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GMU PRLS 410 Test 1 Study Guide
GMU PRLS 410 Test 1 Study Guide
Chp 1-3
Chapter 1 Review
1. What are the 3 basic organizational sectors, their goals, and funding?
Public – serves the “common wealth” – tax revenues, fees, donations, volunteers
4. Name the 4 levels of management, their roles/activities, and the critical task they share.
Team leader – employees who’re responsible for facilitating successful team performance
Market failure
Social capital
Efficiency
Effectiveness
Industrial Revolution
Fueled by major advances in technology (cotton gin, railway networks)
Businesses/factories grew more complex to operate
Availability of low-skilled workers
2. Name the 5 classical approaches and the people, key concepts and/or studies.
Systematic
o Adam Smith
o Systemizing chaos
o Build procedures = ensuring coordination of effort to achieve goals
Scientific
o Henry Gantt/Frederick Taylor
o Motion studies
o Piecerate systems
o “One best way”
o Eliminate trial/error, guesswork, emotions
Administrative
o Henri Fayol
o 14 principles
o 4 functions (control/lead/organize/plan)
o Mgmt is a profession that can be taught
Bureaucracy
o Max Weber
o Hierarchy
o Fair and impartial hiring & employee relations
o Managers run organization, not owners
o Division of labor, authority, rules, qualifications, ownership
Human Relations
o Abraham Maslow
o Hawthorne Studies
o Workers’ social needs > economic needs
3. What are the limitations of the 5 approaches in today’s organizations?
Scientific management
Helps plan and complete projects
Illustrates sequence of which tasks need to be done in order to be efficient
Step – task – assigned to – accomplish task by date
Quantitative Management
o Analysis of managerial decisions/problems
o “Management science”
o Algorithms/formulas
o Moneyball
Organizational Behavior
o Promote employee effectiveness
o Individual/group/organizational processes
o Theory X vs Theory Y
o Strong roots in Human Relations Theory
Systems Theory
o Inputs outputs
o Contingency perspective
o Examines external/internal environment
Test 1 Review
Chp 1-3
8. How did the Industrial Revolution contribute to the growth of SRT industries?
9. What sector, funding, and management trends have emerged in the last century in SRT
Theory X
Workers dislike work, lack ambition, and require constant supervision
Theory Y
Workers enjoy work, are self-directed, and seek responsibility
Key Terms
Self-fulfilling prophecy
- expectations from a situation affects an individual’s behavior and causes them to be
fulfilled
Contingencies
- Factors that determine appropriateness of managerial actions
o External environment
o Internal strengths/weaknesses
o Values/goals/skills/attitudes of managers/workers
o Tasks/resources/technologies organization uses
Contingency perspective
- Managerial strategies/processes that result in high performance
Hawthorne Effect
- Being observed/studied = superficial changes in behavior
- Human Relations Theory
Piecerate System
- Frederick Taylor
- Workers motivated by receiving money (bonuses)
- Scientific management
Economies of scale
- Avg cost of production goes down
- Total volume produced goes up
1. What are the elements in the external environment that organizations “scan” in order to
Economic
Govt policy
when patents expire, other companies can enter market
Capital requirements
getting started costs a lot, so companies won’t try to raise such large amounts
of money
Cost disadvantages
larger companies are able to keep costs low bc they’re favorable and have
existing assets
Brand identification
when customers are loyal to a familiar brand, new entrants have to spend
heavily
Distribution channels
existing channels are too tight to allow for new entrants
5. What are visible artifacts? Examples? What are the other levels of organization culture?
Group/clan – collaborate
Cohesiveness, participation, teamwork, sense of family
Hierarchy – control
Order, rules/regulations, uniformity, efficiency
Market/rational – compete
Goal achievement, environment exchange, competitiveness
Adhocracy – create
Entrepreneurship, adaptability, dynamism
Macroenvironment
- General environment (“outside”)
- Factors that affect all organizations
External environment
- Relevant forces outside an organization’s boundaries
- Competitors, customers, govt, economy
Competitive environment
- Immediate environment surrounding an organization
- Suppliers, customers, rivals
Internal environment
- Elements within organization
- Defines employee behavior
- Current employees, management, corporate culture
Open systems
- Organizations that affect/are affected by the external environment
- Inputs/outputs
- Macroenvironment
Switching costs
- Fixed costs buyers face when changing suppliers
Benchmarking
- Comparing a company’s practices/technologies to another company’s
Competitive intelligence
- Info that helps managers determine how to compete better
Acquisition
- One firm buying another
Divestiture
- A firm selling one or more businesses
Environmental scanning
- Searching for/sorting through info about the environment
Diversification
- Firm’s investment in a different product/business/geographic area
Organizational culture
- Assumptions members share to create internal cohesion and adapt to external
environment
Competitive aggression
- Improving efficiency for competitive advantage
Competitive pacification
- Improving relations with competitors