Principles Of Mgmt Exam 2

Front 1

The Legal Component

Back 1

Part of the general environment that contains passed legislation. Comprises the rules or laws that society's members must follow.

Front 2

The Political Component

Back 2

Part of the general environment related to government affairs. Examples include the type of government in existence, government's attitudes toward various industries, lobbying efforts by interest groups, progress on the passages of laws, and political party platforms and candidates.

Front 3

The Technology Component

Back 3

Part of the general environment that includes new approaches to producing goods and services. These approaches can be new procedures as well as new equipment.

Front 4

Internal environment

Back 4

The level of an organization's environment that exists inside the organization and normally has immediate and specific implications for managing the organization.

includes: marketing, finance, and accounting.

& planning, organizing, influencing, and controlling.

Front 5

Organizational mission

Back 5

The purpose for which - the reason why - an organization exists. Broad statement of organizational direction and is the common initial act of establishing the direction.

Front 6

Mission statement

Back 6

A written document developed by management, normally based upon input by managers as well as non managers that describes and explains what the mission of an organization actually is.

Front 7

SWOT Analysis

Back 7

Strategic development tool that matches internal organizational Strengths and Weaknesses with external Opportunities and Threats

Front 8

Kast and Rosenzweig's

Dimensions of Plans

Back 8

Kast and Rosenzweig

1. Repetitiveness
2. Time
3. Scope
4. Level

Front 9

Plan

Back 9

A specific action proposed to help the organization achieve its objectives.

Front 10

The Repetitiveness Dimension

Back 10

The extent to which the plan is used over and over again.

Front 11

The Time Dimension

Back 11

Length of time the plan covers.

Front 12

The Scope Dimension

Back 12

Portion of the the total management system at which the plan is aimed.

Front 13

The Level Dimension

Back 13

Level of the organization at which the plan is aimed. Top level plans are those designed for the organization's top management, where-as middle and lower-level plans are designed for middle and lower management.

Front 14

Forecasting

Back 14

Process of predicting future environmental happenings that will influence the operation of the organization.

Front 15

Planning Advantages

Back 15

1. Helps managers to be future oriented
2. Enhances decision coordination
3. Emphasizes organizational objectives

Front 16

Potential Planning Disadvantages

Back 16

An overemphasized planning program can take up too much managerial time

Front 17

Program

Back 17

A single use plan designed to carry out a special project within an organization.

Front 18

Budget

Back 18

A single use financial plan that covers a specified length of time. It details how fund will be spent on labor, raw materials, capital goods, information systems, etc.

Front 19

Procedure

Back 19

A standing plan that outlines a series of related actions that must be taken to accomplish a particular task. Outline more specific actions than policies do.

Front 20

Rule

Back 20

A standing plan that designates specific required action. Indicates what an organization member should or should not do and allows no room for interpretation

Front 21

Policy

Back 21

A standing plan that furnishes broad guidelines for taking action consistent with reaching organizational objectives.

Front 22

Scheduling

Back 22

The process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following timetables for completing the objective.

Front 23

Gantt Charts

Back 23

A scheduling device that is essentially a bar graph with time on the horizontal axis and the resource to be scheduled on the vertical axis. It is used for scheduling resources, including management system inputs such as human resources and machines.

Front 24

Definition of Planning

Back 24

The process of determining how the the organization can get where it wants to go, and what it will do to accomplish its objectives. A critical management strategy.

Front 25

Steps in The Planning Process

Back 25

1. State organizational objectives
2. List alternative ways of reaching objectives.
3. Develop premises on which to base each alternative.
4. Choose the best alternative for reaching objectives.
5. Develop plans to pursue the chosen alternative.
6. Put the plans into action.

Front 26

State organizational objectives

(Step 1 in The Planning Process)

Back 26

Planners examine important elements of the environment of their organization and make a clear statement of those objectives to begin planning.

Front 27

List alternative ways of reaching objectives

(Step 2 in The Planning Process)

Back 27

Manager should list as many available alternatives as possible for reaching objectives.

Front 28

Develop premises on which to base each alternative

(Step 3 in The Planning Process)

Back 28

Managers make assumptions on which each of the alternatives is based.

