Final Exam môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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Final - Principles OF Management PRINCIPLES OF MANAGEMENT CHAPTER 11. ORGANIZING
1. What purpose and which activities must you perform with organizing?
- **Theory:** Organizing involves arranging people and resources to work together
efficiently toward a common goal.
- **Explanation:** Organizing is a key management function that requires dividing up the
work, arranging resources, and coordinating activities. Dividing up the work means assigning
specific tasks to individuals or teams based on their skills and the requirements of the project.
Arranging resources involves ensuring that people, materials, and tools are available and
optimally placed for the tasks at hand. Coordinating activities ensures that all efforts are
aligned and progressing toward the overarching objective, minimizing redundancy and conflicts.
- **Example:** Imagine a leader in a company tasked with launching a new product.
First, they divide the work by assigning roles to different departments—marketing handles
promotions, R&D refines the product, and sales prepares the launch strategy. Then, the leader
arranges resources by ensuring each department has the necessary tools, budget, and
personnel to execute their tasks effectively. Finally, they coordinate activities by holding
regular meetings to align efforts, adjust timelines, and ensure all departments are working in
sync toward the product launch.
- **Conclusion:** Effective organizing is essential for any leader to ensure that
resources are used efficiently and that activities are well-coordinated, ultimately leading to
successfully accomplishing the organization's goals. By mastering the art of organizing,
leaders can better manage complex projects and drive their teams toward success.
2. Functional structure: How do they develop the work? Pros and cons of it? Give examples for each activity.
- **Theory:** A functional structure is an organizational framework where individuals
with similar skills and responsibilities are grouped into formal work units, often leading to
effective specialization but with potential drawbacks in cross-functional communication.
- **Explanation:** In a functional structure, employees are organized based on their
specific areas of expertise, such as marketing, finance, or production. This setup enables
individuals to focus on their specialized tasks, leading to high efficiency and quality within each
department. The structure is particularly effective for small organizations with a limited range of
products or services, as it allows for economies of scale and consistency in task assignments
that align with employees' training and expertise. However, the focus on specialization can
lead to issues like the “functional silos” problem, where departments become isolated,
communication breaks down, and a unified organizational vision may be compromised. about:blank 1/9 6/8/25, 10:37 PM
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- **Example:** Consider a small manufacturing company that produces a single line of
home appliances. In a functional structure, the company might have separate departments for
production, marketing, sales, and finance. The production department, staffed with engineers
and technicians, focuses on efficiently manufacturing high-quality products. The marketing
team, composed of experts in consumer behavior and advertising, works on creating effective
campaigns to boost sales. While this structure allows each department to excel in its specific
area, it can also create challenges. For instance, the production team may focus solely on
efficiency, neglecting feedback from the marketing team about consumer preferences, which
could lead to a product that is technically sound but not aligned with market demand. Similarly,
the marketing team might push for features that are difficult or costly to implement, creating
tension with the production department. These issues highlight the potential downsides of the
functional structure, where the lack of cross-functional communication can hinder innovation
and responsiveness to market changes.
- **Conclusion:** The functional structure offers clear advantages, such as enhanced
specialization, efficient resource use, and high-quality technical problem-solving, particularly in
small organizations with limited product lines. However, it also presents significant challenges,
including communication barriers, a narrow focus on departmental goals, and a potential loss
of organizational cohesion. To mitigate these issues, organizations may need to implement
strategies to improve cross-functional collaboration and ensure that all departments remain
aligned with the broader organizational objectives.
3. Divisional structures: How we can employ divisional structures based on
different products, geographical, customers, and processes? Explain it and give examples for each function.
- **Theory:** Divisional structures organize people based on the products they work on,
the processes they use, the customers they serve, or the geographical regions they operate in,
making them well-suited for large, complex organizations.
- **Explanation:** Divisional structures enable large organizations to focus on specific
areas, such as a particular product line, market segment, or region, by grouping employees
and resources accordingly. This structure allows for greater flexibility, as each division can
quickly respond to changes in its environment, whether they are shifts in customer
preferences, regional market conditions, or technological advancements. Additionally,
divisional structures often lead to improved coordination within each division and provide clear
points of responsibility, making it easier to manage and restructure when necessary. However,
they can also result in the duplication of resources across divisions, competition between
divisions, and an overemphasis on divisional goals, potentially detracting from the overall
objectives of the organization.
