ICMA-CM cheat sheet

Management functions follow the classic sequence: planning, organizing, leading (directing), and controlling; controlling closes the loop by comparing performance to plan and correcting deviations.

Leadership styles: autocratic (leader decides), democratic/participative (shared input, leader decides), laissez-faire (group decides), transactional (rewards for performance), transformational (vision and individual development).

Situational leadership (Hersey-Blanchard) matches style to follower readiness: telling (low readiness), selling (moderate-low), participating (moderate-high), delegating (high readiness).

Theory X assumes workers avoid responsibility and need close control; Theory Y assumes workers seek responsibility and self-direction; Theory Z emphasizes long-term employment and consensus.

Fiedler's contingency model holds that leader effectiveness depends on the fit between leader style (task- or relationship-oriented) and situational favorableness (leader-member relations, task structure, position power).

Span of control: narrow spans produce tall, closely supervised structures; wide spans produce flat structures with more delegation and higher supervisory load per manager.

Management vs. leadership: management copes with complexity through planning and budgeting; leadership copes with change through direction-setting and aligning people.

Delegation requires assigning authority, responsibility, and accountability together; accountability cannot be delegated away from the manager.

Strategy hierarchy: mission (why we exist), vision (future state), values (behavioral guardrails), goals (measurable outcomes), objectives (specific, time-bound targets), tactics (how).

SMART criteria: Specific, Measurable, Achievable, Relevant, Time-bound; an objective failing any criterion is a goal statement, not a controllable objective.

SWOT analysis pairs internal Strengths and Weaknesses with external Opportunities and Threats; SO/ST/WO/WT pairings convert the matrix into strategic options.

Porter's generic strategies: cost leadership, differentiation, and focus (cost focus or differentiation focus); being stuck in the middle yields below-average returns.

PESTLE scans macro-environment: Political, Economic, Social, Technological, Legal, Environmental factors.

Balanced Scorecard perspectives: financial, customer, internal process, learning and growth; lagging financial measures are balanced by leading operational measures.

Strategic alignment means unit goals, budgets, and KPIs cascade from the same objectives; misalignment appears when departmental incentives reward behavior contrary to strategy.

Ansoff growth matrix: market penetration (existing product/market), market development (new market), product development (new product), diversification (both new).

Contribution margin = sales − variable costs; contribution margin ratio = contribution margin ÷ sales. Break-even units = fixed costs ÷ contribution margin per unit.

Break-even sales dollars = fixed costs ÷ contribution margin ratio; target profit volume = (fixed costs + target profit) ÷ contribution margin per unit.

Variance analysis: favorable when actual revenue > budget or actual cost < budget; unfavorable in the reverse. Flexible budget variances isolate volume effects from price and efficiency effects.

Gross profit = revenue − cost of goods sold; operating income = gross profit − operating expenses; net income = operating income − interest and taxes.

Budget types: incremental (prior period plus adjustment), zero-based (every cost justified from zero), rolling/continuous (period extended each cycle), activity-based (driven by cost drivers).

Cash flow vs. profit: profit is accrual-based; liquidity depends on cash timing. Depreciation and amortization are non-cash and reduce accrual profit without reducing cash.

Capital budgeting: net present value > 0 adds value; internal rate of return is the discount rate at which NPV = 0; payback period ignores time value and cash flows after payback.

Return on investment = operating income ÷ invested capital; residual income = operating income − (required rate × invested capital).

Recruitment sequence: job analysis → job description (duties) and job specification (qualifications) → sourcing → screening → selection → offer → onboarding.

Behavioral and structured interviews use the same predetermined questions and scoring rubrics for all candidates, which raises reliability and defensibility versus unstructured interviews.

Total rewards = base pay + variable pay + benefits + recognition + development + work environment; pay equity requires internal consistency and external competitiveness.

Training needs analysis occurs at three levels: organizational, task/operational, and individual/person; evaluation uses the four Kirkpatrick levels - reaction, learning, behavior, results.

Performance management cycle: goal setting → ongoing coaching → appraisal → development plan; forced ranking and recency bias are common rating errors.

Progressive discipline escalates: verbal warning, written warning, suspension, termination; documentation and consistency are the core controls.

Succession planning identifies key positions and develops candidate benches; a 9-box grid plots performance against potential to target development.

