Term
| Hierarchy of Channel Richness- amount of info that can be transmitted |
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Definition
1. Ability to handle multiple cues simultaneously
2. Ability to facilitate 2 way feedback (rapidly)
3. Ability to establish personal focus for communication |
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Term
| - Select the appropriate channel |
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Definition
o Non-routine messages/ routine
o Fit the message
o Avoid communication apprehension by “sharing”
o Class, race, ethnicity, and gender are factors
o Keys to effective listening
• Listen actively
• Find areas of interest
• Resist distractions
• Capitalize on the fact that thought is a factor
• Be responsive
• Judge content, not delivery
• Listen for ideas
• Work at listening
• Exercise one’s mind |
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Term
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Definition
1. Implementation of goal and strategies
2. Job instructions and rationale
3. Procedures and practices
4. Performance feedback
5. Indoctrination |
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Term
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Definition
1. Problems and exceptions
2. Suggestion for improvements
3. Performance reports
4. Grievances and disputes
5. Financial and accounting info |
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Term
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Definition
1. Intradepartmental problem solving
2. Intradepartmental coordination
3. Change initatives and improvements
4. Team communication-decentralized network
5. Personal communication - personal network, grapevine, and written
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Term
| Meeting requirements (practical meeting strategies): |
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Definition
1. Agenda
2. Determine who needs to attend/ who doesn't
3. Determine time meeting will end
4. Person chairing should get info from everyone (active listening)
5. Don't tune out! Think about what you're going to say
6. Some one who understands subject take notes |
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Term
| Maslow's Hierarchy of Needs |
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Definition
1. Physiological
2. Safety
3. Belongingness
4. Esteem
5. Self-Actualization (top of pyramid) |
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Term
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Definition
1. Goal specificity
2. Goal difficulty
3. Goal acceptance
4. Feedback |
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Term
| Empowering people to meet higher needs |
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Definition
1. Employees receive info about company performance
2. Have knowledge/ skills to contribute to company goals
3. Power to make substantive decisions
4. Reward based on company performance |
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Term
| Manager- implementer of 5 parts of MBO, strategic plans |
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Definition
1. Knows details
2. Be sure people around have correct tools/ able to perform
3. Allocate production resources
4. Probably needs to consider worker productivity (hire/fire, motivate)
5. Responsible for time related issues (time takes to do something, efficiency)
6. Communication center- supplier of knowledge
7. Implementer of 5 parts to MBO/ strategic planning
8. Trust, morality and ethics |
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Term
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Definition
- Serve people below me
- Protect/ care/ want to meet needs
- Mentors
19. Ethical people
20. Leaders look forward, managers look short term |
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Term
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Definition
| social values and beliefs become part of management strategies |
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Term
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Definition
Community v. Efficiency – creating motivation but staying efficient
Liberty v. Equality - needs to be a balance between all people being equal with different people
Meritocracy v. Egalitarian – equality based on abilities |
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Term
| Sarbanes-Oxley Act (2002): changed the whole perspective of business operation |
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Definition
• CEO and CFO have to personally sign financial statements every year
o Says that there are adequate safeguards in the company to show if fraud exists
o Executives don’t like this act because they become personally liable if fraud is subsequent
• Means that if errors are discovered in the financial statements, they have to give back their ENTIRE bonus they received that year
• If fraud is later shown, there may be personal liability of the executives as defendants for lawsuits for fraud
Personal fortunes are at RISK
• The board of directors or large companies must have a majority of independent directors (directors that are not doing business with the companies)
• Changes accounting standards
o New federal board that controls accounting standards
o Changed certain accounting practices for large companies
• Has an impact on stock analysts
o You must disclose if you own a stock and how you’re going to vote in the proxy every year
• Provides protection for employees that are whistleblowers
o If you company is doing something illegal, you are expected to tell the authorities |
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Term
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Definition
• Full Disclosure to shareholders
• All information shared with investors to make informed decisions
• Prospectus
• Detailed written description of a new security, the issuing corporation, & corporations top management |
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Term
| • Securities & Exchange Act of 1934 |
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Definition
o Created the SEC (Securities & Exchange Commission)
• The agency enforces federal securities regulations
• Supervises all organizations involved in trading securities |
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Term
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Definition
| o Where the attitude of management views the policies that are used in the USA are the best to be used in every part of the world. (narrow view). |
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Term
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Definition
| o Where a company has divisions in various parts of the world and the company feels that the management in each part of the world can manage best in their respective part of the world. |
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Term
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Definition
Where a company thinks universally, but acts locally.
