AP/ADMS 1000 VERIFIED STUDY GUIDE
Elements of Bureaucratic Organizations - Answers - 1. qualification-based hiring
2. merit-based promotion
3. chain of command
4. division of labor
5. impartial application of rules and procedures
6. recorded in writing
7. managers separate from owners
Frederick Taylor and Scientific Management - Answers - Taylor invented scientific
management, a system that cut production costs and increased efficiency (Time-Motion
Studies)
Classic Approach to Management - Answers - 1.Scientific Management
2.Administrative Management
3.Bureaucratic Management
Interpersonal Roles - Answers - figurehead, leader, liaison
Informational Roles - Answers - monitor, disseminator, spokesperson
Decisional Roles - Answers - entrepreneur, disturbance handler, resource allocator,
negotiator
Four Functions of Management - Answers - planning, organizing, leading, controlling
Hawthorne effect - Answers - the tendency for people to behave differently when they
know they are being studied discovered by Elton Mayo.
shareholders/stockholders - Answers - those having title to one or more shares of stock
in a corporation; combined, they represent ownership of the corporation they are also
stakeholders.
Stakeholders - Answers - All the people who stand to gain or lose by the policies and
activities of a business, customers, employees, shareholders, etc
principal-agent problem - Answers - a problem caused by an agent (management)
pursuing his own interests rather than the interests of the principal (owner of a
organization) who hired him
contingencies of structure - Answers - no one ideal way to structure a business and that
the optimal structure depends on the businesses' environment. Identifying the relevant
factors (: strategy, organizational design, technology and environment) was useful and
value-added
, organic structure - Answers - an organizational structure in which authority is
decentralized to middle and first-line managers and tasks and roles are left ambiguous
to encourage employees to cooperate and respond quickly to the unexpected
mechanistic structure - Answers - An organizational structure in which authority is
centralized, tasks and rules are clearly specified, and employees are closely
supervised.
Strategic Management - Answers - a process that involves managers from all parts of
the organization in the formulation and the implementation of strategies and strategic
goals the lovegevity of a business.
Michael Porter's Five Forces Model - Answers - analyzes an organization, its position in
the marketplace, and how information systems could be used to make it more
competitive
1. Barriers to entry
2. Bargaining Power of Suppliers
3. Bargaining power of Buyer
4.Threat of Substitutes
5. Rivalry Among Existing Firms
economies of scale
(Barriers to entry) - Answers - factors that cause a producer's average cost per unit to
fall as output rises
capital requirement
(Barriers to entry) - Answers - A government regulation specifying a minimum amount of
bank capital. The threat of new entrants is reduced as the level of required capital
increases.
switching costs
(Barriers to entry) - Answers - business strategy of locking in customers by making it
difficult or expensive to change to another product or supplier
Access to distribution channels
(Barriers to entry) - Answers - the new entrant's need to secure distribution for its
product can create a barrier to entry
Cost Disadvantages Independent of Scale
(Barriers to entry) - Answers - (i.e Government contracts/regulation)
Suppliers can exert bargaining power over incumbents in an industry by demanding
better prices or threatening to reduce quality of purchased goods or services
(Bargaining power Suppliers) - Answers - 1. the more critical the item, the more power
suppliers hold
Elements of Bureaucratic Organizations - Answers - 1. qualification-based hiring
2. merit-based promotion
3. chain of command
4. division of labor
5. impartial application of rules and procedures
6. recorded in writing
7. managers separate from owners
Frederick Taylor and Scientific Management - Answers - Taylor invented scientific
management, a system that cut production costs and increased efficiency (Time-Motion
Studies)
Classic Approach to Management - Answers - 1.Scientific Management
2.Administrative Management
3.Bureaucratic Management
Interpersonal Roles - Answers - figurehead, leader, liaison
Informational Roles - Answers - monitor, disseminator, spokesperson
Decisional Roles - Answers - entrepreneur, disturbance handler, resource allocator,
negotiator
Four Functions of Management - Answers - planning, organizing, leading, controlling
Hawthorne effect - Answers - the tendency for people to behave differently when they
know they are being studied discovered by Elton Mayo.
shareholders/stockholders - Answers - those having title to one or more shares of stock
in a corporation; combined, they represent ownership of the corporation they are also
stakeholders.
Stakeholders - Answers - All the people who stand to gain or lose by the policies and
activities of a business, customers, employees, shareholders, etc
principal-agent problem - Answers - a problem caused by an agent (management)
pursuing his own interests rather than the interests of the principal (owner of a
organization) who hired him
contingencies of structure - Answers - no one ideal way to structure a business and that
the optimal structure depends on the businesses' environment. Identifying the relevant
factors (: strategy, organizational design, technology and environment) was useful and
value-added
, organic structure - Answers - an organizational structure in which authority is
decentralized to middle and first-line managers and tasks and roles are left ambiguous
to encourage employees to cooperate and respond quickly to the unexpected
mechanistic structure - Answers - An organizational structure in which authority is
centralized, tasks and rules are clearly specified, and employees are closely
supervised.
Strategic Management - Answers - a process that involves managers from all parts of
the organization in the formulation and the implementation of strategies and strategic
goals the lovegevity of a business.
Michael Porter's Five Forces Model - Answers - analyzes an organization, its position in
the marketplace, and how information systems could be used to make it more
competitive
1. Barriers to entry
2. Bargaining Power of Suppliers
3. Bargaining power of Buyer
4.Threat of Substitutes
5. Rivalry Among Existing Firms
economies of scale
(Barriers to entry) - Answers - factors that cause a producer's average cost per unit to
fall as output rises
capital requirement
(Barriers to entry) - Answers - A government regulation specifying a minimum amount of
bank capital. The threat of new entrants is reduced as the level of required capital
increases.
switching costs
(Barriers to entry) - Answers - business strategy of locking in customers by making it
difficult or expensive to change to another product or supplier
Access to distribution channels
(Barriers to entry) - Answers - the new entrant's need to secure distribution for its
product can create a barrier to entry
Cost Disadvantages Independent of Scale
(Barriers to entry) - Answers - (i.e Government contracts/regulation)
Suppliers can exert bargaining power over incumbents in an industry by demanding
better prices or threatening to reduce quality of purchased goods or services
(Bargaining power Suppliers) - Answers - 1. the more critical the item, the more power
suppliers hold
