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C483 Study Guide Final
Principles of Management (Western Governors University)
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C483 Principles of Management
*STRATEGIC PLANNING COMPETENCY - (21%)*
**Words in Red are what to focus on for the OA, specific from what I remember
The graduate can explain the strategic planning process.
Describe the steps in the strategic planning process
Chapter 4- "The Basic Planning Process"
Focus on= Exhibit 4.1 and steps involved
1. Situational Analysis
a. Gather, interpret, and summarize all info relevant to the planning issue. Analyzes
past events, current conditions, and forecasts future trends. Internal/External
forces at work.
2. Alternative Goals and Plans
a. Contingency plans, alt. actions for attaining each goal, the resources required to
reach the goal through those means, and the obstacles that may develop.
3. Goal and Plan Evaluation
a. Advantages/Disadvantages, potential effects of each goal and plan. Prioritize and
eliminate, consider implications, and high priority goals. Estimate costs and ROI.
4. Selection
a. Select the best goal and plan.
5. Implementation
a. Understand the plan, have the resources, and be motivated.
6. Monitor and Control
a. Implement control systems to measure performance – and compare results to
the goals/plans. Corrective action towards resolution when necessary.
Describe the concepts of strategic vision (intent), mission, and goals
Chapter 4- "Strategic Planning"
Focus on= Establishing Mission, Vision and Goals section
 Mission = Purpose
o The purpose of the company is the MISSION
 Strategic Vision = Future
o (where the company is headed)
o What the CEO wants for the company, “looking forward, I was this to be the best,
most competitive company, with exponential growth and serving our customers”
 Strategic Planning
o Decisions about the organization’s long-term goals and strategies. Senior executives
are responsible for the development/execution, but usually do not implement the
entire plan personally.
 Strategic Goals
o Major targets or results that relate to the long-term survival, value, and growth of
the organization. Effectiveness + Efficiency.
 Strategy
o Pattern of actions and resource allocations designed to achieve the goal of the org.
 Tactical Planning
o Translates broad, strategic goals into specific goals and plans relevant to a particular
unit in the org. – often a functional area like CS or HR. Major actions a until must
take to fulfill its part of the strategic plan.
 Operational Planning
o Specific procedures and processes required at lower levels of the org.
 Strategic Management
o Involves managers from all parts of the org. in the formulation and implementation
of strategic goals and strategies.
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THE STRATEGIC MANAGEMENT PROCESS
1. Establishing Mission, Vision, and Goals (M.V.G)
a. Basic purpose of the Org. What the Org. does, whom it does it for, and its basic
good or service.
2. External Opportunities/Threats
a. Competitive and Macroenvironment Analysis
b. Examination of the industry and then Stakeholders (buyers, suppliers, competitors,
govt. and regulatory agencies, unions, owners, shareholders, employee groups)
3. Internal Strengths/Weaknesses
4. SWOT Analysis (full picture)
5. Strategy Implementation
6. Strategic Control (longest time horizon)
Explain the components of a SWOT analysis and how it is used in the strategic planning
process
Chapter 4- “SWOT Analysis and Strategy Formulation”
Focus on= familiarize yourself with the External and Internal environments and putting it
together in a SWOT analysis.
SWOT: (Internal) Strengths + Weaknesses & (External) Opportunities + Threats
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EXTERNAL OPPORTUNITIES + THREATS
o Environmental Analysis (Industry profile, growth, forces, future trends)
o Competitor Analysis (Competitor profile, analysis, advantages)
o Political Analysis (Legislation & Regulatory activities, political activity)
o Social Issues, Social Interest Groups (activist groups that attempt to influence the
industry)
o HR – Labor Issues (shortages, opportunities, problems confronting the industry)
o Macroeconomic Conditions (factors that affect supply, demand, growth,
competition/profitability w/in the industry)
o Technological Factors (recent and potential innovations)
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INTERNAL STRENGTHS + WEAKNESSES
o Financial Analysis (balance sheet, income statements, compares trends to historical
and industry figures)
o Marketing Audit (marketing, identifies markets and key market segments, market
share)
o Operations Analysis (manufacturing, production, or service delivery activities)
o HR (all levels of management and employees, recruitment, selection, training,
compensation, promotion, quality of work life, etc.)
o Other Internal Resource Analysis (research and development, Mngmnt. Information
systems, engineering, purchasing)
Explain what a Core Competency/Capability means for an organization
Chapter 4- "Resources and Core Capabilities"
Focus on= Exhibit 4.8 and the concept of course competency/capability
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Resources
o Inputs to production (recall systems theory) that can be accumulated over time to
enhance the performance of a firm.
o Tangible assets: real estate, raw materials, production facilities
o Intangible assets: brand recognition, culture, talented craftspeople
o When resources are valuable, rare, inimitable, and organized, they comprise a
company’s core capabilities.
