1.In a short essay, discuss the difference between efficiency and effectiveness and include a specific example to support each concept.a. Efficiency refers to getting the most output from the least amount of inputs. Because managers deal with scarce inputs—including resources such as people, money, and equipment—they are concerned with the efficient use of resources. For instance, at the Beiersdorf Inc. factory in Cincinnati, where employees make body braces and supports, canes, walkers, crutches, and other medical assistance products, efficient manufacturing techniques were implemented by doing things such as cutting inventory levels, decreasing the amount of time needed to manufacture products, and lowering product reject rates. From this perspective,eff iciency is often referred to as “doing things right”—that is, not wasting resources.b. Effectiveness is often described as “doing the right things”—that is, those work activities that will help the organization reach its goals. For instance, at the Beiersdorf factory, goals included open communication between managers and employees and cutting costs. Through various work programs, these goals were pursued and achieved. Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals.2．In a short essay, list an explain the four basic functions of management.Answer(pg11): Planning:mangement founction that involves defining goals,estabiashing strategies for achieving those goals and developing plans to integrate and coordinate activities.Organising:management founction that involves determining what tasks are to be done, who is to do them,how the tasks are to be grouped, who reports to whom and where decisions are to be made.Leading:management founction that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels or dealing in any way with employee behaviour issues.Controlling:management founction that involves monitoring actual to standard and takingaction if necessary.3．In a short essay, explain the four approaches that organisations can take with respect to environmental issues.The first approach simply is doing what is required legally: the legal approach. Under this approach, organizations exhibit little environmental sensitivity. They obey laws, rules, and regulations willingly and without legal challenge, and they may even try to use the law to their own advantage, but that’s the ext ent of their being green. This approach is a good illustration of social obligation: These organizations simply are following their legal obligations of pollution prevention and environmental protection. As an organization becomes more aware of and sensitive to environmental issues, it may adopt the market approach. In this approach, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally friendly products will be what the organization provides. Under the next approach, the stakeholder approach, the organization chooses to respond to multiple demands made by stakeholders. Under the stakeholder approach, the green organization will work to meet the environmental demands of groups such as employees, suppliers, or the community. Both the market approach and the stakeholder approach are good illustrations of social responsiveness. Finally, if an organization pursues an activist approach, it looks for ways to respect and preserve the earth and its natural resources. The activist approach exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility.4.List the factors that influence the strength of an organization’s culture and discuss the impact of a strong culture on employees.a.size of the organizationb.how long it has been aroundc.how much turnover there has been among employeesd.intensity with which the culture was originatede.clear to employees what is important and what is not importantpare and contrast the ideas social obligation an social responsiveness.The more employees accept the organization’s key values and the greater their commitment to those values, the stronger the culture is. Strong cultures have a greater influence on employees than do weak cultures and are associated with high organizational performance. Strong culture also enhances performances Explanation of this is that if values are clear and widely accepted, employees know what they’re supposed to do and what’s expected of them so they can act quickly to take care of problems, thus preventing any potential performance decline.6.In a short essay, discuss the assumption of raionality and the validity of those assumption.AnswerA decision maker who was perfectly rational would be fully objective and logical. He or she would carefully define a problem and would have a clear and specific goal. Moreover, making decisions using rationality would consistently lead toward selecting the alternative that maximizes the likelihood of achieving that goal. The assumptions of rationality apply to any decision. Rational managerial decision making assumes that decisions are made in the best economic interests of the organization. That is, the decision maker is assumed to be ma ximizing the organization’s interests, not his or her own interests. Managerial decision making can follow rational assumptions if the following conditions are met: the manager is faced with a simple problem in which the goals are clear and the alternatives limited; the time pressures are minimal; the cost of seeking out and evaluating alternatives is low; the organizational culture supports innovation and risk taking; and outcomes are relatively concrete and measurable. However, most decisions that managers face in the real world don’t meet all of those tests.7.In a short essay, discuss bounded rationality and satisficing.AnswerDespite the limits to perfect rationality, managers are expected to follow a rational process when making decisions. However, certain aspects of the decision-making process are not realistic as managers make decisions. Instead, managers tend to operate under assumptions of bounded rationality; that is, they behave rationally within the parameters of a simplified decision-makingpr ocess that is limited by an individual’s ability to process information. Managers satisfice, rather than maximize, because they