You are on page 1of 13

Chapter 7 Managers & Managing: Management, Leadership & the Internal Organization

1.

What is management?
Process of achieving organizational goals through people & other resources

2.

Differentiate among 3 levels of management & their corresponding responsibilities


Top managers make key decisions, steer firms through economic downturn
Middle manager direct & implement key decisions, more familiar with day to day activities
Supervisory/First-Line Managers Day-to-day decisions, assigning tasks, schedules, evaluate performance

3.

Describe 3 basic skills necessary for managerial success


Human Skills critical for all management levels to work effectively with & through people, ability to communicate,
motivate, lead employees, required to interact with people in & out of organization
Technical Skills critical for first-line supervisors because of interaction with non-managerial employees, many firms
increase training programs for first line managers to increase skills
Conceptual Skills critical for top management to develop long-range plans for future & see overall importance of each
function, acquire, analyze, interpret info

4.

Describe 4 management functions


Planning anticipate future events & determine course of action to achieve organizational objectives, should be flexible &
respond to changes in business environment
Organizing blending human & material resources through formal structure of tasks & authority, arranging work, dividing
tasks among employees & coordinating to implement plans & accomplish objectives
Directing/Leading guiding & motivating employees to accomplish objectives, training, setting up schedules, assigning
tasks, monitoring progress
Controlling evaluate organizations performance against objectives

5.

Describe 4 types of planning


Strategic planning deciding on primary objectives of organization & taking action & setting aside resources to reach
objectives, done by top executives
Tactical planning guide current & short term activities required to carry out overall strategies
Operational planning sets detailed standards that help to carry out tactical plans
Contingency planning helps firms resume operations as quickly & smoothly as possible after crisis

6.

Explain role of vision & ethical standards in business


Vision ability to perceive needs of marketplace & develop methods for satisfying needs, helps unify action of separated
divisions to keep customers satisfied & sustain growth
High Ethical Standards helps firms survive & be successful over long term, set by top manager

7.

Explain difference between strategic planning & tactical planning


Strategic planning most far reaching, process of determining primary objectives of organization & acting & allocating
resources to achieve objectives
Tactical planning guides activities required to implement strategies

8.

Describe contingency planning


Preparing for unexpected events, allows firms to resume operations while communicating with public about events,
involves business continuation & public communication

9.

List steps in strategic planning process.


Define companys mission can highlight range of operations, market it will serve, how it will try to set itself apart from
competitors
Assess companys competitive position factors that help business grow/fall, SWOT Analysis
Set organizational objectives more specific than mission statement
Create strategies for competitive differentiation mix of companys abilities & resources that set it apart from competitors
Implement strategy into action many firms have strategy of cutting costs & maintaining high level of customer service

Evaluate results & refine plan monitor & adapt plans when actual performance fails to meet goals, gather feedback
10. Define SWOT analysis & its purpose in strategic planning process
Method to assess companys competitive position
Strengths & Weaknesses examined in finance, marketing, info technology, human resources
Opportunities & Threats examined in market growth, regulatory changes, increase competition
Value in examination of current situation & necessary action for future development
11. Describe competitive differentiation & provide examples
Unique combination of companys abilities & approaches that sets it apart from competition
Ex. Product innovation, technology, employee motivation
12. Provide example of programmed decision & non programmed decision
Programmed decision reordering supplies, renewing lease, rules & policies guide decisions
Non-programmed decision entering new market, deleting product from line, more challenging (not routine)
13. Steps involved in decision making process
Recognizing problem or opportunity
Developing potential courses of action
Evaluating alternatives
Selecting & implementing one of them
Assessing outcome of decision
14. Describe 3 personal qualities of great leaders
Empathy ability to imagine oneself in anothers position
Self-awareness
Objectivity in dealing with others

