ARE 112 Final Study Guide (Words, Exam 1&2, and Study Guide MC) questions with ANSWERS

ARE 112 Final Study Guide (Words, Exam
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1&2, and Study Guide MC) questions with
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ANSWERS

Bounded rationality - CORRECT ANSWERS ✔✔a set of boundaries
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or constraints that tend to complicate the rational decision-
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making process |\




Transaction costs - CORRECT ANSWERS ✔✔the expenses of
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negotiating and executing a deal (the cost of completing a sale
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or purchase)
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Cost of uncertainty - CORRECT ANSWERS ✔✔chance that price of
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an asset will change (example being unstable stocks or bonds)
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Incomplete contracts - CORRECT ANSWERS ✔✔when a consumer
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or seller is not able to maximize the benefits of a transaction
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because they are not aware of all the factors or not able to
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understand all the factors surrounding the transaction
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Satisficing and optimizing - CORRECT ANSWERS ✔✔choosing a
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good enough alternative is what is known as satisficing.
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Optimizing is achieving the best possible balance among several
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goals.

,Classical management and its characteristics - CORRECT
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ANSWERS ✔✔studies the way work is organized and the
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procedures used to complete a job in order to increase work
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productivity.


Scientific management - CORRECT ANSWERS ✔✔a management
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theory using efficiency experts to examine each work operations
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and find ways to minimize the time needed to complete it; design
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jobs with standards leading to efficiency: select workers to fit the
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job design; train works to follow the design aka Taylorism. Based
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on clearly defined laws and rules.
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Bureaucracy - CORRECT ANSWERS ✔✔logic, order and legitimate
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authority; not based on social standing; characterized by formal
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rules, impersonality. Popularized by Max Weber.
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Administration of the firm - CORRECT ANSWERS ✔✔was |\ |\ |\ |\ |\ |\ |\ |\


popularized by Henry Favol; characterized by planning,
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organization, command, coordination, and control. |\ |\ |\ |\




Anthony's management hierarchy - CORRECT ANSWERS
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✔✔strategic control (executive level), management control
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(management level), operational control (supervisors level), |\ |\ |\ |\ |\ |\


organizational members (workers level) |\ |\ |\




Value proposition - CORRECT ANSWERS ✔✔external value
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proposition: this is the link between what the customer gets in
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return for what they give up in a transaction. Internal value
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proposition: this is the link between strategy and operations.
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,Strategy is the internal fit, and the marketplace is the external
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fit.


The organizational diagram - CORRECT ANSWERS ✔✔
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Behavioral management and its characteristics - CORRECT
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ANSWERS ✔✔directed at organizational improvement through
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understanding employee motivation and behavior. Emerged as a |\ |\ |\ |\ |\ |\ |\ |\


response to the emerging middle class.
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The Hawthorn experiments - CORRECT ANSWERS ✔✔the
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introduction of the human resources movement to the workplace.
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Maslow Hierarchy of Needs - CORRECT ANSWERS ✔✔
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Theory X and Theory Y - CORRECT ANSWERS ✔✔Theory X
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assumes that employees are inherently lazy and need strict
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supervision and control. Theory Y assumes that employees are
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self-directed, self-motivated, and take an active part in decision
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making.


Management science approach to management and its |\ |\ |\ |\ |\ |\ |\


characteristics - CORRECT ANSWERS ✔✔management science |\ |\ |\ |\ |\ |\


focuses on mathematics to aid in problem solving and decision
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making; introduction of technology.
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Substantive conflict - CORRECT ANSWERS ✔✔leads to good
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outcomes

, Emotional or relationship conflict - CORRECT ANSWERS
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✔✔related to the way that people work together
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Functional conflict - CORRECT ANSWERS ✔✔this focuses on how
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to fix something, leads to a solution.
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Dysfunctional conflict - CORRECT ANSWERS ✔✔not productive, |\ |\ |\ |\ |\ |\ |\


the inability to resolve conflicts leads to failure.
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Coercive power - CORRECT ANSWERS ✔✔the power to punish
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Legitimate power - CORRECT ANSWERS ✔✔the power granted by
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some authority |\




Expert power - CORRECT ANSWERS ✔✔the power of have some
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specific skill or knowledge not found in others
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Referent power - CORRECT ANSWERS ✔✔the power from
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admiration or respect |\ |\




Reward power - CORRECT ANSWERS ✔✔the power from being
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able to provide a reward to others
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Definition of decision making - CORRECT ANSWERS ✔✔allocating
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resources within an organization; delegate or deal with it
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yourself.