Core Capability
o Competence. Something a company does especially well relative to its competitors.
Benchmarking
o Assessing how well one company’s basic functions and skills compare w/ those of
another company/companies.
 Decide what needs to be measured, which metrics
 Collect and validate data, compile initial findings
 Assess initial findings, does addt’l data need to be collected?
 Analyze results, final recommendations to key stakeholders
o NIH (Not Invented Here Syndrome) – a negative attitude toward knowledge derived
from an external source
Describe what Porter's Five Forces Model is and how it is used in the strategic planning
process — Chapter 2- "The Competitive Environment"
Focus on= Exhibit 2.4 and all its parts and what they mean with respect to strategic planning
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Competitors
o Compete through innovation, quality, service, and cost
New Entrants
o Compete with established companies
o Barriers to Entry (due to govt. policy, capital requirements, brand identification, cost
disadvantages/capital requirements, and distribution channels)
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Substitutes and Complements
o Potential threats, Alternatives
o Complement: potential opportunity
Suppliers
o Provide resources needed for production (people, raw materials, information,
financial capital)
Customers
o Wholesalers and retailers or final end users, depending on where they are in the
value chain
o Final consumers
o Intermediate consumers: buy raw materials or wholesale products and then sell to
final consumers. Intermediate consumers make more purchases than indivd. final
consumers do.
Describe the types of corporate strategies that organizations can use
Chapter 4- "Corporate Strategy" under section on SWOT Analysis
Focus on= Exhibit 4.10 and each of the components and what they mean as well as well as the
following outside resource: http://www.strategicmanagementinsight.com/topics/verticalintegration.html
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Concentration Strategy
o Focuses on a single business competing in a single industry
Vertical Integration
o Expanding to include supplier and distributors, used to reduce costs/ uncertainties
created by unpredictable business relationships
Concentric Diversification
o Moving into new but related businesses, used to take advantage of the strengths in
one business to gain advantage in another
Conglomerate Diversification
o Expansion into unrelated businesses, used to minimize risks due to market
fluctuations in one industry
Understand the two kinds of business strategies that companies can use to gain competitive
advantage
Chapter 4- "Business Strategy" section
Focus on= both the low-cost and differentiation strategies and what they mean
 Low-Cost Strategy
o Attempts to be efficient, standard, no-frills products (Walmart)
 Differentiation Strategy
o Attempts to be unique in its industry or market segment along some dimensions
(other than cost) that customers value. Based on high product quality, excellent
marketing, distribution, or superior service.
Define what the Value Chain concept means, as well as the purpose of a value chain analysis
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Chapter 9- "Customer Relationship Management"
Focus on= Exhibit 9.3 and the concept of the Value Chain and its components
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CRM – Customer Relationship Management – multifaceted process, typically using info
tech, that fosters two-way exchanges w/ customers so that firms know “intimately” their
needs, wants, and buying patterns.
Value Chain – the purpose of the value chain is to
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Research and Development – focus on innovation and new products
Inbound Logistics – receive and store raw materials and distribute them to operations
Operations – transform the raw materials into final product
Outbound Logistics – warehouse the product and handle its distribution
Marketing and Sales – identify cst requirements and get cst to purchase products
Service – offers cst support, i.e., repair, or lifetime warranty
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Profit Margin: When the total value created – that is, what cst are willing to pay – exceeds
the cost of providing the good/service, the result is the profit margin
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Identify and understand the differences between mechanistic and organic organizational
structures
Chapter 9- "The Responsive Organization"
Focus on= Both concepts and what they mean for organizations
Watch the following review video on this competency!
 Mechanistic Organization
o A form of organization that seeks to maximize internal efficiency
 Organic Structure
o An organizational form that emphasizes flexibility
*PRINCIPLES OF MANAGEMENT. TOTAL QUALITY MANAGEMENT – TQM (17%)*
The graduate can describe how to establish a total quality management program in a product
operation and in a service operation.
Describe what a Total Quality Management (TQM) system is and how implementing one
benefits an organization
Chapter 9- "Quality Initiatives"
Focus on= understanding the concept of TQM and how it benefits organizations
 Total Quality Management (TQM)
o Improving product quality, thereby cst satisfaction
o High quality requires organization wide commitment
o Concept of Continuous Improvement (Kaizen) – meeting cst needs and improving the
value chain
 ISO 9001, etc.
o International Standards Organization used globally – quality standards process
revolves around 8 principles. Internally driven and revolves around certification by
ISO through External Audits
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Identify and understand the importance of statistical analysis in Total Quality Management
(TQM) models/methodologies
Chapter 9- section on "Six Sigma" and Chapter 16- "The Role of Six Sigma"
Focus on= The idea that six sigma quality uses statistical methods and tools to help improve
quality in an organization
 Six Sigma Quality
o A set of statistical tools to analyze the causes of product defects (anything that
results in cst dissatisfaction – i.e., late dlvry, wrong shipment, poor customer service,
product issues)
o The higher the sigma level, the lower the amount of variations and the higher the
quality
Understand and briefly discuss the main ideas behind Six Sigma quality-control tools
Chapter 16- "The Role of Six Sigma"
Focus on= key ideas behind Six Sigma and both % and # of defects per million.
