MGT 3200Exam #1
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    MGT 3200Exam #1 MGT 3200Exam #1 Document Transcript

    • EXAM #1Chapter 1: Invitation To Management1. What is management? • The process of achieving desired results through the efficient use of human and material resources. Achieving goals with a minimum cost.2. What are the 2 key concerns of management? • Effectiveness – concerned with goal attainment • Efficiency – minimizing resource costs3. What is effectiveness concerned with? Efficiency? • Effectiveness is concerned with doing the right thing in the right time, in the right way; goal attainment • Efficiency is concerned with reducing waste or minimizing resource costs since many resources are scarce. “Getting more bang for the buck.”4. How are effectiveness & efficiency related? • More concerned with efficiency, the harder it is to be effective (i.e. when you try too hard to cut costs, you can loose sight of your goals) • Effective companies tend to be efficient5. What is your important resource as manager? • Human resources [only as good as the people that work for you] • (Injellitance - incompetence + jealousy…is a big threat)6. Is management art or science? When is it considered a science? An art? • Both • It is a science b/c we develop theories of managing & then test them using the scientific method w/ empirical evidence • It is an art b/c it’s an extension of people’s personalities; it can not all be taught & there are many different management styles that can be successful7. How did management become important & why is it still significant today? • Industrial Revolution changed how work was performed; dividing up labor causes a need for managers • Owners used to do all of the managing • Craftsman didn’t need managers b/c could manage themselves, but machine need coordination8. What was the basic change in the industrial revolution? • Skilled craftsman are transferred to use of machinery & division of labor (skilled labor decreased)9. What happened to productivity (supply), prices, & demand as a result of the industrialrevolution? 1
    • • Production increased, prices decreased, demand increased10. What was the pivotal event of our time, according to Drucker? • The switch from owner/manager to professional manager11. Why do most businesses fail? • Poor management12. What does a first-line manager do? What are the names associated with 1st line management? • Ensures that the plans developed by top managers & middle managers are implemented by laborers w/ minimum costs (Carry out the plans efficiently) • Only managers not to manage other managers • Foreman, supervisor13. What does a middle level manager do? What are the names associated with middle levelmanager? • Taking the plans from top level management & put them into action for 1st line management • Integrate & interpret these plans! • Plant manager, department head, division head, regional sales manager14. What is corporate downsizing? What happens in corporate downsizing? What level ofmanagement is most adversely affected? • Cutting costs (“Cut the fat, by reducing costs by people”) • Efficiency oriented • Often done by eliminating middle management levels; staff management is farmed off to consulting firms & everyone else that remains does more work; technology & computers help for faster communications, but often those people left have “survivors syndrome” where they become stressed, overworked, & think they are the next to leave since their friend’s were just fired & as a result, their productivity and morale decreases15. What does a top manager do? What are the names associated with top management? • Plan & legitimize for the organization • Long range goal setting  strategic planning • CEO, CFO, CIO, chairman of the board, executive vice president16. What is the difference between a line manager & a staff manager? • Line  power over production; have all the power & exists at all levels of the production pyramid; line of authority or chain of command • Staff  gives support & guidance/advice to the line manager; most often middle managers! (more likely to get rid of)17. What is the difference between a functional manager & a general manager? • Functional  specializes/manages 1 area; 1st line managers usually • General  manages many areas; “a jack of all trades & a master of none”; increase as you go up the pyramid18. What is the difference between an administrator & a manager? • Administrator  for non-profit companies • Manager  for profit companies 2
    • 19. What are the 5 functions of management? Be able to identify & describe the five functions ofmanagement? {POSLC} • Planning  Setting goals & steps necessary to get there • Organizing  dividing up work & coordinating the work • Staffing  recruiting & selecting employees, bonuses • Leading  direct, motivate, communicate, resolve conflicts • Controlling  give feedback20. What does “planning has primacy” mean? • First thing you must do • Gives directions to all of the other management functions21. What are the three aspects of controlling? • Monitor organizational performance • Compare actual results w/ “hoped for” results for feedback on performance • Taking corrective action if actual < “hoped for”22. What are the Siamese twins of management? • Planning & Controlling23. What is (are) the most important function(s) for a 1st line manager? Middle manager? Topmanager? What functions do they perform? • 1st line = staffing & leading • Middle = organizing • Top = planning • They perform all 5 functions but they focus on different important functions24. What are the three managerial roles Mintzberg identified? Be able to identify each role. • Interpersonal  to develop & maintain positive relationships w/ others • Informational  receive information & then analyze it • Decisional  using information to solve problems or to take advantage of opportunities25. What gives rise to the three managerial roles, according to Mintzberg? • A manager’s authority gives rise to status26. What are the three managerial skills identified by Katz? Be able to identify each skill. • Technical  ability to use a special expertise relating to a method, process, or procedure in performing a task (expertise method) • Human  ability to work well w/ others (communication, leadership, empathy, self-awareness, motivation) • Conceptual  ability to problem solve; see the big picture; forecast27. At what level of management are conceptual skills most important? Technical skills? Humanskills? • Conceptual Skills = top managers b/c they have to plan • Technical Skills = 1st line most important 3
    • • Human Skills = equally important at all levels28. What skill is most difficult to develop? Why? • Conceptual skills b/c you need to be smart, have experience, & it takes time to develop this skill.29. According to Luthans (1988), are effective managers successful managers in general? • NO  effective managers were not usually promoted rapidly through the organization; the ones that networked were the ones who moved up30. What percent of effective managers are successful? • 10%31. On what activity do Effective managers spend the majority of their time? Successfulmanagers? • Effective = manage down; communication; building trust with team • Successful = manage up; networking - not what you know, but who you know and whether they like you32. What is the primary difference between derailed executives & executives who made it to topmanagement, according to the Center for Creative Leadership? • Derailed executives are insensitive to other peopleChapter 2: environment of management33. What are the three basic characteristics of an open system? • Input  raw materials and resources from suppliers • Transformation  production of goods • Output  finished goods & services34. What is the cyclical nature of the transformation process? Negative entropy? Buffering thetechnical core? Role differentiation & specialization? Synergy? Equifinality? (3 test questions) • Cyclical nature of the transformation process = customers & suppliers are equally important; feedback loop; controlling function • Negative entropy = trying to prevent the company from decaying; turnaround strategy • Buffering the technical core = stability in production; keep change to a minimum • Role differentiation & specialization = as open systems grow & develop, organizations needs more specialized departments • Synergy = teamwork; whole better than sum of its parts: 2+2=5 • Equifinality = many roads to success35. What are the five subsystems of an organization? What functions do each subsystemperform? • Production = transform raw materials to goods & services (input/output) • Boundary-spanning = deals with 2 major dependencies; buying from suppliers / selling to consumers 4
    • • Adaptive = research & development; concerned with technological change, raw materials & resources • Maintenance = smooth operation & upkeep of organization {Facility Services @ LSU} • Managerial = top & middle management; top - planning & legitimizing; middle - organizing36. What are the two major dependencies in the external environment? What is the threat tothese 2 major dependencies? • Customers (on the outside) & Suppliers (on the inside) • Their biggest threat is competition37. How do customers influence organizations & how do organizations influence customers? • Customers  can decrease profitability; can demand lower prices/better quality & service • Organizations  influence customers by advertising & creating “the need”; stay close to the customer38. How much more does it cost to find a new customer than to keep an old one, according toTotal Quality Management estimates? • 5 times39. How do suppliers influence organizations & how do organizations influence suppliers (i.e., 3ways to establish & maintain a positive relationship with suppliers)? • Vertical integration  buy your supplier; increases cooperation o Vertical integration forward  buy your customer • Long term contracts  lock in the supplier @ a lower price • Reducing the number of suppliers  the larger volume makes a cost reduction (reduce from 3 to 2)40. What is the law of the marketplace? • Organizations that can’t compete will be forced to change their product line or will die out (survival of the fittest)41. What are the five forces of competition & how does each influence the level of competitionwithin an industry? (1 test question) • Rivalry among organizations  greatest @ mature, low growth market; many organizations • Threat of new entrants  new entrants steal market share & drive prices down; higher the market threat, higher the competition • Threat of substitutes  can affect what prices you can charge & due to technological innovation, can make older products obsolete • Power of customers  powerful customers can cut into profitability; customers who make large purchases can drive down prices • Power of suppliers  can raise prices or reduce quality of good42. What are the barriers to entry into an industry? • Government regulations (patents which keep competition out) • Capital requirements • High start-up costs • Brand loyalty to established companies 5