- **Example:** A multinational consumer goods company might adopt a divisional
structure based on product lines, such as personal care, household products, and food items.
Each division would have its own marketing, production, and sales teams dedicated to that
product category, allowing them to focus entirely on the unique needs and opportunities of
their specific market. Alternatively, a company might structure its divisions geographically, with
separate units for North America, Europe, Asia, and other regions, enabling tailored strategies about:blank 2/9 6/8/25, 10:37 PM
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that address local market dynamics. Divisions can also be based on customer types, such as
retail versus wholesale clients, or processes, like manufacturing versus distribution, each with
specialized teams to optimize operations. While this approach allows each division to operate
efficiently and effectively within its focus area, it can lead to challenges such as duplicated
efforts in marketing or R&D across different product lines, or divisions competing for limited
resources rather than collaborating toward common goals.
- **Conclusion:** Divisional structures offer significant advantages for large, complex
organizations by providing flexibility, clear accountability, and focused expertise. However,
they also come with potential downsides, such as resource duplication and inter-divisional
competition. To maximize the benefits of a divisional structure while minimizing its drawbacks,
organizations must carefully balance the autonomy of each division with the need for
coordination and alignment with overall corporate objectives.
4. Matrix structure: What are the advantages and disadvantages of matrix structure? Give example.
- **Theory:** The matrix structure blends functional and divisional structures, allowing
employees to work under two different managers—one within their functional area and another
within a project or product team.
- **Explanation:** The matrix structure offers several advantages. It promotes better
communication and collaboration across functions, as team members from different
departments work closely together on projects. This setup leads to improved decision-making
and problem-solving at the team level, where the best information is available. The structure
also provides greater flexibility, allowing organizations to adapt quickly to changing demands,
and enhances customer service by ensuring that knowledgeable managers are always
available to address specific needs. However, the matrix structure also has drawbacks. The
dual reporting system can create power struggles between functional and project managers,
leading to confusion and conflicting priorities for employees. Additionally, the need for frequent
meetings and coordination can be time-consuming and costly, and strong team loyalties can
sometimes cause a loss of focus on the organization’s broader goals.
- **Example:** A company like IBM employs a matrix structure to manage its global
operations. Employees are grouped both by function (e.g., software development) and by
product line or region (e.g., cloud computing or North America). This structure enables IBM to
address regional market needs while maintaining consistent product development. However,
the dual reporting system sometimes results in conflicts between functional and project
managers, highlighting the challenges of balancing priorities within a matrix structure.
- **Conclusion:** The matrix structure offers significant benefits in terms of
communication, flexibility, and decision-making, making it effective for complex organizations.
However, managing the inherent challenges, such as power struggles and potential
inefficiencies, is crucial to fully realize its advantages. about:blank 3/9 6/8/25, 10:37 PM
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CHAPTER 15. INDIVIDUAL BEHAVIOR
1. Perception: what is perception, What are the possible mistakes of bias in our perception?
- **Theory:** Perception is the process by which individuals receive and interpret
information from their environment, shaping how they respond to various situations.
- **Explanation:** Perception acts as a filter, influenced by factors such as background,
culture, and personality, leading different people to interpret the same situation in different
ways. This process can significantly impact behavior, particularly in the workplace, where the
psychological contract—what individuals expect from their employment relationship—can
shape their actions and attitudes. When perception distorts reality through biases like
attribution errors or stereotypes, it can lead to misunderstandings and misjudgments in
interpersonal and professional contexts.
- **Example:** A common perceptual bias is the self-serving bias, where an employee
might attribute their success on a project to their hard work while blaming any setbacks on
external factors, such as poor management. This can create a false sense of confidence and
hinder personal growth. The fundamental attribution error might occur when a manager blames
an employee's poor performance on laziness rather than considering external factors like
inadequate resources. Stereotyping could happen if a manager assumes a young employee is
tech-savvy simply because of their age, leading to unrealistic expectations. The halo effect
might influence a performance review if a manager lets a single positive trait, like punctuality,
overshadow other areas where the employee needs improvement.
- **Conclusion:** Perception plays a crucial role in how individuals interpret and respond
to their environment, but it is also prone to biases that can distort reality. Understanding these
biases, such as self-serving bias, fundamental attribution error, stereotyping, and the halo
effect, is essential for improving decision-making and interpersonal relationships in both
personal and professional settings. By being aware of these perceptual errors, individuals and
organizations can work to minimize their impact and foster more accurate and fair assessments.
