Diagnostic Test - Management

A person or organization that uses a product or service.

• consumer

• customer

• creditor

The knowledge and skill-set necessary to be an informed consumer and manage finances effectively.

• personal finance

• financial literacy

• economical analysis

Bill Gore was the inventor of Gore-Tex, a fabric popular in many sports. When building his company, he wanted to harness the fast decision-making, diverse perspectives, and collaboration of small teams. His approach was that "We're all in the same boat," sharing risks and rewards and committed to what's best for the company and its long-term success. One advantage of teams is

• shared risk

• groupthink

• better communication

A portfolio manager liked a new product that included a swap, a financial derivative. Since he had the authority, he proceeded without asking any other departments about it. A year later, he learned that the back-office was upset with the difficulty of handling the swaps. A team approach would have improved communication and

• social efficacy

• task significance

• team motivation

Lumen Learning works with professors all over the country to edit its new biology textbook. The professors interact through Google Docs, commenting on the text and its revisions. The professors don’t need to meet in person. They are a

• cross-functional team

• self-managing team

• virtual team

Effective teams know how their work contributes toward an organizational goal. The team leader reminds members of how each team member makes business success possible. In other words,

• open and accurate communication both between the team members and between the team and the larger organization is critical to keep members informed, motivated and focused.

• effective teams use conflict to improve decision-making and problem-solving processes.

• the purpose of the team must be clearly defined in concrete and measurable objectives.

Management functions consists of:

• Planning and controlling

• Organizing and leading

• Leading and staffing

• Planning, organizing, leading and controlling

Top level management prepares:

• Long-term plans

• one-day plans

• medium-term plans

• short-term plans

The process of determining what needs to be done, how it will be done and who is to do it refers to:

• Planning

• Organizing

• Leading

• Controlling

Managing people through guidance and counselling refers to:

• Planning

• Organizing

• Leading

• Controlling