    • • Cost advantages to existing customers who buy in large quantities • Distribution channels tied up & hard to break in43. What happens when a new entrant comes into the market/industry? • Increase competition, increase product supply, prices lower, & they seek market share44. What determines if a supplier is powerful? Customer? • Suppliers are powerful  few places to buy or if he/she has many customers • Customers are powerful  make large purchases or can easily find alternative places to buy45. How do powerful suppliers & customers influence organizations? • They can either drive prices up or down & can cut into the organizations profitability • You don’t want to depend on powerful customers & suppliers46. How do substitutes affect an industry? • Increase competition, increase power of the customer & can make products obsolete • Technological innovations (often substitutes are at a higher price when they come out)47. What are process & product innovations? What is the focus of each? • Process  advancement made in technological aspect; more efficient {assembly line, robotics} • Product  an innovation dealing w/ a product, good, or service; more effective {light beer, gorilla glass} • Can be one in the same {computers}48. What are the general effects of technology on an industry? • Increases competition, promotes product obsolescence…you have to change your product line to meet new changes in technology or risk dying out49. How does the economy influence an organization? • Indirectly by expanding economy which raises demand & vice versa • Facilitates the establishment of new enterprises • Almost always unpredictable • Managers prefer stable economic conditions with moderate, steady growth b/c violent changes in economic conditions can restrict business investment & growth50. What are the four ways that government influences organizations? • Regulations  cost and opportunity to do business; improve quality of life • Taxation/subsidies  taxes encourage/discourage businesses; subsidies always encourage businesses • Competition  (post office vs. UPS) • Economic policy  affect ability to thrive & prosper51. What is the shadow bureaucracy? • For every department in an organization, there’s a federal agency governing it making sure you are following regulations (HR - Department of Labor)52. What are the three ways organizations influence governments? 6
    • • Lobbying, direct political action, illegal activity53. What is a PAC? What are the limits regarding PAC contributions to campaigns? • Political Action Committee formed by employees & stockholders to lobby government • Limited to direct contributions of $5,000, but they can give indirect contributions are indefinite54. How does society influence business? Businesses influence society? • Society influences business through changes in social opinions (cleaner environment, women in the workplace) • Businesses influence society through charity & philanthropy as well as trying to legitimize their business to society55. How does the international component of the environment influence organizations? • It is both a threat & an opportunity (i.e. more products competing is threat, but outsourcing & more people to buy is opportunity)56. What is environmental scanning? How is it related to planning & organizationalperformance? • Gathering information about changes & trends in the environment • Allows you to decide what goods or services to emphasize & which markets to explore & technologies to exploit • Is tied to planningChapter 4: planning57. What are the three purposes of planning? • Establish & help achieve organizational objectives (fundamental) • Offset future uncertainties by reducing the risk surrounding organizational operations (defensive) • Affirmative (offensive) seeking out & taking advantage of opportunities to increase organizational success58. Why is planning important? • Organizational success (helps you succeed, but doesn’t guarantee it) • Sense of unity & devotion • Coping with change (take wrong problems 1st & so forth) • Performance standards • Managerial development (develops managerial talent)59. Why do managers resist planning? • Hard work & they are afraid of failure • Resists b/c not rewarded by the organization! • Lack of immediate feedback • Involves change • Goes against the “doer” mentality 7
    • 60. What is Gresham’s law of planning? • Even when managers have the best intentions of planning, they end up neglecting it b/c they end up dealing w/ more recent problems • Clear desk of day to day, then plan (wrong priorities)61. What does the non-planner typically blame for his/her poor performance? • Bad luck = external locus of control62. What are the five phases of the planning process & what happens at each phase? • Establishing Objectives  what do you want to do? • Developing Premises  what factors are going to affect goal achievement?; forecasting • Decision Making  select best course of action to accomplish objectives; adopting a plan • Implementing A Course Of Action  assign & direct personnel to carry out the plan • Evaluating Results  compare actual results w/ “hoped for” results; feedback63. What provides the basis for Phase 1: Establishing Objectives? • Your environmental scans - avoid threats & exploit opportunities64. What