Business Chapter 4

What are three skills teams must acquire?

- Technical job skills - Interpersonal skills, such as writing, speaking, discussing, and negotiating - Administrative skills, such as leading meetings, thinking analytically, and maintaining records

What are the 5 steps in Strategic Planning?

-External Analysis -Internal Analysis -Mission -Goals -Strategies

What are the 5 MAIN elements of a business plan?

-Nature of a Business -Goals and Objectives -Marketing Plan -Financial Plan -Organizational Plan

What are three parts of Strategic Planning?

-SWOT Analysis -Mission (Statement) -Vision (Statement)

What are some characteristics of effective goals?

-Specific and Meaningful -Achievable -Clearly Communicated -Consistent with each other and with overall company goals

What are two primary types of organizational structures?

1. Line 2. Line-and-staff organizations

What is a Decentralized Organization?

A business which is divided into smaller operating units, and managers who head the units have almost total responsibility and authority for operations.

What is a Vision

A company's reason for existing.

What is Departmentalization?

A grouping of employees that serve a similar need for the company.

What is a Procedure?

A series of steps to preform a given task.

What is a Mission

A short, specific statement of the business's purpose and direction.

What is a Standard?

A specific measure against which something is judged.

What is a Goal?

A specific statement of a result the business expects to achieve.

What are Self-Directed Work Teams?

A team in which members together are responsible for the work assigned to the team.

What is a Schedule?

A time plan for reaching objectives.

What is a Business Plan?

A written description of the nature of the business, its goals and objectives, and how they will be achieved.

What is an Organization Chart?

An illustration of the structure of an organizations and major job classifications and reporting relationships among the organization.

What is a Matrix Organization?

An organization which combines workers into temporary work teams to complete specific projects.

What is a Flattened Organization?

An organization with fewer levels of management than traditional structures.

What is a SWOT analysis?

Analysis of strengths, weaknesses, opportunities, and threats

What is a Centralized Organization?

Business structure in which a few top managers do all the major planning and decision making.

What is a Line Organization?

Business structure in which all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level.

What is a Team Organization?

Business structure that divides employees into permanent work teams.

What is Unity of Command?

Each employee is going to communicate to one supervisor at a time.

How is planning in a complex organizational similar to assembling a jigsaw puzzle?

Each piece of the business must fit together in order to work/ be successful.

What are Policies?

Guidelines used in making consistent decisions.

What is a Budget?

Is a written plan of what you expect your income and expenses to be over a certain period of time.

What is Responsibility?

Is the obligation to do an assigned task.

What is Strategic Planning?

Long-term and provides broad goals and direction for the entire business.

What is the process of organizing work?

Look at: -Division of work -Facilities and working conditions -Employees

What is Chain of Command?

Refers to the hierarchy of the organization, from the highest level to the lowest level.

What is a Competitive Advantage?

Refers to the special capabilities of a company that allow it to create a product or service that is measurably better than any competing company.

What is Operational Planning?

Short-term and identifies specific activities for each area of the business.

What is the difference between Strategic and Operational Planning ?

Strategic Planning looks at the lifespan of the company where as Operational Planning looks at very relevant weeks/ months to come.

What is a Line-and-Staff Organization?

The addition of staff specialists to a line organization.

What is Empowerment?

The authority given to employees to make decisions and solve problems.

What is Accountability?

The obligation to accept responsibility of an action.

What is Authority?

The right to make decisions about work assignments.

What is Span of Control/ Management?

Used to describe the number of employees on person supervises.

In an effective organization, do most employees have more than one supervisor from whom they receive job assignments? - a. No - b. Yes

a. No

Are all business managers involved in planning in some way? - a. Yes - b. No

a. Yes

Are goals statements of the results that a business expects to achieve? - a. Yes - b. No

a. Yes

Do plans serve as guides for decision making? - a. Yes - b. No

a. Yes

Does a schedule include both the identification of tasks to be completed and the time needed to complete each task? - a. Yes - b. No

a. Yes

Does an organization chart show the reporting relationships among the organization's personnel? - a. Yes - b. No

a. Yes

Does operational planning include decisions about the resources that will be needed to get the work done in a specific area of the business? - a. Yes - b. No

a. Yes

In general, is the span of control larger at the lower levels of an organization than at the higher levels? - a. Yes - b. No

a. Yes

Is external analysis the first step in strategic planning? - a. Yes - b. No

a. Yes

Is the development of a business plan an example of strategic planning? - a. Yes - b. No

a. Yes

Is the most flexible type of organizational structure the matrix organization? - a. Yes - b. No

a. Yes

Should a business plan include a detailed financial analysis showing the potential profitability of the firm? - a. Yes - b. No

a. Yes

An illustration that shows the structure of an organization and the relationships among workers and divisions of work is - a. an organization chart. - b. a strategic plan. - c. an operational plan. - d. a schedule.

a. an organization chart.