Turnover cost includes recruiting, onboarding, lost productivity, and knowledge loss; voluntary turnover rate = voluntary separations ÷ average headcount.

Little's Law: work-in-process = throughput × flow time; it links inventory, cycle time, and output rate in any stable process.

Process capacity = 1 ÷ bottleneck cycle time; the bottleneck sets system throughput, and non-bottleneck improvement does not raise total output.

Lean waste categories (TIMWOOD): Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects.

Six Sigma DMAIC: Define, Measure, Analyze, Improve, Control; a sigma level of 6 corresponds to about 3.4 defects per million opportunities.

Statistical process control: control limits are set at ±3 sigma from the process mean; a process in control can still be off-target, while common-cause variation requires process redesign, not operator action.

PDCA (Plan-Do-Check-Act) is the Deming improvement cycle; kaizen is continuous incremental improvement, while kaikaku is radical redesign.

Quality cost categories: prevention, appraisal, internal failure, external failure; external failure costs are typically the highest and least controllable.

Theory of Constraints: identify the constraint, exploit it, subordinate everything else, elevate it, then repeat; the constraint moves once relieved.

Communication process: sender → encoding → channel → decoding → receiver → feedback, with noise affecting every stage; feedback confirms understanding.

Active listening behaviors: paraphrase content, reflect feeling, ask open questions, summarize, and withhold judgment until the speaker finishes.

Channel richness ranks high-to-low: face-to-face, video, phone, email, written memo; ambiguous or emotional messages require richer channels.

Conflict modes (Thomas-Kilmann): competing, collaborating, compromising, avoiding, accommodating; collaborating is best when both parties' concerns matter and time permits.

Feedback rules: describe observable behavior and its impact, avoid labels, focus on the future, and deliver privately and promptly.

Nonverbal communication carries much of emotional meaning; incongruence between words and body language reduces trust in the message.

Cross-cultural communication: high-context cultures rely on implicit cues and relationships; low-context cultures rely on explicit, written detail.

Grapevine and informal networks transmit information faster than formal channels but with lower accuracy; managers should monitor rather than suppress them.

Ethical decision tests: utilitarian (greatest good), rights (respects entitlements), justice (fair distribution), virtue (what a person of character would do), and the public-disclosure test.

A code of conduct states required and prohibited behaviors; a code of ethics states guiding values; both need enforcement, training, and a reporting channel to be effective.

Governance structure: shareholders elect the board; the board appoints and oversees the CEO; audit, compensation, and nominating committees handle specialized oversight.

Segregation of duties prevents fraud by separating authorization, custody, recording, and reconciliation; it is a key internal control.

The fraud triangle: pressure/incentive, opportunity, and rationalization; removing opportunity through controls is the most direct prevention lever.

Whistleblower protection and anonymous hotlines are preventive controls; retaliation against reporters is itself a compliance violation.

Conflicts of interest must be disclosed and managed; recusal is required when a decision-maker has a personal financial or family interest.

Compliance framework elements: risk assessment, policies and procedures, training, monitoring and auditing, enforcement, and response to detected issues.

Risk responses: avoid, reduce/mitigate, transfer (insurance, contracts), accept (with reserve), and exploit for opportunities; residual risk is what remains after response.

Risk register fields: risk description, cause, potential effect, likelihood, impact, risk score, owner, response, and status.

Risk score = likelihood × impact; a heat map plots the two dimensions to prioritize treatment and set tolerance thresholds.

Decision-making steps: define the problem, gather information, identify alternatives, evaluate, select, implement, and evaluate the outcome.

Bounded rationality: decision-makers satisfice because of limited information and cognitive limits; heuristics such as anchoring, confirmation bias, and availability bias distort judgment.

Expected value = sum of (probability × outcome) across scenarios; it supports decisions under risk but ignores risk appetite and worst-case exposure.

Group decision pitfalls: groupthink (suppressed dissent), risky shift, and escalation of commitment (persisting with a failing course because of sunk costs).

Devil's advocate, pre-mortem, and nominal group technique are structured countermeasures to groupthink and premature consensus.

Lewin's model: unfreeze (create readiness), change (implement), refreeze (embed in systems and norms); skipping refreeze causes reversion.

