CHAPTER 1: OVERVIEW
1. Organization: goal, people, structure
2. Managers:
- Definition
- Roles: interpersonal, informational, decisional
+ informational: Cassie is the public relations spokesperson for a company. She
has scheduled a meeting with stockholders to inform them of an upcoming
dividend release. What type of managerial role is Cassie involved with?
+ decisional: In a manager's ________ role, he or she is expected to evaluate
alternatives and make choices to solve problems or take advantage of
opportunities.
- Skills
- Level: Top, middle, first line
+ Top: Those in management who make long-term decisions about the overall
direction of the organization and establish the objectives, policies, and
strategies are called top managers; For which level of management are
conceptual skills particularly important?
+ Middle: those who implement the policies and plans of top management above
them and supervise and coordinate the activities of the first-line managers
below them are called
+ First line: Stefan supervises ten sales associates in his role at the retail store.
3. Management:
- Definition
- 4 functions: planning, organization, leading, controlling
- efficiency vs. effectiveness
+ Efficiency: Producing goods or services with as few resources as possible in as
little as time possible is efficiency
- Level of Management: Top, middle, first line
CHAPTER 2: MAKING DECISION
A. The decision making process
1- Identify a problem
2- Identify decision criteria
3- Allocating weights to the criteria
4- developing alternatives
5- Analyzing alternatives
6- Selecting an alternative
7-Implementing the alternative
8- Evaluating decision effectiveness
B. Approaches: 3 ways, rational, bounded rational, intuition
1. rational decision making - choices that are logical and consistent and maximize
value
2. Bounded rationality - decision making that's rational, but limited (bounded) by
an individual's ability to process information
3. Intuition
● Experience based decisions
● Affect initiated decisions
● Cognitive based decisions
● Subconscious mental processing
● Values or ethics based decisions
C. Types of problems: structured and unstructured
1. Structured Problems: straightforward, familiar, and easily defined problems
2. Unstructured Problems: problems that are new or unusual and for which
information is ambiguous or incomplete
D. Types of decisions: programmed vs. non programmed
1. Programmed decisions: a repetitive decision that can be handled by a routine
approach
2. Non programmed decisions: Unique and nonrecurring decisions that require a
custom-made solution
E. Group decision making: its nature, advantage vs dis.
F. Ways to improve group decision making problems
1. Characteristics of an effective decision making process
- Focuses on what's important
- Is logical and consistent
-Acknowledges subjective and analytical thinking, blends analytical with intuitive
thinking
- Requires only as much information as needed to resolve particular dilemma
- Encourages the gathering of relevant information
- Is straightforward, reliable, easy to use, flexible
CHAPTER 6: PLANNING
1. Why manager should plan? – 4 reasons
2. Process: 6 steps
● Forecasting
● Setting aims + objectives
● Devising strategies
● Developing policies + procedures
● Prioritising
● Developing budgets
3. SWOT analysis: Strengths, weakness,opportunities, threats for the business
4. Types of plans:
❖ Strategic vs tactical:
Strategic planning:
- Long term ( 2 -5 years )
- Whole business planning
- Long term goals
Tactical planning:
- (1 - 2 years)
- Steps to help achieve strategic plan
❖ Long term vs short term
❖ Directional and specific
❖ Single use and standing
5. MBO: management by objective
- This is a strategic approach to enhance the performance of an organization.
CHAPTER 7: ORGANIZATIONAL STRUCTURE & DESIGN
1. 6 elements in org. design:
- Work specialization
- Departmentalization: the process of grouping together people and jobs into work
units.
- Authority, responsibility and power: gives people job freedom and power to
influence affairs in the organization.
- Span of control: the number of persons directly reporting to a manager.
- Centralization and decentralization:
+ Centralization: top management keeps the power to make most decisions.
+ Decentralization: top management allows lower levels to help make many
decisions.
- Formalization: the official structure of the organization.
2. Model of organizational design: mechanistic and organic
● Mechanistic Design: are bureaucratic, using a centralized and vertical structure.
● Organic Design: are adaptive, using a decentralized and horizontal structure.
3. 3 factors may impact model: business strategy, technology, business
environment (stable or unstable)
4. Types of org. design: simple, functional, divisional, matrix, team-based
● Divisional Structure: groups together people working on the same product, in
the same area, or with similar customers.
● Matrix Structure: combines functional and divisional approaches to emphasize
project or program teams.
● Cross-Functional Teams: brings together members from different functional
departments.
● Team Structures: uses permanent and temporary cross-functional teams to
improve lateral relations
5. Types of power: coercive, reward, legitimate, reference, expert, informational
● Reward power: the ability to reward others when they follow your wishes or
instructions.
● Expert power: the ability to influence others based on your expertise in a
particular subject.
● Legitimate power: the authority that comes from a role or position you hold.
● Coercive power: the ability to punish or threaten others if they do not comply
with your demands.