The hierarchy of the organization, from the highest level to the lowest level, is called the - a. chain of command - b. division of work - c. span of control - d. unity of command

a. chain of command

Which of the following would NOT be a part of strategic planning? - a. department work assignments - b. goals - c. strategies - d. mission

a. department work assignments

The organization in which all authority and responsibility can be traced directly from the top executive to the lowest employee level is the - a. line organization. - b. matrix organization. - c. line-and-staff organization. - d. decentralized organization.

a. line organization.

The management function responsible for arranging resources and relationships between departments and employees and defining the responsibility each has for accomplishing the job is - a. organizing. - b. controlling. - c. planning. - d. staffing.

a. organizing.

The goal "to increase the average productivity of all work teams by 3 percent within six months" is an example of which characteristic of an effective goal? - a. specific and meaningful - b. achievable - c. clearly communicated - d. consistent with other departments

a. specific and meaningful

Are supervisors usually responsible for strategic planning? - a. Yes - b. No

b. No

As a business grows, does the number of major divisions in the organization usually decrease? - a. Yes - b. No

b. No

Does planning usually result in more communication and coordination problems in the business? - a. Yes - b. No

b. No

Is a policy more specific than a procedure? - a. Yes - b. No

b. No

Is a schedule a measure against which something is judged? - a. Yes - b. No

b. No

Is authority the obligation to do an assigned task? - a. Yes - b. No

b. No

Is it better for goals to be general rather than specific? - a. Yes - b. No

b. No

Is long-term planning that provides broad goals and directions for the entire business known as operational planning? - a. Yes - b. No

b. No

The internal and external analysis completed by businesses as a part of planning is often referred to as: - a. PERT - b. SWOT - c. ABCD - d. KISS

b. SWOT

One type of financial planning tool is a - a. standard. - b. budget. - c. goal. - d. schedule.

b. budget.

If managers in large organizations have difficulty mastering the knowledge and skills they need in all of their areas of responsibility, which type of organizational structure would be most helpful? - a. line - b. line-and-staff - c. matrix - d. team

b. line-and-staff

Specialists are available to give advice and assistance to managers in the - a. matrix organization. - b. line-and-staff organization. - c. line organization. - d. decentralized organization.

b. line-and-staff organization.

To be effective, goals should be - a. general rather than specific. - b. meaningful. - c. independent from all other goals. - d. slightly higher than can be realistically achieved.

b. meaningful.

Guidelines used in making decisions regarding specific, recurring situations are called - a. standards - b. policies - c. procedures - d. goals

b. policies

Planning provides all of the following benefits to a company except: - a. encouraging managers to be more specific and objective in their decisions - b. helping managers to determine whether the business is making progress - c. ensuring a business will be successful and profitable - d. providing a guide for managers when making important decisions

c. ensuring a business will be successful and profitable

Guidelines used in making decisions regarding specific, recurring situations are known as - a. procedures. - b. standards. - c. policies. - d. goals.

c. policies.

Companies that have started using work teams and that involve employees in planning and decision-making have found that span of control - a. must be decreased. - b. is not affected. - c. is no longer needed. - d. can be increased.

d. can be increased.

A few top managers do all major planning and decision making in a - a. line-and-staff organization. - b. decentralized organization. - c. line organization. - d. centralized organization.

d. centralized organization.

For work teams to be successful in an organization, team members must become competent in all of the following areas except - a. technical job skills - b. interpersonal skills - c. administrative skills - d. financial skills

d. financial skills

A well-designed organization chart shows all of the following except... - a. the major work units that make up the business - b. which unit each employee is affiliated with, how it relates to other units, and to whom employees are accountable - c. lines of authority and formal communication within the - organization - d. the primary groups of customers to whom the business sells its products

d. the primary groups of customers to whom the business sells its products