CLEP Principles of Management 1

120 debt ratio measures a companys ability to pay its

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120. Debt Ratio measures a company's ability to pay its debts. 121. Marketing Ratio measures market shares, sales quotas and profitability. 122. 123. Classifying is assuming something about someone because he or she is a member of a particular group. 124. Projection is the act of ascribing one's own ideas or emotions to another. 125. Selective perception is focusing on particular aspects of a situation that are consistent with one's own beliefs or values. 126. Pygmalion effect notion of self-fulfilling prophecy, whereby individuals will act accordingly with what another's expectations are. IE, a summer intern is aware that her manager thinks that she is lazy and she therefore acts accordingly 127. Self-serving bias error of perception which involves perceiving a situation in whatever way best suits the viewer. IE, an individual with a self-serving bias would likely take credit for a project if it results in success, but would not take credit for it if it resulted in failure.
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128. 129. Feedforward Controls are preliminary controls that aim to prevent problems with below-standard performance before they happen. Human resources and material resources such as capital, machinery or inventory can all be subject to feedforward controls. A standardized admissions exam prescreens applicants to ensure that they possess the skills necessary to meet with success at the university. 130. 131. According to Larry Greiner's organizational development theory , before an organization can evolve to the next stage of growth, there must be a crisis. The primary phase, the creativity phase , is dominated by an organization's founders and their focus on creating a product and a market for that product. As the organization grows, the founders start to get overburdened with management responsibilities and begin to have leadership conflicts with employees. This crisis marks the beginning of the first revolutionary period. Direction phase , a formidable manager who is favorable to the founders is appointed to get the organization back on track. Eventually, low-level managers begin to desire more power, a point at which the second phase of the revolutionary period begins. This next phase, delegation , is marked by the organization becoming more decentralized, which increases morale and motivation at lower levels of management. However, upper-level management's difficulty with surrendering responsibility and control eventually leads them return to a more centralized structure. Low-level managers who had grown accustomed to more freedom and control begin to feel resentful about the shift back toward centralization. The control phase utilizes formal systems for top management to try to manage the increasingly unwieldy organization and the complex relationship among various levels of management. The implementation of rigid systems leads to a crisis of red tape.
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