boh4m exam review

Mouhamad Mroue of 12

BOH4M EXAM REVIEW

UNIT 1: MANAGEMENT TODAYChapter 1 – Dynamic New Workplace 5 Challenges of the New Workplace

o Intellectual capital Intellectual capital is the collective brainpower or shared knowledge of a

workforce that can be used to create value. A knowledge worker adds to the intellectual capital of an organization.

o Globalization National boundaries of world business have largely disappeared. Globalization is the worldwide interdependence of resource flows, product

markets, and business competition that characterize the new economy.o Technology

Continuing transformation of the modern workplace through the internet, World Wide Web, computers, and information technology.

Increasing demand for knowledge workers with the skills to fully utilize technology.

o Diversity Workforce diversity reflects differences with respect to gender, age, race,

ethnicity, religion, sexual orientation, and able-bodied ness. A diverse and multicultural workforce both challenges and offers

opportunities to employers.o Ethics

Code of moral principles that set standards of conduct. Ethical expectations for modern businesses:

Integrity and ethical leadership Natural environment Consumer protection Human rights

o Careers Core workers, contract workers, and part-time workers. People must be prepared to be any one of these types of workers. People must make sure that their skills are portable and of current value in

employment markets. Manager: a person who supports and is responsible for the work of others. Levels of Management

o Top Level Management Guide the performance of the organization as a whole or one of its major

parts. (board of directors, chief executive or managing director)o Middle Level Management

Oversee the work or large departments or divisions. (branch managers and departmental managers)

o Lower Level Management Supervisory/operative. (supervisors, foreman, section officers, superintendent)

Types of Managerso Line Managers

Directly contribute to the production of the organization’s basic goods/services.

o Staff Managers Use special technical experience to advise and support line workers.

o Functional Managers Responsible for one area of activity.


o General Managers Responsible for complex multi-functional units.

o Administrator Manager in a public or non-profit organization.

Management Process

Chapter 2 – Management: Past to Present Classical Management Approaches

o Scientific Management Emphasizes careful selection and training of workers and supervisory

support with an emphases on improving efficiencyo Bureaucratic Management

A rational and efficient form of organization founded on logic, order, and legitimate authority.

Behavioural Management Approacheso Maslow’s Theory of Human Needs


o Theory X and Y Theory X – assumes people dislike work, lack ambition, are irresponsible,

and prefer to be led. Theory Y – assumes people are willing to work, accept responsibility, are

self-directed and creative. Modern Management Approaches

o Contingency Thinking Tries to match management practices with situational demands. Helps

managers understand situational differences and respond to them in ways appropriate to their unique characteristics.

Continuing Management Themeso Quality & performance excellence, ethics & social responsibility, global awareness,

and the importance of new leadership in an age of information, knowledge workers, and highly competitive business environments.

Chapter 3 – Ethical Behaviour & Social Responsibility Ethics & Ethical Behaviour

o Ethics Sets standards of good or bad, or right or wrong, in one’s conduct.

o Ethical Behaviour Is “right” or “good” in the context of a governing moral code.

Valueso Terminal

Preferences about desired end states.o Instrumental

Preferences regarding the means to desired needs. Ethical Dilemma

o A situation that, although offering potential benefit or gain, may be considered as unethical.

Marinating High Ethical Standardso Ethics Training

Helps people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behaviour.

o Whistle-Blower Exposes the misdeeds of others in organizations.

o Code of Ethics A formal statement of an organization’s values and beliefs.

Social Responsibilityo The obligation of an organization to serve its own interests and those of society.


Organizational Stakeholderso Are directly affected by the behaviour of the organization and hold a stake in its

performance. (customers, employees, suppliers, owners, competitors, regulators, interest groups)

UNIT 2: CONTEXTChapter 4 – Environment, Organizational Structure, and Diversity Competitive Advantage

o Allows an organization to deal with market and environmental forces better than its competitors.

