Final Exam Notes – BUS Management
Chapter 9 – Staffing
Staffing process – 1. Human resource planning – involves assessing current employees, forecasting future needs, making plans to add or remove workers; 2. Recruiting – look for qualified people inside/outside company; 3. Selection –
testing and interviewing candidates, hiring – process of deciding which candidate out of pool of applicants possesses qualifications for relevant job. Begins where recruiting ends; 4. Orientation – employees learn surroundings, meet
coworkers, learn rules regulations, benefits; 5. Training and development – employers establish programs; 6. Performance appraisal – control function of management. Establish criteria for evaluating work, schedule formal sessions to
discuss evaluations with employees, determine how to reward high achievers and motivate others to become high achievers; 7. Compensation – establish pay and benefits; 8. Employment decisions – make decisions about career
developments (transfers, promotions, demotions, layoffs, firings)
Sharing economy – peer-to-peer rental market; Gig economy – independent contractors or self-employed people work for short-term engagements
independent contractors – self-employed workers hired by companies with verbal agreement for short term or under terms specified in contract
discrimination – using illegal criteria when making employment decisions, results in adverse impact on members of protected groups
equal employment opportunity – legislation designed to protect individuals and groups from discrimination
disparate impact – result of using employment criteria that have significantly great negative effect on some groups than on others
affirmative action – require employers to make extra effort to employ protected groups; plan to give members of specific groups priority in hiring or promotion
sexual harassment – unwelcome verbal or physical conduct of sexual that implies, directly or indirectly, that sexual compliance is a condition of employment or advancement or that interferes with an employee’s work performance
collective bargaining – negotiation between a union and employer in regard to wages, benefits, hours, rules and working conditions
job analysis – study tat determines the duties associated with a job and the human qualities needed to perform it
bone fide occupational qualification – ability necessary to perform a job
test – any criterion or performance measure used as a basis for any employment decision
assessment centers – specialize in screening candidates for managerial positions
Chapter 10 – Organizing
Communication – transmission of information of data in a coherent, usable form) from one person or group to another; Understanding – agreement about the meaning and intent of the message among all parties in each communication
Nonverbal communication – messages transmitted without the use of words; Interpersonal communication – involves real-time, face-to-face , voice-to-voice *telephone) conversations that allows instant feedback; appropriate for
discussing matters that require give-and-take between participants ; Diction – choice and use of words in speech and writing; Semantics – study of the meanings of words, appreciates and confirms that words may possess different means
for different people; Jargon – specialized or technical language that develops in trades, professions, subcultures, and other groups; Perceptions – ways people observe and the basis for their judgements about the stimuli they experience
Stereotypes – predetermined beliefs about a group of people; Noise – anything in the environment that interferes with sending and receiving of messages
Formal communication channels – management-designated pipelines – running up, down and across the organizational structure – used for official communication efforts
Informal communication channels – informal networks, existing outside the formal channels, used to transmit casual, personal and social messages at work
Grapevine – informal communication channel; can penetrate tightest security, is fast, tends to carry messages from anonymous sources, difficult to stop or counter once sent; accessible to every person, can be supportive or not to
management efforts
Teams – four kinds of communication: exchange views, discuss work, deliberate on a problem or issue, transmit information
Chapter 11 – Motivation
Quality of work life (QWU) – factors in the work environment contributing positively or negatively workers’ physical and emotional well being and job satisfaction
Motivation – result of interaction of person’s internal needs and external influences – involving perceptions of equity, expectancy, previous conditioning, and goal setting – which determine how person
will behave
Integrated motivation model – in choosing behavior to satisfy need, person must evaluate 1) past experiences 2) environmental influences 3) perceptions
Maslow’s hierarchy of needs – 1) only unsatisfied need can influence behavior; satisfied need is not motivator; 2) person’s needs are arranged in priority order of importance; 3) person will at least
minimally satisfy each level of need before feeling need at next level; 4) if need satisfaction is not maintained at any level, unsatisfied need will become priority once again;
1)Physical needs – food, clothing, shelter, comfort, self-preservation; 2) safety needs – security for self and possessions, avoidance of risks, harm, pain; 3) social needs – companionship, acceptance love
and affection, group membership; 4) esteem needs – responsibility, self-respect, recognition, sense of accomplishment; 5) self-actualization – reaching potential, independence, creativity, self-expression
Herzberg’s two-factor (hygiene-motivator) theory – factors that lead to job dissatisfaction and factors that produce job satisfaction and motivation (hygiene factors vs. motiva tors)
