Business management chapter 5 & 6

Organizing

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom

programmed decisions

decisions that are made in response to recurring organizational problems that require individuals to follow established rules and procedures

Essay: 4 elements of TQM

employee involvement, focus on the customer, bench marking, continuous improvement

Dog (BCG Matrix)

-easy to identify -underperforming business -small market share in a low-growth market -low and unstable earnings -neutral or negative cash flows -strategic recommendations: either divest the business or harvest it

Question Marks (BCG Matrix)

- (upper right quadrant) appear in high-growth markets but have relatively low market shares -they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. -Managers must decide whether to infuse question marks with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products.

Cash Cows (BCG Matrix)

-(lower left quadrant) are in low-growth markets but are high market share products -these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it. EX: the firm may decided to use the excess resources generated by the cash cow Brand to fund products in the question mark quadrant.

Stars (BCG Matrix)

-upper left quadrant) occur in high-growth markets and are high market share products. -often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth. -As their market growth slows, starts will migrate from heavy users of resources to heavy generators of resources and become cash cows. - ex: uber

Why managers make bad decisions?

1. Being influenced by initial impressions 2. Justifying past decisions 3. Seeing what you want to see 4. Perpetuating the status quo 5. Being influenced by emotions 6. Overconfidence

Essay: 4 functions of management

1. Planning 2. Organizing 3. Leading 4. Controlling

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Plan

A plan specifies the way in which an outcome will be achieved and can include the actions to be taken, the resources to be used, and the time frame for accomplishment.

Classical Model of Decision Making

A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.

Peter Drucker

A prolific management guru and the first scholar to write about how to manage knowledge workers.

differentiation strategy

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

External Environment

All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy.

decentralized planning

An approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans.

Which major decision style is characterized by having deep concern for others as individuals?

Behavioral

Administrative model of decision making

Bounded rationality. Focused on the limitations to make decisions without exceeding past them.

What type of planning occurs when the organization is faced with a situation in which its continued existence may be in question?

Crisis planning

Essay: Characteristics of effective teams?

Effective teams portray characteristics of leadership and cooperativeness. For example open and honest communication and clear direction.

What concept is at the top of an organization's goal hierarchy?

Mission statement

Non-programmed decisions

Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats

Which of the following is not one of the benefits of organizational planning?

Preventing the use of intuition and creativity

What term is used to indicate that a decision maker chose the first solution alternative that satisfied minimal decision criteria?

Satisfying

When managers at a large pharmaceutical company look towards the future and think about what could be, they are likely using which innovative planning approach?

Scenario building.

Six Steps in the Managerial Decision-Making Process

Step 1: Identify the decision. You realize that you need to make a decision. ... Step 2: Gather relevant information. ... Step 3: Identify the alternatives. ... Step 4: Weigh the evidence. ... Step 5: Choose among alternatives. ... Step 6: Take action. ... Step 7: Review your decision & its consequences.

Which type of goals is middle management primarily concerned with?

Tactical

strategic plans

Top management develops strategic plans to define the resources the organization as a whole will use to move toward its desired future state.

brain storming

Within the planning act of the writing process, a technique used by a writer or speaker to generate many ideas, some of which he or she will later eliminate.

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Mission Statement

a short, specific written statement of the reason a business exists and what it wants to achieve

different behaviors style

analytical, amiable, driver and expressive

BCG Matrix

analyzes business opportunities according to market growth rate and market share

decision making

attempting to select the best alternative among several options

political model of decision making

based on the idea that certain individuals or groups will be able to influence others to achieve their goals

Leading

inspiring and motivating workers to work hard to achieve organizational goals

Wicked Decisions

involve conflict over goals and have changing circumstances, fuzzy information, and unclear links; a highly ambiguous situation

Controlling

monitoring performance, comparing it with goals, and taking corrective action as needed

Another term for the strategic goals of an organization is:

official goals

Goals that are precise and measurable and carried out by departments, work groups, and individuals are called:

operational goals.

Manager Process

planning, organizing, leading, controlling

Goals of a business

profit, sales, market share, quality, customer satisfaction, employee welfare, social responsibility

Important consequences

something that happens as a result of a particular action or set of conditions. the orgonizational problem, low certainty high ambiguity.

5 task of management

strategic vision and mission, setting objectives, crafting tactics to achieve those objectives, implementing and executing the tactics, and evaluating and measuring performance

self-directed teams

teams that determine their own objectives and the methods by which to achieve them

internal environment

the events and trends inside an organization that affect management, employees, and organizational culture

Escalated decision making models

their decisions actions and investments. ... live etc a decision based on the cumulative prior investment. some costs despite new evidence suggesting that the cost beginning immediately of continuing