Quality Driven Organizationo Provides customers with the best quality where it’s a consumer product or a service.

Corporate Cultureo The values, processes and encouraged behaviours in an organization.

Glass Ceilingo A hidden barrier to the advancement of women in minorities.

Chapter 5 – Global Dimensions of Management Globalization

o The process of growing interdependence among elements of the global economy. Global Manager

o Culturally aware and informed about international affairs. Companies go international because of:

o Profit- Global operations offer greater profit potential.o Customers- Global operations offer new markets to sell products.o Suppliers- Global operations offer access to needed raw materials.o Capital- Global operations offer access to financial resources.o Labour- Global operations offer access to lower labour costs.

Global Sourcingo Materials or services are purchased around the world for local use.

Joint Ventureso Operates in a foreign country through the ownership with local partners.

Transnational Corporationo Is a multinational corporation that operates worldwide on borderless bases.

Ethical Issues for MNCso Corruption- Involves illegal practices to further one’s business interests.o Sweatshops- employ workers at very low wages, for long hours, and in poor working

conditions.o Child Labour- full-time employment of children for worker otherwise done by adults.

Chapter 6 – Entrepreneurship and Small Businesses Entrepreneurship

o Dynamic, risk-taking, creative, growth-oriented behaviour. Entrepreneur

o Willing to pursue opportunities in situations others view as problems or threats. Characteristics of Entrepreneurs


Small Businesses Failo Lack of Experience- not having sufficient know-how to run a business in the chosen

market or area.o Lack of Expertise- not having expertise in the essentials of business operations.o Lack of Strategy- not taking the time to craft a vision and mission, or formulate and

properly implement strategy.o Poor Financial Control- not keeping track of the numbers and failure to control

business finances.o Growing too fast- not taking the time to consolidate a position, fine-tune the

organization, and systematically meet the challenges of growth.o Ethical Failure- falling prey to the temptations of fraud, deception, and

embezzlement.

Chapter 8 – Planning and Controlling Planning

o Process of setting objectives and determining how to accomplish them.o When planning is done well it creates a solid platform for the other management

functions (organizing, leading, and controlling) Planning Process

Benefits of Planningo Improves focus and flexibilityo Improves action orientation


o Improves coordinationo Improves time managemento Improves control

Control Process

Steps in Controlo Establish objectives and standardso Measure actual performanceo Compare results with objective and standardso Take corrective action

Types of Controlso Feed forward controls- ensure that directions and resources are right before the work

begins.o Concurrent Control- focuses on what happens during the work process.o Feedback Control- takes place after an action is completed.o Internal Control- occurs through self-discipline and self-control.o External Control- occurs through direct supervision or administration systems.

Chapter 9 – Strategic Management Strategy

o A comprehensive plan guiding resource allocation to achieve long-term organizational goals.

Strategic Managemento The process of formulating and implementing strategies.

Mission Statemento Identifies the domain in which the organization intends to operate in including the

customers intends to serve, products and/or services it intends to provide, the location in which it intends to operate.

Objectives of a Companyo Profitabilityo Market Shareo Human Talent


o Financial Healtho Cost efficiencyo Product qualityo Innovationo Social responsibility

SWOT Analysiso Examines the organizational strengths and weaknesses, and environmental

opportunities and threats. PEST Analysis

o Stands for "political, economic, social, and technological analysis" and describes a framework of macro-environmental factors used in the environmental component of strategic management.