Kotter's eight steps: urgency, coalition, vision, communicate, empower action, short-term wins, consolidate gains, anchor in culture.

Kübler-Ross-style response curve: denial, resistance, exploration, commitment; resistance is information about the change, not merely obstruction.

ADKAR sequences individual change: Awareness, Desire, Knowledge, Ability, Reinforcement; organizational results follow individual change.

Change readiness drivers: perceived benefit, clarity of the vision, leadership credibility, participation, and support/resources; communication alone does not create readiness.

Innovation funnel: idea generation → screening → business case → development → testing → launch; stage gates kill weak ideas early to protect resources.

Diffusion of innovations: innovators, early adopters, early majority, late majority, laggards; the early-majority threshold determines mainstream adoption.

Sustaining innovation improves existing offerings; disruptive innovation starts in low-end or new markets and moves upmarket as capability improves.

Leadership style is contingent, not fixed: the same manager may tell, sell, participate, or delegate depending on follower readiness and task risk.

Situational favorableness in Fiedler's model rises with good leader-member relations, high task structure, and strong position power.

Transformational leadership uses idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.

Controlling compares actual performance with standards and takes corrective action; it depends on measurable standards set during planning.

Delegation fails most often when authority is granted without resources or when accountability is diffused; the delegating manager retains final accountability.

Theory X and Theory Y are assumptions managers hold, not fixed traits of employees; assumptions shape control intensity and autonomy granted.

Centralization concentrates decision authority at the top; decentralization pushes it downward, increasing speed and local responsiveness at the cost of consistency.

Management functions follow the classic sequence: planning, organizing, leading (directing), and controlling; controlling closes the loop by comparing performance to plan and correcting deviations.

Leadership styles: autocratic (leader decides), democratic/participative (shared input, leader decides), laissez-faire (group decides), transactional (rewards for performance), transformational (vision and individual development).

Situational leadership (Hersey-Blanchard) matches style to follower readiness: telling (low readiness), selling (moderate-low), participating (moderate-high), delegating (high readiness).

Theory X assumes workers avoid responsibility and need close control; Theory Y assumes workers seek responsibility and self-direction; Theory Z emphasizes long-term employment and consensus.

Fiedler's contingency model holds that leader effectiveness depends on the fit between leader style (task- or relationship-oriented) and situational favorableness (leader-member relations, task structure, position power).

Span of control: narrow spans produce tall, closely supervised structures; wide spans produce flat structures with more delegation and higher supervisory load per manager.

Delegation requires assigning authority, responsibility, and accountability together; accountability cannot be delegated away from the manager.

Centralization concentrates decision authority at the top; decentralization pushes it downward, increasing speed and local responsiveness at the cost of consistency.

Vision states the desired future; mission states present purpose and scope; confusing the two produces goals with no direction.

SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound; vague objectives cannot be controlled or cascaded.

SWOT pairs internal Strengths/Weaknesses with external Opportunities/Threats; SO, ST, WO, and WT pairings convert the matrix into strategic options.

Porter's generic strategies are cost leadership, differentiation, and focus; failing to choose leaves an organization stuck in the middle.

PESTLE scans Political, Economic, Social, Technological, Legal, and Environmental forces in the macro-environment.

Balanced Scorecard perspectives are financial, customer, internal process, and learning and growth; leading indicators balance lagging financial results.

Ansoff matrix combinations: market penetration (existing/existing), market development (new market), product development (new product), diversification (both new).

Strategic alignment requires unit goals, budgets, and incentives to cascade from the same objectives; conflicting incentives are the most common cause of misalignment.

Contribution margin = sales − variable costs; break-even units = fixed costs ÷ contribution margin per unit.

Break-even sales dollars = fixed costs ÷ contribution margin ratio; target profit volume = (fixed costs + target profit) ÷ contribution margin per unit.

A variance is favorable when revenue exceeds budget or cost falls below budget; unfavorable in the reverse direction.

Gross profit = revenue − cost of goods sold; operating income = gross profit − operating expenses; net income = operating income − interest and taxes.

Zero-based budgeting justifies every cost from zero each cycle; incremental budgeting starts from the prior period and adjusts.

Depreciation and amortization are non-cash expenses; profit is accrual-based, so liquidity must be assessed from cash flow.

NPV > 0 adds value; IRR is the discount rate where NPV = 0; payback ignores the time value of money and cash flows after payback.