Prevent job dissatisfaction (hygiene) – salary, job security, working conditions, status, company policies, quality of technical supervision; quality of interpersona l relations among peers, supervisors,
subordinates
Increase personal growth – achievement, recognition, responsibility, advancement, work itself, possibility of growth
McClelland and Need for Achievement – certain types needs are learned during lifetime of interaction with environment; achievement, power, affiliation
High achiever – performs task because of compelling need for personal achievement, not necessarily for rewards associated with accomplishing task, prefers to take personal responsibility for solving
problems rather than leaving outcome to others, prefers to set moderate goals that, with stretching, are achievable; easy goals with high probability of success provide no challenge, thus no satisfaction;
prefers immediate, concrete feedback about performance, which assists in measuring progress toward goal
Alderfers ERG Theory – compresses Maslow’s five levels of needs into three; existence, relatedness, growth
Expectancy Theory – before choosing behavior, individual will evaluate various possibilities on basis of anticipated work and reward; three variables: effort-performance link, performance-reward link,
attractiveness; individual who expects outcome, possesses competence to achieve it, wants it badly enough will exhibit behavior required by organization; manager who knows each subordinate’s
expectations and desires can tailor outcomes associated with specific behaviors to produce motivation
Reinforcement theory – person’s behavior in situation is influenced by rewards or penalties experienced in similar situations in past; positive reinforcement, avoidance, extinction, punishment; reinforcement affected by time; closer to
behavior, greater the impact on future behavior
Equity theory – people’s behavior relates to their perception of how fairly they are treated; employees motivated by both absolute and relative rewards available in system; employees make conscious comparisons of equity
Goal setting theory – people’s behavior is influenced by the goals that are established; managers should work with employees in setting goals, make goals specific rather than general; provide feedback on performance
Philosophy of management – attitude about work and people who perform it, which influences the motivation approaches he selects
Theory x - philosophy of management with negative perception of subordinates potential for and attitudes toward work
Theory y – philosophy of management with positive perception of subordinates potential for and attitudes toward work
Argyris’s maturity theory – Chris Argyris, noted for models of organization learning, summarized attitudes towards employee maturity: people who have reached maturity are active rather than passive, are independent rather than
dependent, are self-aware rather than unaware, are self-controlled rather than controlled by others
A mature personality conflicts with typical organizations in four ways: formal chain of command limits self- determination, making individuals passive, manager dependent; span of control decreases person’s self-determination; unity of
direction places objectives under control of one manager, limits employee’s ability to define objective; specialization of labor limits initiative, self-determination
Effective reward system: rewards must satisfy basic needs of all employees, must be comparable to those offered by competitive organizations in same area, must be equally available to people in same positions and be distributed fairly
and equitably, must be multifaceted
Job redesign – application of motivational theories to structure of work, to increase output and satisfaction; Job scope – element of job redesign that refers to variety tasks incorporated into job; Job depth – element of job redesign
referring to degree of discretion of employee has to alter the job; Job enlargement – increasing variety or number of tasks in job, not quality or challenge of those tasks; Job rotation – temporarily assigning people to different jobs or tasks
on rotating basis; Job enrichment – designing a job to provide more responsibility, control, feedback, authority for decision-making
Intrapreneurship – entrepreneurship within organization, allowing employees flexibility and authority in pursuing and developing new ideas
Chapter 12 Leadership
Leadership – process of influencing individuals and groups to set and achieve goals
Influence – power to sway other people to one’s will or views; Leaders – guide, direct, persuade, coach, counsel, inspire others
Leadership skills – include diplomacy, fluency in speech (communication skills), persuasiveness, social ability; Managers – plan, organize, staff, lead, and control; might or might not be effective in influencing their subordinates or team
members to set and achieve goals
Legitimate power – formal authority; Coercive power – exercise of legitimate power by punishing subordinate’s unacceptable outcomes/performances; Reward power – right to promise or grant rewards; also exercise of legitimate power
Expert power – influence of person’s abilities, skills, knowledge, experience; Referent power – influence of personality or charisma
Leadership style – perceived approaches and behaviors manager uses to influence others
Autocratic style – leadership approach where manager does not share decision-making authority with subordinates
Participative style – leadership approach in which manger shares decision-making authority with subordinates
Free-rein style – leadership approach where manger shares decision-making authority with subordinates, empowering them to function without direct involvement from mangers to whom they report