are SMART goals? Or SMAIT? • S – specific of what and when it is desired • M - measurable for feedback • A - achievable, yet challenging • R - relevant (I - important) • T – trackable • M and T go hand in hand (controlling)65. What is contingency planning? What are the benefits & drawbacks? • Developing multiple future scenarios & the plans to accompany each scenario using a “what if”; a dynamic environment; proactive • Benefit: allows you to act rather than react • Drawback: requires more time & resources than normal planning; expensive66. What are the keys to effective implementation of a plan? • Tied to the budgetary system – make sure you have the resources to carry out • A clearly communicative plan – what the plan is, why it is, & how they will help achieve the goal • Motivate employees (WIFM  “What’s In It For Me”)67. What function of management is Phase 5: Evaluation Results? • Planning and Controlling; Monitor performance; actual vs. “hoped for” results68. What is the basic dilemma in planning? • Commitment increases, but willingness to plan & flexibility decreases69. What are the different failures to avoid in planning? Be able to identify. • Top down delegation is not good b/c leaves key line managers out of the process 8
    • • Not supportive environment (time, training, money, resources, rewards…) • Plans that are too rigid or complex [KISMIF - keep it simple, make it fun] • Failure to manage your plan • Unrealistic expectations • Getting bogged down in the details of planning70. What is the Crystal Ball syndrome? Cure-All syndrome? Persian Messenger syndrome?(2 questions) • Crystal Ball  believing that planning is solely about predicting the future; neglects implementation & evaluation • Cure-All  planning should cure all problems = WRONG because unrealistic; neglects realism of planning • Persian Messenger  when you hear bad news about your plan you want to kill the messenger; neglects evaluating results b/c no feedback; when you punish the person who brings the bad news…instead you should reward this person for their fair evaluation b/c it helps keep the plan in lineChapter 5: StrategiC planning71. What is the focus of strategic planning? • Establish & maintain a positive long-term relationship w/ the external environment o Long-term  5, 10, 15 years down the line72. What are the four components of a well-thought out strategy? Be able to identify. • Scope  range of markets you want to do business in (can be narrow or wide); decide where the organization is going to compete • Resource Deployment  how to spend your resources to achieve the goals o Cash Cows to fund New Ventures & Stars • Distinctive Competence  competitive advantage; strength sets you off from competition; what is the company good at? • Synergy  different aspects of the business compliment one another; 2+2=5 o Disney – channel, movies, theme parks73. What is corporate strategy & business level strategy? • Corporate  mix of businesses you want to own (increases market share & profitability); 1 strategy • Business  how you plan on competing w/ each business (maximize market share & profitability; multiple strategies74. What are the four elements of strategy formulation & what does each element consist of? • OMIT! 9
    • 75. What are benefits of the mission statement? • OMIT!76. What is a SWOT analysis? • OMIT!77. What is the goal of the Business Portfolio Matrix Approach? • Own that mix of businesses that will maximize market share & profitability78. What levels of strategy does the Business Portfolio Matrix Approach deal with? • Corporate & business level79. How are SBUs classified in the Business Portfolio Matrix Approach? • Based on market share (x-axis) & market growth (y-axis) & therefore, will determine how we deal w/ them • Strategic Business Units = businesses we own80. What business strategy is used for a cash cow? Star? Dog? New venture? • Cash Cow = HI market share & LO growth; makes huge profits; invest minimum amount needed to keep market share • Star = HI market share & LO growth; invest all your $ to grow market share before it matures • Dog = LO market share & LO growth; keep them if they’re profitable, but as soon as they start to loose money, get rid of them • New Venture = LO market share & HI growth; if you think it could become a star, invest heavily…if not, get rid of it81. What is the basic idea behind Generic Strategies? • There are 3 basic strategies that can be applied to a variety of industries to gain competitive advantage82. What are the three Generic Strategies identified by Porter? Be able to identify. • Differentiation  make an image that your product is different than all others so you can demand a high price (i.e. Rolex or Mercedes) • Cost Leadership  increase sales by minimizing the cost per unit & your prices (Wal-Mart) • Focus  concentrate your efforts on a specific audience (Lady Foot Locker)83. What is the basic idea behind the Adaptation model of strategy? • Strategy must be adaptive and aligned w/ it’s environment for it to be effective84. What is a defender? Prospector? Analyzer? Reactor? When is a defender strategy the best?Prospector? Analyzer? Reactor? • Defender  demand for products is not growing; a stable environment; compete with prices by having low costs; efficient production; organize with lots of rules & regulations o Ex: fast-food restaurants • Prospector  demand for products is growing; develop; innovate & growth strategy; flexible production; organize with few rules & regulations; allows for creativity o Ex) 3M with Post It Notes 10