15. Distinguish between autocratic, democratic, and free-reign leadership


Autocratic leadership make decisions on own without consulting employees, communicates decisions on
subordinates, and expects prompt implementation of instructions
Democratic: delegates assignments, asks employees for suggestions & encourages participation
Free-reign leadership: communicates with employees frequently as situation warrants
16. Provide examples of tools managers might use to strengthen corporate culture.
Symbols, rituals, ceremonies, stories
17. List major forms of departmentalization
Product (goods/services offered), geography (region), customer (types), function (business functions), process
(work processes to complete production of goods/services)
18. Define span of management & its trend
Span of management/control # of subordinates a manager directly supervises (direct reports)
Trend towards wider spans of control as companies reduce layer of management in order to flatten
organizational structures, results in increased decision making responsibility to employees
19. Compare 4 types of organizational structures
Line organization direct flow of authority (chain of command)
Line & staff organization combines direct flow of authority of line organization with supporting staff
department
Committee organization authority in group of individuals rather than single manager
Matrix organization links employees from diff parts of organization to work together on diff projects

20. List the 5 steps of the organizational process.


Decide on specific work activities needed to carry out plans & achieve objectives
Group all work activities into pattern/structure that makes sense
Assign activities to specific employees & give them resources they need
Coordinate activities of diff groups/individuals
Evaluate results of organizing process
21. List and describe the 4 types of organization structures.
Line organization sets up direct flow of authority from chief executive to employees, effective in crisis situation
Line and staff organization combines direct flow of authority of line organization with staff departments that
support line departments, help make decisions that affect firms core operations
Committee organization places authority & responsibility in group of individuals, often appear as part of
regular & staff structure, act slowly & make conservative/safe decisions
Matrix organization links employees from diff parts of organization who work together on specific projects,
each employee reports to 2 managers

Chapter 6 Starting Your Own Business: The Entrepreneurship Alternative


1.

Describe the difference between entrepreneurs and small business managers.


Entrepreneurs seek profitability opportunities, takes risks to set up & operate business, pursue own goals, takes initiative
to find & organize resources they need
Small business manager direct efforts of others to achieve organizations goals, use organizations resources to accomplish
work

2.

Explain differences among classic entrepreneurs, serial entrepreneurs, social entrepreneurs


Class entrepreneur identify business opportunity & allocate resources to tap into market
Serial entrepreneur starts on business & runs additional businesses in succession
Social entrepreneur recognizes societal problem & uses business principles to develop solution

3.

Discuss 4 motives to become entrepreneur & explain tem.


Desire to be your own boss freedom to make all decisions
Succeed financially many entrepreneurs start ventures with specific goal of being rich/financially successful
Attain job security most newly created jobs from small businesses, workers discovering benefits of entrepreneurship vs
employed in big firms
Improve quality of life starts business to reduce work & create relaxed lifestyle

4.

List 4 factors that contributed to expansion in entrepreneurship & explain them.


Globalization entrepreneurs market products abroad & hire international talent
Education many schools offer opportunities to intern with start-up/work towards launching company, many organizations
teach entrepreneurship to young people
Information technology low cost technology give entrepreneurs tools they need to help compete with large companies,
helps entrepreneurs work quickly & efficiently
Economic & democratic trends older entrepreneurs have access to retirement funds & home equity for financing

5.

Explain Canadian trends that created new marketing opportunities


Aging population
Growth of ethnic groups
Predominance of 2 income families

6.

List & explain 8 characteristics of an entrepreneur.


Vision overall idea for how to make business a success
High energy level entrepreneurs work full time at regular day jobs & spend weeknights/weekends launching start up
Need to achieve strong desire to compete helps enjoy challenge of reaching difficult goals
Self-confidence & optimism they see opportunities while others see danger
Tolerance for failure continue to try again when others would give up, view setbacks & failure as learning experiences
Creativity think of new ideas, devise new ways to overcome difficult problems & situations
Tolerance for ambiguity dealing with unexpected events considered normal, look for strategies they believe have a good
chance of success, stay close to customers so they can change offerings to match customer desires
Internal focus of control they control their future

7.