CHAPTER 16. MOTIVATION THEORY AND PRACTICE
1. Hierarchy of needs theory: What are 5 levels of the Hierarchy of needs,
and what is the relationship of those? Explain it and give an example.
- **Theory:** Maslow's hierarchy of needs is a motivational theory proposed by Abraham
Maslow that organizes human needs into five hierarchical levels, with each level serving as a foundation for the next.
- **Explanation:** Maslow's hierarchy is structured in a pyramid with five levels, each
representing a different category of needs. The most basic and prepotent are physiological
needs, such as food and water, which must be satisfied before higher-level needs become
motivating. Once physiological needs are met, individuals seek to fulfill safety needs, including about:blank 4/9 6/8/25, 10:37 PM
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security and stability. Following that, individuals focus on belongingness needs, which involve
social connections and relationships. Esteem needs come next, encompassing self-respect
and recognition from others. At the top of the hierarchy are self-actualization needs, which
involve realizing one's full potential and personal growth. The hierarchy suggests that each
level must be substantially satisfied before moving on to address higher-level needs, though
this progression can be influenced by individual circumstances.
- **Example:** At the physiological level, a person struggling to secure enough food and
water cannot focus on social relationships or career ambitions. Once these basic needs are
met, they will seek safety by looking for a stable job and a secure home environment. Next, the
individual will focus on belongingness by seeking friendships and forming relationships. After
establishing a sense of connection, they will strive for esteem needs, such as pursuing
professional achievements and gaining recognition. Finally, with these lower levels fulfilled, the
person may seek self-actualization by engaging in personal development activities, such as
learning new skills or pursuing creative projects.
- **Conclusion:** Maslow's hierarchy of needs provides a framework for understanding
human motivation, highlighting the importance of fulfilling lower-level needs before addressing
higher-level aspirations. Each level of needs builds upon the previous one, creating a
progressive cycle of motivation. By recognizing this hierarchy, individuals and organizations
can better support personal growth and satisfaction by addressing needs in a structured and prioritized manner.
2. ERG theory: existence needs, relatedness needs, growth needs? Compare
it to Mashlow’s Hierarchy of needs and give an example.
- Theory: ERG theory is developed by Clayton Alderfer in order to explain and
categorize human needs into three main domains. One of the concrete needs in ERG is the E
standing for “Existence needs" which suggests that humans focus on their material conditions
to maintain the physical well-being of a being. R stands for “Relatedness needs” proposing that
people seek for social interactions with others in order to feel satisfied. The last one is G
represents “Growth needs" describing the internal drive for self-actualization of a human.
- Explain: ERG theory is a modification of Maslow's hierarchy of needs. Existence needs
explained are the basic physiological and safety needs such as foods, water, or home and
shelter; which is similar to the lower-level needs in Maslow's hierarchy. Relatedness needs
suggested these involve the need for interpersonal relationships and belonging, which relates
to Maslow's social and to the external part of self-esteem middle-level needs explaining that
we can be satisfied about ourselves based on others' perception about us. Growth needs
proposed that these are the needs for personal development, and reaching one's full potential
by doing meaningful activities contributing to society benefits, equates to the higher-level needs in Maslow's hierarchy.
- Compare and contrast: There are three key differences between Maslow’s hierarchy of
needs and Alderfer's ERG theory. Firstly, although the existence needs are considered to be
the foundation of a human desire, Alderfer suggested that all three needs can be flexibly
prioritized based on the situation and the condition. Add to that, there is no need to achieve about:blank 5/9 6/8/25, 10:37 PM
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one level in order to accomplish the next one. Secondly, a person’s behavior can be affected
by more than just one needs simultaneously while facing a circumstance. Besides that, those
needs are not restricted by order. Lastly, ERG theory includes frustration-regression principle
which says if someone’s higher-level of desire cannot be fulfilled, he or she might seek for the
fulfillment in the lower-level needs.
- Example: In a software company, the company should offer a good working
environment (existence needs); and encourage positive co-worker relationship (relatedness
needs); and give self-developing opportunities for individuals (growth needs). People's priority
in a job might change if their family witnesses some marriage divorce or health problems,
which means instead of focusing on maintaining good relationships with supervisors and
colleagues and occupational promotion, they would prefer existence needs to protect and
rearrange their family situation.