 SIX SIGMA: A product or process is defect-free 99.99966% of the time – fewer than 3.4
defects or mistakes per million (reaching this goal almost always requires fundamental
restructuring of internal processes/relationships w/ suppliers and customers.
Identify key quality management approaches such as Deming’s 14 points
Chapter 9- "Quality Initiatives"
Focus on= Exhibit 9.4 Points of Quality, especially # 14
 A holistic approach to quality
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Distinguish between quality assurance and quality control
Focus on= website
resource: http://www.qualitygurus.com/download/QM001DifferenceBetweenQualityAssurance
AndQualityControl.pdf
 Quality Control
o (Reactive) Activities/techniques used to achieve and maintain the product quality,
process, and service
 Quality Assurance
o (Proactive) Prevention of quality problems through planned and systematic activities
including quality plans, inspections, tests, and documentation
Describe what a Quality Audit is and entails
Focus on= https://www.marketing91.com/quality-audit/
 Quality Audit
o Periodic, independent, and documented examination and verification of activities,
records, processes, and other elements of the quality system to determine their
conformity with the requirements of a quality standard such as ISO 9000
o Checking for adequate implementation of processes, elimination of problem areas,
boosting efficiency of methods.
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Describe what the Strategic Triangle is and how the three components relate to each other
Chapter 9- "Customers and the Responsive Organization"
Focus on= https://www.mbaboost.com/the-strategic-triangle-3-cs/
 Strategic Triangle (3 Cs)
o a framework used to establish the competitive position of the company in relation
to its customers and competitors.
o Strategies that evolve from this framework are based on gaining competitive
advantage – ensuring a better or stronger matching of corporate strengths to
customer needs than is provided by competitors.
Explain what "Reengineering" is and describe how organizations use Customer Relationship
Management tools to better understand and meet their needs
Chapter 9- "Reengineering"
Focus on= what the concepts means for organizations implementing the concept
Watch the following review video on this competency!
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Reengineering
o Cutting costs by focusing on what the cst wants and how the Value Chain can be
improved
o The Idea - “If you were the cst, how would you like us to operate?”
o Complete overhauling the op., in revolutionary ways to achieve greatest possible
benefit to the cst and the organization
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Manufacturing Concepts and Technologies
o Computer-integrated Manufacturing (CIM)
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The use of computer-aided design and computer-aided manuf. to
sequence/optimize a number of production processes
o Flexible Factories
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Manufacturing plants that have short production runs, are organized around
products, and use decentralized scheduling
o Just-in-time (JIT)
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A system that calls for subassemblies and components to be manufactured in
v small lots and dlvrd to the next stage of the production process just as they
are needed.
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Minimizing waste
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o Small Batch: produced in v low volumes; concept of a job-shop
o Large Batch: produced in high volumes; mass production
o Continuous Process: automated production, never really stops
o Mass Customization: customize products for low cost
*PRINCIPLES OF MANAGEMENT ENTREPRENEURSHIP PERSPECIVE - (13%)*
The graduate can describe how to establish and promote an entrepreneurial emphasis within an
organization. Identify the common characteristics that entrepreneurs possess
Chapter 7- "What Does It Take, Personally?"
Focus on= 6 areas mentioned in the text
 Entrepreneurs – What it Takes
o Commitment and determination
 Decisive, tenacious, disciplined, willing to sacrifice and able to immerse
themselves in their enterprises
o Leadership
 Self-starters, team builders, superior learners, and teachers. Ability to
communicate vision to impact venture growth
o Opportunity Obsession
 Intimate knowledge of cst needs, market driven, obsessed w/ value creation
o Tolerance of risk, ambiguity, and uncertainty
 Calculated risk takers, risk managers, tolerant of stress and able to resolve
problems
o Creativity, self-reliance, and ability to adapt
 Open-minded, restless w/ the status quo, highly adaptable, quick learners,
attentive to details
o Motivation to excel
 Results oriented, set high but realistic goals, strong drive to achieve and focus
on getting things done vs. excuses
Understand and be able to apply the Entrepreneurial Strategy Matrix to assess an
entrepreneurial opportunity
Chapter 7- “Making good choices” section of chapter
Focus on= Exhibit 7.5 and all its components
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Entrepreneurial Strategy Matrix
*Helps entrepreneurs identify effective and ineffective strategies.