Return on investment = operating income ÷ invested capital; residual income = operating income − (required rate × invested capital).

Job analysis produces the job description (duties) and job specification (qualifications); both precede recruitment.

Structured interviews use identical questions and scoring rubrics for all candidates, raising reliability and legal defensibility.

Kirkpatrick evaluation levels: reaction, learning, behavior, and results; training needs analysis precedes design at organizational, task, and individual levels.

Total rewards include base pay, variable pay, benefits, recognition, development, and work environment.

Progressive discipline escalates from verbal warning to written warning to suspension to termination; documentation and consistency are the controls.

A 9-box grid plots performance against potential to target development and succession decisions.

Voluntary turnover rate = voluntary separations ÷ average headcount; turnover cost includes recruiting, onboarding, and lost productivity.

Common appraisal errors include recency, halo, central tendency, and leniency bias; forced ranking can damage collaboration.

Little's Law: work-in-process = throughput × flow time; it links inventory, cycle time, and output rate in a stable process.

Process capacity = 1 ÷ bottleneck cycle time; improving a non-bottleneck does not raise system throughput.

Lean waste categories (TIMWOOD): Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects.

Six Sigma DMAIC: Define, Measure, Analyze, Improve, Control; six sigma corresponds to about 3.4 defects per million opportunities.

SPC control limits are set at ±3 sigma from the process mean; common-cause variation requires process redesign, not operator action.

PDCA is the Deming improvement cycle; kaizen is continuous incremental improvement, while kaikaku is radical redesign.

Quality cost categories are prevention, appraisal, internal failure, and external failure; external failure costs are typically highest.

Theory of Constraints: identify, exploit, subordinate, elevate the constraint, then repeat as the constraint moves.

Communication process: sender, encoding, channel, decoding, receiver, feedback; noise can distort any stage.

Channel richness ranks face-to-face highest and written memos lowest; ambiguous or emotional messages need richer channels.

Active listening uses paraphrasing, reflecting feeling, open questions, summarizing, and withholding judgment.

Thomas-Kilmann conflict modes: competing, collaborating, compromising, avoiding, accommodating; collaborating suits high-stakes issues where both concerns matter.

Effective feedback describes observable behavior and its impact, avoids labels, and is delivered promptly and privately.

High-context cultures rely on implicit cues and relationships; low-context cultures rely on explicit written detail.

Incongruence between words and body language reduces trust in the message; nonverbal cues carry much emotional meaning.

The grapevine transmits information faster than formal channels but with lower accuracy; it should be monitored, not suppressed.

Ethical tests include utilitarian (greatest good), rights, justice, virtue, and the public-disclosure test.

The fraud triangle combines pressure, opportunity, and rationalization; removing opportunity through controls is the most direct prevention lever.

Segregation of duties separates authorization, custody, recording, and reconciliation to prevent fraud.

Governance: shareholders elect the board, the board oversees the CEO, and audit, compensation, and nominating committees handle specialized oversight.

A code of conduct specifies required and prohibited behaviors; a code of ethics states guiding values; both need enforcement and training.

Conflicts of interest require disclosure and recusal when a decision-maker has a personal financial or family interest.

Whistleblower hotlines and anti-retaliation policies are preventive controls; retaliation is itself a compliance violation.

Compliance framework elements: risk assessment, policies, training, monitoring, enforcement, and response to detected issues.

Risk responses are avoid, reduce/mitigate, transfer, and accept; residual risk remains after the response is applied.

Risk score = likelihood × impact; a heat map plots both dimensions to prioritize treatment and set tolerance thresholds.

A risk register records description, cause, effect, likelihood, impact, score, owner, response, and status.

Decision steps: define the problem, gather information, identify alternatives, evaluate, select, implement, and evaluate the outcome.

Bounded rationality leads to satisficing; anchoring, confirmation bias, and availability bias distort judgment.

Expected value = sum of (probability × outcome); it ignores risk appetite and worst-case exposure.

Groupthink, risky shift, and escalation of commitment are group decision pitfalls; sunk costs should not drive continuation.

Pre-mortems, devil's advocate roles, and nominal group technique counter groupthink and premature consensus.

Lewin's model: unfreeze, change, refreeze; skipping refreeze causes reversion to old practices.

