Business Chapter 8

Front 1

Define management and tell about the different levels

Back 1

Management is the process of achieving organizational objectives through people and other resources. The management hierarchy depicts the levels of management in organizations: top managers provide overll direction for company activities, middle managers implement the strategies of top managers and direct the activities of supervisors, and supervisors interact directly with workers.

Front 2

What are some managerial skills?

Back 2

The three basic managerial skills are technical skills, or the ability to apply the trechniques, tools, and knowledge of a speific discipline or department; human skills, which involve working effectively with and through peole' and conceptual skills, or the capacity to see an overall view of the organization and how each part contributes to its functioning.

Front 3

What is management?

Back 3

Management is the process of achieving organizational objectives through people and other resources. The manager's job is to combine human the technical resources in the best way possible to achieve the company's goals.

Front 4

How do the jobs of top managers, middle managers, and supervisory managers differ?

Back 4

Top managers develip long-range plans, set a direction for their organization, and inspire managers and employees to achieve the company's vision. Middle managers focus on specific operations, roducts, or customer groups and develop detailed plans and procedures to implement the firm's stragegic plans. Supervisory managers are directly responsible for evaluating the performance of nonmanagerial employees who produce and sell the firm's goods and services. They are responsible for implementing the plans developed by middle managers nd motivating workers to accomplish daily, weekly, and monthly goals.

Front 5

What is the relationship between the manager's planning and controlling functions?

Back 5

Controlling is evaluating an organization's performance to determine whether it is accomplishing its objectives. The basic purpose of controlling is to assess the success of the planning function. Controlling also provides feedback for future rounds of planning.

Front 6

Explain the role of vision and ethical standards in business success.

Back 6

Vision is the ability to perceitve the needs of the marketplace and develop methods for satisfying those needs. Vision helps new businesses pinpoint the actions needed to take advantage of opportunities. In an existing firm, a clear vision of company purpose helps unify the actions of far-flung divisions, keep customers satisfied and sustain growth. Setting high ethical standards helps a firm survive and be successful over the long term. Behaving ethically places an organization's constituents-those to whom it's responsible-at the top of its priorities. It also goes beyond avioding wrongdoing to encouraging, motivating, and inspiring employees.

Front 7

What is meant by a vision for the firm?

Back 7

A vision serves as the target for a firm's actions, helping direct the company towards opportunities and differentiating it from its competitors. Vision must be focused and yet flexible enough to adapt to changes in the business environment.

Front 8

why is it important for a top executive to set high ethical standards?

Back 8

When top managers engage in unethical behavior, their actions encourage others to do the same. Leagal charges, fines, prison time, financial losses, and bankruptcy can result. Because they set the standards for others, they need to focus on achieving personal and oraganizational success in ethical ways.

Front 9

Summarize the major benefits of planning and distinguish among strategic planning, tactical planning, and operational planning.

Back 9

The planning process identifies organizational goals and develops the actions necessary to reach them. Planning helps a company turn vision into action, take advantage of opportunities, and avoid costly mistakes. Strategic planning is a far-reaching process. It views the world through a wide-angle lens to determine the long=range focus and activites of the organization. Tactical planning focuses on the current and shot range activities required to implement the organizational strategies. Operational planning sets standards and work targets for functional areas such as production, human resources, and marketing.

Front 10

what is strategic planning?

Back 10

Strategic planning is a far-reaching process. It views the world through a wide-angle lens to determine the long=range focus and activites of the organization.

Front 11

What is tactical planning?

Back 11

Tactical planning focuses on the current and shot range activities required to implement the organizational strategies.

Front 12

What is operational planning?

Back 12

Operational planning sets standards and work targets for functional areas such as production, human resources, and marketing.

Front 13

Describe the purpose of tactical planning.

Back 13

The purpose of tactical planning is to determine which short-term activities should be implemented to accomplish the firm's overall strategy.

