MGT 363

Test 2 Study Guide

1. Organizational Change- Any alteration of people, structure, or technology in an organization.

2. Change Agent- Someone who acts as a catalyst and assumes the responsibility for managing the
change process.

3. Outside consultants are more likely to initiate drastic changes.

4. Organizations need change, because external and internal factors create the forces for change.

5. Example of External Change- Sarbanes-Oxley Act.

6. Example of a current Technology Change- Most business communication involves email.

7. Example of Economic Change- falling interest rates.

8. Higher numbers of women and minorities force managers to pay attention to changes in the
composition of the workforce.

9. Represents a Change in Technology- handheld calculators replace the use of pencil and paper in
the workplace.

10. Planning- Management function that involves setting goals, establishing strategies for achieving
those goals, and developing plans to integrate and coordinate work activities.

11. The effect of planning on managers forces them to anticipate and respond to change.

12. Stated Goals- Official statements of what an organization says, and what it wants its various
stakeholders to believe its goals are.

13. Strategic Plans- Establish the organization’s overall goals.

14. Business Model- How a company is going to make money.

15. Organizational Mission- Forces managers to identify what the organization is in business to do.

16. Organizational Resources- Assets that are used to develop, manufacture, and deliver products
to its customers.

17. Entrepreneurship- the process of starting new businesses, generally in response to

opportunities.
18. Example of an Entrepreneur- Sarah Tulin (Oxie Innovations: portable air cleaner worn under the
collar).

19. To demonstrate social responsibility, entrepreneurs need to consider community goals in their
business plan.

20. If you want your business to be a good corporate citizen, consider community goals in your
business plan.

21. Cross- Functional Team- A work team composed of individuals from various functional
specialties.

22. Organizational Structure- The formal arrangement of jobs within an organization.

23. Organizational Design- Creating or changing an organization’s structure.

24. Organizational design involves decisions about chain of command and span of control.

25. Work Specialization- Dividing work activities into separate job tasks.

26. Employees doing part of an activity rather than the entire activity is work specialization.