o Innovation: High or Low levels / the creation of something new and different
o Risk: High or Low. Risks refers primarily to the probability of major financial loss
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o High Innovation/ Low Risk: ventures of truly novel ideas w/ little risk
o High Innovation/ High Risk: novel product ideas are accompanied by high risk bc the
financial investments are high and the competition is great
o Low Innovation/ High Risk: conventional entries in well-established fields. New
restaurant, retail shops and commercial outfits involve high investment for the small
biz entrepreneur and face direct competition from similar businesses.
o Low Innovation/Low Risk: ventures that require minimal investment and/or face
minimal competition for strong market demand. Ex: businesses w/ low startup costs
and those involving entry into small towns if there is no competitor and demand is
adequate.
Describe common reasons behind entrepreneurial success and failure
Chapter 7- "Common Management Challenges"
Focus on= reasons mentioned in the text for the above
 Challenges
o Might not enjoy it
o Survival is difficult
o Growth creates new challenges
o Hard to delegate
o Misuse of funds
o Poor controls
o Mortality and Succession
o Going Public – IPO (Initial public stock offerings)
 Advantages: raise more capital, reducing debt/ improving the balance sheet
and increasing net worth and credibility, pursuing otherwise unaffordable
opportunities
 Disadvantages: expense, time, effort involved; focus shifts to being more
interested in stock price vs. running the company properly. Long-term
relationship w/ investment banking firm that won’t necessarily always be a
good one
 Strengths (increasing your chances of success)
o Business Plan
o Opportunity Analysis/ Opportunity Assessment Plan
o Considering no financial resources
o Success and Failure
 Business Incubators
o Business Accelerators
o Opportunity Analysis
Identify common ways in which entrepreneurs finance their ventures Chapter 7- Please see
below- Focus on= The company's founders may start the business with their own money, or they
may seek financing in the form of debt (taking out a loan from family, friends, or a bank) or
equity (taking money in exchange for an ownership share in the company).
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How Entrepreneurs Finance Their Ventures
o Their own money
o Financing in the form of debt (loans from family, friends, or a bank)
o Equity (taking money in exchange for part ownership/share in the company)
o Investors (venture capital firms, angel investors)
o Peer-to peer loans are an alt. option to using a bank
o Crowdfunding (online investors)
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Describe what “Intrapreneurship” is and identify and apply the concepts
of Bootlegging and Skunkworks
Chapter 7- "Building Intrapreneurship" in the Corporate Entrepreneurship section
Focus on= the concepts mentioned above and their definitions and how applied in organizations
 Intrapreneurship
o Entrepreneurial thinking and behavior in the corporate workspace to enhance the
organization
 Skunkworks
o A project team designated to produce a new, innovative product – specific goals and
specific time frame
 Bootlegging
o Informal work on projects, other than those officially assigned, of employees own
choosing and initiative
Discuss how a larger organization can promote and maintain the spirit of entrepreneurship
and innovation
Chapter 7- "Entrepreneurial Orientation"
Focus on= read this section and understand the key concepts
Watch the following review video on this competency!
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Entrepreneurial Orientation
o An organization’s tendency to engage in activities designed to identify and capitalize
successfully on opportunities to launch new ventures by entering new or established
markets w/ new or existing goods/services.
o Comes from encouraging independent action, innovativeness, risk taking,
proactive behavior and competitive aggressiveness
*PRINCIPLES OF MANAGEMENT CONFLICT AND CHANGE MANAGEMENT - (19%)*
The graduate can recommend effective techniques for managing conflict and change.
Describe Constructive Conflict, why it can be beneficial to organizations and what structured
processes can be used to encourage it
Chapter 3- "Constructive Conflict" under “Managing Group Decision Making”
Focus on= all key concepts areas mentioned in this section
 Conflict
o Opposing pressures from diff sources, occurring on the level of psychological conflict
or of conflict between individuals or groups
o What describes dimensions of conflict-handling intentions?
 Cooperativeness and Assertiveness
 Cognitive Conflict = Good
o Most constructive type of conflict; issue-based differences in
perspectives/judgements. Conflicts are task related rather than personal
 Affective Conflict = Bad
o Emotional disagreement directed at other people; destructive to the group bc it can
lead to anger, bitterness, goal displacement and lower-quality decisions
 Devil’s Advocacy (Constructive conflict through structured processes)
o A person who has the job of criticizing ideas to ensure that their downsides are fully
explored
 Dialect (alt. to devil advocacy) – Structured Debate
o 2 conflicting courses of action – philosophy behind dialectic stems from Plato and
Aristotle, who advocated synthesizing the conflicting views of thesis and an
antithesis. Ex: One team might present the case for acquiring a firm, while the other
team advocates not making the acquisition.