Front 29

Choose the best alternative for reaching objectives

(Step 4 in The Planning Process)

Back 29

Evaluating the premises, determining which would best accomplish organizational objectives.

Front 30

Develop plans to pursue the chosen alternative

(Step 5 in The Planning Process)

Back 30

After an alternative has been chosen a manager begins to develop strategic and tactical plans.

Front 31

Put the plans into action

(Step 6 in The Planning Process)

Back 31

Once plans that furnish the organization with both long-range and short-range direction have been developed, they must be implemented.

Front 32

Planning

Back 32

The primary management function - the one that precedes and is the basis for organizing, influencing, and controlling functions of managers.

Foundation function and the first one to be performed.

Front 33

Organizational Objectives

Back 33

The targets toward which the open management system is directed.

Front 34

Organizational Purpose

Back 34

What the organization exists to do, given a particular group of customers and customer needs.

Front 35

Campbell Soup Company's Statement of Organizational Purpose

Back 35

"Together we will build the world's most extraordinary food company."

Front 36

Eli Lily & Company's Statement of Organizational Purpose

Back 36

"We provide customers "Answers That Matter" through innovative medicines, information, and exceptional customer service that enable people to live longer, healthier, and more active lives."

Front 37

Nike's Statement of Organizational Purpose

Back 37

"To bring inspiration and innovation to every athlete in the world."

Front 38

Charles Schwab's Statement of Organizational Purpose

Back 38

"Our mission is to provide the most useful and ethical financial services in the world."

Front 39

Wendy's Statement of Organizational Purpose

Back 39

"Our mission is to deliver superior quality products and services for our customers and communities through leadership, innovation, and partnership."

Front 40

John F. Mee's 3 points of Organizational Objectives for businesses

Back 40

1. Profit is the motivating force for managers

2. Service to customers by the provision of desired economic values justifies the existence of the business.

3. Managers have social responsibilities in accordance with the ethical and moral codes of the society in which the business operates.

Front 41

Short-term objectives

Back 41

Targets to be achieved in one year or less

Front 42

Intermediate-term objectives

Back 42

Targets to be achieved in one to five years

Front 43

Long-term objectives

Back 43

Targets to be achieved in five to seven years

Front 44

Suboptimization

Back 44

Condition wherein subobjectives are conflicting or not directly aimed at accomplishing the overall organizational objective.

Front 45

Hierarchy of Objectives

Back 45

The overall organizational objective and the subobjectives assigned to the various units of the organization.

Front 46

Guidelines for Establishing Quality Objectives

Back 46

1. Let the people responsible for attaining the objectives have a voice in setting them.

2. State objectives as specifically as possible.

3. Relate objectives to specific actions whenever they are neccessary

4. Pinpoint expected results

5. Set goals high enough that employees will have to strive to meet them, but not so high that employees give up trying to meet them

6. Specify when goals are expected to be achieved.

7. Set objectives only in relation to other organizational objectives

8. State objectives clearly and simply

Front 47

Let the people responsible for attaining the objectives have a voice in setting them

(Guidelines for Establishing Quality Objectives #1)

Back 47

Often the people responsible for attaining the objectives know their job situation better than the managers do and can therefore help to make the objectives more realistic.

Front 48

State objectives as specifically as possible

(Guidelines for Establishing Quality Objectives #2)

Back 48

Precise statements minimize confusion and ensure that employees have explicit directions for what they should do.

Front 49

Relate objectives to specific actions whenever they are neccessary

(Guidelines for Establishing Quality Objectives #3)

Back 49

Employees do not have to infer what they should do to accomplish their goals.

Front 50

Pinpoint expected results

(Guidelines for Establishing Quality Objectives #4)

Back 50

Employees should know how exactly managers will determine whether an objective has been reached.

Front 51

Set high enough goals that employees will have to strive to meet them, but not to high that employees give up trying to meet them

(Guidelines for Establishing Quality Objectives #5)

Back 51

Managers want employees to work hard but not to become frustrated.

Front 52

Specify when goals are expected to be achieved

(Guidelines for Establishing Quality Objectives #6)

Back 52

Employees must have a time frame for accomplishing their objectives. They can pace themselves accordingly.

Front 53

Set objectives only in relation to other organizational objectives

(Guidelines for Establishing Quality Objectives #7)

Back 53

In this way, suboptimization can be kept to a minimum.

