Clep Principles Of Management (Set 2 Of 3)

Front 1

primacy of mgmt

Back 1

planning must occur before other mgmt
functions can take place

Front 2

planning process

Back 2

est. goals, identify problems, find
solutions, decide b/w alternatives, etc.

Front 3

hierarchy of plans

Back 3

planning flows in a top-down sequence from overall vision to more specific detailed level of plans

Front 4

mission statement

Back 4

gives the overall role or purpose of the organization

Front 5

goals

Back 5

 desired end states

Front 6

8 Key Results Areas

Back 6

market share, productivity, profitability, innovation, resources, worker performance and morale, manager performance and development, social responsibilities

Front 7

market share

Back 7

the enterprise's proportion or percentage of total sales in a region, country, or the world

Front 8

productivity

Back 8

output divided by input; determinants include efficiency of labor, technology and capital, and competence of mgmt

Front 9

profitability

Back 9

(goes beyond dollars) - the benefit resulting from an activity

Front 10

innovation

Back 10

introduction of things that are new - technology, methods, ideas, and new products and services

Front 11

resources

Back 11

include capital, physical plant and equipment

Front 12

worker performance and morale

Back 12

contribute to productivity, product quality, and reputation of organization not only for its goods and services but also as a place to work

Front 13

manager performance and development

Back 13

deal w/ a critical aspect of the firm - quality of mgmt and continuous availability and updating of managerial competence

Front 14

social responsibilities

Back 14

include obligation to perform the organization's primary function (e.g. make a profit), but to do so in a way that does not have harmful side effects to society

Front 15

WOTS-UP analysis

Back 15

weaknesses, opportunities, threats and strengths underlying planning

Front 16

strategy

Back 16

a broad conception of how to achieve the organization's goals

Front 17

long-range plans

Back 17

covering a period of more than one year into the future

Front 18

operational (action) planning

Back 18

provides the detailed plans and assignments of responsibilities and authority required to execute strategic plans

Front 19

responsibility

Back 19

an obligation to complete a task or achieve some goal

Front 20

objectives

Back 20

results, attainments, or accomplishments used as the end points for plans and actions (narrower than a goal)

Front 21

Mangement by Objective (MBO)

Back 21

brings planning process down to the individual; Peter Drucker; judge employee performance on basis of results rather than telling him or her what to do every step of the way

Front 22

standing plans

Back 22

those that are always in effect

Front 23

policy 

Back 23

standing plan - guides thinking, problem-solving and decision-making (similar to strategies)

Front 24

procedure

Back 24

standing plan - provides step-by-step guides to action, thinking or decision (e.g. an aircraft pilot's preflight checklist)

Front 25

rule

Back 25

standing plan - prescribes or prohibits behavior in specific terms

Front 26

single-use plans

Back 26

intended for specific, one-time purpose or to cover a fixed period of time

Front 27

programs

Back 27

single-use plans - broad, long-term, covering specified time period (e.g. putting a man on the moon)

Front 28

projects

Back 28

single-use plans - shorter time span, narrowly focused; bring people together to accomplish a task (e.g. moving furniture)

Front 29

budget

Back 29

single-use plan - plan for use of resources (usu. along w/ expected results stated in quantitative terms)

Front 30

rolling plan

Back 30

a long-range plan that is updated periodically and extended again

Front 31

contingency plans

Back 31

expecting the unexpected; addresses how to reduce the likelihood of the contingencies and how to deal w/ them if they occur

Front 32

forecasting

Back 32

early step in planning process; est. premises or assumptions on which plans will be based

Front 33

premises of planning

Back 33

refers to forecasts about the future environment which serve as the assumptions on which planning is based

Front 34

economic forecasting 

Back 34

uses variety of methods to predict general levels of economic activity for a locality, region, country or the whole world

Front 35

technological forecasting

Back 35

predicting the state of scientific and technological knowledge and the kind of machinery and skills that will exist

Front 36

Delphi method

Back 36

an approach to technological forecasting; used w/ expert respondents in the field of interest; getting individuals to state their judgments, review them, and make a final judgment about some question

Front 37

sales forecasting

Back 37

includes the predicted demand for the goods and services provided by the organization; of vital importance for operational and production planning

Front 38

expert opinion

Back 38

method of sales forecasting; asking marketing executives what they expect will happen

Front 39

market research

Back 39

asking customers what they think

Front 40

statistical methods

Back 40

use of regression analysis, or correlations b/w variables, to predict one from the other (e.g. to predict housing starts from marriages)

Front 41

3 phases of decision-making

Back 41

intelligence (gathering knowledge leading to an understanding of what decision will have to be made, etc.), design (alternative courses of actions are invented), choice (actual decision is made)

Front 42

problem-solving

Back 42

part of planning process in which problems are defined, understanding of cause-and-effect relationships is acquired, and alternative courses of action are identified

Front 43

brainstorming 

Back 43

creative problem-solving used to generate alternatives

Front 44

steps in problem-solving and decision-making

Back 44

define the problem, analyze info and try to understand cause-and-effect relations, generate alternative solns, identify criteria, make decision, develop action/contingency plans

Front 45

decision criteria

Back 45

musts and NTH's ("nice to have's")

Front 46

cost-benefit analysis

Back 46

any systematic comparison of what a system/program or capital good will cost compared w/ revenues or benefits that will be generated

Front 47

decision-making done under 3 conditions

Back 47

certainty, risk, uncertainty

Front 48

decision-making done under certainty

Back 48

outcome or payoff for an alternative has a probability of 1.0 (few real-world examples)

Front 49

decision-making done under risk

Back 49

probability of event is known or can be estimated - can be assigned a value from 0 to 1.0

Front 50

decision-making done under uncertainty

Back 50

probability of event unknown, cannot be estimated

Front 51

conditional value

Back 51

payoff you think would happen under condition of each of the states of nature

Front 52

expected value

Back 52

conditional value of alternative times probability of state of nature

Front 53

payoff matrix

Back 53

 tabular display of 2 or more strategies or choices; conditional values of each under 2 or more possible states of nature; probabilities of these states of nature, resulting expected values; and total expected value

Front 54

states of nature

Back 54

 future environmental conditions which are listed and assigned a probability in a payoff matrix

Front 55

variable costs

Back 55

things that vary w/ the quantity of sales

Front 56

satisfices

Back 56

accepts soln that meets his criteria, not necessarily the best possible soln

Front 57

optimizing

Back 57

strategy of mythical rational-economic man who knows all

Front 58

bounded rationality 

Back 58

real-world decision-maker has his thinking limited by such things as societal and organizational norms and impracticality of obtaining all possible info about problem or alternatives

Front 59

Herbert Simon

Back 59

adminstrative man model of decision-making; 3 phases of decision making (Nobel prize winner)