Front 14

Comare the kinds of plans made by top managers and middle managers. How does their focus differ?

Back 14

Top managers focus on long-range, stragegic plans. In contrast, middle-level managers and supervisors focus on short-term, tactical planning.

Front 15

Describe the strategic planning process.

Back 15

The first step is to translate the firm's vision into a mission statement that explains its overall intentions and aim. Next, planners must assess the firm's current competitive position, using tools such as SWOT analysis-which weighs the firm's strengths, weaknesses, opportunities, and threats-and forecasting. Based on this information, managers set specific objectives that elaborate what the organization hopes to accomplish. The next step is to develop strategies for reaching objectives that will differentiate the firm from its competitors. Managers then develop an action plan that outlines the specific methods for implementing the strategy. Finally, the results achieved by the plan are evaluated, and the plan is adjusted as needed.

Front 16

What is the purpose of a mission statement?

Back 16

A mission statement is a public declaration of a firm's purpose, the reason it exists, the customers it will serve, and the way it is different from competitors. A mission statement guides the actions of company managers and employees.

Front 17

Which of the firm's characteristics does a SWOT analysis compare?

Back 17

A SWOT analysis determines a firm's strengths, weaknesses, opportunities, and threats relative to its competitors. In other words, SWOT analysis helps determine a firm's competitive position in the marketplace.

Front 18

How do managers use objectives?

Back 18

Objectives, which are derived from the firm's mission statement, are used to define desired performance levels in areas such as profitability, customer service, and employee satisfaction.

Front 19

Contrast the 2 major types of business deisions.

Back 19

A programmed decision applies a company rule or policy to solve a frequently occurring problem. A nonprogrammed decision forms a response to a complex and uniquye problem with important consequences for the organization.

Front 20

List the steps in the decision-making process.

Back 20

The five-step approach to decision making includes recognizing a problem or opportunity, develipoing alternative courses of action, evaluating the alternatives, selecting and implementing an alternative, and following up the decision to determine its effectiveness.

Front 21

Compare and contrast programmed and nonporgrammed decisions.

Back 21

Because programmed decisions are simple and common and recur frequently, rules and policies can be established to eliminate the time-consuming process of identifying and evaluating alternatives and making new decisions each time a programmed situation occurs. By using rules and procedures to save time with programmed decisions, managers can devote more of their time to more complex nonprogrammed decisions.

Front 22

What are the steps in the decision-making process?

Back 22

The decision-making process begins when someone recognizes a problem or opportunity, develops potential courses of action to solve the problem, evaluates the alternatives, selects and implements on of them, and assesses the outcome of the decision.

Front 23

How is leadership defined?

Back 23

Leadership means directing or inspiring people to attain organizational goals. Effective leaders share several traits, such as empathy, self-awareness, and objectivity in dealing with others. Leaders also use the power of their jobs, expertise, and experience to influence others.

Front 24

Identify the styles of leadership as they appear along a continuum of greater or lesser employee participation.

Back 24

At one end of the continuum, autocratic leaders make decisions without consulting employees. In the middle of the continuum, democratic leaders ask employees for suggestions and encourage participation. At the other end of the continuum, free-rein leaders leave most decisions to their subordinates.

Front 25

Discuss the meaning and importance of corporate culture.

Back 25

Corporate culture refers to an organization's principles, beliefs, and values. It is typically shaped by a firm's founder and perpetuated through formal programs such as training, rituals, and ceremonies, as well as through informational discussions among employees. Corporate culture can influence a firm's success by giving it a competivite advantage.

Front 26

What is the relationship between leadership style and corporate culture?

Back 26

The best leadership style to adopt often depends on the organization's corporate culture and its systemo of principles, beliefs, and values. Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture.

Front 27

What is a strong corporate culture?

Back 27

A corporate culture is an organization's system of principles, beliefs, and values. IN an organization with a strong culture, everyone knows and supports the same principles and beliefs, and values. A company with weak or constantly shifting culture lacks a clear sense of purpose.