Explain the difference between debt financing & equity financing


Debt financing borrowing money from banks, finance companies, credit card companies, family/friends to be repaid
Equity financing exchange share of ownership for financing not to be repaid

8.

Define Intrapreneurship & its importance


Process of promoting innovation within organizational structures
Fast changing business climate compels firms to innovate continually to maintain competitive advantage

9.

What is the benefit of buying an existing business?


Employees already in place, good/service already well known in marketplace, necessary permits & licenses already
obtained, easier to get financing

Chapter 5 Forms of Business Ownership & Organization

1. Define the concept of small business & identify the industries in which small businesses are established.
Company independently owned & operated having fewer than 100 employees & revenues not more than $2
million
2/3 employment in Canada
5 industries are non-institutional: health care, construction, accommodation, food, forestry
2. Describe benefits & drawbacks of starting home-based business.
Benefits lower start-up cost, not requirement to lease space, internet allows marketing & selling goods online,
greater flexibility & freedom from commuting
Drawbacks isolation, less visibility to customers
3. Discuss the economic & social contributions of small business.
Economic create half of new jobs in Canada, outlet for entrepreneurial activity, contribution to creation &
innovation of new industries
Social enhanced lifestyle flexibility & opportunities for personal satisfaction
4. Describe 3 reasons small businesses fail.
Management shortcomings large firms can hire specialists in marketing & finance, owner of small business
must take on firms roles all at once which can lead to bad decisions (failure of business)
Inadequate financing first time business owners often assume they will generate enough funds from the initial
sale to finance continuing operations
Difficulty dealing with govt regulations many small businesses fail due to limited staff & budgets
5. List and describe the 5 elements in a business plan.
Executive summary who, what, when, where, why, how
Intro concept, purpose, objectives of business, overview of industry
Marketing plan anticipated competition & pricing
Finances & sources of capital needs for funds, when firm will break even
Resumes of principals especially in plans written to obtain financing
6. Explain the benefits and drawbacks of buying a franchise.
Benefits obtaining known brand name, franchisors provide advertising help, building plans, accounting
systems, management training & name recognition
Drawbacks expensive franchise fees & royalties, franchise linked to reputation & management of franchise
7. Outline the 6 components of a good business plan.
Company mission & vision of founders why a company was founded & what it intends to accomplish
Outline of what makes company unique what distinguishes firm & products from rest
Customers who firms customers will be & how it will serve their needs
Competition addresses competitors as legitimate entities with strategy for creating superior/unique
opportunities
Financial evaluation of industry & market conditions helps develop credible financial forecast & budget
Assessment of risks acknowledges risks & outlines strategy for them
8. Compare 3 forms of business ownership.
Sole proprietorship advantage to make changes & decisions quickly, disadvantage is responsible for all debts
Partnership spread out responsibilities & allows business to grow, each partner financially responsible
Corporations limits liability, offers expanded financial capability, deals with additional taxation

9. Describe steps to incorporate business


Deciding where to incorporate businesses want to be near customers, often compare benefits of different
provinces
Drawing up corporate charter legal rights to start/operate business, buy/sell property, borrow $, sue/be sued,
enter binding contracts
Preparing set of by-laws
10. Explain role of corporate management.
Stockholders own corporation & elect officers who develop corporate policy & supervise CEO
Stockholder number relates to private vs public company
Managers given goals in short & long range operating plans
11. Explain a public and collective ownership
Public (govt) ownership govt unit/agency owns & operates organization
Collective (co-operative) ownership owners work together to operate all/part of activities in firm/industry
12. Explain the difference between a merger and an acquisition
Merger agreement in which 2 or more firms combine to form one country
Acquisition agreement in which one firm purchases another