● Referent power: the ability to attract or inspire others based on your personal
traits or charisma.
CHAPTER 8: HRM
- Definition, process, functions
- How to identify and select competent employees, based on employment planning,
job need.
- Definition of downsizing, selection
CHAPTER 11: MOTIVATION (LEADING)
1. Motivation (energy, direction, persistence)
- The relationship between Hofstede's cultural dimensions and individual
motivation: Motivation is a function of the context of a person's work and
personal life, which is greatly influenced by cultural variables, which affects the
attitudes and behaviors of individuals on the job.
2. Traditional Theories of motivation:
- X and Y
- Maslow
- Herzberg
- McClelland (3 needs for achievement, power, affiliation)
3. Contemporary Theories of motivation:
- Equity theory
- Goal setting theory
- Expectancy theory
CHAPTER 14: CONTROLLING
1. Definition and its process:
Any process that directs the activities of individuals toward the achievement of
organizational goals; -requires constant feedback; -the siamese twin of management;
-relationship w planning
2. Reasons for controlling step:
-Est performance
-Measure Performance
-Compare Performance
-Mgmt by Exceptions
-Take Corrective Action
3. 3 Steps:
● measuring: what actually happened?
● comparing: Compare to the standard
● taking action: give rewards as appropriate;corrective action depends on nature
of problem
4. Types of control:
- Feedforward
- Concurrent
- Feedback control- Purpose of orientation: feedback (Bureaucratic control)
info about results to correct deviations; use of rules, regulations, and authority to guide
performance, most commonly used control system, must be paired with other control
systems
1. The four reasons that organizations plan is to provide direction, set standards,
minimize waste, and reduce uncertainty and the impact of change. TRUE
2. Strategic management is the act of figuring out how an organization will compete
in the marketplace and attract loyal customers. TRUE
3. The first step in the strategic management process is analyzing the external
environment. FALSE
4. An external analysis will identify the threats to a company's well-being, but not
opportunities for success. FALSE
5. SWOT analysis includes the identification of an organization's strengths,
weaknesses, opportunities, and threats. TRUE
6. The final three steps in the strategic management process involve the creation and
implementation of strategies for realizing organizational goals. TRUE
7. Traditional goal setting requires top managers to set goals that are carried out by the
organizational levels below. TRUE
8. In formal planning, ________.
A) specific goals covering a period of years are defined
B) to maximize flexibility, specific goals are never spelled out
C) very broad general goals are developed.
D) goals may be written or unwritten
9. Which of the following is NOT a reason for managers to plan?
A) to give direction to an organization
B) to deal with change
C) to establish goals..
D) to establish responsibility for mistakes
[Link] gives organizations direction that primarily helps them ________.
A) improve teamwork and coordinate activities
B) improve their image in the business community
C) improve morale of middle managers
D) improve morale of all employees
[Link] is concerned with ________.
A) both ends and means
B) ends only
C) means only
D) neither ends nor means
[Link] informal planning, goals are usually ________ shared with others in the
organization.
A) written, but little is
B) unwritten and little is
C) written and much is
D) unwritten, but much is
TRUE/FALSE (Each correct answer earns 0.2 points)
1. Part of what defines an organization is its purpose. TRUE
2. All organizations have a structure that in some ways serves to define and limit the
behavior of members of the organization. TRUE
3. In order to be considered a manager, an individual must direct or oversee the work
of others. TRUE
4. A manager does not work directly on tasks for the organization. FALSE
5. Supervisors and team leaders may both be considered first-line managers. TRUE
6. Effectiveness refers to the relationship between inputs and outputs. FALSE
7. A goal of efficiency is to minimize output costs while maximizing input costs.
FALSE
8. Effectiveness refers to the attainment of the organization's goals. TRUE
9. Managers who are effective at meeting organizational goals always act efficiently.
FALSE
10. The four contemporary management processes are planning, organizing, leading,
and commanding. FALSE
11. Determining who reports to whom is part of the controlling function of
management. FALSE
12. Providing motivation is part of the controlling function of [Link]
13. Defining goals is a key part of the organizing function of [Link]
14. Deciding who will be assigned to which job is a part of the leading function of
[Link]
15. In Mintzberg's view, the roles of figurehead, leader, and liaison are all
interpersonal [Link]
16. Disturbance handler is one of Mintzberg's interpersonal [Link]
17. A typical first-level manager spends more of his or her time leading than
[Link]
18. All managers devote at least some of their time to [Link]
19. A small business manager in many ways combines the roles of top manager and
first-line manager in a large [Link]
20. To better understand values and attitudes that are common to all people, a manager
may study [Link]
21. The study of economics is useful only to top managers. FALSE
MULTIPLE CHOICE (Each correct answer earns 0.2 points)
22. An organization is .
a. the physical location where people work
b. any collection of people who all perform similar tasks
c. a deliberate arrangement of people to accomplish some specific purpose
d. a group of individuals focused on profit-making for their shareholders
23. All organizations have which define(s) the organization's purpose and reason for
existing.
