ARE 112 Final Exam Questions with Correct Answers Graded A+
Optimizing and Satisficing - Answers -organizations exist to achieve a goal by either optimizing or
satisfying
MECE - Answers -Mutually Exclusive: each issue is separate and distinct
-Collectively Exhaustive: every aspect comes under only one issue
Herbert Simon - Answers Bound rationality: the ability to make decisions is limited by a number of
factors (cognitive limitations, time available, etc.)
Classical Management? Types & founders? - Answers -Careful selection and training of workers
-All started with the industrial revolution
- Types: Scientific method, Bureaucracy, Administration of the firm (Anthony's management hierarchy)
Frederick Taylor - Answers *Scientific management*
- Design jobs with standards leading to efficiency
- Support workers by planning their work
- Standardization of the work force makes workers as efficient as a machine
-Plans it so it works like an assembly line
Max Weber - Answers *Bureaucracy* (logic, order, and legitimate authority, not an organization based
on social standing)
-Division of labor
-Hierarchy of authority
-Formal rules
-Impersonality
-Promotion on merit
Henri Fayol - Answers *Administration*
-The A in MBA (master in business administration)
-Administration = management
-Planning, Organizing, Command, Coordination, Control
,-Unity of command: no one has more than one boss
Anthony's Management Hierarchy - Answers *Executives:* strategic planning
*Managers:* management control
*Supervisors :* operational control
*Workers:* doing the actual work
Behavioral School of Management - Answers -an attempt to increase production by understanding
people as it is easier to change the organization than change the people
-American centric idea
- Theory of Human Needs
- Hawthorn experiments
- Theory X & Y
Theory of Human Needs - Answers Abraham Maslow
*physiological needs:* food, water, physical well being
*safety needs:* shelter, protection, stability
*social needs* love, affection, belongingness
*esteem needs:* respect, prestige, mastery
*self actualization:* self-fulfillment, growth
--> work to satisfy needs up to self actualization
Theory X and Theory Y - Answers Douglas McGregor
*Theory X:* assume people do not like to work and want to be led
*Theory Y:* assume people are willing to work and can be creative
, -if held to one of these theories --> can lead to self fulfilling prophecy (people will do what the boss
wants them to do)
Hawthorn Experiments - Answers -2 groups were studied from the scientific management perspective
on the effects of differing working conditions but the results were not as planned.
-Shift away from just the scientific approach of management --> Started the human relations movement
and subsequently the field of organizational behavior school of management.
Management Sciences Approach - Answers -application of quantitative tools and applied mathematics
-introduction of *TECHNOLOGY*
-learning organization
-contingency thinking
-systems approach
-total quality management
Learning organization - Answers *Management Sciences Approach*
The ability to learn from experiences and make changes with some estimates of future results
Contingency Thinking - Answers *Management Sciences Approach*
The ability to respond to changes in supply and demand functions
System's Approach - Answers *Management Sciences Approach*
The ability to see the organization as interrelated group of subsystems and coordinate their activities
with some models
Total Quality Management - Answers *Management Sciences Approach*
The ability to estimate acceptable error rates
Value proposition - Answers -The link between what the customer gets in exchange for what the
customer gives up and the relationship between organizational strategy and organizational operations
-The consumer must think they are getting more than the company is getting
-Strategy vs operations
Theory of constraints - Answers - Overall management philosophy that aims to continually achieve more
of the goal of a system
- Rate of revenue generation is limited by at least one constraining process (i.e. a bottleneck).
Optimizing and Satisficing - Answers -organizations exist to achieve a goal by either optimizing or
satisfying
MECE - Answers -Mutually Exclusive: each issue is separate and distinct
-Collectively Exhaustive: every aspect comes under only one issue
Herbert Simon - Answers Bound rationality: the ability to make decisions is limited by a number of
factors (cognitive limitations, time available, etc.)
Classical Management? Types & founders? - Answers -Careful selection and training of workers
-All started with the industrial revolution
- Types: Scientific method, Bureaucracy, Administration of the firm (Anthony's management hierarchy)
Frederick Taylor - Answers *Scientific management*
- Design jobs with standards leading to efficiency
- Support workers by planning their work
- Standardization of the work force makes workers as efficient as a machine
-Plans it so it works like an assembly line
Max Weber - Answers *Bureaucracy* (logic, order, and legitimate authority, not an organization based
on social standing)
-Division of labor
-Hierarchy of authority
-Formal rules
-Impersonality
-Promotion on merit
Henri Fayol - Answers *Administration*
-The A in MBA (master in business administration)
-Administration = management
-Planning, Organizing, Command, Coordination, Control
,-Unity of command: no one has more than one boss
Anthony's Management Hierarchy - Answers *Executives:* strategic planning
*Managers:* management control
*Supervisors :* operational control
*Workers:* doing the actual work
Behavioral School of Management - Answers -an attempt to increase production by understanding
people as it is easier to change the organization than change the people
-American centric idea
- Theory of Human Needs
- Hawthorn experiments
- Theory X & Y
Theory of Human Needs - Answers Abraham Maslow
*physiological needs:* food, water, physical well being
*safety needs:* shelter, protection, stability
*social needs* love, affection, belongingness
*esteem needs:* respect, prestige, mastery
*self actualization:* self-fulfillment, growth
--> work to satisfy needs up to self actualization
Theory X and Theory Y - Answers Douglas McGregor
*Theory X:* assume people do not like to work and want to be led
*Theory Y:* assume people are willing to work and can be creative
, -if held to one of these theories --> can lead to self fulfilling prophecy (people will do what the boss
wants them to do)
Hawthorn Experiments - Answers -2 groups were studied from the scientific management perspective
on the effects of differing working conditions but the results were not as planned.
-Shift away from just the scientific approach of management --> Started the human relations movement
and subsequently the field of organizational behavior school of management.
Management Sciences Approach - Answers -application of quantitative tools and applied mathematics
-introduction of *TECHNOLOGY*
-learning organization
-contingency thinking
-systems approach
-total quality management
Learning organization - Answers *Management Sciences Approach*
The ability to learn from experiences and make changes with some estimates of future results
Contingency Thinking - Answers *Management Sciences Approach*
The ability to respond to changes in supply and demand functions
System's Approach - Answers *Management Sciences Approach*
The ability to see the organization as interrelated group of subsystems and coordinate their activities
with some models
Total Quality Management - Answers *Management Sciences Approach*
The ability to estimate acceptable error rates
Value proposition - Answers -The link between what the customer gets in exchange for what the
customer gives up and the relationship between organizational strategy and organizational operations
-The consumer must think they are getting more than the company is getting
-Strategy vs operations
Theory of constraints - Answers - Overall management philosophy that aims to continually achieve more
of the goal of a system
- Rate of revenue generation is limited by at least one constraining process (i.e. a bottleneck).