Front 54

State objectives clearly and simply

(Guidelines for Establishing Quality Objectives #8)

Back 54

The written or spoken word should not impede communicating a goal to organization members.

Front 55

The MBO Strategy

Back 55

1. All individuals within an organization are assigned a specialized set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by the individuals and their managers.

2. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives.

3. Rewards are given to individuals on the basis of how close they come to reaching their goals.

Front 56

The MBO Process

Back 56

1. Review organizational objectives
2. Set worker objectives
3. Monitor progress
4. Evaluate performance
5. Give rewards

Front 57

Review organizational objectives

(The MBO Process Step 1)

Back 57

The manager gains a clear understanding of the organization's overall objectives.

Front 58

Set worker objectives

(The MBO Process Step 2)

Back 58

The manager and worker meet to agree on worker objectives to be reached by the end of the normal operating period.

Front 59

Monitor Progress

(The MBO Process Step 3)

Back 59

At intervals during the normal operating period, the manager and worker check to see whether the objectives are being reached.

Front 60

Evaluate performance

(The MBO Process Step 4)

Back 60

At the end of the normal operating period, the worker's performance is judged by the extent to which the worker reached the objectives.

Front 61

Give rewards

(The MBO Process Step 5)

Back 61

Rewards given to the worker are based on the extent to which the objectives were reached.

Front 62

MBO Program Advantages

Back 62

1. MBO Programs continually emphasize what should be done in an organization to achieve organizational goals.

2. The process secures employee commitment to attaining organizational goals

Front 63

MBO Program Disadvantages

Back 63

1. Development of objectives can be time consuming

2. Increase in the volume of paperwork

Front 64

Decision

Back 64

A choice made between two or more available alternatives.

Front 65

Decision Making

Back 65

The process of choosing the best alternative for reaching objectives.

Front 66

Types of Decisions

Back 66

1. Programmed Decisions
2. Nonprogrammed Decisions

Front 67

Programmed decisions

Back 67

Are routine and repetitive, and the organization typically develops specific ways to handle them.

Front 68

Nonprogrammed decisions

Back 68

Typically one shot decisions that are usually less structured than programmed decisions.

Front 69

Consensus

Back 69

An agreement on a decision by all the individuals involved in making the decision.

Front 70

Consensus Advantages

Back 70

1. Focuses on several heads

2. Employees are more likely to be committed to implementing a decision if they helped make it.

Front 71

Consensus Disadvantages

Back 71

1. Method is time consuming

2. When can be costly to the organization

Front 72

Decision-making process

Back 72

Comprises the steps the decision maker takes to arrive at the choice.

1. Identify the existing problem
2. List the possible alternatives for solving the problem
3. Select the most beneficial of these alternatives
4. Implement the selected alternative
5. Gather feedback to find out whether the implemented alternative is solving the identifies problem.

Front 73

Bounded Rationality

Back 73

Refers to the fact that managers are bounded in terms of time, computational power, and knowledge when making decisions.

Front 74

Satisfice

Back 74

Occurs when an individual makes a decision that is not optimal but is "good enough".

Front 75

Probability theory

Back 75

A decision making tool used in risk situations - situations in which decision makers are not completely sure of the outcome of an implemented alternative.

Front 76

Expected Value (EV)

Back 76

For an alternative is the income (I) that the alternative would produce, multiplied by its probability of producing that income (P)

EV = I x P

Front 77

Decision tree

Back 77

Is a graphic decision-making tool typically used to evaluate decisions involving a series of steps.

Front 78

Strategic Planning

Back 78

Is long range planning focuses on the organization as a whole.

Front 79

Long range

Back 79

Period of time extending about three to five years in the future.

Front 80

Commitment principle

Back 80

States that managers should commit funds for planning expenses as a result of long-range planning analysis.

Front 81

Definition of Strategy

Back 81

Defined as a broad and general plan developed to reach long-term objectives.

End result of strategic planning.

Front 82

The Economic Component

Back 82

That part of the general environment that indicates how resources are being distributed and used within the environment.

Front 83

Economics

Back 83

The science that focuses on understanding how people of a particular community or nation produce, distribute, and use various goods and services.