Kotter's eight steps: urgency, coalition, vision, communication, empowerment, short-term wins, consolidation, anchoring in culture.

ADKAR sequences individual change: Awareness, Desire, Knowledge, Ability, Reinforcement.

Resistance is information about the change; participation and clear benefit increase readiness more than communication alone.

The innovation funnel runs idea generation, screening, business case, development, testing, and launch, with stage gates killing weak ideas early.

Diffusion of innovations: innovators, early adopters, early majority, late majority, laggards; crossing to the early majority determines mainstream adoption.

Sustaining innovation improves existing offerings; disruptive innovation begins in low-end or new markets and moves upmarket.

Change readiness drivers include perceived benefit, vision clarity, leadership credibility, participation, and adequate resources.

Mission defines present purpose and scope; vision defines the desired future state; values set behavioral guardrails.

Goals are broad outcomes; objectives are specific, measurable, time-bound targets derived from goals.

SWOT analysis separates internal factors (strengths, weaknesses) from external factors (opportunities, threats).

Porter's generic strategies: cost leadership, differentiation, and focus; a stuck-in-the-middle position yields below-average returns.

PESTLE covers Political, Economic, Social, Technological, Legal, and Environmental macro forces.

Balanced Scorecard links financial, customer, internal process, and learning and growth measures to strategy.

Strategic alignment means unit goals, budgets, and KPIs cascade from the same objectives.

Ansoff matrix: penetration, market development, product development, and diversification.

Contribution margin per unit = price − variable cost per unit; break-even units = fixed costs ÷ contribution margin per unit.

Contribution margin ratio = contribution margin ÷ sales; break-even sales = fixed costs ÷ contribution margin ratio.

Flexible budget variances separate volume effects from price and efficiency effects; static budget variances mix both.

Gross profit = revenue − cost of goods sold; operating income = gross profit − operating expenses.

Rolling budgets extend one period each cycle; zero-based budgets justify every cost from zero.

Capital budgeting: accept projects with positive NPV; IRR is the rate where NPV = 0; payback ignores time value.

ROI = operating income ÷ invested capital; residual income = operating income − (required rate × invested capital).

Depreciation reduces accrual profit without reducing cash; liquidity requires cash flow analysis.

Job analysis yields the job description (duties) and job specification (qualifications) before recruitment begins.

Structured interviews with fixed questions and scoring rubrics improve reliability and legal defensibility.

Training needs analysis operates at organizational, task, and individual levels; Kirkpatrick evaluates reaction, learning, behavior, and results.

Total rewards include base pay, variable pay, benefits, recognition, development, and work environment.

Progressive discipline escalates from verbal to written warning to suspension to termination with documentation.

The 9-box grid plots performance against potential for development and succession decisions.

Voluntary turnover rate = voluntary separations ÷ average headcount.

Appraisal errors include recency, halo, central tendency, and leniency bias.

Little's Law: WIP = throughput × flow time.

Capacity = 1 ÷ bottleneck cycle time; non-bottleneck improvements do not raise throughput.

TIMWOOD wastes: Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects.

DMAIC: Define, Measure, Analyze, Improve, Control; six sigma is about 3.4 defects per million opportunities.

SPC limits sit at ±3 sigma; common-cause variation requires process redesign.

PDCA is the Deming cycle; kaizen is incremental, kaikaku is radical.

Quality costs: prevention, appraisal, internal failure, external failure.

Theory of Constraints: identify, exploit, subordinate, elevate, repeat.

Communication process: sender, encoding, channel, decoding, receiver, feedback, with noise at every stage.

Channel richness: face-to-face highest, written memos lowest; ambiguous messages need richer channels.

Active listening: paraphrase, reflect feeling, ask open questions, summarize, withhold judgment.

Thomas-Kilmann conflict modes: competing, collaborating, compromising, avoiding, accommodating.

Feedback should describe observable behavior and impact, avoid labels, and be prompt and private.

High-context cultures rely on implicit cues; low-context cultures rely on explicit detail.

Incongruent words and body language reduce trust in the message.

Grapevine information travels fast but with lower accuracy; monitor rather than suppress.

Ethical tests: utilitarian, rights, justice, virtue, and public disclosure.

Fraud triangle: pressure, opportunity, rationalization; controls target opportunity.

