BUS 160 (01 & 12), fall 2017 Study Guide for Mid-Term 2

(Individual Exam Wednesday 10/18; Team Exam Monday 10/23)

EXAM PROCEDURES
Per the course syllabus, we will use both an individual and a team-based format for the Mid-Term 2
Exam. As for Mid-Term 1, the exam will first be conducted on an individual basis and then students will
take the same exam on a team basis. The exam will cover Chapters 7-12 in the Daft text, edition 13.
There will be 50 multiple choice questions worth 2 points each taken from these 6 chapters.

The exam is closed book but 2 pages of handwritten notes (not typed) with writing on the front and
back pages is permitted.

RECOMMENDED STUDY APPROACHES

1. Read the chapters actively, underlining, taking notes, or using whatever method works best for your
learning style.
2. Take advantage of MindTap by watching the videos in each chapter, building your own study guide,
using the flip cards in each chapter to know the definitions, and going through the glossary to ensure
you know all the terms.
3. Get all the quizzes done in MindTap.
4. Study in your team.

TEST-TAKING TIPS
1. Read each question very carefully. Often one word changes what is the correct answer, but there are
no trick questions. Students are tested on knowledge of the fundamentals.
2. Use a process of elimination on the multiple choices.
3. Double check to ensure you answered all questions and recorded them on your Scantron.
4. Be very careful in changing an answer. More often than not, your first impression is correct.
5. For some students having a concentration problem, a useful technique can be to first read the
question backwards to imprint each word in your mind and then read the question in the normal
manner for meaning. This can keep the mind from skipping over words. So often we read in
chunks and can miss key words that change the question and the correct answer.

SUGGESTED REVIEW AREAS FOR EXAM PREPARATION

All of the material in chapters 7 12 is fair game for questions. However, the below areas are the
principal areas from which questions will be developed for the exam. There will be approximately 8
questions per chapter.

CHAPTER 7 - MANAGERIAL PLANNING AND GOAL SETTING

1. Goals and plans and the relationship between them.
2. Concept of organizational mission and how it influences goal setting and planning.
3. Types of goals an organization should have and how managers use strategy maps to align goals.
Strategic goals
Tactical goals
Operational goals
4. Strategy Map and its purpose
5. Characteristics of effective goals.
6. Describe the four essential steps in the management by objectives (MBO) process.
7. Explain the difference between single-use plans and standing plans.
8. Benefits and limitations of planning.

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9. Importance of contingency planning, scenario building, and crisis planning for todays managers.
Innovative planning approaches managers use in a fast-changing environment.
Set stretch goals for excellence
Use of performance dashboards.
Deploying intelligence teams.

CHAPTER 8 - STRATEGY FORMULATION AND EXECUTION

How strategy consists of a core competence, synergy, and value creation.
1. Components of strategic management and the levels of strategy.
Corporate-level strategy
Business-level strategy
Functional-level strategy
2. The strategic management process and SWOT analysis.
3. Corporate-level strategies and the BCG (Boston Consulting Group) matrix, portfolio and
diversification approachesStar, Cash Cow, Question Mark, Dog
4. Diversification and unrelated diversification
5. Porters competitive forces (5-Forces Model)
Threat of New Entrants
Threat of Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
Rivalry Among Competitors
6. Porters business-level strategies
Differentiation
Cost Leadership
Focus
7. New trends in strategy, including innovation from within and strategic partnerships.
8. Global Strategy: Globalization vs. Localization
9. Strategy execution

CHAPTER 9 - MANAGERIAL DECISION MAKING

1. Types of Decisions and Problems
Programmed and Nonprogrammed Decisions
Facing Certainty and Uncertainty
2. Decision-Making Models
Ideal, Rational Model (Classical)
Administrative Model
Political Model
3. Decision-Making Steps
Recognition of Decision Requirement
Diagnosis and Analysis of Causes
Development of Alternatives
Selection of Desired Alternative
Implementation of Chosen Alternative
Evaluation and Feedback
4. Personal Decision Framework
Directive Style

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 Analytical Style
Conceptual Style
Behavioral Style
5. Why Managers Make Bad Decisions
Being influenced by initial impressions
Justifying past decisions
Perpetuating the status quo
Being influenced by problem framing
Overconfidence
6. Innovative Group Decision Making
Start with Brainstorming
Engage in Rigorous Debate
Avoid Groupthink
Know When to Bail
Act with Speed
Dont Ignore a Crisis

CHAPTER 10 - DESIGNING ADAPTIVE ORGANIZATIONS

1. Organizing the Vertical Structure
Work Specialization
o Authority, Responsibility, and Delegation
o Line and Staff Authority
Chain of Command
Span of Management
Centralization and Decentralization
2. Departmentalization
Vertical Functional Approach
Divisional Approach
Matrix Approach
Team Approach
The Virtual Network Approach
Advantages and Disadvantages of Each Structure
3. Organizing for Horizontal Coordination
The Need for Coordination
Task Forces, Teams, and Project Management
4. Factors Shaping Structure
Structure Follows Strategy

CHAPTER 11 - MANAGING CHANGE AND INNOVATION

Innovation and the Changing Workplace
1. Organizational change and the forces driving innovation and change in todays organizations.
2. Why people resist change
3. Disruptive innovation and reverse innovation
4. The ambidextrous approach to managing change
Changing Things: New Products and Technologies
5. Product change and technology change
6. Three innovation strategies managers implement for changing products and technologies.
Exploration, Cooperation (Internal & External coordination and EntrepreneurshipNote
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 mechanisms for external coordination (open innovation, crowdsourcing, and innovation by
acquisition.
7. Innovation Roles Idea Champion, New Venture Team, Skunkworks, New Venture Fund

Changing People and Culture

8. Why changes in people and culture are critical to any change process.
9. Role of Training and Development
10. Organizational Development (OD)...when used and OD activities
Implementing Change
11. Create Sense of Urgency
12. Force-Field Analysis (Kurt Lewin)
13. Implementation Tactics

CHAPTER 12 - MANAGING HUMAN RESOURCES

1. The Strategic Role of HRM in driving organizational performance
The Strategic Approach
Building Human Capital to Drive Performance
2. The Impact of Federal Legislation on HRM
3. The Changing Nature of Careers
The Changing Social Contract
Innovations in HRM
4. Finding the Right People
Human Resource Planning
Recruiting
Selecting
5. Managing Talent
Training and Development
Performance Appraisal
14. Maintaining an Effective Workforce
15. Compensation
Benefits
Rightsizing the Organization
Termination