Chapters 1-4 Study Guide

1) Management-the process undertaken by one or more persons to

coordinate the activities of other persons to achieve results not
attainable by any one person acting alone
2) Management Has Different Meanings:
Management is a process-involving certain functions and
activities that managers perform
Management is a discipline-that implies that it is an
accumulated body of knowledge that can be learned;
management is a subject with principles, concepts, and theories
Management is a human activity-people who guide, direct,
and thus manage organizations; human activity refers to and
emphasizes the importance of the employees whom managers
work with and manage in accomplishing an organizations
objectives; people are an organizations most important asset
Management is a career-an individually perceived sequence of
attitudes and behaviors associated with work-related
experiences and activities over the span of a persons life
3) Management functions-the activities that a manager must perform
as a result of the position held in the organization
4) The Functions of Management:
Leading-a persons ability to influence the activities of followers
in an organizational setting
Planning-all the managerial activities that lead to the definition
of objectives and to the determination of appropriate means to
achieve those objectives
Organizing-all managerial activity that results in the design of a
formal structure of task and authority
Controlling-the actions and decisions that managers undertake
to ensure that actual results are consistent with desired results
5) History of Management Thought:
Classical approach to management-an approach that places
reliance on such management principles as unity of command, a
balance between authority and responsibility, division of labor,
and delegation to establish relationships between managers and
subordinates
Scientific management-the practices introduced by
Frederick W. Taylor to accomplish the management job;
Taylor advocated the use of scientific procedures to find
the one best way to do a job

 Classical organization theory-a body of ideas that

focused on the problem faced by top managers of large
organizations; its two major purposes were to develop
basic principles that guide the design, creation, and
maintenance of large organizations and to identify the
basic functions of managing organizations
Behavioral approach to management-a management
approach that emphasizes people and how the structure of an
organization affects their behavior and performance; the
advocates of a behavioral orientation to management believe
that the classical approach suppresses personal development
because it is so rigid and restrictive
Management science approach-formerly known as the
operations research approach; involves mixed teams of
specialists from fields required to address a specific problem
6) The Management System:
First-line management-lowest level of the hierarchy; a
manager at this level coordinates the work of nonmanagers but
also reports to a manager; those involved in front-line
managements are often called supervisors, office managers, or
foremen
Middle management-middle level of an administrative
hierarchy; managers at this level coordinate the work of
managers but also report to a manager; unlike first-line
managers those in middle management plan, organize, lead, and
control the activity of other managers yet like the first-line they
are subject to the managerial efforts of a superior
Top management-the top level of an administrative hierarchy;
managers at this level coordinate the work of other managers
but do not report to a manager; top management is responsible
for the performance of the entire organization; unlike other
managers top managers are accountable to no one other than
the owners of the resources used by the organization
7) Skills-an ability or proficiency that a person possesses that permits
him or her to perform a particular task
8) Managerial skills:
technical skill-the skill of working with the resources and
having knowledge in a specific area; such skill is most important
to first-level managers

analytical skills-the abilities to identify key factors , to

understand how they interrelate, and to understand the roles
that play in a situation as well as to diagnose and evaluate
decision-making skills-the quality of your decisions
determines their degree of effectiveness; a managers decisionmaking skill in selecting a course of action is greatly influenced
by his or her analytical skill; poor analytical proficiency will
inevitably result in inefficient, spotty, or inadequate decision
making
digital skills-managerial skills comprising the conceptual
understanding of and ability to use computers,
telecommunications, and digital technology
human relations skill-the ability to work with, motivate, and
counsel people who need help and guidance; most important to
middle-level managers
communication skills-the transmission of mutual
understanding through the use of symbols
conceptual skills-the ability to coordinate and integrate ideas,
concepts, and practices; such skill is most important to top-level
managers
9) Managerial roles-the organized sets of behavior that belong to the
managers job
Interpersonal roles-a managers interpersonal roles include
being a figurehead, providing leadership, and being a liaison
both within the company and to stakeholders outside the
company
figurehead role-the symbolic or ceremonial role
preformed by managers
leadership role-a managers duties that involves
directing and coordinating subordinates activities
liaison role- a managers duties that involve interpersonal
relationships outside the managers area of command
Informational roles-a managers duties involved in being the
central point for receiving and sending nonroutine information
monitor role-the aspect of a managers role that involves
examining the environment to gather information or to
detect changes, opportunities, and problems that may
affect the unit
disseminator role-a managers role that involves
providing important or privileged information to
subordinates