- Conclusion: Understanding these interacting need levels allows the organization to
design a more holistic employee experience, enhancing satisfaction, productivity, and retention.
3. Two-factors theory: Hygiene factors: What happens if you increase
Hygiene factor? Give an example of this situation.
- **Theory:** Hygiene factors, according to Herzberg's Two-Factors Theory, are job
environment elements like company policies and interpersonal relationships that impact
employee satisfaction but do not inherently increase motivation when improved.
- **Explanation:** Hygiene factors are extrinsic elements of the work environment that
can prevent job dissatisfaction when managed well. While enhancing these factors can remove
obstacles and reduce negative feelings, it does not necessarily lead to higher job satisfaction
or motivation. Improvements in hygiene factors may offer a temporary increase in satisfaction,
but their impact tends to diminish as employees adjust to the new conditions. Essentially, while
addressing hygiene factors can prevent dissatisfaction, it does not actively boost employee
motivation or long-term satisfaction.
-**Example:** Imagine a company decides to upgrade its office facilities and improve its
management practices. Employees initially appreciate the cleaner, more comfortable work
environment and the more supportive management. However, while these changes reduce
complaints and create a more pleasant atmosphere, employees may soon become
accustomed to these improvements. Over time, the boost in job satisfaction may fade as
employees seek more substantial changes, such as opportunities for personal growth or
advancement, which are not directly addressed by enhancing hygiene factors.
- **Conclusion:** Improving hygiene factors can effectively reduce job dissatisfaction
and create a more comfortable work environment, but it does not necessarily lead to increased
motivation or long-term satisfaction. Organizations should recognize that while addressing
hygiene factors is important, focusing on intrinsic motivators is crucial for sustaining higher
levels of employee engagement and satisfaction. about:blank 6/9 6/8/25, 10:37 PM
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4. Two-factors theory: Satisfier factors: What happens if you increase
Satisfier factors? Give an example of this situation.
- **Theory:** Satisfier factors, according to Herzberg's Two-Factors Theory, are intrinsic
elements of a job, such as opportunities for personal growth and career advancement, that
directly enhance job satisfaction and motivation.
- **Explanation:** Satisfier factors are intrinsic to the nature of the job itself, focusing on
aspects like challenging work, recognition, and career progression. Unlike hygiene factors,
which only prevent dissatisfaction, satisfier factors actively contribute to higher job satisfaction
and motivation when present. Enhancing these factors leads to more substantial and lasting
improvements in employee engagement and performance, fostering enthusiasm and
commitment to their roles. Improvements in satisfier factors often result in a more significant
and enduring boost in job satisfaction compared to the temporary effects of addressing hygiene factors.
- **Example:** Consider a company that implements a new career development
program, offering employees more opportunities for skills training, challenging projects, and
clear paths for promotion. Employees who participate in these programs report increased job
satisfaction and motivation, feeling more valued and engaged with their work. As a result, they
exhibit greater enthusiasm, higher productivity, and a stronger commitment to the company.
The positive impact on job satisfaction from these intrinsic factors tends to be more enduring
and transformative compared to changes in extrinsic factors like office environment or policies.
- **Conclusion:** Increasing satisfier factors, such as providing opportunities for
personal development and career growth, directly enhances job satisfaction and motivation.
Unlike hygiene factors, which primarily prevent dissatisfaction, satisfier factors foster deeper
engagement and enthusiasm among employees. By focusing on intrinsic motivators,
organizations can achieve more significant and lasting improvements in employee
performance and organizational commitment.
5. What is equity theory? Explain in which situations we can apply theory to people’s behavior.
- **Theory:** Equity Theory suggests that individuals experience discomfort when they
perceive they are treated unfairly compared to others, motivating them to seek a sense of fairness.
- **Explanation:** According to Equity Theory, people assess their rewards, such as
salary or recognition, with their inputs, like effort and skills. They then compare this ratio with
that of others in similar roles to determine if they are being treated equitably. If individuals
perceive an imbalance—either receiving less or more than what they believe is fair compared
to their peers—they experience discomfort and are driven to restore equity. This drive can lead
to various actions, such as adjusting their level of effort, requesting adjustments in
compensation, or even leaving the organization. about:blank 7/9 6/8/25, 10:37 PM
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-**Example:** In a company, two employees, Alice and Bob, with similar roles and
experience levels, discover that Alice is earning significantly more than Bob. Bob perceives
this salary discrepancy as unfair because both contribute similarly to their roles. To apply
Equity Theory, the company should investigate the disparity and consider adjusting Bob’s
salary to align with Alice’s, ensuring fairness. If the inequity is not addressed, on the one hand,
Bob may become demotivated or seek opportunities elsewhere, impacting overall productivity.
