Understanding Efficiency, Effectiveness, and Roles in Business Management, Quizzes of Introduction to Business Management

Download Understanding Efficiency, Effectiveness, and Roles in Business Management and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 What is management? DEFINITION 1 Universal, no single definition. It is the process of achieving desired results through the efficient utilization of human and material resources. ACHIEVE GOALS EFFECTIVELY AND EFFICIENTLY TERM 2 What are the two key concerns of management? DEFINITION 2 effectiveness and efficiency TERM 3 What is effectiveness concerned with? DEFINITION 3 Doing the right thing at the right time in the right way (goal attainment) TERM 4 What is efficiency concerned with? DEFINITION 4 Reducing waste or minimizing resource costs since many resources are scarce; BANG for your BUCK TERM 5 How are effectiveness and efficiency related? DEFINITION 5 It's easier to be effective if you disregard EFFICIENCY; it is difficult to be effective when one becomes more concerned with EFFICIENCY-- Just because you are efficient does not make you effective. Yet high efficiency is usually associated with high effectiveness. Effectiveness is more crucial. TERM 6 What is your most important resource as a manager? DEFINITION 6 Human! TERM 7 Is management a science or an art? DEFINITION 7 Both TERM 8 When is management considered a science? DEFINITION 8 We develop theories, test them using scientific method, refine reformulate, or discard. TERM 9 When is management considered an art? DEFINITION 9 Natural extension of PERSONALITY; Many roads to managerial success-- there is not one formula that equals success TERM 10 How did management become important? DEFINITION 10 Factories= division of labor and decrease skill level of employees; employees needed to be supervised and coordinated to get goods produced-- industrial revolution brought about management; Changes from the industrial revolution created need for professional management and made it significant TERM 21 What happens in corporate downsizing? DEFINITION 21 Cutting fat by eliminating layers of management, asking retained managers/employees to do more, implementing new computer and info technologies; getting rid of legal counsel, training and development of employees to outside consulting firms**Mostly affects middle level managers** TERM 22 What does a top manager do? DEFINITION 22 Determine form of the organization and define its overall character, mission, and directions. They determine the business the organization wants to be in, and how the organization is going to compete; Set strategy, determine general goals and the action plans to achieve them; ensure goals are set and accomlished; monitor environment for problems and opportunities**CEO, Chairman of the Board, and Executive VP** TERM 23 What is the difference between a line manager and staff manager? DEFINITION 23 Line managers ALL LEVELS are responsible for the work activities that contribute to the process of creating the organization's basic product or service; have authority over transformation process where inputs are transformed into outputsStaff managers use their expertise to support the efforts of the line managers; they have no authority over transformation process--MIDDLE MANAGERS TERM 24 What is the difference between a functional manager and a general manager? DEFINITION 24 Functional- have responsibility for a single area of activity such as financeGeneral- responsible for more complex organizational sub-units that include many functional areas TERM 25 What is the difference between an administrator and a manager? DEFINITION 25 Administrator- sometimes call themselves managers--work in public or non profit organizations as opposed to private business concernsManager- Private, but do the same things TERM 26 Five functions of management DEFINITION 26 1. Planning (top managers most important)- establish goals and defining methods by which they are obtained2. Organizing (middle most important)- process of designing an organization's structure to achieve goals; job design, departmental design, and authority relationships3. Staffing-hire right people for job; train them; recognize them with fair pay and bonuses (primary of first line managers)4. Leading-process or are of getting other people to willingly go along with you to accomplish goals (primary of first line managers)5. Controlling-3 aspects: monitor organizational performance; compare actual performance with hoped for performance; if actual performance is less than hoped for, diagnose problem and take corrective action. TERM 27 *Which is NOT true about corporate downsizing? DEFINITION 27 Its primarily effectiveness-oriented. TERM 28 Represents the conjoined twins of management? DEFINITION 28 Planning and controlling TERM 29 What does "planning has primacy" mean? DEFINITION 29 First thing you must to-- it provides direction and is very important for success TERM 30 What are the three managerial roles Mintzberg identified? DEFINITION 