Porter’s Model

Types of Strategieso Levels of Strategy

Corporate Strategy- sets long-term direction for the total enterprise. Business Strategy- identifies how a division or strategic business unit will

complete in its product or service domain. Functional Strategy- guides activities within one specific area of operations.

o Growth & Diversification Strategies Growth Strategy- expansion of the organization’s current operations. Concentration- where expansion is within the same business area. Diversification- by acquisition of or investment in new and different business

areas. Vertical Integration- acquiring suppliers or distributors.

o Restructuring & Divestiture Strategies Retrenchment Strategy- changes operations to correct weaknesses. Restructuring- reduces the scale and/or mix of operations. Downsizing- decreases the size of operations.

o Global Globalization Strategy- adopts standardized products and advertising for use

worldwide. Multidomestic Strategy- customizes products and advertising to best fit local

needs. Transnational Strategy- seeks efficiencies of global operations with attention

to local markets.o Co-operative

Strategic Alliance- organizations join together in partnership to pursuer an area of mutual interest.

http://en.wikipedia.org/wiki/Strategic_management


o E-Business E-Business Strategy- uses the internet to gain competitive advantage. B2B Business Strategy- uses IT and Web portals to link organizations

vertically in supply chains. B2C Business Strategy- uses IT and Web portals to link businesses with

customers. BCG Matrix

o Analyzes business opportunities according to market growth rate and market share.

UNIT 4: ORGANIZATIONChapter 10 – Organizing Organizing

o Arranges people and resources to work toward a goal. Formal vs. Informal Structure

o Formal- the official structure of the organization.o Informal- unofficial relationships among an organization’s members.

Traditional Organizational Structureso Functional- groups together people with similar skills who perform similar tasks.o Divisional- groups together people working on the same product, in the same area,

with similar customers, or on the same processes.o Matrix- combines functional and divisional approaches to emphasize project or

program teams. Directions in Organization Structures

o Team Structures- uses permanent and temporary cross-functional teams to improve lateral relationships.

Cross-functional team- brings together members from different functional departments.

Project team- grouped together for a particular task and ungrouped after it is completed.

o Network Structures- uses IT to link with networks of outside suppliers and service contractors.

Outsourcing- a business function is contracted to an outside supplier.o Boundary less Organizations- eliminates internal boundaries among subsystems and

external boundaries with the external environment. Vertical vs. Horizontal Structures

o Narrow Span of Control- only a few people under a manager’s immediate supervision.

o Wide Span of Control- the manager supervises many people. Centralization vs. Decentralization

o Centralization- concentration of authority for most decisions at the top level of an organization.


o Decentralization- dispersion of authority to make decisions throughout all organization levels.

Chapter 12 – Human Resources Management Human Capital

o The economic value of people with job-relevant abilities, knowledge, ideas, energies, and commitments.

Human Resource Management (HRM)o Process of attracting, developing, and maintaining a high-quality workforce.

Bona Fide Occupational Requirementso Employment criteria justified by the capacity to perform a job. Use is based on race

and colour is not allowed under any circumstances; those based on gender, religion, and age is very difficult to support.

Comparable Wortho Holds that persons performing jobs of similar importance should be paid at

comparable levels. Attracting a Quality Workforce

o HR Planning- analyzes staffing needs and identifies actions to fill those needs. Job analysis- studies exactly what is done in a job, and why. Job description- details the duties and responsibilities of a job holder. Job specification- lists the qualifications required of a job holder.

o Recruiting Process Résumés/Applications Interview Reference Checks Selection

o Selection Reliability- gives consistent results over repeated measures. Validity- have demonstrated links with future job performance. Assessment Centre- examines how job candidates handle simulated

situations. Work Sampling- applicants are evaluated while performing actual work tasks.

Developing a Quality Workforceo Employee Orientation- familiarizes new employees with jobs, co-workers, and

organizational policies and services.o Training- provides learning opportunities to acquire and improve job-related skills.o Performance Management System- sets standards, assesses results, and plans for

performance improvements. Maintaining a Quality Workforce

o Career Development- Career planning- matching goals and individual capabilities with opportunities

for their fulfillment. Career plateau- unlikely to move to a higher level of work responsibility.

o Work-life Balance- balancing career demands with personal and family needs.o Compensation/Benefits

Base Compensation- salary or hourly wage paid to an individual. Fringe Benefits- non-monetary forms of compensation such as life insurance

and retirement plans. Flexible Benefits- programs allow employees to choose from a range of

benefit options. Family-Friendly Benefits- help employees achieve better work-life

experience.