Segregation of duties separates authorization, custody, recording, and reconciliation.

Governance: shareholders elect the board; the board oversees the CEO and its committees.

Code of conduct states required behaviors; code of ethics states values.

Conflicts of interest require disclosure and recusal.

Whistleblower hotlines and anti-retaliation policies are preventive controls.

Compliance elements: risk assessment, policies, training, monitoring, enforcement, response.

Risk responses: avoid, reduce, transfer, accept; residual risk remains after treatment.

Risk score = likelihood × impact; heat maps prioritize treatment.

A risk register records cause, effect, likelihood, impact, score, owner, response, and status.

Decision steps: define, gather, identify alternatives, evaluate, select, implement, evaluate outcome.

Bounded rationality leads to satisficing; anchoring, confirmation, and availability biases distort judgment.

Expected value = sum of (probability × outcome); it ignores risk appetite.

Groupthink and escalation of commitment are group decision pitfalls.

Pre-mortems and devil's advocate roles counter groupthink.

Lewin: unfreeze, change, refreeze; skipping refreeze causes reversion.

Kotter's eight steps run from urgency to anchoring change in culture.

ADKAR: Awareness, Desire, Knowledge, Ability, Reinforcement.

Resistance is information; participation and clear benefit increase readiness.

Innovation funnel: idea generation, screening, business case, development, testing, launch with stage gates.

Diffusion categories: innovators, early adopters, early majority, late majority, laggards.

Sustaining innovation improves existing offerings; disruptive innovation starts low-end or new-market.

Readiness drivers: perceived benefit, vision clarity, leadership credibility, participation, resources.

Management functions: planning, organizing, leading, controlling.

Leadership styles: autocratic, democratic, laissez-faire, transactional, transformational.

Hersey-Blanchard styles: telling, selling, participating, delegating by follower readiness.

Theory X assumes avoidance of responsibility; Theory Y assumes self-direction.

Fiedler's model fits leader style to situational favorableness.

Narrow spans create tall structures; wide spans create flat structures.

Delegation assigns authority, responsibility, and accountability together.

Centralization concentrates authority; decentralization increases speed and local responsiveness.

Mission is present purpose; vision is future state; values are behavioral guardrails.

SMART: Specific, Measurable, Achievable, Relevant, Time-bound.

SWOT: internal strengths and weaknesses, external opportunities and threats.

Porter: cost leadership, differentiation, focus; avoid being stuck in the middle.

PESTLE: Political, Economic, Social, Technological, Legal, Environmental.

Balanced Scorecard: financial, customer, internal process, learning and growth.

Alignment requires goals, budgets, and incentives to cascade from one strategy.

Ansoff: penetration, market development, product development, diversification.

Break-even units = fixed costs ÷ contribution margin per unit.

Break-even sales = fixed costs ÷ contribution margin ratio.

Favorable variance: revenue above budget or cost below budget.

Gross profit = revenue − COGS; operating income = gross profit − operating expenses.

Zero-based budgeting justifies every cost from zero; incremental starts from prior period.

NPV > 0 adds value; IRR is where NPV = 0; payback ignores time value.

ROI = operating income ÷ invested capital.

Depreciation is non-cash; profit and liquidity differ.

Job analysis produces job description and job specification.

Structured interviews use fixed questions and scoring rubrics.

Kirkpatrick levels: reaction, learning, behavior, results.

Total rewards: base pay, variable pay, benefits, recognition, development, environment.

Progressive discipline escalates with documentation.

9-box grid plots performance against potential.

Voluntary turnover rate = voluntary separations ÷ average headcount.

Appraisal errors: recency, halo, central tendency, leniency.

Little's Law: WIP = throughput × flow time.

Capacity = 1 ÷ bottleneck cycle time.

TIMWOOD: Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects.

DMAIC: Define, Measure, Analyze, Improve, Control.

SPC control limits at ±3 sigma.

PDCA: Plan, Do, Check, Act.

Quality costs: prevention, appraisal, internal failure, external failure.

Theory of Constraints: identify, exploit, subordinate, elevate.

Communication process: sender, encoding, channel, decoding, receiver, feedback.

Channel richness: face-to-face highest, written lowest.

Active listening: paraphrase, reflect, question, summarize.