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Term
| 5 questions executives should look at |
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Definition
1. Have you defined ethics properly
2. How would you define the problem
3. Whom could your decision/ action injure?
4. Confident in decision for long term?
5. Disclose without any qualms? |
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Term
| 5 parts of social responsibility |
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Definition
1. Abundance theory
1. Provide quality and inexpensive products, and create economic progress. Profit creates a social benefit.
2. Fraud destroys economic stability
3. Businesses help economic stability, reduce bus. cycles
2. Businesses should provide a satisfactory working environment
3. Quality of human life should improve
1. Advertise honestly, product disclaimers
4. Don’t pollute the environment, conserve resources. Be environmentally aware
1. US constitution has a statement of social responsibility
5. Protection of citizens |
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Term
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Definition
1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Consumer education
6 Right to service |
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Term
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Definition
| An economy controlled by ethics, statutes, and laws. Forces managers to be ethical. |
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Term
| Five Steps for Organizing a Business |
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Definition
1. Job Design
2. Departmentalization
3. Delegation
4. Span of Management
5. Chain of Command |
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Term
| • Decentralization of Authority |
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Definition
o An organization in which management consciously attempts to spread authority widely across various organization levels
o Centralized organization- authorities concentrate on upper level management
o Factors that influence decentralization
• External environment
• Nature of decision itself
• Abilities of lower level managers |
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Term
| • Delegation of authority |
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Definition
o Assign responsibility
o Grant authority
o Create accountability
• Barriers of Authority
o Managers are hesitant, want to get work done themselves |
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Term
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Definition
o A management system based on a formal framework of authority that is outlined carefully and followed precisely
• High level of job specialization
• Departmentalization by function
• Formal patterns of delegation
• High degree of centralization
• Narrow spans of management (tall organization)
• Clearly defined line and staff positions
• EX. Government agencies and universities
• Drawback: lack of flexibility |
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Term
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Definition
o Individuals report to more than one superior at a time, and the structure combines vertical and horizontal lines of authority
• Cross-functional team: consists of individuals with various specialties, expertise, and skills that are brought together to achieve a common task
• Advantages: increased flexibility and the structure may also add increased productivity, high morale, creativity, and innovation
• Weaknesses: personality clashes, poor communication, unclear responsibilities |
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Term
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Definition
o Type of business that consists primarily of teams with no or few underlying departments
• Team members work together on a product until it is finished
• May do another project or be re-distributed for a new project
• Operating structure is team, and may be relatively small
• Downfalls: job security, increased amount of stress
• Strengths: flexibility! |
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Term
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Definition
o Administration is the primary function preformed, and other functions are contracted out to other organizations (EX. Engineering, production, marketing and finance)
• Limited formal structure association with an in-network organization
• Top managers exist, the rest is contracted out
• Strength: Flexibility
• Weakness: cant control quality of work, low morale, high turnover, overall vulnerability of relying on outside contractors |
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Term
| Four Major resources a manager must have to operate a business: |
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Definition
o Information
o Material
o Human
o Financial resources |
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Term
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Definition
• Finance
- Study Debts & receivables, cash flow, financial statements, accounting, also analyze the present state of economy, interest rates, and predictions
• Operations
- Present and future sales levels, current inventory, cost of goods, keep in mind the innovative production technology
• Marketing
- Need detailed info about the firm’s products, as well as sheets from competitors, come up with new promotional campaigns, demographics
• Human Resources
- Anything pertaining to the firm’s employees: current wage levels, benefits packages, union activities, and employment legislation
• Administration
- Overall management of the organization, concerned with the coordination of information as well as the other resources |
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Term
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Definition
o “A manager administers, a leader innovates”
o “a manager focuses on system and structure, a leader focuses on people”
o “A manager relies on control, a leader inspires trust”
o “A manager asks ‘how and when?’, a leader asks ‘what and why?’”