Chapter 1 The Changing Face of Business

1. Define a factor of production. List 4 factors of production in business & describe why they are important
Factor of production profit seeking activities that provide goods & services to an economic system
National resource (rent) basic inputs required in economic system
Capital (interest) production inputs, technology, tools, information, physical facilities
Human resources (wages) provides firms with competitive edge
Entrepreneurship (profit) see opportunity to make profit & set up plan to earn profits & achieve success
2. Define basic rights in private enterprise system. List the 4 basic rights in the private enterprise system.
Private enterprise system minimizes govt interference
Right to own & receive profits earned through their activities
Right to use & consumer freedom of choice for own employment, purchases & investments
Right to buy by setting rules for competitive activity
Right to sell
3. Describe 6 eras of business history.
Colonial (prior to 1776) agriculture
Industrial revolution (1760 1850) mass production by semi-skilled workers & machines
Age of industrial entrepreneurs (late 1800s) advances in technology & demand for manufactured goods leading to
entrepreneurial opportunities
Production era (through 1920s) emphasis on producing goods faster & leading to production innovations & assembly lines
Marketing era (1950s) customer orientation & understanding of needs & preferences
Relationship era (1990s) benefits from ongoing links with customers, suppliers, etc

4. Explain difference between transaction & relationship management


Transaction sales cover costs & earn profit to sustain
Relationship higher revenues & lower costs

5. Define technology in context of business.


Application of knowledge based on scientific discoveries, inventions, innovations
Technology takes form of communication in managing customer relationships

6. Describe how aging population affects changes in workforce.


Employers deal with retirement, disability, retraining, insurance
Teenagers entering work force earlier; seniors staying longer

7. Advantages of diverse workforce


Diverse team perform more effectively & develop better solutions than homogeneous employee groups
Diverse team improves managements understanding of customer needs & relationship with consumer goods

8. Explain employee-employer relationship in business.


Firms recognize partnership with employees that encourages creative thinking, problem solving, innovation
Employees move from employer to employer
Do not give loyalty & build own careers

9. Give examples of external & internal forces that require manager to lead organizational change
External feedback from customers, developments in international marketplace, economic trends, new technologies
Internal new company goals, emerging employee needs, labour union demands, production problems

Chapter 3 Economic Challenges Facing Contemporary Business


1.

Differentiate between macroeconomics & microeconomics.


Macroeconomics deals with economy as a whole, economic policies of individual nations & ways their policies affect
world economy
Microeconomics concerned with economic activities of individual consumers/families/businesses, purchasing
decisions/shopping for gas/paying tuition

2.

List and describe 5 macroeconomic issues for the economy.


Pure competition large number of buyers & sellers exchange similar products & no single participant has large influence
on price
Monopolistic competition large numbers of buyers & sellers exchange similar products so each participant has some
control over price
Oligopoly relatively few sellers compete & high start-up costs act as barriers to keep out new competitors
Monopoly single seller controls trade in good /service & buyers can find no close substitutes
Regulated monopoly firm granted exclusive rights in specific market by local, provincial, fed govt

3.

Distinguish between demand curve & supply curve


Demand curve graph of amount of product that buyers will purchase at various prices, slope downward
Supply curve relationship between prices & quantities that sellers will offer for sale regardless of demand

4.

List factors that cause demand curve to shift to the right.


Increase in customer preferences, increase in # of buyers, increase in buyers income, increase in price of substitute goods,
decrease in price of complementary goods, optimistic expectations concerning future

5.

List factors that cause supply curve to shift to left.


Increase in cost of inputs, increase in cost of technologies, increase in taxes, decreases in # of suppliers

6.

Explain how interaction of supply & demand corrects surplus/shortage.


If surplus, price too high when price falls more units purchased & fewer units produced, surplus eliminated
If price too low, shortage causes price to rise increase in price causes few sales & more units produced, shortage
eliminated
Equilibrium price eliminates surplus & shortage

7.

List 4 factors of production & give examples.


