Chap. 7: Managing Entrepreneurial Ventures
A start up founder wants a business structure that will protect her personal assets if the company is sued. She also wants to be able to raise money from investors through issuing shares.
Hint: Type of legal form
What is a corporation?
This flexible type of organization is highly adaptive and characterized by low formalization, allowing employees to adjust quickly to changes.
What is an organic organization?
The planned elimination of jobs within an organization is known as this.
What is downsizing?
A company launching a new product brings together employees from marketing, engineering, finance, and design to collaborate on the project, combining their different skills and expertise.
What is a cross-functional team?
True or false: A good manager treats all employees the same.
What is false?
After being laid off unexpectedly, Maria decided to start a small cleaning business so she could earn money right away. She has no plans to grow it into a large venture but wants a stable income.
Who is a necessity entrepreneur?
This refers to how standardized jobs are and how much employee behavior is guided by rules and procedures.
What is formalization?
This major 1964 federal law prohibits job discrimination based on race, color, religion, national origin, or gender.
What is the Civil Rights Act, Title VII?
At a tech startup, a group of software developers is given full responsibility for managing their own projects, setting deadlines, and evaluating each other’s performance—without a traditional manager overseeing their daily work.
What is a self-managed team?
The primary goals of organizational behavior are to explain, predict, and influence this.
What is employee behavior?
An investor asks Taylor for the section of her business plan that summarizes the opportunity, discusses market conditions, highlights her competitive advantage and explains why the venture can be profitable.
What is the executive summary?
A small startup with a single owner who makes all major decisions and has a very informal structure with low departmentalization.
What is a simple structure?
The goal of these selection processes is to reduce rejecting applicants who would have performed successfully, and hiring applicants who subsequently perform poorly.
What are reject errors and accept errors?
A new project team at a marketing firm is learning how to work together. They first get to know each other, then experience conflicts, establish team norms, start performing effectively, and finally wrap up their project.
What is Forming → Storming → Norming → Performing → Adjourning?
This measures both how efficiently and effectively an employee performs their work.
What is employee productivity?
Before launching his vegan energy drink, James researches consumer demand, evaluates production costs, outlines potential risks, and reviews accounting and legal requirements.
Hint: A step in the entrepreneurial process
What is conducting a feasibility study?
This describes the number of employees a manager can efficiently and effectively supervise.
What is span of control?
This comprehensive process includes eight essential activities—such as hiring, training, and performance reviews—needed to effectively staff an organization.
What is the Human Resource Management (HRM) process?
In a formal work group, one team member is known for carefully analyzing each option the group considers and providing insightful feedback to improve decisions.
Who is the assessor or developer?
Managers focus on six key employee behaviors, including productivity, absenteeism, turnover, organizational citizenship behavior, job satisfaction, and this.
What is workplace misbehavior?
In a new startup where team roles overlap, the owner holds daily check-ins, clarifies expectations, and motivates employees by giving them autonomy in how they reach their goals.
What is structuring tasks by motivating employees?
A global company organizes its sales function into North American, European, and Asia-Pacific regions.
What is geographic departmentalization?
This type of pay system rewards employees based on the job skills and competencies they possess, rather than their job title.
What is a skill-based pay system?
A sales team not only gets along extremely well but also shares the company’s goals and priorities. Their strong unity and focus lead to a noticeable boost in overall productivity.
What is a highly cohesive team with high goal alignment?
A manager notices that some employees stop doing a task if it no longer earns praise or rewards. To reduce this behavior, the manager decides to remove the positive outcomes that were unintentionally encouraging it. This method is one of four ways managers can shape behavior.
What is extinction?