can’t possibly analyze all the information on all of the alternatives. That is, they accept solutions that are “good enough.” Th ey are being rational within the limits of their information-processing ability.8.In a short essay, list and discuss the three levels of strategy that a large organization must develop.Answera.Corporate strategy—this strategy seeks to determine what businesses a company should be in or wants to be in. Corporate strategy determines the direction that the organization is going and the roles that each business unit in the organization will plan in pursuing that direction.b.Business strategy—this strategy seeks to determine how an organization should compete in each of its businesses. For a small organization in only one line of business or the large organization that has not diversified into different products or markets, the business strategy typically over laps with the organization’s corporate strategy. For organizations with multiple businesses, however, each division will have its own strategy that defines the products or services it will offer and the customers it wants to reach.c.Functional strategy—this strategy seeks to determine how to support the business strategy. For organizations that have traditional functional departments such as manufacturing, marketing, human resources, research and development, and finance, these strategies need to support the business strategy.9.In a short essay, list the tree traditional organizational designs. Describe the characteristics that are commonly associated with each. (P309)10.In a short essay, discuss the concept of competitive advantage. Include specific examples of companies and their respective competitive advantages to support your answer.AnswerCompetitive advantage is what sets an organization apart, that is, its distinctive edge. That distinctive edge comes from the organization’s core competencies, which might be in the form of organizational capabilities—the organization does something that others cannot do or does it better than others can do it. For example, Dell has developed a competitive advantage based upon its ability to create a direct-selling ch annel that’s highly responsive to customers. Southwest Airlines has a competitive advantage because it is skilled in giving passengers what they want—quick, convenient, and fun service. Or those core competencies that lead to competitive advantage also can come from organizational assets or resources—the organization has something that its competitors do not have. For instance, Wal-Mart’s state-of-the-art information systems allows it to monitor and control inventories and supplier relations more efficiently than its competitors, which Wal-Mart has turned into a price advantage.11.In a short essay, define management by objectives (MBO) and list four elements of this type of goal setting. What are some problems associated with this approach?AnswerManagement by objectives (MBO) is a management system in which specific performance goals are jointly determined by employees and their managers, progress toward accomplishingthese goals is periodically reviewed, and rewards are allocated on the basis of this progress. Rather than using goals only as controls, MBO uses them to motivate employees as well. Management by objectives consists of four elements: goal specificity, participative decision making, an explicit time period, and performance feedback. Its appeal lies in its focus on employees working to accomplish goals they have had a hand in determining. One problem is that MBO may not be as effective in times of dynamic environmental change. Under an MBO program, employees need some stability to work toward ac complishing the set goals. If new goals must be set every few weeks, there’s no time for employees to work on accomplishing the goals and measuring that accomplishment. Another problem of MBO programs is that an overemphasis by an employee on accomplishing his or her goals without regard to others in the work unit can be counterproductive. A manager must work closely with all members of the work unit to assure that employees aren’t working atcross-purposes. Finally, if MBO is viewed simply as an annual exercise in filling out paperwork, employees won’t be motivated to accomplish the goals.12.In a short essay, list and discuss the five needs that are based on Maslow’s hierarchy of needs theory.Answera.Physiological needs: food, drink, shelter, sexual satisfaction, and other physical requirements.b.Safety needs: security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met.c.Social needs: affection, belongingness, acceptance, and friendship.d.Esteem needs: internal esteem factors such as self-respect, autonomy, and achievement and external esteem factors such as status, recognition, and attention.e.Self-actualization needs: growth, achieving one’s potential, and self-fulfillment; the drive to become what one is capable of becoming.1.In a short essay, explain the difference between a multinationalcorporation (MNC), a transnational corporation (TNC), and a borderless organization. Include examples of companies for each of the types of organizations discussed.Answera. Multinational corporation—these organizations—which maintain significant operations in multiple countries but are managed from a base in the home country—inaugurated the rapid growth in international trade. With its focus on control from the home country, the MNC is characteristic of the ethnocentric attitude. Some examples of companies that can be considered MNCs include Sony, Deutsche Bank AG, ExxonMobil, and Merrill Lynch. Although these companies have considerable global holdings, management decisions with company-wide implications are made from headquarters in the home country.b. Transnational corporation (TNC)—this company maintains significant operations in more than one country but decentralizes management to the local country. This type of organization doesn’t attempt to replicate its domestic successes by managing foreign operations from its home country. Instead, nationals typically are hired to run operations in each country, and marketing strategies for each country are