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107 Cards in this Set

  • Front
  • Back

Planning

Determining organizational goals and a means for achieving them

Benefits and pitfalls of planning

Benefits-


Intensified effort, persistence, direction, and creation of task strategies.


Pitfalls-


Impedes change, false sense of certainty, and detachment of planners.

How to make plans that Work (Exhibit 4.1)

SMART Goals

Goals that are Specific, Measurable, Attainable, Realistic, and Timely

Goal Commitment

The determination to achieve a goal

Action plan

The specific steps, people, and resources needed to accomplish a goal

Proximal vs Distal Goals

Proximal- short-term goals or subgoals


Distal- long-term or primary goals

Options-based planning

Maintaining planning flexibility by making small, simultaneous investments in many alternative plans

Slack Resources

A cushion of extra resources that can be used with options-based planning to adapt to unanticipated change, problems, or opportunities.

Learning-based planning

Learning better ways of achieving goals by continually testing, changing, and improving plans and strategies

Planning from Top to Bottom (Exhibit 4.3)

Responsibility of Top Managers

Responsible for developing long-term strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years.

Strategic plans

Overall company plans that clarify how the company will serve customers and position itself against competitors over the next 2-5 years

Purpose Statement

A statement of a company's purpose or reason for existing

Strategic Objective

A more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.

Responsibilities of Middle Management

Responsible for developing and carrying out tactical plans to accomplish the organization's objectives.

Tactical Plans

Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission

Management by Objectives (MBO)

A four-step process in which managers and employees discuss goals, select goals, develop tactical plans, and meet REGULARLY to review process toward goals within its mission

Responsibilities of First-Level Managers

Responsible for developing and carrying out operational plans, which are the day-to-day plans for producing or delivering the organization's products and services.

Operational Plans

Day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a 30-day to six-month period

Single-Use Plans

Plans that cover unique, one-time-only events

Standing Plans

Plans used repeatedly to handle frequently recurring events

Policies

A standing plan that indicates the general course of action that should be taken in response to a particular event.

Procedures

A standing plan that indicates the specific steps that should be taken in response to a particular event

Rules and Regulations

Standing plans that describe how a particular action should be performed, or what must happen or not happen in response to a particular event.

Budgeting

Quantitative planning through which managers decide how to allocate available money to best accomplish company goals

3 kinds of operational plans?

Single-Use


Standing Plans


Budgeting

6 Steps of the Rational Decision-Making Process

1. Define the problem


2. Identify Decision Criteria


3. Weight the Criteria


4. Generate Alternative Courses of Action


5. Evaluate Each Alternative


6. Compute the Optimal Decision

Rational Decision Making Process

Systematic process defining problems, evaluating alternatives, and choosing optimal solutions

Decision Making

The process of choosing a solution from available alternatives

Problem

Gap between a desired state and an existing state

Decision Criteria

The standards used to guide judgements and decisions

Absolute Comparisons

A process in which each decision criterion is compared to a standard or ranked on its own merits

Relative Comparisons

A process in which each decision criterion is compared directly with every other criterion

Bounded Rationality

A decision-making process restricted in the real world by limited resources, incomplete and imperfect information, and managers' limited decision-making capabilities

Maximize

Choosing the best alternative

Satisficing

Choosing a "good enough" alternative

Advantages and Pitfalls of Group Decision Making

Advantages-


View problems from multiple perspectives, find and access more information than individuals, generates more alternative solutions, and members more committed to making chosen solutions work.


Disadvantages-


Groupthink- pressure to conform, takes considerable time, sometimes dominated by 1 or 2 members, and members may not feel accountable for the decisions made and actions taken by the group.

Groupthink

A barrier to good decision making caused by pressure within the group for members to agree with each other.

Techniques to Improve Group Decision Making

Structured Conflict


Nominal Group Technique


Delphi Technique


Stepladder Technique


Electronic Brainstorming

C-Type Conflict (Cognitive Conflict)

Disagreement that focuses on problem- and issue- related differences of opinion

A-Type Conflict (Affective Conflict)

Disagreement that focuses on individuals or personal issues

Devil's Advocacy

A decision-making method in which an individual or a subgroup is assigned the role of critic.