30 Interpersonal- interacting with others inside and outside the organizationInformational- receive info, give info and analyzeDecisional- using info to solve problems or take advantage of opportunities TERM 31 What are three managerial skills identified by Katz? DEFINITION 31 Technical- use special expertiseHuman- work well in cooperation with othersConceptual- Problem solve, intuition, gut feeling TERM 32 At what level of management are conceptual skills most important? DEFINITION 32 Generally the top level**Technical skills- 1st line**Human skills- ALL LEVELS TERM 33 What skill is most difficult to develop? DEFINITION 33 Conceptual bc they require a minimum level of mental ability and time/experience to develop TERM 34 According to Luthans (1988), are effective managers successful managers in general? DEFINITION 34 NO TERM 35 What percent of effective managers are successful? DEFINITION 35 Less than 10% TERM 46 What are the two major dependencies in the external environment? DEFINITION 46 Customers and suppliers TERM 47 What is the threat to these 2 major dependencies? DEFINITION 47 Competition in supplies TERM 48 How do customers influence organizations and how do organizations influence customers? DEFINITION 48 Customers try to force prices down, obtain more high quality products while holding prices constant and increase competition among sellers by playing one against anotherOrganizations should try to diversify customer base. Influence customers by ads, assist with wants and needs, etc. Joint product service focus. TERM 49 How much more does it cost to find a new customer than to keep an old one? DEFINITION 49 5 times as much!! Keep old customer happy; customer is not always right, employee doing right thing but customer is still unhappy, BACK THE EMPLOYEE; customer satisfaction is inside out, good customer service: MAKE IT EASY TO COMPLAIN, RESPONSE IS EFFECTIVE TERM 50 How do suppliers influence organizations? DEFINITION 50 organizations use inputs to produce outputs so they are dependent on suppliers and suppliers resources TERM 51 How does an organization influence suppliers? DEFINITION 51 Vertical integration (buying up customer organization) (Buy your supplier), long term contracts in which you lock in the supplier at a lower price, reducing the number of suppliersHorizontal integration (Buying up competition) TERM 52 What is the law of the marketplace? DEFINITION 52 Dictates that companies that cannot compete will be faced with either changing their product line or being eliminated TERM 53 What are the five forces of competition and how does each influence the level of competition within an industry? DEFINITION 53 Rivalry among organization increases with many organizations, threat of new entrants, threat of substitutes, power of suppliers, and power of the customer TERM 54 What are the barriers to entry in an industry? DEFINITION 54 Government policy- when a firm's patent for drug expires, other companies can enter the marketcapital requirements- getting started may cost so much that companies won't even try to raise such large amounts of moneybrand identification- when customers are loyal to a familiar brand, competitors have to spend heavilycost disadvantages- established companies may be able to keep their costs lower bc they are larger and have more favorable locationsdistribution channels- existing competitiors may have such tight distribution channels that new entrants struggle to get their goods to customers TERM 55 What happens when a new entrant comes into the market/industry? DEFINITION 55 Compete with established ones; increase product supply and possess substantial resources; prices will be forced down and resource costs will be inflated; reduce profitability and increase competiton TERM 56 What determines if a supplier is powerful? DEFINITION 56 If the buyer has few other resources of supply or if the supplier has many other buyers TERM 57 What determines if a customer is powerful? DEFINITION 57 If they make large purchases or if they can easily find alternative places to buy TERM 58 How do powerful suppliers and customers influence organizations? DEFINITION 58 A powerful supplier can raise prices, reduce quality and not deliver on timeA powerful customer can drive prices down, therefore forcing you to increase quality and service TERM 59 How do substitutes affect an industry? DEFINITION 59 they limit an industry's growth potential; industry could suffer in earnings and growth unless it improves products or launches aggressive campaigns; subs could make existing products obsolete TERM 60 What are process and product innovations? DEFINITION 60 Process- made in the technology used in transforming inputs into goods and servicesProduct- made in basic good or service an organization provides TERM 71 What is environmental scanning? DEFINITION 71 Process of monitoring and evaluating changes and trends in the environment TERM 72 How it environmental scanning related to planning and organizational performance? DEFINITION 72 Organizations that