ARE 112- Midterm 1 Exam Study Guide Top Graded 2024

MECE - -Mutually Exclusive (each issue is separate & distinct) Collectively Exhaustive (every aspect comes under only one issue) -McKinsey Tool --know all the facts/details -guard against making early selection of solutions before all other facts are known Mother City - -Caral, Peru; "mother city" of Incan civilization -complexity and scope -hierarchy of living arrangements -served as a major trade area -- rise of class divisions Transaction Costs - -Williamson interview -cost associated with the time and effort needed to search out, negotiate, and consummate an exchange (cost of doing business) --must economize --have detailed knowledge of attributes of transactions Cost of Uncertainty - -Williamson interview -making agreements in the context of uncertainty --hostage situation --develop bilateral dependency (mutual advantages) --introduces a kind of deterrence -reduce uncertainty -- reduce costs Bounded Rationality - -Williamson interview -can't choose the convenient assumption --adhere closely to reality and behavior that intends to be rational -- not capable of maximizing in all situations --limitation on ability to work towards the right answer Incomplete contracts - -Williamson interview -transaction costs, cost of uncertainty, and bounded rationality all cause incomplete contracts -cannot maximize all benefits of a transaction because they are not aware of all the factors --complex contracts --disallowed by old apparatus --both parties are not equal Genghis Khan management style - -keep only the best people -- promote by ability NOT rank -looked after their needs -organized so no one in the dark --based on decimal system - easy to train --commands by hand signals and banners - communication -train, train, train -mission driven organization Dynastic Cycles - -history driven organization - ruler unites under "mandate from heaven" -leads to prosperity -leads to population increases -leads to corruption -leads to no ability to respond to disasters -ruler loses "mandate from heaven" -leads to warring states emerging -leads to one victorious state -"mandate from heaven" comes back Wild West Management Style - -opportunity driven organization -access to resources -aspect of inevitability -success supplants survival as mission -like "start ups" today Ringmaster/ Ringleader - -sets the pace for the organization -everyone knows what they are supposed to do/ has different tasks -market driven organization Classical Management - -careful selection and training of workers -Frederick Taylor- Taylorism/scientific method -Max Weber- Bureaucracy -Henri Fayol- administration of the firm -- today: Anthony's management Hierarchy --principle factor= industrial revolution Scientific Management - -Frederick Taylor -"Taylorism" -design jobs with standards leading to efficiency -select workers to fit the job description -train workers to follow the design -support workers by planning their work Bureaucracy - -Max Weber -bureaucracy with logic, order,and legitimate authority