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BOH4M EXAM REVIEW

UNIT 1: MANAGEMENT TODAY

Chapter 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 Managers
o 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.
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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 efficiency
o Bureaucratic Management
 A rational and efficient form of organization founded on logic, order, and
legitimate authority.
 Behavioural Management Approaches
o Maslow’s Theory of Human Needs
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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 Themes
o 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.
 Values
o 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 Standards
o 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.
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 Social Responsibility
o The obligation of an organization to serve its own interests and those of society.
 Organizational Stakeholders
o 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: CONTEXT
Chapter 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 Organization
o Provides customers with the best quality where it’s a consumer product or a service.
 Corporate Culture
o The values, processes and encouraged behaviours in an organization.
 Glass Ceiling
o 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 Sourcing
o Materials or services are purchased around the world for local use.
 Joint Ventures
o Operates in a foreign country through the ownership with local partners.
 Transnational Corporation
o Is a multinational corporation that operates worldwide on borderless bases.
 Ethical Issues for MNCs
o 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
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 Small Businesses Fail

o 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 Planning
o Improves focus and flexibility
o Improves action orientation
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o Improves coordination
o Improves time management
o Improves control
 Control Process

 Steps in Control
o Establish objectives and standards
o Measure actual performance
o Compare results with objective and standards
o Take corrective action
 Types of Controls
o 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 Management
o The process of formulating and implementing strategies.
 Mission Statement
o 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 Company
o Profitability
o Market Share
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o Human Talent
o Financial Health
o Cost efficiency
o Product quality
o Innovation
o Social responsibility
 SWOT Analysis
o 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 Strategies
o 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.
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o Co-operative
 Strategic Alliance- organizations join together in partnership to pursuer an
area of mutual interest.
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: ORGANIZATION
Chapter 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 Structures
o 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.
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 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 Requirements
o 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 Worth
o 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 Workforce

o 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.
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 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: LEADERSHIP
Chapter 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 & behaviours
o 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 Alternatives

o Scientific Management – clearly defined tasks and people who only complete these
tasks
o 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 workweek
o Flexible hours (shift work) – be presented at core times
o 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
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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
 Team
o Team- a collection of people who regularly interact to pursue common goods
o Synergy- creation of a whole greater than the sum of its individual parts.
 Stages in Team Development
o Forming Stage
 a stage of initial orientation and interpersonal testing
o Storming
 A stage of conflict over tasks and working as a team.
o Norming
 A stage of consolidation around task and operating agendas
o 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 groups
o 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 Teams

o 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”
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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 Decisions
o 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 process
o 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