Front 28

Identify the 5 major forms of departmentalization and the 4 main types of organization structures.

Back 28

The subdivision of work activities into units within the organization is called departmentalization. It may be based on products, geographical locations, customers, functions or processes. Most firms implement one or more of 4 structures: line, line-and-staff, committee, and matrix structures. Each structure has advantages and disadvantages.

Front 29

What is the purpose of an organizational chart?

Back 29

An organization chart is a visual representation of a firm's structure that illustrates job positions and functions.

Front 30

What are the 5 major forms of departmentalization?

Back 30

Product departmentalization organizes units by different goods and services a company offers. Geographical-organizes units by geographical regions within a country or, for a multinational firm, by regions outside the world. Customer-organizes units by different types of customers. Functional-organizes units by business functions such as finance, marketing, human resources, and productions. Process-organizes units by the steps or work processes it takes to complete production or provide a service.

Front 31

What does a span of management mean?

Back 31

The span of management, or span of control, is the number of subordinates a manager supervises.

Front 32

Planning

Back 32

process of anticipating future events and conditions and determining courses of action for achieving organizational success.

Front 33

objectives

Back 33

guideposts by which managers define the organization's desired performance in such areas as profitability, customer service, growth, and empoloyee satisfaction.

Front 34

organization

Back 34

structured grouping of people working together to achieve common goals.

Front 35

departmentalization

Back 35

process of dividing work activities into units within the organization,

Front 36

delegation

Back 36

act of assigning work activities to subordinates.

Front 37

chain of command

Back 37

set of relationships that indicates who directs which activities and who reports to whom

Front 38

technical skills

Back 38

the manager's ability to understand and use the techniques, knowledge, and tools and equipment of a specific discipline or department.

Front 39

Human skills

Back 39

interpersnal skills that enable managers to work effectively with and through people. Human skills include the ability to communicate with, motivate, and lead employees to complete assigned activities.

Front 40

conceptual skills

Back 40

determine a manager's ability to see the oragnization as a unified whole and to understand how each part of theoverall organization interacts with other parts. These skills involve an ability to see the big picture by acquiring, analyzing, and interpreting information.

Front 41

controlling

Back 41

function of evaluating an organization's performance to determine whether it is accomplishing its objectives.

Front 42

contingency planning

Back 42

handle the possibility of business disruption from natural disasters.

Front 43

competetive differentiation

Back 43

the unique combination of a company's abilities and approaches that sets it apart from competitors. Common sources are product innovation, technology, and employee motivation.

Front 44

empowerment

Back 44

practice in which managers lead employees by sharing power, responsibility, and decision making with them.

Front 45

centralization

Back 45

decision making is at the top of management hierarchy.

Front 46

decentralization

Back 46

puts power of decision making at lower levels.

Front 47

line organization

Back 47

the oldest and simplest organization structure, establishes a dircect flow of authority from the chief executive to subordinates. DEcisions can be made quickly but each manager has responsibility for every activity in the company and can't possibly be an expert in all areas.

Front 48

Line and staff organization

Back 48

combines the direct flow of authority of a line organization with staff departments that support the line departments. They participate directly in decisions that affect the core operations of the organizations

Front 49

line manager

Back 49

forms part of the primary line of authrity that flows throughout the organization. Line managers interact directly with the functions of production, financing, or marketing.

Front 50

staff manager

Back 50

provides information, advice, or technical assistance to aid line managers. They don't give orders outsid their own departments. They are common in midside organizations.

Front 51

committee organization

Back 51

places authority and responsibility jointly in the hands of a group of individuals rather than a single manager. Wrok in areas such as new product development.

Front 52

matrix or product managerment structure

Back 52

links different employees from different parts of the organization to work together on specific projects. Each employee reprots to one line manager and one project manager. Flexible to adapt to rapid changes in the environment and focus resources on major problems.