 spokesperson role-a managers role representing the

unit to other people

Decisional roles-a managers most important duties as
entrepreneur, disturbance handler, resource allocator, and
negotiator
entrepreneur role-a managers role to change the unit
for the better
disturbance handler role-a managers role to make
decisions or take corrective action in response to pressure
from circumstances beyond the managers control
resource allocator role-a managers role that requires
allocating resources
negotiator role-a managers role that involves bargaining
with other units and individuals in obtaining advantages for
the unit
10)
Telecommuting-workers either stay at home or travel short
distances to telecenters to link to the workplace via IT
11)
Intellectual capital-the concept that the principal assets of
many modern organizations lie in the heads of their workers rather
than in machinery, bricks, and mortar
12)
Ethics-a code of moral principles and values that provides
guidance for a person or group in doing what is right
13)
Social responsibility-behavior directed exclusively (but legally)
in pursuit of profits
social obligation-the theory that business must repay society
by making profits for allowing the business to exist
social reaction-a theory that views actions that exceed legal
requirements as being socially responsible
social responsiveness-a theory that refers to actions that
exceed social obligation and social reaction
14)
Three groups of internal beneficiaries are apparent: customers,
employees, and stockholders (owners).
15)
The contract between business and society has evolved from the
traditional view that economic growth is the source of all progress to
one holding forth an organizational imperative to work for social as well
as economic improvements.
16)
However it will offer employees new responsibilities, new
benefits, and new power. Many of todays most effective organizations
involve employees in every facet of the business. Managers are
consulting employees on everything from strategic insights, to
feedback on their (the mangers) performance.

17)
Human rights audit-a process for evaluating how well a company
protects employee rights
18)
Clearly nothing has changed communication in organizations
more dramatically than advances in technology.
19)
While technological advances provide the opportunity to enhance
organizational productivity, the real possibility exists that information
technology can and will be used in ways that raise ethical questions.
20)
The importance of ethics increases in proportion to the
consequences of the outcome of a decision of behavior. As a
managers actions become more consequential for others the more
important are the ethics of that manager.
21)
Business ethics continues to be a topic of concern because
businesses are realizing that ethical misconduct be management can
be extremely costly for the company and society as a whole.
22)
The Organizations Role in Ethical Behavior:
The Credo-first step in ensuring that the organizations
has a credo that clearly and forcefully states its ethical
values
Walking the Line-reinforcing the beliefs expressed in the
credo is the job of the leaders
Code of Ethics
Education and Training
Compensation
Dealing with Violations
23)
Why have a growing number of American businesses become so
involved in international business? The reason is simple; many
international markets provide substantial opportunities and returns for
those businesses with the ability and determination to succeed in an
often unfamiliar environment.
24)
Multinational enterprise (MNE)-a firm doing business in two
or more countries
25)
Shot-in-the-dark method-method of choosing a product or
service for international expansion by selecting a product that is
successful in the home country market and introducing it abroad
26)
Phased internationalization-designing a product or service for
international expansion based on product-market research in the
prospective host country and identified needs of host country
consumers
27)
Export entry strategy-the simplest way for a firm to enter a
foreign market; this strategy involves little or no change in the
organizations basic mission, objectives, and strategies since it
continues to produce all of its products at home; the firm usually

secures an agent in the particular foreign market who facilitates the

transactions with foreign buyers
28)
Foreign subsidiary entry strategy-an approach to entry in a
foreign market that involves joining with nationals in the foreign
country to establish product and/or marketing facilities
29)
Direct investment entry strategy-a policy to begin producing
a firms products in a foreign country without the association with a
host country investor; the strongest commitment to becoming an MNE,
it enables the full control over production, marketing, and other key
functions
30)
Culture-a very complex environmental influence that includes
knowledge, beliefs, laws, morals, art, customs, and any other habits
and capabilities an individual acquires as a member of society; it is
important to be aware that cultures are learned, cultures vary, and
cultures influence behavior
31)
The economic influences of a host country substantially affect
MNE performance.
32)
Expropriation-seizure of an MNEs property in a host country
without compensation
33)
Nationalization-a process that occurs when a host country
government forces and MNE to sell its facility to local buyers
34)
North American Free Trade Agreement (NAFTA)-passed in
January 1994; merchandise exports among the 3 NAFTA countries
(U.S., Canada, and Mexico)
35)
The World Trade Organization (WTO)-established 1995; sets
out the principal obligations to be met by governments in
implementing domestic trade policies and regulations; also provides a
foundation for developing trade relations among countries through
negotiations and adjudication; rule number 1 requires member
countries to treat the products of other members no less favorably
than they do the products of any other country; rule number 2 requires
that once goods have entered a market they must be treated no less
favorably than the equivalent domestically produced goods