Dialectical Inquiry

A decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution

Nominal Group Technique

A decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

Delphi Technique

A decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement of an issue

Stepladder Technique

A decision-making method in which group members are added to a group discussion one at a time (like a stepladder). The existing group members listen to each new member's thoughts, ideas, and recommendations; then the group shares the ideas and suggestions that it already considered, discusses the new and old ideas, and makes a decision

Brainstorming

A technique in which group members build on others' ideas for generating a large number of alternative solutions

Electronic Brainstorming

A decision-making method in which group members use computers to build on each others' ideas and generate as many alternatives as possible

Production Blocking

A disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea

Evaluation Apprehension

Fear of what others will think of your ideas

Organizational Structure

The vertical and horizontal configurations of departments, authority, and jobs within a company

Organizational Process

The collection of activities that transform inputs into outputs that customers value

Departmentalization

Subdividing work and workers into separate units responsible for completing particular tasks

Types of departmentalization

Functional


Product


Customer


Geographic


Matrix

Functional Departmentalization

Organizing work and workers into separate units responsible for particular business functions or areas of expertise

Product Departmentalization

Organizing work and workers into separate units responsible for producing particular products or services

Customer Departmentalization

Organizing work and workers into separate units responsible for particular kinds of customers

Geographic Departmentalization

Organizing work and workers into separate units responsible for doing business in particular geographic areas

Matrix Departmentalization

A hybrid structure in which two or more forms of departmentalization, most often. Product and functional, are used together.

Simple Matrix

A form of matrix departmentalization in which managers on different parts of the matrix negotiate conflicts and resources

Complex Matrix

A form of matrix departmentalization in which managers in different part of the matrix report to matrix managers, who help them sort out conflicts and problems

Authority

The right to give commands, take action, and make decisions to achieve organizational objectives

Chain of Command

The vertical line of authority that clarifies who reports to whom throughout the organization

Unity of Command

A management principle that workers should report to just one boss.

Line vs. Staff Authority

Line Authority- the right to command immediate subordinates in the chain of command


Staff Authority- the right to advise, but not command, others who are not subordinates in the chain of command

Line Function vs. Staff Function

Line Function- an activity that contributes directly to creating or selling the company's products


Staff Function- an activity that does not contribute directly to creating or selling the company's products, but instead supports line activities

Delegation of Authority

The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

Centralization of Authority

The location of most authority at the upper levels of the organization

Decentralization

The location of a significant amount of authority in the lower levels of the organization

Standardization

(decentralization can be harmful when this is necessary)


Solving problems by consistently applying the same rules, procedures, and processes

Job Design

The number, kind, and variety of tasks that individual workers perform in doing their jobs

Job Specialization

A job composed of a small part of a larger task or process

(4) Methods used to overcome problems with job specialization?

Job Rotation


Job Enlargement


Job Enrichment


Job Characteristics Model

Job Rotation

Periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills

Job Enlargement

Increasing the number of different tasks that a worker performs within one particular job

Job Enrichment

Increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work

Job Characteristics Model (JCM) Exhibit and 5 Main Ideas

And approach to job redesign that seems to formulate jobs in ways that motivate workers and lead to positive work outcomes


Using-


Skill Variety


Task Identity


Task Significance


Autonomy


Feedback

Job Characteristics Model (JCM) Exhibit and 5 Main Ideas

And approach to job redesign that seems to formulate jobs in ways that motivate workers and lead to positive work outcomes


Using-


Skill Variety


Task Identity


Task Significance


Autonomy


Feedback

Skill Variety

The number of different activities performed in a job

Skill Variety

The number of different activities performed in a job

Task Identity

The degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work

Task Significance

The degree to which a job is perceived to have a substantial impact on others inside or outside the organization

Autonomy

The degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job

Feedback

The amount of information the job provides to workers about their work performance

Mechanistic Organizations

An organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical commutation

Organic Organization

An organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.

Intraorganizational Process

The collection of activities that take place within an organization to transform inputs into outputs that consumers value

Reengineering

Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed

Task Interdependence and 3 types

The extent to which collective action is required to complete an entire piece of work


Pooled


Sequential


Reciprocal

Pooled Interdependence

Work completed by having each job or department independently contribute to the whole

Sequential Interdependence

Work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job

Reciprocal Interdependence

Work completed by different jobs or groups working together in a back and forth manner

Reengineering and Task Interdependence Exhibit 8.11

Empowering Workers

Permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions

Empowerment

Feelings of intrinsic motivation, in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination

Internal Motivation

Motivation that comes from the job itself rather than from outside rewards

Behavioral Informality

A workplace atmosphere characterized by spontaneity, casualness, and interpersonal familiarity

Behavioral Informality

A workplace atmosphere characterized by spontaneity, casualness, and interpersonal familiarity

Behavioral Formality

A workplace atmosphere characterized by routine and regimen, specific rules about how to behave, and impersonal detachment

Open Office System

Offices in which the physical barriers that separate workers ha e been removed in order to increase communication and interaction

Shared Spaces

Spaces used by and open to all employees

Private Spaces

Spaces used by and open to just one employee

Interorganizational Process

A collection of activities that take place among companies to transform inputs into outputs that customers value

Modular Organization

An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

Modular Organization

An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

Virtual Organization

An organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services