 Construction Conflict
o Necessary responsibility of all group members interested in improving the group’s
decision-making effectiveness
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Identify the various stages of the conflict process
https://www.youtube.com/watch?v=PzihF_TcPYs
Focus on= the idea of intentions in the conflict process
 Potential Opposition or Incompatibility
 Cognition and Personalization
 Intentions
 Behavior
 Outcomes
Identify and describe the various conflict styles and how conflict strategies function in
organizations
Chapter 14- "Conflict Styles" in chapter
Focus on= Exhibit 14.5 and all 5 strategies mentioned and what they mean, as well as the
concept of “superordinate goals”.
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Conflict Styles
o Avoidance
 Ignoring the problem
o Accommodation
 Cooperation on behalf of the other party but not being assertive about one’s
own interests
o Compromise
 Involves moderate attention to both parties’ concerns, being neither highly
cooperative nor highly assertive
o Competing
 Unwilling to recognize the other person’s concerns
o Collaboration
 Cooperation and assertiveness to maximize both parties’ satisfaction
o Superordinate Goals
 Higher-level organizational goals taking priority over specific individual or
group goals
o Cohesiveness
 The degree to which a group is attractive to its members, members are
motivated to remain in the group, and members influence one another
Line and Staff Dept. Conflicts
o Line Departments (front line)
o Staff Departments (support)
Describe the key aspects of the job-characteristics model of organizing and describing jobs
Chapter 13- "The Hackman and Oldham Model of Job Design"
Focus on= Exhibit 13.6 and all 5 components that make up the model
 The Hackman and Oldham Model of Job Enrichment
1. Skill Variety – diff. job activities involving several skills/talents
2. Task Identity – the completion of a whole, identifiable piece of work
3. Task Significance – an important, positive impact on the lives of others
4. Autonomy – independence and discretion in making decisions
5. Feedback – information about job performance. Manny companies provide info on
productivity, number of rejects, and other performance indicators
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Explain what a "boundaryless" organization is and what it means for organizations
Chapter 15- "Boundarylessness"
Focus on= what does this mean for organizational communication
 Boundarylessness
o An organization that has no barriers to information flow – ideas, information, and
decisions move to where they are most needed
o Information available as needed moving quickly/easily enough that the org.
functions far better as a whole than as separate parts
o Improving Communication Skills
 Sender Skills (presentation, writing, language)
 Nonverbal Skills (eye contact, body language)
 Receiver Skills (Listening, reading, observing)
Identify and summarize ways in which to become a better communicator cross-culturally
Chapter 15- "Language” section in the chapter
Focus on= use of language in cross-cultural communications
 Communicating Cross-Culturally
o When conducting business overseas, try to learn something about the other
country’s language/culture/customs
o Those who learn host country languages and customers will have an edge over their
competitors who do not
o Trying to learn the local language builds rapport, and set proper tone for doing
business
Understand the Prosci 3 Phase Change Management Process
http://www.prosci.com/methodology/why-proscis-3-phase-process-works/
Focus on= 3 phases of the management change
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ADKAR: Awareness – Desire – Knowledge – Ability - Reinforcement
*effective framework for planning change management activities, diagnosing gaps,
developing corrective actions, and supporting managers and supervisors
Prosci Methodology
o Phase 1: Prepare Approach
 What are we trying to achieve?
 Who has to do their jobs differently and how?
 What will it take to achieve success?
o Phase 2: Manage Change
 What will we do to prepare, equip, and support people?
 How are we doing?
 What adjustments do we need to make?
o Phase 3: Sustain Outcomes
 Now, where are we?
 What is needed to ensure the change sticks?
 Who will assume ownership and sustain outcomes?
Identify and apply approaches to gaining cooperation in organizational change initiatives
Chapter 18- "A General Model for Managing Resistance"
 Force-Field Analysis
o An approach to implementing the unfreezing/ moving/ refreezing model by
identifying the forces that prevent people from changing and those that will drive ppl
toward change
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Unfreezing: realizing that current practices are inappropriate, and that new behavior is
necessary – company must break out of (unfreeze) its present mold to do things differently
Moving: instituting the change
Refreezing: strengthening the new behaviors that support the change – reinforcing the new
ways – model which served as a foundation for many change models
Focus on= Lewin’s Model of Change and Exhibit 18.5 Methods for Managing Resistance to
Change
Watch the following review video on this competency!