o “A manager has his/her eye always on the bottom line, a leader’s on the horizon”
o “A manager accepts the status quo, a leader challenges it”
o “A manager does things right, a leader does the right things” |
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Term
• Kenneth Chenault, CEO of American Express
o Attributes of a leader: |
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Definition
• Integrity
• Courage
• Being a Team Player
• Development of people
• Execution Skills
• Being proactive
• Stand for something and act from principle
• Easier to be a good leader in good times than in bad times |
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Term
• Joe Wilson, Xerox
• Classic Characteristics/Responsibilities of a Manager |
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Definition
o “Nuts and Bolts” sort of person: chief operating officer
• May be a deficit, the CEO if a company generally should not be a “detail” person, but rather a visionary
• Trait difference between a chief operating officer and a chief executive officer should be substantial
• Steve Jobs (Apple), in one sense, is a visionary, but is also aware of every detail of every project
• Microsoft’s current problem: Balmer, CEO, is not a visionary, he’s too much of a detail person
o Make sure that the people around them have the correct tools to perform and be sure that production happens
o Allocation of production resources
o Needs to consider worker productivity issues (hiring/firing)
o Time related activities
• Efficiency
o Being a communication center
• Supplier of knowledge |
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Term
| What are the two key terms that differentiate a leader from a manager? |
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Definition
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Term
| Three Practical Reasons for acting ethically and with social responsibility |
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Definition
• Ethical behavior by managers towards workers always results in increased worker motivation
o Greater company efficiency, better profit and productivity
• Ethical behavior towards society in general (social responsibility) creates an intrinsic benefit from customers
o Customers, if given a chance, will purchase from it as opposed to a general company
• When a group of companies behave in an unethical way: the feds/states/both create laws that define what ethics shall be and shall require it in compliance with laws
o Sarbanes-Oxley Act (SOX): new set of rules for accounting, behavior of boards of directors, behavior of chief executives and chief financial officers… this is now LAW |
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Term
| • Ethics and Social Responsibility are 2 different things |
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Definition
o Business ethics relates to how a business ethically behaves towards its stakeholders (← the environment of the business, including workers, stockholders, suppliers, customers, etc.)
• Ethics looks more at the INTERNAL environment of the company
o Social Responsibility relates to how a company morally deals with society in general |
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Term
| Book has 7 questions for executives examining ethics: |
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Definition
• 1- Have you defined the problem adequately?
• 2- How would you define the problem if you were on the other side of the issue?
• 3- Whom could your decision or action injure?
• 4- Are you confident your decision is correct over the long term?
• 5- Could you disclose without any qualms your action or decision to your children, your mother, your wife, or your preacher? |
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Term
| o Business should provide a satisfactory working environment for workers as a general management principle: |
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Definition
• Job Security
• Decent Pay to All Workers
• Equity of Income
o Effectiveness of Workers |
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Term
| • The quality of human life should improve as a result of economic activity |
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Definition
• Business should litigate the damages which it causes
• Executives should be accountable for their actions
• If you’re going to advertise a product, be honest about it
• Strategic Alliances: happens when you can connect with another company and provide another product
• You have a core competency and another company has a core competency, so you create an alliance |
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Term
| o Businesses should be a trustee for the natural resources |
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Definition
• Prudence and conservation when using natural resources
• Environmental pollution |
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Term
| o The US Constitution has a statement of social responsibility |
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Definition
| • The constitution is the basis of federal statutory law that is designed to protect citizens |
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Term
| Multiplier Effect: The expansion of a country's money supply that results from banks being able to lend |
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Definition
• The size of the multiplier effect depends on the percentage of deposits that banks are required to hold as reserves.
• In other words, it is money used to create more money and is calculated by dividing total bank deposits by the reserve requirement |
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Term
| • Interstate commerce act: |
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Definition
| if you are doing business in more than one state you must have a standardization of prices and wages. |
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Term
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Definition
| As a business you cannot try to control the market…you cannot become a monopoly. |
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Term
| • Clayton Price Fixing Act |
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Definition
| Prohibited monopolistic activity. |
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Term
| • Federal Trade Commission Act |
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Definition
| This federal agency had the ability to shut down business and even put people in jail, thus giving these laws power to enforce. |
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Term
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Definition
1. Managers job to allocate necessary production resources
2. Manager probably needs to consider worker productivity issues (more about hiring and firing rather than motivating workers).
3. Manager is responsible for time-related productivity.
4. Manager is a supplier of knowledge and a communication center.
5. Implement instructions
6. Manager treats a worker in an ethical way… better results |
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Term
| • Characteristics of a Leader |
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Definition
o A Macro-person
o Leads by example
o Cares about the people working for him or her
o Inspires trust
o Communicates very well
o Builds confidence
o Uses humor: self-deprecating humor, use humor in intense situations
o Generally are easy to talk to and will participate in activities with workers
o Almost always give positive feedback to others
o Very ethical and willing to take blame |
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