Thomas-Kilmann modes: competing, collaborating, compromising, avoiding, accommodating.

Feedback: observable behavior, impact, no labels, prompt and private.

High-context vs. low-context communication differ in reliance on implicit cues.

Nonverbal incongruence reduces trust.

Grapevine is fast but less accurate; monitor it.

Ethical tests: utilitarian, rights, justice, virtue, public disclosure.

Fraud triangle: pressure, opportunity, rationalization.

Segregation of duties separates authorization, custody, recording, reconciliation.

Board oversees CEO; committees handle audit, compensation, nominating.

Code of conduct: behaviors; code of ethics: values.

Conflicts of interest require disclosure and recusal.

Whistleblower hotlines are preventive controls.

Compliance: assess, policy, train, monitor, enforce, respond.

Risk responses: avoid, reduce, transfer, accept.

Risk score = likelihood × impact.

Risk register: cause, effect, likelihood, impact, score, owner, response.

Decision steps: define, gather, alternatives, evaluate, select, implement, review.

Bounded rationality produces satisficing.

Expected value = sum of probability × outcome.

Groupthink and escalation of commitment are pitfalls.

Pre-mortem and devil's advocate counter groupthink.

Lewin: unfreeze, change, refreeze.

Kotter: urgency, coalition, vision, communicate, empower, wins, consolidate, anchor.

ADKAR: Awareness, Desire, Knowledge, Ability, Reinforcement.

Resistance is information; participation builds readiness.

Innovation funnel with stage gates.

Diffusion: innovators, early adopters, early majority, late majority, laggards.

Sustaining vs. disruptive innovation.

Readiness: benefit, clarity, credibility, participation, resources.

Management functions: planning, organizing, leading, controlling.

Leadership styles: autocratic, democratic, laissez-faire, transactional, transformational.

Hersey-Blanchard: telling, selling, participating, delegating.

Theory X vs. Theory Y assumptions about workers.

Fiedler: leader style must fit situational favorableness.

Span of control shapes organizational height.

Delegation requires authority, responsibility, and accountability.

Centralization vs. decentralization trade-offs.

Mission, vision, values, goals, objectives, tactics form the strategy hierarchy.

SMART objectives are measurable and time-bound.

SWOT pairs internal and external factors into options.

Porter's three generic strategies.

PESTLE scans the macro-environment.

Balanced Scorecard balances leading and lagging measures.

Alignment cascades goals, budgets, and incentives.

Ansoff matrix defines growth options.

Contribution margin = sales − variable costs.

Break-even = fixed costs ÷ contribution margin per unit.

Variance direction: revenue above budget is favorable.

Gross profit and operating income definitions.

Zero-based vs. incremental budgeting.

NPV, IRR, and payback criteria.

ROI and residual income formulas.

Non-cash expenses affect profit, not cash.

Job description vs. job specification.

Structured interviews improve reliability.

Kirkpatrick evaluation levels.

Total rewards components.

Progressive discipline escalation.

9-box grid for performance and potential.

Turnover rate formula.

Common appraisal rating errors.

Little's Law links WIP, throughput, and flow time.

Bottleneck determines capacity.

TIMWOOD waste categories.

DMAIC phases.

SPC ±3 sigma limits.

PDCA improvement cycle.

Four quality cost categories.

Theory of Constraints five steps.

Communication process stages and noise.

Channel richness hierarchy.

Active listening techniques.

Thomas-Kilmann conflict modes.

Feedback rules for behavior and impact.

High-context vs. low-context cultures.

Nonverbal congruence builds trust.

Grapevine characteristics.

Ethical decision tests.

Fraud triangle elements.

Segregation of duties components.

Board and committee oversight structure.

Code of conduct vs. code of ethics.

Conflict of interest disclosure and recusal.

Whistleblower protections.

Compliance program elements.

Risk response types and residual risk.

Likelihood × impact scoring.

Risk register fields.

Decision-making steps.

Bounded rationality and satisficing.

Expected value calculation.

Groupthink and escalation of commitment.

Structured countermeasures to bias.

Lewin's three-stage model.

Kotter's eight steps.

ADKAR individual change sequence.

Resistance as information.

Innovation funnel and stage gates.

Diffusion of innovations categories.

Sustaining vs. disruptive innovation.

Change readiness drivers.