Natural resources land, forest, minerals
Human resources physical labour & intellectual inputs by employees
Capital technology, tools, information, physical facilities, financial capabilities
Entrepreneurship willingness to take risks & operate business

8.

What is the equation for total productivity?


(
(

9.

)
)

What is the equation for GDP per capita?

10. Describe 4 economic systems & worker incentives.


Capitalism/private enterprise businesses meet demands & rewarded by profit, incentives to motivate people
Communism all property shared equally under direction of central govt, few worker incentives
Socialism govt owns & operates major industries, incentives limited in state enterprises but are in private firms
Mixed economy capitalism incentives in private sector

11. Describe 4 stages of business cycle


Prosperity unemployment low, confidence in future (more purchases), businesses expand & hire more people & invest in
new technology
Recession economic contraction (6 months or more), consumers postpone purchases & shift buying pattern to basic lower
priced items, businesses slow production/reduce inventories/reduce workforce
Depression economic slowdown into downward spiral
Recovery economy emerges, consumer spending increased, unemployment declines as business accelerates
12. Describe 4 categories of unemployment
Frictional temporarily out of work
Seasonal seasonal jobs
Cyclical workers laid off due to economic contraction/recession
Structural workers out of work for long time (limited skills)
13. Describe fiscal policy
Taxing & spending decision made by govt to control inflation, reduce unemployment, improve welfare of citizens &
encourage economic growth
Increase in taxes & decreased spending reduces inflation & slows economic growth
14. List 5 challenges to global competitiveness.
Economic impact of terrorism
Shift in global information economy
Aging population
Growth of India & China
Enhancing competitiveness of countrys workforce
15. Describe the difference between inflation, core inflation rate, hyperinflation, and deflation.
Inflation rising prices caused by combination of excess consumer demand & higher cost of raw materials, component
parts, human resources
Core inflation rate inflation rate after energy prices & food prices removed
Hyperinflation economic situation marked by soaring prices
Deflation opposite of inflation, occurs when prices continue to fall

Chapter 4 Competing in World Markets


1.

List and describe 3 reasons why nations trade internationally.


International sources of factors or production price, quality of labour, natural resources, capital, entrepreneurship,
trading with other countries allows company to spread risk
Size of international marketplace increased ability to reach new groups of customers
Absolute & comparative advantage country can focus on what it does best & exporting extra output & buy foreign
products it doesnt have

2.

Describe the difference between balance of trade and balance of payments.


Balance of trade diff between nations exports & imports
Balance of payment overall money flows into & out of country

3.

Describe the difference between balance of payment surplus and balance of payment deficit.
Balance of payment surplus more money has moved into country than out of it
Balance of payment deficit more money has gone out of country than entered it

4.

Describe economic factors involved in decision to operate in other countries


Availability, price & quality of labour, national resources/capital/entrepreneurship, countrys regulatory environment,
business climate/population/rising income

5.

Define absolute advantage & comparative advantage


Absolute advantage country makes a product for which it has monopoly/produces at lower cost than competitors
Comparative advantage country supplies product more efficiently & at lower price than it can supply other goods
compared with outputs of other countries

6.

Describe obstacles confronting international trade.


Cultural benefits language, religion, social values, buying habits, business practises
Physical barriers location, distance, terrain, transportation
Economic differences infrastructure, currency conversion/shifts
Political & legal differences, political climate, legal environment, international regulations
Tariffs taxes on imported goods as protective measure to increase foreign good as competitive disadvantage
Other trade restrictions quotas (numerical limits), exchange controls (buy through foreign exchange central bank)

7.

Explain advantages & disadvantages of imposing trade restrictions.


Advantages protect citizens security, health, jobs
Disadvantages limit consumer choices while increasing cost of foreign made products

8.

Discuss advantages of NAFTA.