tail ored to that country’s unique characteristics. This type of global organization reflects the polycentric attitude. For example, Switzerland-based Nestlé, the world’s largest food company, can be described as a transnational. With operations in almost every country on the globe, its managers match the company’s products to its consumers. In parts of Europe, Nestlé sells products that are not available in the United States or Latin America.c. Borderless organization—because of the increasingly global environment, many largewell-known companies are moving to more effectively globalize their management structure by eliminating structural divisions that impose artificial geographical barriers. The borderless organization approaches global business from a geocentric attitude. For example, IBM dropped its organizational structure based on country and reorganized into 14 industry groups. Borderless management is an attempt by organizations to increase efficiency and effectiveness in a competitive global marketplace.2.In a short essay, define organizational culture and discuss the three implications of culture as discussed in the textbook.AnswerOrganizational culture is a system of shared meaning and beliefs held by organizational members that determines, in large degree, how they act. It represents a common perception held by the organization’s members. In every organization, there are systems or patterns of values, symbols, rituals, myths, and practices that have evolved over time. These shared values determine, to a large degree, what employees see, and how they respond to their world. When confronted with problems or work issues, the organizational culture influences what employees can do and how they conceptualize, define, analyze, and resolve these issues.This definition of culture implies several things. First, culture is a perception. Individuals perceive the organizational culture on the basis of what they see, hear, or experience within the organization. Second, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That is the shared aspect of culture. Finally, organizational culture is a descriptive term. It’s concerned with how members perceive the organization, not with whether they like it. It describes rather than evaluates.3.In a short essay, list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate.Answera.Measuring—the first step in the control process is measuring. Most jobs and activities can be expressed in tangible and measurable terms. However, managers frequently use a variety of sources of information to measure actual performance, such as personal observation, statistical reports, oral reports, and written reports. For most managers, using a combination of approaches increases both the number of input sources and the probability of getting reliable information.paring—the second step involves determining the degree of variation between actual performance and the prespecified standard. Some variation is to be expected. However, it is important for managers to determine the acceptable range of variation.c.Taking managerial action—managers can choose among three possible courses of action: do nothing, correct the actual performance, or revise the standards. Examples of corrective actions might include changing strategy, structure, compensation plans, training programs, redesigning jobs, or firing employees. Revising standards is an appropriate response if the variance was the result of unrealistic expectations. However, revising standards downwards can be troublesome when an employee or work unit fall short of reaching a goal. If they don’t meet the standard, their natural response is to attack the standard. If the manager believes the standard is fair, they should explain their position, reaffirm their desire for the employee or work unit to meet the standard, and then take necessary corrective action to turn that expectation into reality.4.In a short essay, list and discuss three of the main performance control tools used for monitoring and measuring organizational performance.Answera.Feedforward, concurrent, and feedback controls—the most desirable type of control—feedforward control—prevents anticipated problems since it takes place before the actual activity. Concurrent control, as its name implies, takes place while an activity is in progress. The most popular type of control relies on feedback. In feedback control, the control takes place after the activity is done.b.Financial controls—one of the primary purposes of every business firm is to earn a profit. In pursuit of this objective, managers need financial controls. They might perform several financial ratio tests to ensure that sufficient cash is available to pay ongoing expenses, that debt levels haven’t become too high, or that assets are being used productively. Or, they might look at some newer financial control tool s such as Market Value Added (MVA) to see if the company’s market value is greater than the capital invested in it.rmation controls—information can be critical to monitoring and measuring an organization’s performance. Managers need the right informat ion at the right time and in the right amount. Inaccurate, incomplete, excessive, or delayed information will seriously impede performance.d.Balanced scorecard—this is a performance measurement that was introduced as a way to evaluate organizational performance from more than just the financial perspective. The balanced scorecard is a performance measurement tool that looks at four areas—financial, customer, internal processes, and people/innovation/growth assets—that contribute to a company’s performance. According to this approach, managers should develop goals in each of the four areas and measure to determine if these goals are being met.e.Benchmarking of best practices—benchmarking is the search for the best practices among competitors or noncompetitors that lead to their superior performance. At its most fundamental level, benchmarking means learning from others. As a tool for monitoring and measuring organizational performance, benchmarking can be used to help identify specific performance gaps and potential areas for improvement.。
