Study Guide to Go - Cengage Learning

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Study Guide to Go

Chapter 1: Today's Managers and Entrepreneurs

Chapter Outlines

Management Defined Working with and Through Others Achieving Organizational Objectives Balancing Effectiveness and Efficiency Making the Most of Limited Resources Coping with a Changing Environment What Do Managers Do? Managerial Functions Some Managerial Facts of Life (with No Sugar Coating) Learning to Manage How Do Managers Learn to Manage? How Can Future Managers Learn to Manage? Small-Business Management Exploding Myths About Small Business Career Opportunities in Small Business Entrepreneurship

Glossary

management

the process of working with and through others to achieve organizational objectives in a changing environment.

effectiveness

a central element in the process of management that entails achieving a stated organizational objective.

efficiency

a central element in the process of management that balances the amount of resources used to achieve an objective against what was actually accomplished.

Internet

global network of servers and personal and organizational computers.

offshoring

controversial practice of sending jobs to lower-wage countries.

e-business

a business using the Internet for greater efficiency in every aspect of its operations.

managerial functions

general administrative duties that need to be carried out in

virtually all productive organizations to achieve desired outcomes.

small business

an independently owned and managed profit-seeking enterprise with fewer than 100 employees.

entrepreneurship

process of pursuing opportunities without regard to resources currently under ones control.

Learning Objective Summary Learning Objective 1: Define the term management and explain the managerial significance of the terms effectiveness and efficiency.

   Formally defined, management is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources. A manager is effective if he or she reaches a stated objective and efficient if limited resources are not wasted in the process. Five overarching sources of change affecting the way management is practiced today are: Globalization The evolution of product quality Environmentalism An ethical reawakening E-business on the Internet

Learning Objective 2: Identify and briefly explain the eight managerial functions.

 This text is organized around the following eight managerial functions: Planning (the primary management function involving the formulation of future courses of action) Decision making (choosing among alternative courses of action) Organizing (structuring the organization with a chain of command, division of labor, and assignment of responsibilities) Staffing (recruiting, training, and developing employees) Communicating (a two-way process of sharing needed information) Motivating (getting individuals to pursue collective objectives) Leading (serving as a role model and influencing others to accomplish shared objectives) Controlling (taking corrective action after comparing desired and actual results)

Learning Objective 3: Explain how managers learn to manage.

  Honeywell researchers found that managers learned 50 percent of what they know about managing from job assignments (or the school of hard knocks). The remaining 50 percent of their management knowledge came from relationships (30 percent) and formal training and education (20 percent). A good foundation in management theory can give management students a running start and help them avoid foolish mistakes.

 The key to becoming an effective manager is to personally integrate theory, the experience of role models and mentors (borrowed practice), and one’s own experience (personal practice).

Learning Objective 4: Challenge two myths about small businesses and describe entrepreneurs.

     A small business (independently owned and managed profit-seeking company with fewer than 100 employees) is central to a healthy economy. Contrary to conventional wisdom, 80 percent of new businesses do not fail within five years. In fact, one large study found only an 18 percent failure rate during the first eight years. The belief that small businesses create only low-wage jobs has been shown to be a myth. Five career opportunities in the small business sector include: Becoming an independent contractor/consultant Going to work for a small business Joining or buying your family’s business Buying a franchise Starting your own business Compared with general administrators, entrepreneurs tend to be high achievers who are more future-oriented, externally focused, ready to take risks, and comfortable with ambiguity.

Test Preppers

Test Prepper 1.1 True or False?

_____ 1. A key component in the definition of the term management is achieving one’s personal objectives. _____ 2. Microsoft automatically qualifies as an “efficient” company if it launches a new product on time. _____ 3. Globalization is one of the five overarching sources of change for today’s managers. _____ 4. The design-it-in approach to product quality is an out-of-date approach. _____ 5. E-business involves performing all basic business functions and all organizational support activities on the Internet.

Multiple Choice

_____ 6. By definition, management is the process of _____ to achieve _____ in a changing environment. a.

working effectively; key results _____ 7. Researchers found which of these to be the number-one ethical problem in a survey of more than 4,000 employees? a.

Stealing and theft b.

c.

d.

e.

b.

c.

d.

e.

solving problems; individual and collective goals planning; strategic goals working with and through others; organizational objectives operating efficiently; success Lying to supervisors Falsifying records Abusing drugs and alcohol Sexual harassment

Test Prepper 1.2 True or False?

_____ 1. The chain of command and division of labor are part of management’s organizing function. _____ 2. Staffing and motivating are among the eight basic managerial functions. _____ 3. The typical manager’s day is hectic, with lots of interruptions and brief interactions. _____ 4. The best part of being a manager is that you can play favorites and be one of the gang.

Multiple Choice

_____ 5. Which managerial function involves taking corrective action after comparing actual results with desired results? a.

Controlling b.

c.

d.

e.

Leading Organizing Decision making Staffing

_____ 6. According to Henri Fayol, the French father of the functional approach to management, all managers perform which five functions? a.

Problem solving, budgeting, planning, motivating, and monitoring b.

c.

d.

e.

Planning, leading, motivating, communicating, and reviewing Checking, convincing, innovating, leading, and control Planning, organizing, hiring, team building, and motivating Planning, organizing, command, coordination, and control

Test Prepper 1.3 True or False?

_____ 1. According to the Honeywell study, managers learned half of what they knew about managing from formal training and education. _____ 2. Being overstretched by a difficult assignment was one of the managerial “hard knocks” uncovered by British researchers. _____ 3. Future managers stand to learn little if anything from theory.

Multiple Choice

_____ 4. In the Honeywell study, which of these was the leading source of knowledge about managing? a.

Formal training and education b.

c.

d.

e.

Mentors Relationships Peers Job assignments _____ 5. Which of these was not among the “school of hard knocks” managerial lessons uncovered in the British study? a.

Feeling threatened b.

Making a big mistake Being personally attacked c.

d.

e.

Losing out to someone else Experiencing a serious budget shortfall _____ 6. The author recommends _____ for acquiring the ability to manage. a.

reading Business Week magazine b.

c.

d.

e.

merging theory and practice forgetting about academic theories starting at the very bottom starting your own business

Test Prepper 1.4 True or False?

_____ 1. Small businesses represent 99 percent of the employers in the United States. _____ 2. By definition, a small business has fewer than 100 employees. _____ 3. Eighty percent of small businesses fail within five years. _____ 4. While small businesses are far more numerous, the 100 largest businesses accounted for most of the job growth in the United States during the 1980s and 1990s. _____ 5. Entrepreneurs tend to shy away from ambiguity and risk.

Multiple Choice

_____ 6. What percent of the small businesses tracked for eight years by Kirchhoff went out of business with unpaid bills? a.

90 b.

c.

d.

e.

66 18 80 50 _____ 7. Which of these is a trait of entrepreneurs? a.

Obtain motivation from a need to achieve b.

c.

d.

e.

Focus on the established present Exhibit low-to-moderate risk-taking behavior Possess managerial knowledge and experience Emphasize internal/cost dimensions

Test Prepper Answer Key

1.1

1. F 2. F 3. T 4. F 5. T 6. d 7. b

1.2

1. T 2. T 3. T 4. F 5. a 6. e

1.3

1. F 2. T 3. F 4. e 5. e 6. b

1.4

1. T 2. T 3. F 4. F 5. F 6. c 7. a

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