On the other hand, Alice may quit the job because of the unfairness.
- **Conclusion:** Equity Theory emphasizes the importance of fairness in the workplace
and how perceived inequities can influence employee behavior. By applying this theory,
organizations can identify and address disparities, ensuring a fair and motivating work
environment. Maintaining equity is essential for sustaining employee satisfaction and engagement.
6. The Process Theories of Motivation are a group of theories that focus on
the cognitive processes that influence motivation. The key process theories include:
- **Theory:** The Expectancy Theory proposes that an individual's motivation is
determined by their belief that their effort will lead to a desired performance, which in turn will
lead to a valued outcome or reward. There are three key components of the theory.
+ Expectancy: This is the individual's belief that their effort will lead to the desired level of
performance. I f employees do not believe their efforts will result in good performance, they will
be less motivated to put in the effort.
+ Instrumentality: This is the belief that if the individual performs well, it will lead to the desired outcome or reward. E
mployees must believe there is a strong link between their
performance and the rewards they will receive.
+ Valence: This is the value the individual places on the expected reward or outcome. If
the reward is not seen as valuable or desirable to the employee, they will be less motivated to exert effort.
- ** Example:** If an employee believes that putting in extra effort on a project
(expectancy) will lead to a positive performance review and a promotion (instrumentality), and
the employee highly values the promotion (valence), they will be highly motivated to put in the effort.
- **Theory:** Equity Theory suggests that employees are motivated to maintain
fairness and equity in the relationships and exchanges they have with their employer.
- **Explain:** Employees compare their inputs (effort, experience, education) and
outcomes (pay, recognition) to those of their peers, and are motivated to reduce any perceived inequities.
- **Example:** If a sales associate named Emily discovers a colleague, Samantha, is
earning a higher salary and bonuses despite similar job responsibilities, Emily may perceive
this as inequitable. Even if Samantha's higher pay is justified, Emily may be demotivated, about:blank 8/9 6/8/25, 10:37 PM
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reduce her work effort, and feel resentful. To restore Emily's motivation, the manager would
need to address the perceived inequity, perhaps by explaining the rationale for Samantha's
compensation or adjusting Emily's own pay and rewards to align more closely. The Equity
Theory posits that employees are motivated when they see their inputs, such as effort and
experience, as fair in relation to their workplace outcomes.
- **Theory:** Goal-Setting Theory posits that employees are motivated when they have
specific, challenging goals and receive feedback on their progress.
- **Explain:** Clearly defined goals provide direction and serve as a source of
motivation, especially when employees are committed to achieving those goals.
- **Example:** A software engineer may be highly motivated to meet goals such as
launching a new mobile app feature with high customer satisfaction, reducing bug fix time by
20%, and mentoring a junior engineer. These specific, moderately difficult objectives, with
built-in feedback, foster motivation by giving workers a sense of purpose and ownership. The
theory suggests that providing employees with well-designed goals is an effective way to boost
their motivation and performance.
- **Theory:** Reinforcement Theory emphasizes the role of positive and negative
consequences in shaping behavior.
- **Explain:** Employees are motivated to repeat behaviors that lead to positive
outcomes, and avoid behaviors that lead to negative consequences.
- **Example:** A customer service rep may provide excellent service if rewarded, but
perform poorly if poor work goes unaddressed. Managers can motivate staff by positively
reinforcing desired behaviors through rewards, praise, or recognition. The theory states that
aligning consequences with outcomes can foster the motivated behaviors that drive organizational success.
- **Conclusion:** Process theories like Equity, Goal-Setting, and Reinforcement suggest
employee motivation in the workplace stems from cognitive factors like fairness, goal
achievement, and consequences. These theories emphasize aligning employee and
organizational interests to foster intrinsically motivated teams. Understanding these cognitive
processes allows managers to design environments and incentives that effectively harness employee motivation. about:blank 9/9