ARE 112 (UC DAVIS) ORGANIZATION MANAGEMENT -
Bounded Rationality - Answers -Bounded rationality is the idea that in decision-making,
rationality of individuals is limited by the information they have, the cognitive limitations
of their minds, and the finite amount of time they have to make a decision.
Transactions Costs - Answers -Transaction cost theory tries to explain why companies
exist, and why companies expand or source out activities to the external environment.
The transaction cost theory supposes that companies try to minimize the costs of
exchanging resources with the environment, and that companies try to minimize the
bureaucratic costs of exchanges within the company. Companies are therefore
weighing the costs of exchanging resources with the environment, against the
bureaucratic costs of performing activities in-house.
Incomplete Contracts - Answers -At the time of contracting, future contingencies may
not even be describable. Moreover, parties cannot commit themselves never to engage
in mutually beneficial renegotiation later on in their relationship. Thus, an immediate
consequence of the incomplete contracting approach is the so-called hold-up
problem.[4] Since at least in some states of the world the parties will renegotiate their
contractual arrangements later on, they have insufficient incentives to make
relationship-specific investments (since a party's investment returns will partially go to
the other party in the renegotiations).
Satisficing and Optimizing - Answers -accept an available option as satisfactory
Mother City - Answers -Cooperative model vs competitive. This was the case of the city
in Peru that walled off the city for commerce and not defense (Heinz vs Hunts w/tomato
farmers)
Characteristics of Ghengis Khan Management Style - Answers -a.Keep only the best
people -promote by ability not rank
b.Lookedafter their needs
c.Organize so that no one is in the dark
i.Based on the decimal system -easy to train
ii.Commands by hand signals and banners and drums so everyone knew what they
needed to know-communications
d.Train, train, train
e.Mission driven organization
Wild West Management Style - Answers -a.No history
b.Access to resources
c.An aspect of inevitability
d.Success supplants survival as mission
e.Opportunity driven organization
, f.Much like the "start up's" of today
Ringmaster or Ringleader - Answers -Sets the pace of the organization.
Classical Management and its characteristics - Answers -Scientific Management:
Taylor
Bureaucratic: Weber
Administrative:Henry Fayol
Scientific Management - Answers -Fit the employee to the job.
Motion Studies.
Design jobs for efficiency.
Bureaucratic Management - Answers -Logic, Order, Legitimate Authority, Not based on
Social Standing.
Division of Labor, Hierarchy of Authority, Meritocracy, Formal Rules, Impersonal
Administrative Management - Answers -Planning, Organizing, Command, Coordination,
Control, Unity of Command (no one has more than one boss)
Anthony's Management Hierarchy - Answers -Top: Strategic
Below: Tactical
Below: Operational
Bottom: Daily/Transactional
Value Proposition - Answers -A link between what the customer gains vs what the
customer gives up.
The link between the organizational strategy and the organizational operations.
Behavioral Management and its Characterisitics - Answers -An attempt to increase
production by understanding people as it is easier to change the organization than to
change the people -different than the Taylor approach.
Hawthorne Experiments - Answers -Wiring with low light and bright lights showed no
difference in production, but both instances had higher production than normal.
Revealed the nature of human working conditions, they worked harder because they
were being noticed and watched (good or bad)
Maslow Hierarchy of Needs - Answers -a.Physiological needs: food, water, physical
well being
b.Safety needs: shelter, protection, stabilityc.Social needs: love, affection,
belongingness
d.Esteem needs: respect, prestige, mastery
e.Self-actualization needs: self-fulfillment, growth
Bounded Rationality - Answers -Bounded rationality is the idea that in decision-making,
rationality of individuals is limited by the information they have, the cognitive limitations
of their minds, and the finite amount of time they have to make a decision.
Transactions Costs - Answers -Transaction cost theory tries to explain why companies
exist, and why companies expand or source out activities to the external environment.
The transaction cost theory supposes that companies try to minimize the costs of
exchanging resources with the environment, and that companies try to minimize the
bureaucratic costs of exchanges within the company. Companies are therefore
weighing the costs of exchanging resources with the environment, against the
bureaucratic costs of performing activities in-house.
Incomplete Contracts - Answers -At the time of contracting, future contingencies may
not even be describable. Moreover, parties cannot commit themselves never to engage
in mutually beneficial renegotiation later on in their relationship. Thus, an immediate
consequence of the incomplete contracting approach is the so-called hold-up
problem.[4] Since at least in some states of the world the parties will renegotiate their
contractual arrangements later on, they have insufficient incentives to make
relationship-specific investments (since a party's investment returns will partially go to
the other party in the renegotiations).
Satisficing and Optimizing - Answers -accept an available option as satisfactory
Mother City - Answers -Cooperative model vs competitive. This was the case of the city
in Peru that walled off the city for commerce and not defense (Heinz vs Hunts w/tomato
farmers)
Characteristics of Ghengis Khan Management Style - Answers -a.Keep only the best
people -promote by ability not rank
b.Lookedafter their needs
c.Organize so that no one is in the dark
i.Based on the decimal system -easy to train
ii.Commands by hand signals and banners and drums so everyone knew what they
needed to know-communications
d.Train, train, train
e.Mission driven organization
Wild West Management Style - Answers -a.No history
b.Access to resources
c.An aspect of inevitability
d.Success supplants survival as mission
e.Opportunity driven organization
, f.Much like the "start up's" of today
Ringmaster or Ringleader - Answers -Sets the pace of the organization.
Classical Management and its characteristics - Answers -Scientific Management:
Taylor
Bureaucratic: Weber
Administrative:Henry Fayol
Scientific Management - Answers -Fit the employee to the job.
Motion Studies.
Design jobs for efficiency.
Bureaucratic Management - Answers -Logic, Order, Legitimate Authority, Not based on
Social Standing.
Division of Labor, Hierarchy of Authority, Meritocracy, Formal Rules, Impersonal
Administrative Management - Answers -Planning, Organizing, Command, Coordination,
Control, Unity of Command (no one has more than one boss)
Anthony's Management Hierarchy - Answers -Top: Strategic
Below: Tactical
Below: Operational
Bottom: Daily/Transactional
Value Proposition - Answers -A link between what the customer gains vs what the
customer gives up.
The link between the organizational strategy and the organizational operations.
Behavioral Management and its Characterisitics - Answers -An attempt to increase
production by understanding people as it is easier to change the organization than to
change the people -different than the Taylor approach.
Hawthorne Experiments - Answers -Wiring with low light and bright lights showed no
difference in production, but both instances had higher production than normal.
Revealed the nature of human working conditions, they worked harder because they
were being noticed and watched (good or bad)
Maslow Hierarchy of Needs - Answers -a.Physiological needs: food, water, physical
well being
b.Safety needs: shelter, protection, stabilityc.Social needs: love, affection,
belongingness
d.Esteem needs: respect, prestige, mastery
e.Self-actualization needs: self-fulfillment, growth