Eliminate trade barriers & investment restrictions between Canada, Mexico, USA
Opens up market of 450M people & GDP of $15 trillion
Easier for business to operate as simplifies shipment of goods across borders

9.

Explain the difference between franchising, foreign licensing agreement, and subcontracting
Franchisee can produce and/or sell franchisors products under that companys brand name if that franchisee agrees to the
operating terms & requirements
Foreign licensing agreement international agreement in which one firm allows another firm to produce/sell product or
use trademark, patent, manufacturing processes in specific geographical area in return for royalties or other compensation
Subcontracting hiring other companies to produce, distribute, sell goods/services

Chapter 2 Business Ethics & Social Responsibility


1.

Define business ethics


Standards of conduct & moral values that govern actions & decision in work environment (right & wrong)

2.

Describe factors that influence business.


Personal experiences shape responses to diff situations
Persons family, educational, cultural & religious backgrounds play a role
Ethical climate of a company

3.

Outline when conflict of interest poses ethical challenge


Faced with situation in which action befitting person has potential to harm another
Involves persons own interests & someone to whom he has duty
Avoid or disclose potential conflicts of interest

4.

Describe how loyalty vs truth can create ethical dilemma.


Individual must decide between loyalty to company & truthfulness in business relationships

5.

Define whistle-blowing
Employees disclosure to companys officials of illegal, immoral, or unethical practises
Thought no laws, Canadian companies protect whistle blowers

6.

Describe importance of code of conduct


Defines how organization expects employees to resolve ethical issues
Improves ethical awareness among employees, helps them identify ethical problems when they occur & provides
guidance on how to respond

7.

Describe how organizations shape ethical conduct


Ethical awareness foundation of ethical climate, formal statement
Ethical reasoning through education provide training to evaluate ethical dilemmas
Ethical action establish structures & procedure to enable employees to follow ethical behaviour
Ethical leadership demonstrate ethical behaviour

8.

Define social responsibility in business.


Obligation to consider profit, consumer satisfaction & societal well-being of equal value in evaluating firms
performance
Recognition of qualitative dimensions of consumer, employee & societal benefits & quantitative benefits of sales &
profits

9.

Describe objectives of JFKs consumerism movement.


Businesses to consider needs of consumers when making decisions
JFKs 4 consumer rights safety, be informed, ability to choose, be heard

10. List responsibilities a business has to its workers


To provide safe work environment, recognize quality of life issues, ensure equal employment opportunity, prohibit age
discrimination, sexual harassment, sexism
11. Explain how Canadian Charter of Rights & Freedoms addresses discrimination
Every individual equal under law has right to equal protection & benefit of law without discrimination based on race,
national or ethnic origin, colour, religion, sex, age or medical or physical ability
12. Explain how companys unethical behaviour decreases value of business
Goal of every business to make profit for shareholders, if firm fails to behave ethically & legally employees, investors,
consumers suffer, shareholders lose confidence & sell shares, deflates share value & company value

13. List and describe 2 responsibilities of businesses to the general public.


Public health issues what businesses should do about dangerous products
Protecting the environment minimizing pollution & other environmental damage
14. List and describe 3 responsibilities of business to customers.
Right to be safe companies must think of all possible problems & warn consumers of any potential dangers
Right to be informed consumers should be able to get enough education & product information to make responsible
buying decisions
Right to be heard consumers should be able to express their valid complaints to appropriate people
15. List and describe 5 responsibilities of business to employees.
Workplace safety safety & health of workers on job is important business responsibility
Quality of life issue some employers trying to help employees find work-life balance
Ensuring equal opportunity on the job businesses need to find ways to responsibly recruit & manage older workerse
& workers with varying lifestyles
Age discrimination average age of Canadian workers steadily rising
Sexual harassment & sexism every employer has to ensure all workers treated fairly & safe from sexual harassment
Chapter 14 Using Technology to Manage Information
1.

