Environment
$300
 Name three barriers to entry in the task
environment

 Economies of scale, brand loyalty,

government regulations
 Global Environment
$400
 Define “global outsourcing”

 The process by which organizations

purchase inputs from other companies or
produce inputs themselves throughout the
world to lower costs or improve the quality
of their products
 Global Environment
$500
 Routine social conventions of everyday life
are called___________

 folkways
 Global Environment
$600
 The relative power that one party has over
another party in negotiations or a business
relationship

 Bargaining power
 Planning
$100
 What are the three steps of the planning
process?

 1) Determining the organization’s missions

and goals
 2) Formulating strategy
 3) Implementing strategy
 Planning
$200
 A corporate level plan is____________

 Top management’s decisions about the

organization’s mission, overall strategy and
structure
 Planning
$300
 The corporate level strategy of entering a
new business or industry to create a
competitive advantage in one or more of an
organization’s existing divisions or
businesses is called____________

 Related diversification
 Planning
$400
 A method of planning based on creating
multiple forecasts of future conditions and
then creating strategy to address each
condition is called____________

 Scenario planning
 Planning
$500
 What are the business level strategies
managers use?

 Low-cost strategy, differentiation strategy,

focused low-cost strategy, focused
differentiation strategy
 Planning
$600
 A strategy of customizing products and
marketing strategies to specific national
conditions is called__________

 Multidomestic strategy