 Lewin’s Model of Change
Theorized although driving forces can be easy to change, changing them may increase conflict
and opposition, thereby creating new restraining forces. Noting – to create change, it is crucial
to remove restraining forces as well as adding driving forces
o Establish a sense of urgency
o Creating the guiding coalition
o Developing a vision/strategy
o Communicating the change vision
o Empowering broad-based action
o Generating short-term wins
o Consolidating gains and producing more change
o Anchoring new approaches in the culture
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*Participation and Involvement
 EX: Business panel hears concerns of the community, once they hear concerns they
offer solutions
*Facilitation and Support
 EX: Teacher provides training and other resources to help students who are struggling
implementing a new schedule
*PRINCIPLES OF MANAGEMENT, HR MANAGEMENT AND DIVERSITY - (8%)*
The graduate can correctly apply principles of human resource management in a given situation
The graduate responds appropriately to diversity issues in the workplace
Describe strategic human resource management and how HR planning can benefit an
organization
Chapter 10- "Strategic Human Resources Management” -- Focus on= The HR Planning Process
section, especially concepts of Supply & Demand with respect the human resources/capital
 Strategic HR Management
o A pattern of planned HR deployments and activities intended to enable an
organization to achieve its goals
 HR Planning Process
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Demand Forecasts: stems from org. plans – considers current and projected sales growth,
production capacity to meet future demand, etc. - how many and what types of people are
needed
Labor Supply Forecasts: supply analysis is performed to allow managers to estimate the
number and quality of current employees as well as available external supply of workers. To
estimate internal supply, rely on past experiences/data re: turnover, termination,
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retirements, promotions, and transfers. Externally, they will look at workforce trends to
make projections
Reconciling Supply and Demand: when managers do need to hire, one tool they can use if
their org. compensation policy. Large companies in particular spend a lot of time gathering
info about pay scale for the various jobs they have available and making sure their
compensation sys is fair and competitive.
o Labor Surplus – organizations having more ppl than they need
o Labor Deficit – companies needing more ppl than they currently have
Understand and identify the key techniques used in the employee recruitment and selection
process in and organization
Chapter 10- “Staffing” sections in the text
Focus on= Recruitment and Selection sections, especially the types of tests used in the selection
process
 Recruitment: the development of a pool of applicants for jobs in an organization
o Internal Recruiting: the Advantages – two-way familiarity, opportunities for
promotions encourage employees to remain w/ the company, work hard, and
perform well. The disadvantages – if employees lack needed skills, internal
recruitment yields a limited applicant pool, leading to poor selections.
o External Recruiting: internet job boards, company website, employee referrals,
newspaper advertisements and college campus recruits
 Selection: Choosing from among qualified applicants to hire, selection is built on recruiting
and is a decision about who to hire
o Applications and Resumes
o Interviews
 Structured Interview
 Situational Interview
 Behavioral Description Interview
o Reference Checks
o Background Checks
o Personality Tests
o Drug Testing
 Cognitive Ability Tests
 Performance Tests
 Integrity Tests
 Reliability
 Validity – the accuracy of the select test, most common form of validity:
 Criterion-Related Validity: refers to the degree to which a test
actually predicts or correlates w/ job performance
 Content Validity: concerns the degree to which selection tests
measure a representative sample of the knowledge, skills, and
abilities required for the job.
Identify and apply major U.S. Equal Employment Laws to the workplace environment and
how they affect human resource considerations
Chapter 10- “Staffing” and Chapter 11-"Diversity Today"
Focus on= Exhibit 10.4 & sections on “The Changing Workforce”
 U.S. Equal Employment Laws
*Failure to comply with these laws exposes the organizations to charges of unfair practices,
expensive lawsuits, and civil, even criminal penalties
o Equal Employment Opportunity Act
o This law makes it illegal to discriminate against someone on the basis of
race, color, religion, national origin, or sex.
o Fair Labor Standards Act (1938)
 Sets minimum wage, maximum hr. and child labor provisions
o Equal Pay Act (EPA) (1963)
 Prohibits unequal pay for men and women who perform equal work
o Title VII of Civil Rights (1964)
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Prohibits discrimination based on race, sex, color, religion, national origin.
Reinforced by EEOC (Equal Employment Opportunity Commission); private
action, back pay, front pay, reinstatement, restoration of seniority and
pension benefits, etc.
o Execution Orders 11246 and 11375 (1965)
 Requires equal opportunity clauses in federal contract; prohibits
employment discrimination by federal contractors based on race, color,
religion, sex, or national origin.
o Age Discrimination in Employment Act (1967)
o Vocational Rehabilitation Act (1973)
 Requires affirmative action by all federal contractors for persons w/
disabilities; defines disabilities as physical or mental impairments that
substantially limit life activities.
o Americans with Disabilities Act Amendments Act (2008)
 A visually impaired person has been hired to work in HR, which
accommodations will the company provide? > Braille Keyboard and large
monitor
o Civil Rights Act (1991)
o Family and Medical Leave Act (1991)
 Requires 12 weeks unpaid leave for medical or family needs: paternity,
family member illness. Private actions for lost wages and other expenses,
reinstatement
One common reason employers are sued is adverse impact – when an employment practice
has a disproportionately negative effect on a group protected by the Civil Rights Act.