gather a great deal of environmental info tend to perform better TERM 73 What are the three purposes of planning? DEFINITION 73 1. Establish and help achieve organizational objectives2. Protective or defensive which is to offset future uncertainties by reducing the risk surrounding organization's operations3. Affirmative or offensive which entails seeking out and taking advantage of opportunities to increase organizational success TERM 74 Why is planning important? DEFINITION 74 Organizational success, sense of unity and direction, coping with change, performance standards, and managerial development. Planning and controlling go together TERM 75 Why do managers resist planning? DEFINITION 75 Busy with other functions, hard work, used to measure results takes time and is expensive, lack of immediate feedback, involves change, fear of failure/lack or self confidence, not rewarded by their organization, AND goes against "doer" mentality TERM 76 What is Gresham's law of planning? DEFINITION 76 Tendency for routine, repetitive problems to overshadow planning problems;Even when managers have the best of intentions to plan, planning can get neglectedThe problem is incorrect priorities TERM 77 What does the non-planner typically blame for his/her poor performance?/ DEFINITION 77 BAD LUCK TERM 78 What are the five phases of the planning process and what happens at each phase? DEFINITION 78 Phase 1: Establishing objectives- goals should be based on environmental scanning; also should be set according to the SMART model of goal setting (BEGIN WITH THE END IN MIND!!) Phase 2: Developing premises- beliefs about what we think is going to happen in the future; synonymous with forecasting; different forecasts will lead to different plans being developed for accomplishing the same goal Phase 3: decision making- selecting course of action to accomplish goals set in phase 1; 3 aspects of this- 1) identifying alternatives 2) evaluated the alternatives, and 3) selecting a course of action that will give best results Phase 4: implementing a course of action; Managers must assign and direct personnel to carry out the plan; a great plan poorly implemented is a poor plan; a great plan never implemented is Phase 5: Evaluating results; managers monitor performance of the plan; managers compare actual performance with hoped for performance and take action accordingly; whats the basic dilemma in planning? TERM 79 What provides the basis for phase 1? DEFINITION 79 perceived opportunities with threats; environmental scanning TERM 80 What are SMART goals? DEFINITION 80 S- SpecificM- Measurable, so you can have feedbackA- Achievable,R- Relevant,Paretos Rule- 80% of the results on a job come from 20% of the job (IMPORTANT!!)T- Trackable, track progress TERM 81 What is contingency planning? DEFINITION 81 When one develops multiple future scenarios and the plans to accompany each scenario; "what-if" planning TERM 82 What are benefits and drawback of contingency planning? DEFINITION 82 Benefits- allows greater flexibility and is useful in a dynamic, changing environmentDrawbacks- requires greater time and resources than normal planning TERM 83 What are the keys to effective implementation of a plan? DEFINITION 83 People must understand the plan, clear communication, must have resources and be tied into the budget system, and people must be motivated "WIFM" WHAT'S IN IT FOR ME TERM 84 What function of management is Phase 5: Evaluating results? DEFINITION 84 To improve effectiveness or plans due to CONTROL AND FEEDBACK TERM 85 What is the basic dilemma in planning? DEFINITION 85 COMMITMENT AND FLEXIBILITY TERM 96 How are SBUs classified in the business portfolio matrix approach? DEFINITION 96 New venture, star, dog, and cash cow; classified by rate of market growth and their relative market share TERM 97 What business strategy is used for a cash cow? DEFINITION 97 STABLE GROWTH; high share and low growth market, costs are coming down and revenues are high up; you have profit TERM 98 What business strategy is used for a dog? DEFINITION 98 **Depends on profitability** If cash flow supports itself, then may have retrenchment strategy;If it is losing money, then get rid of it (divest) TERM 99 What business strategy is used for new venture? DEFINITION 99 if you believe it has a good chance of succeeding, select growth strategy-- also just depends on its forecastIf you believe that a new venture does not stand a good chance of succeeding (becoming a dog is highly likely), then select a divestiture strategy or a retrenchment strategy. TERM 100 What business strategy is used for stars? DEFINITION 100 usually growth strategy;Goal is market share and profitability will take care of themselves. TERM 101 What is the basic idea behind generic strategies? DEFINITION 101 It holds that there are 3 generic strategies an organization can adopt; these can be applied to a wide variety of industries; top managers should develop a feel for their industries and then define a competitive niche by adopting one of the 3 