Leadership Grid – Blake and Mouton’s two dimensional model for visualizing extent to which manger focuses on tasks, employees or both
Contingency model – most appropriate style of leadership for manager depends on situation; leadership theory stating that manager should focus on either tasks or employees, depending on interaction of three variables: leader-member
relations, task structure, leader position power
Path-goal theory of leadership – asserts that subordinates’ behaviors/motivations are influenced by behaviors managers exhibit toward them; four kinds leadership behaviors: instrumental (task-oriented) behavior, supportive behavior
(employee-oriented), participative behavior (employee-oriented), achievement-oriented behavior (employee-oriented)
Gamification – Gartner defines gamification as “use of game mechanics and experience design to digitally engage and motivate people to achieve goals”
Life-cycle theory – view of management that asserts that leader’s behavior toward subordinate should relate to subordinates maturity level; focus on tasks and relationships should vary as subordinate matures
Chapter 13 – Team Management
Vertical teams – aka command or functional team – composed of a manager and his or her subordinates in the formal chain of command; may include as many as three or four levels of management
Horizontal teams – made up of members drawn from different departments in organization; usually created to address a specific task or objective; may disband after achieving objective; 1. Task force – designed to accomplish a limited
number of objectives or tasks; composed of employees from different departments; exists only until meets its objectives; 2. Cross-functional team – harnesses knowledge of people from various functional areas to solve problems; focus on
objectives but have a continuous life; 3. Committee – might be ad hoc (set up to do job and then disbanded) or standing (permanent); if permanent work is ongoing
Product development teams – organized to create new products
Project team – team organized to complete specific task
Quality assurance team – team created to guarantee quality of services/products, contact customers, work with vendors
Process team – team that groups members who perform, refine major processes
Work team – composed of multi-skilled workers, does all tasks previously done by individual members in functional department(s)
Self-managed work team – fully responsible for its own work, sets own goals, creates own schedules, prepares own budgets, coordinates work with other departments
Executive team – consists of two or more people to do job traditionally held by one upper-level manager
Task-specialists – contributor (supplies data, information), challenger (questions goals, methods, ethics), initiator (proposes new solutions, methods, systems for problems)
Social specialists – collaborator (consistency; urges team to complete vision); communicator (listener, facilitator, humanizer), cheerleader (encourages/praises individual team efforts), compromiser (shifts opinion to maintain harmony)
Phases of team development – forming (members becoming acquainted), storming (characterized by disagreement/conflict as roles and personalities emerge), norming (resolve, team members unify and focus), performing (members
progress toward team objectives, handle problems, coordinate, confront)
Free rider – person who receives benefit of team membership, does not do proportionate share of work
View of conflict – traditional (views conflict as unnecessary, harmful; eliminates evidence of conflict; perceives conflict as personal failure); behavioral (accepts conflict; believes conflict can produce positive results; conflict usually harmful,
seeks to resolve/eliminate); interactionist (inevitable, necessary for company health; conflict good or bad based on how manage)
Dysfunctional conflict – limits organization’s ability to achieve objectives; Functional conflict – supports objectives of organization; Avoidance – conflict strategy which ignores situation; Smoothing – manager diplomatically acknowledges
conflict but downplays importance; Compromise – each party gives something up; Collaboration – manager promotes mutual problem-solving; Confrontation – forces parties to verbalize their positions/disagreements
Superordinate objective – overshadows personal interests, manager can appeal as strategy for resolving conflict
Chapter 14 – Information Management Systems
Information technologies (IT) – means for implementing business strategy, creating and handling intellectual capital and facilitating communication – as they relate to an information system (IS)
Information system (IS) – organizational subsystem enabling an organization to effectively/efficiently share intellectual capital and create/maintain working environment in which employees can exploit it
Data – unprocessed facts and figures that – until they are gathered, sorted, summarized, processed and distributed to those who need them – are of little value
“big data” – vast amount of data available today to managers and organizations
Analytic methods for big data – include linear regression, logistic regression, text analytics, clustering , visualization, optimization
Information – results from processing data through information technologies; to be useful, must have value, be understandable, reliable, relevant, complete, concise, timely, cost-effective
Management information system (MIS) – formal collection of processes that provides managers with quality of information they need to make decisions, solve problems, implement changes, create effective and efficient working
environments. subsystem within organization’s IS. Designed to serve specific information needs of all decision makers – mangers and empowered individuals/teams.
