Metropolitan Community College
Principles of Management
Exam 2 Study Guide
Chapter 4:
 Know the different attitudes from a global perspective (parochial, ethnocentric,
geocentric)
 Identify some of the risks and challenges associated with global management (culture,
money)
Chapter 5:
 Understand the classical view of social responsibility (max profits only)
 Evaluate whether social responsibility has a benefit to organizational performance
(positive effect)
Chapter 6:
 Know the steps in the decision making process (Problem, criteria, alternatives)
 Identify the bias and error types inherent in decision making (overconfidence,
gratification)
 Explain the characteristics of an effective decision making process (What’s important,
logical focus, consistent, subjective and objective thinking, relevant information)
Chapter 7:
 Understand the relationship between planning and performance (profits, focus)
 Know the elements of well written goals (measurable, challenging, time focus,
communicated)
 Identify steps in the goal setting process (Review mission, evaluate resources, determine
& communicate goals, review results)
Chapter 8:
 Understand why Strategic Management is important in business (affects performance,
manages uncertainty, provides focus)
 Know the steps in the Strategic Management process (mission, goals, SWOT, strategy,
implementation, evaluation of results)
 Identify the role of competitive advantage (a core competency better than others –
quality, cost, service focus)
 Understand the different types of competitive strategies (Cost Leadership,
Differentiation)
Chapter 9:
 Understand the purpose of organizing (divide work, coordinates tasks, establishes
authority, resource allocation)
 Explain the use of span of control in managing organizational resources (manager and
employee skills, job complexity, proximity, culture strength)
 Know key contingency factors which affect organic vs. mechanistic structural decisions
(firm size, strategy, technology, environmental uncertainty)