ARE 112 MIDTERM 1 STUDY GUIDE
Bounded Rationality - Answers -the idea that rationality is limited when individuals
make decisions meaning a consumer's preferences are determined by changes in
outcomes relative to a certain reference level.
Transaction Costs - Answers -total costs of making a transaction, include the cost of
planning, deciding, changing plans, resolving disputes, and after-sales
Cost of uncertainty - Answers -an estimate of the unknown so there is a general bias to
over-estimate this cost
Incomplete contracts - Answers -A contract that is defective or uncertain in a material
aspect, this means that not all factors of the contract are known and the benefits are
unknown, bother parties are not equal
Satisficing and optimizing - Answers -Satisficing - decision making process that says to
pick the first acceptable option rather than finding the optimal solution
Optimizing - decision making process that involves finding the best possible outcome
from all the available options
Mother city - Answers -An ancient Peruvian city that flourished 5,000 years ago making
it the oldest urban center in the Americas, they created complexity and scope, created a
hierarchy of living arrangements, and served as a trade center.
Characteristics of Genghis Kahn Management Style - Answers -- Only the best were
kept
- Looked after their needs
- Organize so no one was in the dark
- based on the decimal system making it easy to train
- Hand signals and banners and drums used for commands
- train train train
- mission driven organization
Characteristics of the Wild West - Answers --No History
-Access to resources
-An aspect of inevitability
-Success supplants survival as mission
-Opportunity driven organization
- Much like the "start up's" of today
Ringmaster or ringleader - Answers --Sets the pace for the organization
- Everyone knows what they are supposd to do
- Everyone has a different task
-Market driven organization
, Classical management and its characteristics - Answers -Frederick Taylor created
Taylorism or scientific management
Max Weber created Bureaucracy
Henry Fayol created Administration of the firm
Anthony's Management Hierarchy
Industrial revolution was the main factor in requiring new management
Scientific management - Answers -- Frederick Taylor or Taylorism
- This created jobs with standards leading to efficiency
- Select workers to fit the job design
- Train workers by planning their work
- Careful selection and training of worker
Bureaucracy - Answers -- Max Weber
- Logic, order, and legitimate authority, not an organization based on social standing
- Division of labor
- Hierarchy of authority
- Formal Rules
- Impersonality
- Promotion on merit
Administration of the firm - Answers -- Henry Fayol
- This lead to the A in the MBA
- Planning
- Organizing
- Command
- Coordination
- Control
- Unity of command - no on has more than one boss
Anthony's management hierarchy - Answers -- Strategic Planning - Executives
markets, products, suppliers, customers, capital expenditures
- Management Control - Managers labor levels, buffers stocks, line balancing, training
systems
- Operational Control - Supervisors scheduling work, crew assignments, maintenance
schedule, production rates
- Organizational Members - Workers doing the actual work
Value Proposition - Answers -External - a link between the customer gets in return for
what the customer gives up
Internal - Links strategy with operations
Organizational diagram Notes #1 - Answers -External - Buy Side and Sell side and the
strategy
Internal - People, culture, Tasks, Systems, Structure
Bounded Rationality - Answers -the idea that rationality is limited when individuals
make decisions meaning a consumer's preferences are determined by changes in
outcomes relative to a certain reference level.
Transaction Costs - Answers -total costs of making a transaction, include the cost of
planning, deciding, changing plans, resolving disputes, and after-sales
Cost of uncertainty - Answers -an estimate of the unknown so there is a general bias to
over-estimate this cost
Incomplete contracts - Answers -A contract that is defective or uncertain in a material
aspect, this means that not all factors of the contract are known and the benefits are
unknown, bother parties are not equal
Satisficing and optimizing - Answers -Satisficing - decision making process that says to
pick the first acceptable option rather than finding the optimal solution
Optimizing - decision making process that involves finding the best possible outcome
from all the available options
Mother city - Answers -An ancient Peruvian city that flourished 5,000 years ago making
it the oldest urban center in the Americas, they created complexity and scope, created a
hierarchy of living arrangements, and served as a trade center.
Characteristics of Genghis Kahn Management Style - Answers -- Only the best were
kept
- Looked after their needs
- Organize so no one was in the dark
- based on the decimal system making it easy to train
- Hand signals and banners and drums used for commands
- train train train
- mission driven organization
Characteristics of the Wild West - Answers --No History
-Access to resources
-An aspect of inevitability
-Success supplants survival as mission
-Opportunity driven organization
- Much like the "start up's" of today
Ringmaster or ringleader - Answers --Sets the pace for the organization
- Everyone knows what they are supposd to do
- Everyone has a different task
-Market driven organization
, Classical management and its characteristics - Answers -Frederick Taylor created
Taylorism or scientific management
Max Weber created Bureaucracy
Henry Fayol created Administration of the firm
Anthony's Management Hierarchy
Industrial revolution was the main factor in requiring new management
Scientific management - Answers -- Frederick Taylor or Taylorism
- This created jobs with standards leading to efficiency
- Select workers to fit the job design
- Train workers by planning their work
- Careful selection and training of worker
Bureaucracy - Answers -- Max Weber
- Logic, order, and legitimate authority, not an organization based on social standing
- Division of labor
- Hierarchy of authority
- Formal Rules
- Impersonality
- Promotion on merit
Administration of the firm - Answers -- Henry Fayol
- This lead to the A in the MBA
- Planning
- Organizing
- Command
- Coordination
- Control
- Unity of command - no on has more than one boss
Anthony's management hierarchy - Answers -- Strategic Planning - Executives
markets, products, suppliers, customers, capital expenditures
- Management Control - Managers labor levels, buffers stocks, line balancing, training
systems
- Operational Control - Supervisors scheduling work, crew assignments, maintenance
schedule, production rates
- Organizational Members - Workers doing the actual work
Value Proposition - Answers -External - a link between the customer gets in return for
what the customer gives up
Internal - Links strategy with operations
Organizational diagram Notes #1 - Answers -External - Buy Side and Sell side and the
strategy
Internal - People, culture, Tasks, Systems, Structure