ISs/MISs – must be designed with user’s needs in mind. In addition to linking individuals and their subsystems, they must link an organization to all external customers, partner, suppliers. Must perform three functions
1.
Assist organization and their members in achieving their objectives – should augment, enable and facilitate, not interfere with processes and operations
2.
Facilitate information access – should be able to obtain information easily
3.
Facilitate information flow – proper quantity and quality of information must flow in fastest, most direct way to those who need it, when need it
Guidelines for developing/improving IS/MIS – 1. Involve users in system’s design 2. Establish clear lines of authority and leadership for the IS personnel 3. Establish clear procedures for gathering, sorting, interpreting, displaying, storing,
distributing data, and for interacting with the system 4. Where technical specialists are used, ensure both they and people they support fully understand each specialist’s function and role 5. Build IS/MIS staff of sufficient quantity and with
sufficient skills needed to adequately provide services
Computerized information system (CIS) – IS built on computers and their related hardware (peripherals) and software. Computers began as an engineering too land later as a means of storing data
Internet of Things (IoTs) – phrase first used by Kevin Ashton, “to describe the network connecting objects in the physical world to the Internet”
Data center – unit of decentralized CIS that operates to observe its unit’s members with own sets of hardware, software, and specialists (machine operators and programmers)
End-user computing – decentralized CISs result in use of information technology (IT) by people who are not controlled and directed by top management (ex: voice mail, email, word processing, desk-top publishing)
Office automation system (OAS) – collection of technologies to operate offices efficiently
Database – aka data bank; collection of computerized data arranged for ease and speed of retrieval
Collaborative filtering – technology that personalizes product recommendations according to customers past purchases and comparing them to similar customers in aggregate
Computer hardware – consists of unput devices, a control unit, a central processing unit (CPU), storage devices, output devices; includes software
Software – programs that give hardware instructions for processing and storing data; encompasses to fundamental classes of programs
1.
Operating system – comprises extensive and complex set of instructions that manages the operation of computer and application programs that run on it
2.
Application programs – computer software designed to execute specific sets of tasks such as word processing, graphic design, accounting, finance, production operations market, personnel and inventory control, etc.
Two data processing modes commonly used in business setting
1.
Batch processing – computer procedure in which data are collected over time and entered into databases according to prescribed policies and procedures
2.
Transaction processing system (TPS) – computer-based information system of company’s routine business activities
Transactional processing – procedure in which data received about company’s ongoing operations, entered into data banks as transaction occurs
Networking – electronic linking of two or more computers
Network – group of interconnected computers, including hardware and software used to connect them
Local area networks (LANS) – links computers throughout a facility
Wide area networks (WANS) – links computers and their LANS to those at remote locations, including computers linked to the Internet; most businesses use WANS to link their remote operations and connect them to operations of their
customers, partners, suppliers
Internet – worldwide network of computers linked by phone lines
Decisions support system (DSS) – specialized variant of a CIS; analytic model that joins manager’s experience, judgment, and intuition with computer’s data access, display, and calculation processes; allows managers to interact with linked
programs and databases via keyboard
Expert system – specialized end-user decision support program that stores the knowledge of group of authorities for access by non-experts faced with the need to make topic-related decisions
Artificial intelligence (AI) – ability of machine to perform those activities that are normally thought to require intelligence; giving machines capability to learn, sense, and think for themselves
Knowledge management (KM) – merging of company’s human and technical knowledge assets; describes integrated approach to identifying, capturing evaluating, retrieving, sharing company’s intellectual capital and technical knowledge
assets
Group decision support system (GDSS) – variant decision support system that allows groups focusing on a problem to interact with one another and to exchange information, data, ideas
Executive information system (EIS) – decision support system custom designed to facilitate executive decision-making; may include forecasting, strategic planning, etc.