Explain difference between data & information


Data raw facts & figures & may not be relevant to business decision
Information knowledge gained from processing facts & figures
Data useless unless transformed into relevant information to make competitive decision

2.

List and describe the 2 types of information systems.


Operational support systems designed to produce variety of information on organizations activities for both internal &
external users
Management support systems information systems designed to provide support for effective decision making

3.

Describe how the role of CIO has changed in recent years.


Assigned responsibility for direction management information systems & computer operations
Has expanded as technology to manage information develops
Changed from technical role to business partner with strong influence in organization & company strategy

4.

Describe difference between hardware & software


Hardware tangible elements of computer system (input devices, store & process data, output devices
Software set of instructions that tell computer hardware what to do, operations systems software controls basic workings
of computer system, applications software perform specific tasks such as word processing

5.

Describe how computers are classified


Mainframe largest type of computer system with most memory & fastest processing speed
Midrange high end network services & other types of computers to handle large-scale processing needs, less powerful &
expensive & smaller
Personal computers desktop & notebooks
Handheld devices personal digital assistants & smart phones

6.

List most widely used business applications


Word processing, spreadsheets, desktop publishing, e-mail
Financial, presentation, enterprise, resource planning
Personal

7.

Identify 4 trends regarding information systems.


Distributed workforce, increased use of application service providers, on demand computing, cloud & grid computing

8.

Describe the differences between LAN, WAN, wireless local networks, intranets, virtual private networks, and VoIP.
LAN computer network that connects machines within limited areas
WAN computer networks that tie larger geographical regions together
Wireless local networks wireless network that connects various devices & allows them to communicate with one another
through radio waves
Intranet computer network that is similar to internet but limits access to authorized users
Virtual private network use firewalls & programs that encrypt/encode data to make them more secure during transit
VoIP using internet instead of telephone lines to transmit messages

9.

Explain the differences between malware, virus, worm, botnet, Trojan horse, and spyware.
Malware malicious software program designed to infect computer systems
Virus malicious software programs & change them/destroy data
Worm small piece of software that uses a security hold in a network to replicate itself dont require host program
Botnet network of PCs that have been infected with one or more data-stealing viruses
Trojan horse claims to do one thing but in reality does something else
Spyware gathers user info through users internet connection without his/her knowledge

10. Explain the difference between on demand computing, cloud computing, grid computing.
On demand computing use of software time from applications providers, firms only pay for usage of software
Cloud computing use of powerful servers that store applications software accessed by internet-connected device
Grid computing network of smaller computers that run special software
th

11. Identify precursors to management theories in the pre 20 century.


Adam smith (1713 1790) wealth of nations; argued economic advantages that organizations & society would gain from
division of labour
th
Industrial revolution (18 century) mass production through machine power
12. List and describe the 2 modern management theories.
Scientific management FREDERICK TAYLOR (1856-1915) father of scientific management, described how applying
scientific method could be applied to improve performance; FRANK & LILLIAN GILBRETH (1868 1924) motion study
General administrative theory HENRI FAYOL (1841 1925) theory of business administration & ownership of task to
individual, management distinct from accounting , finance, production; MAX WEBER (1864 1920) developed concept of
bureaucracy, formal system of organization & administration
13. List and describe the 4 uses of management theories.
The quantitative approach (1940) use of techniques like statistics & computer models to improve decision making
operations research & management science
Organization behaviour approach (1930) managing by working through people, the role of social norms & group
standards on human behaviour
Systems approach (1960) inputs transformation outputs, set of interrelated & interdependent parts arranged in
manner that produces unified whole, planning/organization/leading/controlling
Contingency approach (1960) requirement for diff management methods, no one set of principles to manage
organizations

14. List and describe the 2 philosophical management theories.


Maslows hierarchy of needs (1908 1970) physiological/basic, safety/security, social/belonging, esteem, self satisfaction
McGregors theory of x & y (1906 1964) X worker lazy, Y worker motivated

You might also like