    • • Analyzer  environment moderately changing • Reactor  worst strategy! Reacts to environment; no strategy; no set production process or organization design = inefficiency o Ex) K-Mart • ** Defender & Prospector = complete opposites **85. How does each strategy type in the Adaptation Model answer the entrepreneurial engineering& administrating questions? • OMIT!86. How are the strategies in the Business Portfolio Matrix Approach & the Adaptation Model ofStrategy related to one another? • Defender  cash cow (stable growth strategy • Prospector  new venture & star (growth & expansion strategy) • Analyzer -- cash cow, new venture, & star (prospector & defender parts) • Reactor -- dog; not all dogs are reactors! aSSigneD oUtSiDe reaDingS87. What does the article, “When competitive advantage is neither,” say about competitivebenchmarking as a strategy? • Focusing so much on beating the competition can cause you to lose customers • Try & find innovative ways to serve your customer88. What does the article, “Avoid pricing yourself shot”, say about competing on price as astrategy for attracting customers? • Try & develop a better relationships w/ your customers & when just have cheap prices, your product is no longer valued • You should differentiate your product instead & provide great service • Impossible to compete on quality, service, & price!; choose 2/389. Questions from the Business Week article, “What’s in a Phrase?” A. What did Emergence’s second annual slogan study reveal? • Fewer than ½ of slogans were known by 5% of respondents & 1/5 of them were recognized by 1% or fewer • Consumers only remember a very small fraction of all slogans out there B. What’s the simple lesson regarding slogans? • Don’t focus too much on b/c may neglect truly important aspects of the business • Consumers don’t pay that much attention to them anyway C. What are the three rules in slogan-making? 11
    • • 1) Don’t advertise your aspirations (“We love to see you smile”…makes you think, I’m sure they don’t care if you’re happy or not) • 2) Give your slogan time to develop…don’t change it often • 3) Consider not using a slogan @ all revieW QUeStionS from ClaSSa. 1st line managers are responsible for ___. • Implementing plans thru operative employees -- laborersb. Corporate downsizing… • Staff jobs are the 1st to be eliminatedc. Why do business fail? • Poor managementd. Southwest Airlines… • When market share increases while @ the same times its cost relative to its competitors are low, SW is effective & efficiente. The CEO of Syngeta Inc. is a ___. • Top manager • General manager • Line manager = makes decisions about what’s produced & when producedf. Injellitance most adversely affects which function of management? • Staffing or leadingg. A manager is conducting an annual performance appraisal with 1 of her employees. This is anexample of the ___. • Controlling function -- measuring their performance relative to what you “hoped” forh. What is the leading function of management? • Communicating • Motivating • Resolving conflict 12
    • i. What is empathy? • Being able to put yourself in someone else’s shoes & try to see the world from their point of viewj. What is self-awareness? • Knowing how you’re behaving & how it affects othersk. Which is more important to the success of a business? Customers or suppliers? • Both are equally importantl. What did Luthan’s study show? • Promotions were not based on performancem. What is entropy? • The tendency for s system to decay over timen. Successful managers spent most of their time on ___. • Networking (boot-legging’, brown nosing’)o. Suppliers & customers are equally important to a company’s success during ___. • Cyclical nature of the transformation processp. Which subsystems focused on external environments? • Boundary-spanning • Adaptive • Managerial [1/2 & ½…top is external & middle is internal] o ** Maintenance is all internal **q. Environmental scanning is most closely associated with ___. • Planningr. Buffer the technical core refers to ___. • Productions. Which subsystem deals with an organizations 2 major dependencies? • Boundary-spanningt. A managerial subsystem contains ___ management. • Both middle & topv. How do you know if a supplier is powerful or not? • They’re one of the few sources of the supply & they have many customers.w. What subsystem of the organization deals primarily with technological change? • Adaptivex. What do you want in your business portfolio? 13
    • • New ventures, stars, & cash cows primarily & an occasional profitable dog QUeStionS from the BooKChapter 290. What are the internal strategies for dealing with environmental uncertainty? • Changing domain, recruiting, buffering, smoothing, rationing91. What is involved in changing domain as a way to deal with environmental uncertainty? • Deciding where your organization will do business & what they will produce & market • If uncertainty, managed by moving to a more accommodating environment92. How does recruiting help an organization cope with environmental uncertainty? • Hire top employees from a major competitor93. What is input buffering? output buffering? • Input - manager’s interruptions of supply shocks by maintaining a stockpile of materials or by purchasing (in housing) the supplier itself • Output - maintains uniformity of finished goods by warehousing them until they can be absorbed; always able to meet the demands94. What is smoothing? • Maintaining continuous demand of a product or service95. How does pricing influence smoothing? • Prices increases soften demand while price reductions decrease demand (charge more @ peak hours & discount @ off hours)96. What is rationing? • Ensure all time is productive (restaurants using reservations} 14
