ARE 112 MIDTERM LUNDBLAD STUDY GUIDE
Mother city-Caral, Peru - Answers -"mother city" of incan civilization. Served as major
trade area. Hierarchy of living arrangements. Cities were formed for commerce rather
than defensive purposes. Our DNA is made to compete and cooperate this is the same
as businesses in supply chains.
Transaction costs - Answers -cost associated with the time and effort needed to search
out, negotiate, and consummate an exchange (cost of doing business). (get rid of costs
you don't need)
Cost of uncertainty - Answers -making agreements in the context of uncertainty. Ex:
buying insurance for a car because you never know if your car will get in a accident,
broken into, or pulled over. The price of insurance adds to the price of the car. This
means the Cost of Uncertanity adds to the transaction cost.
Bounded rationality - Answers -can't choose the convenient assumption. Adhere
closely to reality and behavior that intends to be rational (not capable of maximizing in
all situations. Limitation on ability to work toward the right answer. Not buying lundblads
car because its been in numerous accidents and lundblad did a bad job of taking of the
car.
Incomplete contracts - Answers -transaction costs, cost of uncertainty, and bounded
rationality all cause incomplete contracts. Cannot maximize all benefits of a transaction
because they are not aware of all the factors. Buy lundblads car for $1,000 but its only
worth $700
Characteristics of Genghis Kahn management style - Answers -Keep only the best
people, promote by ability not rank, looked after their needs, organize so that no one is
in the dark, based on the decimal system- easy to train, commands by hand signals and
banners and drums so everyone knew what they needed to know, communications.
Mission driven organization
Characteristics of the Wild West management styl - Answers -opportunity driven
organization, much like the "startups" of today, access to resources, aspect of
inevitability, success supplants survival as mission.
Ringmaster or ringleader - Answers -sets the pace for the organization, The Circus-
everyone knows what they are supposed to do, everyone has a different task, the
audience plays a part, a market driven organization.
Classical management and its characteristics - Answers -Management style that has
Executives (Markets, products, suppliers, customers, capital expenditures), Managers
(Labor levels, buffers stocks, line balancing, training system), Supervisors (Scheduling
, work, crew assignments maintenance schedule, and production rates) and workers
(doing the work). Careful selection and training of workers
Scientific management (aka Taylorism) - Answers -Design jobs with standards leading
to efficiency
Select workers to fit the job design
Train works to follow the design
Support workers by planning their work
Bureaucracy - With logic, order, and legitimate authority, not an organization based on
social standing. - Answers -Division of labor
Hierarchy of authority
Formal rules
Impersonality
Promotion on Merit
Administration of the firm- so leads the "A" in the MBA and is more recently to
management. Henri Fayol - Answers -Planning
Organizing
Command
Coordination
Control
Unity of Command- no one has more than one boss
Anthony's management hierarchy and what is included in the levels - Answers -
organizational members (workers), operational control (supervisors), management
control(Managers), Strategic planning(executives).
Value proposition - Answers -link between what the customer gets in exchange for
what the customer gives up. Relationship between organizational STRATEGY and
organizational OPERATIONS. (statement of value why the organization exists. )
The organizational diagram from Notes #1 - Answers -the various components-
External: buy side & sell side
Internal: people, culture, structure, tasks, and systems
Behavioral management and its characteristics - Answers -attempts to increase
production by understanding people. Easier to change the organization than change the
people. Ex: Hawthorne experiment, theory x and y, hierarchy of needs, etc.
The Hawthorn experiments - Answers -Elton mayo. 2 groups were studied from the
scientific management perspective on the effects of differing working conditions but the
results were not as planned. People just changed their behavior when they knew they
were being watched. It shifts from just scientific approach to include human and social
concerns to increase productivity.
Mother city-Caral, Peru - Answers -"mother city" of incan civilization. Served as major
trade area. Hierarchy of living arrangements. Cities were formed for commerce rather
than defensive purposes. Our DNA is made to compete and cooperate this is the same
as businesses in supply chains.
Transaction costs - Answers -cost associated with the time and effort needed to search
out, negotiate, and consummate an exchange (cost of doing business). (get rid of costs
you don't need)
Cost of uncertainty - Answers -making agreements in the context of uncertainty. Ex:
buying insurance for a car because you never know if your car will get in a accident,
broken into, or pulled over. The price of insurance adds to the price of the car. This
means the Cost of Uncertanity adds to the transaction cost.
Bounded rationality - Answers -can't choose the convenient assumption. Adhere
closely to reality and behavior that intends to be rational (not capable of maximizing in
all situations. Limitation on ability to work toward the right answer. Not buying lundblads
car because its been in numerous accidents and lundblad did a bad job of taking of the
car.
Incomplete contracts - Answers -transaction costs, cost of uncertainty, and bounded
rationality all cause incomplete contracts. Cannot maximize all benefits of a transaction
because they are not aware of all the factors. Buy lundblads car for $1,000 but its only
worth $700
Characteristics of Genghis Kahn management style - Answers -Keep only the best
people, promote by ability not rank, looked after their needs, organize so that no one is
in the dark, based on the decimal system- easy to train, commands by hand signals and
banners and drums so everyone knew what they needed to know, communications.
Mission driven organization
Characteristics of the Wild West management styl - Answers -opportunity driven
organization, much like the "startups" of today, access to resources, aspect of
inevitability, success supplants survival as mission.
Ringmaster or ringleader - Answers -sets the pace for the organization, The Circus-
everyone knows what they are supposed to do, everyone has a different task, the
audience plays a part, a market driven organization.
Classical management and its characteristics - Answers -Management style that has
Executives (Markets, products, suppliers, customers, capital expenditures), Managers
(Labor levels, buffers stocks, line balancing, training system), Supervisors (Scheduling
, work, crew assignments maintenance schedule, and production rates) and workers
(doing the work). Careful selection and training of workers
Scientific management (aka Taylorism) - Answers -Design jobs with standards leading
to efficiency
Select workers to fit the job design
Train works to follow the design
Support workers by planning their work
Bureaucracy - With logic, order, and legitimate authority, not an organization based on
social standing. - Answers -Division of labor
Hierarchy of authority
Formal rules
Impersonality
Promotion on Merit
Administration of the firm- so leads the "A" in the MBA and is more recently to
management. Henri Fayol - Answers -Planning
Organizing
Command
Coordination
Control
Unity of Command- no one has more than one boss
Anthony's management hierarchy and what is included in the levels - Answers -
organizational members (workers), operational control (supervisors), management
control(Managers), Strategic planning(executives).
Value proposition - Answers -link between what the customer gets in exchange for
what the customer gives up. Relationship between organizational STRATEGY and
organizational OPERATIONS. (statement of value why the organization exists. )
The organizational diagram from Notes #1 - Answers -the various components-
External: buy side & sell side
Internal: people, culture, structure, tasks, and systems
Behavioral management and its characteristics - Answers -attempts to increase
production by understanding people. Easier to change the organization than change the
people. Ex: Hawthorne experiment, theory x and y, hierarchy of needs, etc.
The Hawthorn experiments - Answers -Elton mayo. 2 groups were studied from the
scientific management perspective on the effects of differing working conditions but the
results were not as planned. People just changed their behavior when they knew they
were being watched. It shifts from just scientific approach to include human and social
concerns to increase productivity.
