Showing Page:
1/14
MGMT 303: Midterm Study Guide
1) Definition of Management - difference between effective and efficient.
- Management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the
work of people through (3) planning, organizing, leading, and controlling the organization’s resources.
- Efficiency is the means, while effectiveness is the ends. Efficiency is the means of attaining the organization's
goals. To be efficient means to use resources (people, money, raw materials, and the like) wisely and cost-
effectively.
- Effectiveness regards the organization’s ends, the goals. To be effective means to achieve results, to make the right
decisions, and to successfully carry them out so that they achieve the organization's goals.
Good managers are concerned with trying to achieve both qualities.
Imagine you manage a local gas station. Which criteria might you use to determine your efficiency as a manager? Which
criteria might you use to determine your effectiveness?
- Because efficiency means using resources wisely and cost-effectively, a manager might appraise his efficiency on how
much time it takes to fill up a car (for example, does the gas pump allow for a person to fill up quickly, making it easy
to get more people through the lines?), how well he negotiates with vendors (for example, by getting the best possible
prices on the different gasses), and how well he manages his staff (which might be measured by turnover or number of
sick days taken).
- To determine his effectiveness, the manager would look at how well he carries out the company's goals. If the
company's owners have set a goal of increasing sales (number of gallons sold) by 10 percent per month, the manager
can look at the number of gallons sold each week to determine if he is meeting that goal.
2) What are the 4 functions of Management? (Planning, Organizing, Leading and Controlling)
Rewards and challenges of being an exceptional manager
- The rewards of being an exceptional manager is “the art of getting things done through people.
- 7 challenges of being an exceptional manager are:
Showing Page:
2/14
Challenge #1: Managing for Competitive Advantage - Staying Ahead of Rivals: An organization must stay
ahead in four areas (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
Challenge #2: Managing for Information Technology Dealing with the “New Normal”: E-commerce the
buying and selling of goods or services over the computer networks- has reshaped the entire industries and
revamped the very notion of what a company is. E- commerce also led to the growth of e-business, the using
Internet to facilitate every aspect of running a business.
Challenge #3: Managing for Diversity The Future Won’t Resemble the Past: The challenge for manager is to
maximize the contributions of employees diverse in gender, age, race, ethnicity, and sexual orientation.
Challenge #4: Managing for Globalization - The Expanding Management Universe: Verbal expressions and
gestures don’t mean the same thing to everyone around the world. Failure to understand such differences can
affect organizations’ ability to manage globally.
Challenge #5: Managing for Ethical Standards: Ethical behavior is not just a nicety; it is an essential principle to
follow in every industry, and on that is even more compelling when you are in a position of power.
Challenge #6: Managing for Sustainability The Business of Green: Sustainability is defined as economic
development that meets the needs of the present without compromising the ability of future generations to
meet their own needs. Therefore, many companies have recognized that corporations have a responsibility to
address the causes of climate change.
Challenge #7: Managing for Happiness and Meaningfulness: Meaningfulness is the sense of “belonging to
and serving something that you believe is bigger than the self”.
3) Levels of ManagementDefine the 4 levels of management and tasks of a manager at each level.
- Top Managers: decides long-term decisions about the overall direction of the organization and establishing the objectives,
policies, and strategies for it.
- Middle Managers: implements the policies and plans of the top managers above them and supervise and coordinate the
activities of the first-line managers below them.
- First-line Managers: make short-term operating decisions, directing the daily task of non-managerial personnel.
- Team Leader: a manager is who responsible for facilitating team activities toward the key results.
4) What skills & roles do managers need? What are the most important skills at each level? What types of roles do
managers hold?
- The Skills Exceptional Managers Need:
Technical Skills: The job-specific knowledge needed to perform well in a specialized field.
Conceptual Skills: The ability to think analytically, to visualize an organization as a whole and understand how the
parts work together.
Human Skills: The ability to work well in cooperation with other people to get things done.
Soft Skills: The ability to motivate, to inspire trust, to communicate with others.
- Roles Managers Must Play Successfully:
A manager relies more on verbal than on written communication.
A manager works long hours at an intense pace.
A manager’s work is characterized by fragmentation, brevity, and variety.
- Different Types of Managerial Roles:
Interpersonal Roles: Managers interact with people inside and outside their work units. Figurehead, leader, liaison.
Informational Roles: Managers receive and communicate information. Monitor, disseminator, spokesperson.
Showing Page:
3/14