1
GMS 200 - MIDTERM EXAM
NOTES 2026-27 LATEST VERSION
[Chapter One - Introducing Management]
• Intellectual Capital: Intellectual capital is the collective
brainpower or shared knowledge of a workforce.
• Knowledge Worker: A knowledge worker is someone
whose mind is a critical asset to employers.
• Workforce Diversity: Workforce diversity decreases the
differences among workers in gender, race, age,
ethnicity, religion, sexual orientation, and able-
bloodedness.
• Prejudice: Prejudice is the display of negative, irrational
attitudes toward members of diverse populations.
• Discrimination: Discrimination is when minority members are
unfairly treated and denied the full benefits of
organizational membership.
• Glass Ceiling Effect: The glass ceiling effect is an invisible
barrier or “ceiling” that prevents women and members of
visible minorities from rising above a certain level of
organizational responsibility.
• Globalization: Globalization is the worldwide
interdependence of resource flows, product markets, and
business competition.
,2
• Ethics: Ethics is a set of moral standards of what is “good”
and “right” in one’s behavior. In other words, it is the right
thing.
• Organization: An organization is a collection of people
working together to achieve a common purpose or goal.
• Open System: An open system transforms resources inputs
from the environment into product outputs. For example, the
environment supplies people, money, materials where the
organization then creates work with the environment supplies,
and finally, the environment consumes finished goods and
services created from the environmental supplies and
organizational work.
• Productivity: Productivity is the quantity and quality of work
or outputs relative to the cost of inputs.
• Performance Effectiveness: Performance effectiveness is an
output measure of task or goal accomplishment.
• Performance Efficiency: Performance efficiency is an
input measure of resource cost associated with goal
accomplishment.
• General Environment: The general environment is
composed of economic, legal-political, technological, socio-
cultural, and natural environment conditions.
• Sustainable Business: Sustainable business both meets
the needs of customers and protects the well-being of
our natural environment.
,3
• Sustainable Innovation: Sustainable innovation creates
new products and production methods that have
reduced environmental impact.
• Specific Environment: Specific environment, or task
environment, includes the people and groups with whom
organization interacts.
• Stakeholders: Stakeholders are the persons, groups, and
institutions directly affected by an organization.
• Value Creation: Value creation is the creation of
value for and satisfying needs of stakeholders.
• Competitive Advantage: Competitive advantage refers to
something that an organization does extremely well, a core
competency that clearly sets it apart from competitors and
gives it an advantage over them in the marketplace.
Competitive advantage can be achieved through costs,
quality, delivery, and flexibility.
• Strategic Positioning: Strategic positioning occurs when
an organization does different things or the same things
in different ways from its major competitors.
• Environmental Uncertainty: Environmental uncertainty is a
lack of complete information about the environment.
• Organizational Effectiveness: Organizational effectiveness is
sustainable high performance in using resources to accomplish
a mission. The system resource approach focuses on resource
, 4
acquisition, the internal process approach focuses on operations
efficiency, the goal approach focuses on accomplishing key
objectives, and the strategic constituencies approach focuses on
stakeholder impact.
• Manager: A manager is a person who supports, activates,
and is responsible for the work of others.
• Top Managers: Top managers guide the performance of the
organization as a whole or of one of its major parts.
• Middle Managers: Middle managers oversee the work of
large departments or divisions.
• Team Leaders: Team leaders report to middle managers
and supervise non managerial workers.
• Line Managers: Line managers directly contribute to
producing the organization’s goods or services.
• Staff Managers: Staff managers use special technical
expertise to advise support line workers.
• Functional Managers: Functional managers are
responsible for one area, such as finance, marketing,
production, personnel, accounting, or sales.
• General Managers: General managers are responsible for
complex multifunctional units.
• Administrator: An administrator is a manager in a public or
nonprofit organization.
GMS 200 - MIDTERM EXAM
NOTES 2026-27 LATEST VERSION
[Chapter One - Introducing Management]
• Intellectual Capital: Intellectual capital is the collective
brainpower or shared knowledge of a workforce.
• Knowledge Worker: A knowledge worker is someone
whose mind is a critical asset to employers.
• Workforce Diversity: Workforce diversity decreases the
differences among workers in gender, race, age,
ethnicity, religion, sexual orientation, and able-
bloodedness.
• Prejudice: Prejudice is the display of negative, irrational
attitudes toward members of diverse populations.
• Discrimination: Discrimination is when minority members are
unfairly treated and denied the full benefits of
organizational membership.
• Glass Ceiling Effect: The glass ceiling effect is an invisible
barrier or “ceiling” that prevents women and members of
visible minorities from rising above a certain level of
organizational responsibility.
• Globalization: Globalization is the worldwide
interdependence of resource flows, product markets, and
business competition.
,2
• Ethics: Ethics is a set of moral standards of what is “good”
and “right” in one’s behavior. In other words, it is the right
thing.
• Organization: An organization is a collection of people
working together to achieve a common purpose or goal.
• Open System: An open system transforms resources inputs
from the environment into product outputs. For example, the
environment supplies people, money, materials where the
organization then creates work with the environment supplies,
and finally, the environment consumes finished goods and
services created from the environmental supplies and
organizational work.
• Productivity: Productivity is the quantity and quality of work
or outputs relative to the cost of inputs.
• Performance Effectiveness: Performance effectiveness is an
output measure of task or goal accomplishment.
• Performance Efficiency: Performance efficiency is an
input measure of resource cost associated with goal
accomplishment.
• General Environment: The general environment is
composed of economic, legal-political, technological, socio-
cultural, and natural environment conditions.
• Sustainable Business: Sustainable business both meets
the needs of customers and protects the well-being of
our natural environment.
,3
• Sustainable Innovation: Sustainable innovation creates
new products and production methods that have
reduced environmental impact.
• Specific Environment: Specific environment, or task
environment, includes the people and groups with whom
organization interacts.
• Stakeholders: Stakeholders are the persons, groups, and
institutions directly affected by an organization.
• Value Creation: Value creation is the creation of
value for and satisfying needs of stakeholders.
• Competitive Advantage: Competitive advantage refers to
something that an organization does extremely well, a core
competency that clearly sets it apart from competitors and
gives it an advantage over them in the marketplace.
Competitive advantage can be achieved through costs,
quality, delivery, and flexibility.
• Strategic Positioning: Strategic positioning occurs when
an organization does different things or the same things
in different ways from its major competitors.
• Environmental Uncertainty: Environmental uncertainty is a
lack of complete information about the environment.
• Organizational Effectiveness: Organizational effectiveness is
sustainable high performance in using resources to accomplish
a mission. The system resource approach focuses on resource
, 4
acquisition, the internal process approach focuses on operations
efficiency, the goal approach focuses on accomplishing key
objectives, and the strategic constituencies approach focuses on
stakeholder impact.
• Manager: A manager is a person who supports, activates,
and is responsible for the work of others.
• Top Managers: Top managers guide the performance of the
organization as a whole or of one of its major parts.
• Middle Managers: Middle managers oversee the work of
large departments or divisions.
• Team Leaders: Team leaders report to middle managers
and supervise non managerial workers.
• Line Managers: Line managers directly contribute to
producing the organization’s goods or services.
• Staff Managers: Staff managers use special technical
expertise to advise support line workers.
• Functional Managers: Functional managers are
responsible for one area, such as finance, marketing,
production, personnel, accounting, or sales.
• General Managers: General managers are responsible for
complex multifunctional units.
• Administrator: An administrator is a manager in a public or
nonprofit organization.