Identify issues that could arise between older and younger workers in an organization
Chapter 11- "The Age of the Workforce"
Focus on= communication issues that can arise among
generations- https://www.forbes.com/sites/forbescoachescouncil/2018/07/16/the-businessleaders-guide-to-communication-across-generations/#753623b96656
 Older Workers
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
o Traditionalist (Before 1946)
o Baby Boomers (1946 – 1964)
o Generation X (1965 – 1980)
Younger Workers
o Millennials (1981 – 1996)
o Gen Z (1997 - 2012)
Issues b/w generations
o Ex: at University older workers cannot be fired due to tenure even though they
are bad at their job, this upsets the younger workers. The result of this conflict
bw the 2 generations is based on the Structure of the system/establishment.
o Different communication, personal attributes, upbringing can result in different
preferences, ways of working, priorities, and skill levels
Identify and apply the Americans with Disabilities Act (ADA) legislature in the workplace
Chapter 11- “Mental and Physical Disabilities”
Focus on= key term of “reasonable accommodations” and what it means
 Reasonable Accommodations
o Employers are required to provide workplace modifications to facilitate
employees’ w/ disabilities
WORKPLACE DIVERSITY - (13%)
Chapter 10- "Training and Development”
Focus on= Types of Training including Diversity
Watch the following review video on this competency!

Diversity Training
o Programs that focus on identifying and reducing biases against ppl w/ differences
and developing the skills needed to manage a diversified workforce.
 Training
 Development
 Awareness Building
 Skill Building
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
Competitive Advantage through Diversity and Inclusion
o Ability to Attract and Retain Motivated Employees
o Better, Broader Perspective on a Differentiated market
o Ability to leverage creativity and Innovation in problem solving
o Enhancement of Organizational flexibility
Challenges of Diversity
o Unexamined Assumptions
o Lower Cohesiveness
o Communication Barriers/Problems
o Stereotyping
o Mistrust and Tension
*PRINCIPLES OF MANAGEMENT ORGANIZATIONAL STRUCTURE - (10%)*
The graduate can recommend an organizational structure to match a given organization's
situation.
Describe the fundamental concepts of the organizational chart, including the Division of Labor
and Coordination -- Chapter 8- "Fundamentals of Organizing" -- Focus on= Exhibit 8.1;
Differentiation & Integration concepts
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
Conventional Organization Chart

Differentiation
o Organization is composed of many units that work on different kinds of tasks,
using different skills and work methods.
 Division of Labor: the work of the Org. is subdivided into smaller tasks
(specialization refers to the ppl/groups that do these smaller tasks)
^(Exhibit 8.2 – Examples of Differentiation)

Integration
o Means that work of these differentiated units is coordinated into an overall
product
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
Coordination: the procedures that link the parts of the Org. to achieve the
organization’s overall mission
Explain in detail the key elements of the vertical organizational structure
Chapter 8- "The Vertical Structure" (Note that vertical and horizontal structure elements appear
in every organization!) -- Focus on= All concepts in this section
 Vertical Organizational Structure
*gives perspective on how managers and employees at diff. levels relate to one another
 Authority
o Legitimate right to make decision and to tell others what to do
o Board of Directors: owners are the stockholders, but bc there are many “hands
off” stockholders, they elect a board of directors to oversee the organization,
Responsible for 3 major sets of duties:
 Selecting, evaluating, rewarding, and perhaps replacing the CEO
 Determining the firm’s strategic direction and reviewing financial
performance
 Ensuring ethical, socially responsible, and legal conduct
o Chief Executive Officer: CEO is the top of the organizational pyramid – is
personally accountable to the board and to the owners for the organization’s
performance. Sometimes holds position of CEO and board chair, but in other
cases to disperse power it will be held by diff ppl.
o Top Management Team: C-Suite executives
 Hierarchal Levels:
 Hierarchical Levels: the authority levels of the organizational pyramid – the authority
structure is the glue that holds vertical levels together.
o Trend: reducing the number of hierarchical levels, having fewer layers has
proven to be more efficient, fast-acting, and cost-effective
 Span of Control
o The number of subordinates who report directly to an executive or supervisor
 Delegation
o Fundamental process of management bc it entails getting work done through
others. Occurs bw any 2 individuals in any type of structure w/ regard to any task
– Chart:
o Advantages: leverages the manager’s energy, and talent of subordinates, saves
time, helps develop effective subordinates – giving them the opportunity to
develop new skills, etc.