a. limits
b. rules
c. structure
d. goals
24. One of the common characteristics of all organizations is that define(s) rules,
regulations, and values of the organization.
a. a set of written bylaws
b. an explicit goal
c. a systematic structure
d. a stated purpose
25. A fraternity is an example of an organization because it is comprised of people
who- .
a. share the same values, traditions, and customs
b. share the same goals and values
c. share goals and function within a common structure
d. function under the same set of rules and regulations
26. Which of the following is a key difference between managerial and nonmanagerial
employees?
a. Managerial employees receive higher pay compensation.
b. Nonmanagerial employees have less formal education.
c. Nonmanagerial employees do not oversee the work of others.
d. Managerial employees work longer hours.
27. The primary job of a manager is to .
a. make decisions that help an organization grow
b. tackle tasks that are too difficult for nonmanagerial employees
c. coordinate between organization leaders and ordinary employees
d. direct and oversee the work of others
28. The work of a manager .
a. is strictly limited to overseeing and monitoring the work of others
b. may involve performing tasks that are not related to overseeing
others
c. involves only high-level tasks that require a sophisticated skill set
d. does not involve interaction with nonmanagerial employees
29. Supervisor is another name for which of the following?
a. team leader
b. middle manager
c. first-line manager
d. top manager
30. Which of the following types of managers is responsible for making
organization-wide decisions and establishing the plans and goals that affect the entire
organization?
a. team leader
b. top manager
c. department head
d. project leader
31. Which is an important job responsibility for a middle manager?
a. defining the organization’s long-term goals
b. translating goals defined by top managers into action
c. helping top managers define goals
d. performing tasks that are not related to long-term goals
32. Which of the following identifies a manager who does NOT typically supervise
other managers?
a. unit chief
b. shift manager
c. vice president
d. division manager
33. All levels of management between the supervisory level and the top level of the
organization are termed .
a. middle managers
b. first-line managers
c. supervisors
d. team leaders
34. Which of the following levels of management is associated with positions such as
executive vice president, chief operating officer, chief executive officer, and
chairperson of the board?
a. team leaders
b. middle managers
c. first-line managers
d. top managers
35. Another term for efficiency is .
a. doing the right things
b. doing things right
c. making sure things get done
d. doing things at the right time
36. Which of the following might be an example of increased efficiency in
manufacturing?
a. cutting the amount of labor required to make the product
b. cutting the price of the product
c. increasing sales of the product
d. increasing advertising for the product.
37. Another term for effectiveness is .
a. doing the right things
b. doing things right
c. doing things intelligently
d. doing things when necessary
38. Effectiveness is synonymous with .
a. cost minimization
b. smart management
c. goal attainment
d. efficiency
39. Efficiency refers to .
a. the relationship between inputs and outputs
b. the additive relationship between inputs and outputs
c. the inverse relationship between inputs and outputs
d. decreasing inputs only
40. Good management strives for.
a. low efficiency and high effectiveness
b. high efficiency and low effectiveness
c. high efficiency and high effectiveness
d. moderate efficiency and moderate effectiveness
41. A candy manufacturer would increase both efficiency and effectiveness by making
a. better candy at the same cost
b. better candy at a lower cost
c. the same candy at a lower cost
d. the same candy at the same cost
42. A candy manufacturer that made candy at a lower cost without improving the
quality of the candy could be said to .
a. increase effectiveness without increasing efficiency
b. increase efficiency without increasing effectiveness
c. increase both effectiveness and efficiency
d. decrease both effectiveness and efficiency
43. Which of the following is considered NOT to be a part of the planning function of
a manager?
a. defining goals
b. motivating
c. mapping out strategy
d. making decisions
44. The controlling management function is largely a matter of .
a. resolving conflicts
b. determining what needs to be done
c. monitoring to see that tasks are accomplished
d. enforcing rules for employees
45. Organizing includes
a. defining organizational goals
b. resolving conflicts
c. motivating organizational members
d. determining who does what tasks
46. Resolving a conflict would be considered to fall under which managerial function?
a. controlling
b. planning
c. directing
d. leading
47. An important part of the controlling function is .
a. evaluating
b. structuring
c. coordinating
d. punishing
48. Giving a speech at an organization banquet would fall into which Mintzberg
category?
a. informational
b. interpersonal
c. decisional
d. entrepreneurial
49. Why is a negotiator a decisional role according to Mintzberg?
a. Negotiation requires taking a position and deciding how and when to compromise.
b. Negotiation requires a manager to be able to deal with money.
c. The task of negotiation is taken on only by the decision makers
who are always top managers.
d. Negotiation requires no interpersonal or informational skill.
50. All of the following are examples of informational roles according to
Mintzberg EXCEPT .
a. entrepreneur
b. monitor
c. disseminator
d. spokesperson