Employee Assistance Programs- help employees cope with personal stresses and problems.

o Labour-Management Relations Labour Union- an organization that deals with employers on the workers’

behalf. Labour Contract- formal agreement between a union and employer about the

terms of work for union members. Collective Bargaining- process of negotiating, administering, and interpreting

a labour contract.

UNIT 5: LEADERSHIPChapter 15 – Individual Behaviour and Performance Organizational Behaviour

o Study of individuals and groups in organizations Personality traits

o Extroversion – is being outgoing, sociable, and assertive.o Agreeableness – is being good-natured, co-operative, and trusting.o Conscientiousness – being responsible, dependable, and careful.o Emotional Stability – is being relaxed, secure, and unworried.o Openness – being curious, receptive to new ideas, and imaginative.

Work attitudes & behaviourso Attitude- a preposition to act in a certain way.o 3 ways your attitude is affected:

Cognitive – reflects to your beliefs or opinions. Affective/Emotional – reflect your feelings. Behavioural – reflects an intention to behave consistently with a belief or

feeling. Cognitive Dissonance

o Discomfort felt when an attitude and behaviour are inconsistent.

Job Design Alternativeso Scientific Management – clearly defined tasks and people who only complete these

taskso Job Rotation & Enlargement – increases job availability by periodically shifting

worker’s between different jobs.o Job enrichment – increases job depth by adding more work planning and evaluating

duties normally performed by the supervisor. Alternative Work Arrangements

o Compressed workweeko Flexible hours (shift work) – be presented at core timeso Job sharing – two or more people share one job.o Telecommuting – working from home, or away from office using IT (international)o Part-time work - >40 hours, substitutes, on contracts

Chapter 16 – Teams and teamwork PROs and CONs of Teams

o PROS of Teams More ideas (quality) Discussion work


Safety net Work accomplished faster and efficiently “Synergy” – creation of a whole that is greater than its parts.

o CONS of Teams Disagreements/ conflicts of personalities Social loafing – freeloading in teams Low enthusiasm Work style differences Loyalty issues

Teamo Team- a collection of people who regularly interact to pursue common goodso Synergy- creation of a whole greater than the sum of its individual parts.

Stages in Team Developmento Forming Stage

a stage of initial orientation and interpersonal testingo Storming

A stage of conflict over tasks and working as a team.o Norming

A stage of consolidation around task and operating agendaso Performing

A stage of teamwork and focused task performance.o Adjourning

A stage of task completion and disengagement Four roles of Managers

o Supervisor “Leader”o Network Facilitation “Peer Leader”o Helpful Participant “member”o External Coach “sponsor”

Formals vs. Informal groupso Formal Groups

Officially recognized and supported by the organization.o Informal Groups

Unofficial and emerges from relationships and shared interests among members.

Trends in the use of Teamso Committee

Designated to work on specific tasks on a continuing basis.o Project Team

Convened for specific purposes and they disband when task is complete.o Cross-Functional Team

Operates with members who come from different functional units of an organization. They “knock down walls”

o Employee Involvement Teams Meets in a regular basis to help achieve continuous improvement.

o Quality circle Team of employees who meet periodically to discuss ways of improving work

quality.o Virtual team

Members work together and solve problems through computer bases interactions.

o Self Managing teams


Heave authority to make decisions about how they share and complete their work.

Teams and Decisionso Lack of response

one idea after another is suggested no discussion team accepts a decision and all others have been by passed

o Authority rule Leader makes all the decisions for the group.

o Minority rule quick agreements “Does anyone object”

o Majority rule formal voting (election)

o Unanimity all team members agree on course of action to be taken (jury)

Team building processo A sequence of collaborative activities to gather and analyze data on a team and

make changes to increase effectiveness. Problem Awareness Data gathering data analysis Action planning Action Implementation Evaluation

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