strategies TERM 102 What are the three Generic strategies identified by Porter? DEFINITION 102 Differentiation- developing an image of the organization's product or service in a way that customers view as being diff from othersOverall cost leadership- attempts to maximize sales by minimizing cost per unit and hence pricesFocus- organization concentrating its attention on a specific segment of an overall market such as a customer group, certain geographic location, or a specialized product. TERM 103 What is the basic idea behind the Adaption model of strategy? DEFINITION 103 Deals with business level strategy; in order to be effective, an organization's strategy must be aligned with the environment or be congruent with the environment; the alignment is based upon the top manager's interpretation of the environment; the interpretation forms the basis for the answers to 3 diff questions-- entrepreneurial, or how do they compete? Engineering, and administrative TERM 104 What is a defender? DEFINITION 104 demand for product is not going (seal off market share through overall cost leadershipstable growth); efficient production to lower costs; organizational structure emphasizes use of rules, lots of budgetary cost controls TERM 105 What is a prospector? DEFINITION 105 demand for product is growing; find and exploit new markets; flexible production to take advantage of multiple opportunities; organizational structure has few rulesencourages experimenting TERM 106 What is an analyzer? DEFINITION 106 defender and prospector combination in name only KEPT SEPARATED;When combined, strategic failure, not gonna work. Management sees environment as moderately changing TERM 107 What is a reactor? DEFINITION 107 worst of them; no set production process or organizational design; reactors are always dogs, but dogs are not always reactors TERM 108 How does each strategy type in the Adaptation model answer the entrepreneurial, engineering, and administrative questions? DEFINITION 108 Entrepreneural- How will we compete>Engineering- How will we produce and market it's good or service?Administrative- How are we going to organize, operate, and structure ourselves? TERM 109 What is a SWOT analysis? DEFINITION 109 Comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy TERM 110 What is a team leader? How are they different from frontline managers? DEFINITION 110 employees who are responsible for facilitating successful team performance; different bc frontline managers have direct managerial control over their non-managerial employees; team leaders are more like project facilitators or coaches, no real control TERM 121 What does the stakeholder model stay about the social responsibility of a business? DEFINITION 121 Suggest that managers are obliged to look beyond the profitability to help their organizations succeed by interacting with groups that have a stake in the organization TERM 122 What's the real relationship between corporate social performance and corporate financial performance? DEFINITION 122 Highly complex; socially responsible organizations do not neccessarily become more or less successful in financial terms; ex companies can avoid unnecessary and costly regulation if they are socially responsible TERM 123 What's the essential test that should guide corporate responsibility, according to Porter and Kramer? DEFINITION 123 Is not whether a cause is worthy, but whether it presents an opportunity to create shared value-- that is, a meaningful benefit for society that is also valuable to the business TERM 124 What is the difference between related and unrelated diversification? DEFINITION 124 Related- strategy used to add new businesses that produce related products or are involved in related markets and activities; applies strengths in one business to gain advantage in anotherUnrelated- Strategy used to add new businesses that produce or are involved in unrelated markets and activities; typically to minimize risks due to market fluctuations in one industry TERM 125 What does the article "when competitive advantage is neither?" say about competitive benchmarking? DEFINITION 125 Companies should strive for "value innovation" emphasis on value places the buyer, not the competition, at the center of strategic thinking; emphasis on innovation pushes managers to consider totally new ways of doing things TERM 126 Karen is a human resource manager at BCBS. She provides advice to managers dealing with disciplinary and termination issues. DEFINITION 126 Functional and staff manager TERM 127 Most important to the implementation of a plan? DEFINITION 127 Leading TERM 128 What do new ventures and star give you in terms of corporate share? DEFINITION 128 Market share TERM 129 What does the article, Avoid pricing yourself short, say about competing on price as a strategy for attracting customers? DEFINITION 129 Price is the start of a relationship; you cut prices to get businesses and you dont just give up money, you give up respect. Youre telling customers that regular price was kind of a lie