Enterprise resource planning (ERP) system – broad-based software system that integrates multiple data sources and ties together the various processes of an enterprise to enable information to flow more smoothly
Four challenges of information systems – 1. Overcoming resistance 2. Enabling users 3. Outsourcing 4. Evaluating results
Chapter 15 – Control
Controlling – process through which standards for performance of people and processes are set, communicated, applied
Standard – any established rule or basis of comparison used to measure capacity, quantity, content, value, cost, quality, performance
Risk manager – high-level person in charge of planning for and overseeing efforts to control management of all risks an organization faces
Control technique – device designed to measure and monitor specific aspects about performances of an organization, its people, and its processes
Control process – four-step process consisting of establishing performance standards, measuring performance, comparing measured performance to established standards, and taking corrective action
Six Sigma – highly disciplined process that helps companies focus on developing and delivering near-perfect product/services
Feedforward controls – aka preliminary, screening or prevention controls; intended to prevent defects and deviations from standards
Ex: locks on doors and bars on windows, safety equipment and guidelines, employee-selection procedures, employee-training programs, budgets; when manufacturer works closely with its suppliers to ensure suppliers deliver
goods/services that meet standards, maintenance procedures to keep equipment in top-notch shape; antivirus computer software
Concurrent controls – aka steering controls; controls that apply to processes as they are happening
Ex: word processing software (allows writer to change document before storing or printing); can be designed to provide readouts or audible warnings (display panels that alert users to malfunctions during operation); devices on dashboard
of cars (odometer tracks miles traveled, speedometer tracks speed, warning lights alert driver to impending or actual problems, steering wheel allows driver to make adjustments in vehicle’s course)
Often most important concurrent control – skilled and experienced operator
Feedback controls – aka after-the-fact, post-performance controls; information provided is fed back into the process or to the controller to make necessary adjustments; lessons from historical information can be used to perform every
task more effectively and efficiently
Control system – system in which feedforward, concurrent, feedback controls operate in harmony to enforce standards, reach goals, use resources effectively and efficiently
Critical control point – area of operation that directly affects the survival of firm and success of most essential activities
Balance sheet – identifies asset of organization at fixed point in time; feedback and concurrent control; assets = liabilities + stockholder’s equity (accounting equation)
Income statement – presents difference between organization’s income and expenses to determine whether enterprise operated at profit or loss over period of time; feedback and concurrent control; income – expenses = profit/loss
Sources and uses of funds statement (cashflow statement) – summary of cash flowing in and out of organization and how used over fixed period of time
Financial ratio – involves selecting two critical figures from financial statements – expressed as ratio, decimal, or percentage, helps managers measure company’s financial health and progress toward goals
Financial responsibility center – organizational unit that contributes to organization’s costs, revenues, investments, or profits
Audits – formal investigations conducted to determine whether financial data, records, reports and statements are correct/consistent according to existing laws and policies, rules, procedures of organization
Budget – plan and control for the receipt and spending of income over fixed period; provides estimates (projections) of revenues and expenses for given period of time; serves as standard for measuring firm’s performance – allows
managers to compare actual revenues/expenses to projections
Financial responsibility center – organizational unit that contributes to organization’s costs, revenues, investments or profits; Top-down budgeting – senior managers prepare budgets, distribute them to lower levels, with or without input
from below; Bottom-up budgeting – aka grassroots budgeting; exploits knowledge/experiences from all organization members; people closest to planned activities contribute to building budget that effect them; Zero-based budgeting –
requires managers to list goals for fiscal period and identify people/resources needed to achieve goals; Operating budget – financial plan and control for each financial responsibility center’s revenues, expenses, and profits
Revenue budget – forecasts total revenues from all anticipated sources over given time; Expense budget – like revenue, developed for each cost center/whole organization; fixed, variable, mixed costs ; Profit budget – merge revenue and
expense budgets to calculate derived profit for organization and each profit center; Financial budget – details of how financial responsibility center will manage its cash and capital expenditures; Capital-expenditures budget – use to
project short/long-term funding needed to acquire capital goods; Marketing research – feedforward control; consists of gathering, analyzing geographic, demographic, psychographic data to help planners decide what potential/current
customers want/need; Human asset accounting – treating employees as assets, not expenses, by recording money spent on people as increases in value of those assets