Centralized
o An organization in which high-level executives make most decision and pass them
down to lower levels for implementation
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Decentralized
o An organization in which lower-level managers make important decisions
o Advantages: speeds up decision making, lower-level managers know how to deal
w/ the problem directly
Explain in detail the key elements of the horizontal organizational structure
Chapter 8- "The Horizontal Structure" (Remember that vertical and horizontal structure
elements appear in every organization!) -- Focus on= All concepts in this section
 Horizonal Structure
*as tasks of an org. become increasingly complex, the organization inevitably must be
subdivided into smaller units/depts. (departmentalization)
 Line Departments
o Units that directly deal w/ the organization’s primary goods and services
o They make things, sell things, provide customer service, etc.
 Staff Departments
o Specialized or professional expertise that supports the line depts.
o Ex: Research, legal, accounting, PR, HR depts. – each dept. will have its own VP
 Departmentalization
o Subdividing an org. into smaller subunits
 Functional Organization: jobs (and depts.) are specialized and grouped according to
business functions and the skills they require - production, marketing, HR, research and
development, finance, accounting, etc. Common in both large and small orgs.

The Divisional Organization: departmentalization that groups units around products,
customers, or geographic regions. Separate divisions can act almost as separate businesses
or profit centers, working autonomously to accomplish the goals of the entire enterprise
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Identify and describe what a "matrix" and "network" organizational structure is
Chapter 8- "The Matrix Organization" & “The Network Organization” -- Focus on= Exhibit 8.10
and key ideas behind the Matrix structure; Exhibit 8.13 and key ideas behind the Network
Organization

The Matrix Organization: a hybrid form of organization in which functional and divisional
forms overlap. Managers and staff personnel report to 2 bosses – functional manager and a
divisional manager. Matrix Org. have a dual rather than single line of command – Chart:

The Network Organization: collection of independent, most single-function firms that
collaborate to produce a good/service. Network organizations are flexible arrangements
among designers, suppliers, producers, distributors, and cstmrs where each firm is able to
pursue its own distinctive competence + work w/ other networks. – Chart:
o Communicate electronically and share information to be able to respond quickly
to cst demands.
o Networks can improve cost, quality, service, speed, sustainability, and innovation

Dynamic Network: also called modular or virtual corporation. Temporary arrangements
among partners or businesses that can be assembled and reassembled to adapt to the
environment
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o Members of the network are held together by contracts that stipulate results
expected – market mechanisms – rather than by hierarchy and authority.
o Suitable when much of the work can be done independently by experts
o Networks are flexible, innovative, and quick to respond to threats and
opportunities, and they reduce costs/risk
Understand and describe key approaches to bureaucratic control & steps in the bureaucratic
control process sequence -- Chapter 16- " Bureaucratic Control Systems" + “Approaches to
Bureaucratic Control” + "Designing Effective Control Systems" -- Focus on= Exhibit 16.3 The
Control Cycle, 3 approaches to control, and 5 steps to designing effective control systems
described in the text
 Bureaucratic Control Systems: measures progress toward performance goals and apply
corrective measures as needed to ensure the performance achieve manager’s objectives.
o Control systems detect and correct significant variations/discrepancies, in the
result of planned activities.
o The Control Cycle – Chart:


Approaches to Bureaucratic Control
o Feedforward Control: used before operations begin, including policies,
procedures, and rules designed to ensure that planned activities are carried out
properly
o Concurrent Control: (currently) used while plans are being carried out, including
directing, monitoring, and fine-tuning activities as they are performed
o Feedback Control: (afterwards) the control process that focuses on the use of
information about prev. results to correct deviations from the acceptable
standard
Designing Effective Control Systems
o Establish valid performance standards: must be based on accurate, objective
standards, usually qualitative
o Provide adequate information to employees: importance and nature of the
system, along w/ feedback, must be communicated to employees by
management (self-correction is the goal)
o Ensure acceptability to employee: must believe in and feel that they are possible
to achieve
o Encourage open communication: employees should feel that they can report bad
news w/out fear
o Use multiple approaches: example is the balanced scorecard that combines
financial, cst, process, and learning/growth measures
Explain the need for organizational controls and the types of control mechanisms that exist
Chapter 16- "Managerial Control" -- Focus on= Exhibit 16.2 Characteristics of Controls -- Watch
the following review video on this competency!
 Types of System Controls
o Bureaucratic Control: formal rules, standards, hierarchy, and legitimate
authority. Works best where tasks are certain, and workers are independent
o Market Control: uses prices, competition, profit centers, and exchange
relationships. Works best where tangible output can be identified and a market
can be established bw parties
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o Clan Control: involves culture, shared values, beliefs, expectations, and trust.
Works best where there is no best way to do a job, and employees are
empowered to make decisions
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