FINAL EXAM GUIDE
Staffing: filling, and keeping filled, positions in the organization structure.
Managerial requirements plan: based on the firm's objectives, forecasts, plans, and
strategies. This plan is translated into position requirements and job design, which are
matched with such individual characteristics as intelligence, knowledge, skills, attitudes, and
experience.
Personal characteristics needed in managers: desire to manage, communication skills
and empathy, integrity and honesty, past performance as manager.
Sources of managerial personnel: Promotion or transfer of people from within the
enterprise AND hiring from the outside.
Recruitment: refers to the attraction of candidates to fill in the organization structure.
Selection: applicants are sought to fill a position with rather specific requirements.
Placement: the strengths and weaknesses of the individual are evaluated, and a suitable
position is found or even designed.
Promotion: is a move within the organization to a higher position that has greater
responsibilities and requires more advanced skills. It usually involves a raise in status and
in pay
Orientation: involves the introduction of new employees to the enterprise - its functions,
tasks and people. It provides the opportunity to ask as much questions as possible.
Manager development: refers to long term, future oriented programs and the progress a
person makes in learning how to manage.
Managerial training: programs that facilitate the learning process and is mostly a shortterm activity to help managers do their jobs better.
Organization development: a systematic, integrated, and planned approach to improving
the effectiveness of groups of people and the whole organization or a major organizational
unit.
Job rotation: Its purpose is to expand the knowledge of the managers or managers
potentials in different positions of the company.
Temporary promotion: function used to cover the responsibilities of an absent manager.
Committees and junior boards: they are used as learning techniques: they give new
employees in training the opportunity to interact with experienced managers.
Coaching: requires the patience and judgment of superiors, who must be able to delegate
authority, recognize and give credit for work well done.
Conference programs: used in internal or external development, exposing current or
potential managers to the ideas of expert speakers in their field.
Readings, Television, Video Instruction, and Online Education: refers to the reading of
relevant and current management literature. This is essentially a self-development.
E-training: approach created as a virtual classroom with the teacher interacting with
students.
Organizational development: systemic approach, integrated and planned, directed to
improve business effectiveness. It is designed to solve problems that reduce operational
efficiency at all levels, such as lack of cooperation, excessive decentralization and the bad
communication.
Leading: process of influencing people so that they will contribute to organizational and
group goals.
Managing: requires the creation and maintenance of an environment in which individuals
work together in groups toward the accomplishment of common objectives.
Personal or Individual dignity: people must be treated with no matter what their respect,
no matter what their position in the organization.
Theory X and Theory Y: Douglas McGregor suggested to start with the basic question of
how managers see themselves in relation to others. He wanted neutral terminology without
any con-notation of being “good” or “bad”.
Maslow's Hierarchy of Needs Theory: Maslow saw human needs in the form of a
hierarchy, ascending from the lowest to the highest; he concluded that, when one set of
needs is satisfied, this kind of need ceases to be a motivator.
Alderfer's ERG Theory: theory by Clayton Alderfer that has only three categories:
Existence needs, relatedness needs and growth needs.
Expectancy Theory of Motivation: Victor H. Vroom developed this theory in which people's
motivation toward doing anything will be determined by the value they place on the outcome
of their effort (whether positive or negative) multiplied by the confidence they have that their
effort will materially aid in achieving a goal.
McCIeIIand's Needs Theory of Motivation: David C. McClelland has contributed to the
understanding of motivation by identifying three types of basic motivating needs: need for
power, need for affiliation, and need for achievement.
Job enrichment: related to factors such as challenge, achievement, recognition, and
responsibility as the real motivators.
Leadership: the art or process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of grip goals.
Autocratic leader: is dogmatic and positive, and direct through his ability to deny or grant
rewards and punishments.
Democratic or participative leader: consults with subordinates and encourages their
participation.
Liberal leader: uses very little power (if it does) and grants to his subordinates a high degree
of independence.
Benevolent autocrats: they listen to the opinions of their followers before taking a decision
but they are who decide.
Transactional leaders: they identify what the subordinates do to achieve the objectives,
which includes clarifying the functions and organizational tasks, establish a structure
organizational, reward the performance and contribute to the social needs of their followers.
Transformational leaders: they clearly express a vision, inspire and motivate followers,
and create a favorable climate for organizational change.
Committee: a group of persons to whom, as a group, some matter is committed.
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Forming: when the members of the group get to know each other.
Storming: when the members of the group determine the objective of the meeting
and conflict arises.
Norming: when the group agrees on norms and some rules of behavior.
Performing: when the groups get down to the task.
Line committee: carries out managerial functions, such as the board of directors.
Formal committee: part of the organization structure, with specifically delegated duties and
authority.
Informal committee: are organized without specific delegation of authority, usually by some
person desiring group thinking or a group decision on a particular problem.
Coordination of departments, plans and policies: committees are very useful for
coordinating activities among various organizational units. They are also useful for
coordinating plans and policies as well as their implementation.
Disadvantages of committees: they are costly, they can lead to a situation in which few
persons impose their will on the majority, they may result in compromises, and they may
lead to indecision.
Teams: a small number of people with complementary skills who are committed to a
common purpose.
Self-managing teams: a group with members who have a variety of skills needed to carry
out a relatively complete task.
Virtual management: the ability to run a team whose members are not in the same location.
Control techniques and systems: are essentially the same for controlling cash, office
procedures, morale, product quality, and anything else. The basic control process, wherever
it is found and whatever is being controlled, involves three steps.
 Establishment of standards: first step in the control process logically would be to
establish plans However, since plans vary in detail and complexity, and since
managers cannot usually watch everything, special standards are established
Standards are simply criteria of performance.
 Measurement of Performance: the measurement of performance against
standards should ideally be done on a forward-looking basis so that deviations may
be detected in advance of their occurrence and avoided by appropriate actions.
 Correction of Deviations: correction of deviations is the point at which control can
be seen as a part of the whole system of management and can it related to the other
managerial functions.
The principle of critical point control: one of the more important control principles; states
that effective control requires attention to those factors critical to evaluating performance
against plans.
Benchmarking: approach for setting goals and productivity measures based on best
industry practices. Benchmarking developed out of the need to have data against which
performance can be measured.
Cost Volume Profit analysis: focuses on how profits are affected by the following five factors:
1. Selling prices.
2. Sales volume.
3. Unit variable costs.
4. Total fixed costs.
5. Mix of products sold.
Contribution Margin: amount remaining from sales revenue after variable expenses have
been deducted.
Variable costing: only those manufacturing costs that vary with output are treated as
product costs.
Break-even point: level of production at which the sales profit is exactly equal to the sum
of the fixed and variable costs.
Clan Control: based on norms, shared values, expected behavior and other aspects related
to organization culture
Bureaucratic Control: characterized by a wide use of rules, regulations, policies,
procedures, and formal authority. This kind of control requires clear job descriptions,
budgets, and often standardized tasks. Employees are expected to comply with the rules
and regulations and may have limited opportunities of participation