    • 97. What are the external strategies for dealing with environmental uncertainty? ` Advertising, contracting, co-opting, coalescing, lobbying98. What is contracting? What are its benefits? Who benefits most? • Selling seasonal products ahead of time @ a fixed rate through a mutually beneficial agreement • Benefits: Customer benefits b/c they’re guaranteed a price & the seller benefits b/c he is guaranteed a customer/buyer • Who benefits most is determined by whether the set price is above or below the current market price at the time of the sale. If they have gone up (buyer pays less) & the buyer would benefit the most & vice versa.99. What is co-opting? How does this affect the external party? • Attempts to influence an external party by co-opting them into the organization as part of some input device • Allows the external party to have influence over the product of company & dissipates any resistance to the organization100. Why is planning necessary? • Helps organizations to deal w/ complexity & uncertainty by providing a road map for change • Without planning, organizations can only react to changes in the environment, technology, & customer demands101. What is cycle time reduction? • The length of time to complete a process & be ready to begin a new • Gives companies a competitive advantageChapter 4102. What’s the difference between strategic, tactical, & operational planning? • Strategic = general, 5+ years • Tactical = 2-5 years, more specific • Operational = <2 years, very focused, specific measurable steps103. What is a single-use plan? Standing plan? • Single - have a clearly defined time frame for their usefulness & will become obsolete once the product is complete; disappear • Standing - guide repetitive situations & makes decision making faster, easier, & more consistent; ongoing104. What is the plan, do, check, act cycle? • Planning approach for continuous improvement: planning the improvement, doing it on a small batch, checking for compliance w/ standards, & then implementing the tested process105. What does concept to customer mean? • The time a product is first considered to the time it’s sold to the customer 15
    • 106. What is cycle time reduction concerned with? • Reducing cycle times (reducing the concept to customer time)107. What is the 3% rule as it relates to cycle time reduction? • Only 3% of the elapsed time for a process is actually needed to complete the activity {filing an insurance claim may physically only take 5 minutes, but processing it may take 30 days}108. What is reengineering? • The fundamental rethinking & radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, & speed.Chapter 5109. What are the four building blocks of competitive advantage? • Quality, innovativeness, efficiency, customer representatives110. What is the benefit of concentrating on a single business as a corporate strategy? • Focusing all the corporate energies in one area111. What is the downside of concentrating on a single business as a corporate strategy? • All companies “strategic eggs” are in one basket & any economic downturn can immediately affect the company112. What is unrelated diversification? Related diversification? • Unrelated = occurs when a business moves into an industry unrelated to its core business o Ex) Hitachi makes consumer electronics, power tools, & computers • Related - occurs when an organization diversifies into similar industries, products, and/or infrastructures o Ex) Del Monte owns a vegetable processing plant, glass jar company, & a snack food company eXtra CreDit  Some manager’s suffer from injellitance - incompetence + jealousy; you select people  That are inferior to you -- not the best -- & hide people who are better than them; a  Manager might put an inferior person on an important job & well qualified people on  Unimportant jobs because the good employees make the manager jealous so he/she wants to cover up their feelings  Management as practice has equifinality = many roads to success  Companies that downsize, the employee’s that remain go through a Survivor Syndrome = it could happen to me; depression/anxiety; all of their friends were fired; Over time their effectiveness decreases 16
    •  Emotional intelligence (EI) - manager’s ability to manage his emotions & the emotions of others to produce the best results for the company; a human skill; you can gain human skills by getting involved When you bring a problem to the boss, it’s called an upward leaping monkey! A lot of people call subsidies corporate welfare - government hands out the business Say’s Law - if you produce it, they will buy it; supply produces its own demand; removes barriers of trade to keep competition down “Going Green” = environmentally conscientious/friendly; very expensive to achieve “Throttling” -- reduce the amount of the number of DVD’s you can rent {NetFlix} Pareto’s Rule - 80% of the results come from 20% of what you do & you need to focus on those things Corporate Anorexia - when a company gets too lean from downsizing & employees burnout & become unproductive Only 10% of effective managers are successful! 17