MGT 300
Midterm Review Questions
Chapter 1 1. What is organizational performance and what is its relationship with efficiency and effectiveness?
Organizational performance: a measure of how efficiently and effectively managers use organizational resources to satisfy customers and achiever organizational goals.
Efficiency: A measure of how well or productively resources are used to achieve a goal
Effectiveness: A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals.

2. Explain the following terms: strategy, low-cost strategy, and differentiation strategy
Strategy: A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.
Low cost strategy: a way of obtaining customers by making decision that allow an organization to produce goods or services more cheaply than its competitors so it can charge lower prices than they do
Differentiation strategy: To deliver to customers new, exciting, and unique products

3. What does the managerial function of organizing involve? What is its outcome?
Organizing: structuring working relationships so organization members interact and cooperate to achieve organization goals.
Outcome: The outcome of organizing is the creation of organization structure
Organization structure: a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organization goals.

4. Identify the three levels of management and explain the basic responsibilities of each.
First line managers: responsible for the daily supervision of non-managerial employees
Middle managers: Supervise first-line managers and are responsible for finding the best way to use resources to achieve organizational goals
Top managers: