Essentials of Leadership and Management

opportunities

-Expansion into new markets -Complacent competitors

Goal

A broad, long-range target that an organization wishes to attain.

Select all of the actions included in decision-making.

Choosing actions Identifying alternatives

Managers

Direct and order people to do things.

Leaders

Focus on motivating and empowering people.

Kelly: Kelly is responsible for employee understanding of routines and policies. a. Planning b. Organizing c. Leading d. Controlling

d. controlling

The Vision Statement

•Describes the company's vision, long-term goal of what the organization wants to become. •Outlines the world view of the organization and attracts employees, customers, and vendors.

Transactional Leadership

-Focusing on creating a smooth-running organization -Setting goals and motivating employees to meet performance goals

Threats

-Government regulatory pressure -Potential waning of product popularity

The four functions of management typically fall under the categories of

-Plan -Organize -Lead -Control

Transformational leadership

-Promoting long-term vision, creativity, and exceptional performance -Striving to inspire high levels of commitment and loyalty

strengths examples

-experienced management -global presence

weakness

-slow diversification -suboptimal outlet location

4 step process of taking control:

1. Establish standards 2. Monitor Performance 3. Compare performance against standards 4. Take corrective action, if needed

4 phases of making a practical decision

1. Identify the problem 2. Think of possible solutions 3. Weigh alternative solutions and select one 4. Implement and evaluate the solution chosen

6 reasons why control is needed

1. To deal with changes & uncertainty 2. To detect errors and irregularities 3. To increase productivity, cut waste, reduce cost, and add value 4. To become aware opportunities 5. To deal with complexity 6. To decentralize decision making & facilitate teamwork

3 levels of Management

1. Top managers 2. Middle managers 3. Supervisory managers 4. Non-managerial personnel

Select all of the examples of transactional leaders.

A leader who makes sure all the team members are clear on their roles, holds them accountable, and monitors their progress A leader who sets the goals, leads to them, and prepares very clear performance standards

Objective

A specific, short-term target designed to achieve the organization's goals.

What is an example of the leading function of business? a. Holding weekly motivation meetings b. Hiring more workers in order to produce more c. Setting production goals d. Conducting monthly worker assessments

A. Holding weekly motivation meetings

Select all of the examples of activities carried out by supervisory-level managers. a. Making long-term decisions b. Assigning tasks to workers c. Heading company departments d. Making daily decision

Assigning tasks to workers Heading company departments Making daily decisions

conceptual skills

Consist of the ability to think analytically, to visualize an organization as a whole, and understand how the parts work together.

human skills

Consist of the ability to work well in cooperation with other people to get things done.

technical skills

Consist of the job-specific knowledge needed to perform well in a specialized field.

Threats (T)

Factors that can potentially harm the company.

Opportunities (O)

Favorable external factors, such as new markets, that the company can use to ensure competitive advantage.

Select all of the activities related to the problem identification step of the decision-making process. Figure out the main problem about which a decision must be made. Brainstorm solutions to the problem. Look for opportunities that may be helpful. Assess the success of the chosen solution.

Figure out the main problem about which a decision must be made. Look for opportunities that may be helpful.

Transactional Leadership

Focuses on creating a smooth-running organization, motivating employees to meet performance goals.

Transformational Leadership

Focuses on inspiring long-term vision, creativity, and exceptional performance in employees.

horizontal specialization

In a two-person organization, one is the "inside person," handling production and research, and the other is the "outside person," handling sales, client relations, and finances.

Select all of the elements of strategic planning.

Involvement of top executives Analysis of competition Focus on the long run

Organizing

Involves arranging tasks, people, and other resources to accomplish the work. Thus, the organization must design a structure and establish conditions for achieving the goal of satisfying customers.

Planning

Involves goal setting and deciding how to achieve the goals. If an organization's goal is customer satisfaction, top executives must plan the optimal strategy to achieve this goal.

Controlling

Involves monitoring performance, comparing it with goals, and taking corrective action as needed. Thus, managers must assess teams' performance based on the goal of customer satisfaction, and take corrective action as needed.

Leading

Involves motivating, directing, and otherwise influencing people to achieve the organization's goals. Therefore, the organization's vision and mission should align with the goal of customer satisfaction.

Select all of the activities related to the problem identification step of the decision-making process.

Look for opportunities that may be helpful. Figure out the main problem about which a decision must be made.

Select all of the qualities of S.M.A.R.T. goals.

Measurable Relevant Specific

Middle Managers

Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the supervisory managers below them. Ex. General Manager, Division Manager, Plant Manager, and Branch Sales Manager

Operational Planning

Nature: It determines how to accomplish specific tasks with existing resources within the next one-week to one-year period. Time Period: 1-52 weeks Involvement: Supervisory Managers Key Activities: The supervisory managers direct the daily tasks of non-managerial personnel.

Strategic Planning

Nature: It determines long-term goals for the next one to five years with the resources they anticipate having Time period: 1-5 years Involvement: Top Management Key Activities: Make long-term decisions about the overall direction of the organization.

tactical planning

Nature: It determines what contributions their work units can make with their existing resources during the next six months to two years. Time period: 6 months - 2 years Involvement: Middle Management Key Activities: Middle managers implement the policies and plans of the top managers and supervise and coordinate the activities of the supervisory managers.

Select all of the factors that are part of managerial planning. Objectives Enforcement Competition Goals

Objectives Goals

A good way for a company to determine what it does well and what it needs to improve is to conduct a

SWOT analysis.

Supervisory Management

Supervisory managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel. Ex. Department Head, Foreman or Forewoman, Team Leader, or Supervisor

If Martha tells employees they need to "do a better job of selling" in the month of December, then employees might fail to accomplish this goal. Why do you think workers might fall short?

The goal is not specific and measurable.

Select all of the true statements about S.M.A.R.T. goals. They are attainable. They are short-term. They are relative. They are time-bound.

They are attainable. They are time-bound.

Select all of the true statements about objectives. a. They are designed using the S.M.A.R.T. acronym. b. They are used to reach goals. c. They are short-term. d. They are specific.

They are used to reach goals. They are short-term. They are specific.

Effectiveness

To achieve results, to realize the firms goals by making the right decisions and executing them successfully.

Why is planning important to managers?

To create a blueprint for future action

effeiciency

To use people, money, raw materials, and other resources wisely and cost-effectively.

Top Managers

Top managers make long-term decisions about the overall direction of the organization and establish the objectives, strategies, and policies for it. Ex. Chief Executive Officer (CEO), Chief Operating Officer (COO), President, Senior Vice President

Strengths (S)

What the company excels at and how this differentiates it from

Weaknesses (W)

Where the company needs to improve to remain competitive.

Which of the following is an example of a strength? a. A reputation for being ethical b. Expansion into new markets c. Slow diversification d. Suboptimal outlet locations

a. A reputation for being ethical

As a company manager, you have called together a decision-making team. The team has progressed to the potential solutions step in their decision-making process. What will the group be doing? a. Coming up with ideas to solve the problem b. Identifying the problem c. Putting the solution into action d. Choosing a solution

a. Coming up with ideas to solve the problem

You are an operations manager talking with store managers and employees about some lags in service. They tell you they need to build systems that allow the frontline staff to make decisions quicker. The employees' biggest complaint is that they have to ask their boss before making any decision. The employees say they feel silly having to do this all the time, and their managers are inundated with additional, unnecessary work because of this. Which control measure is applicable to this situation? a. Decentralize decision making and facilitate teamwork. b. Increase productivity, eliminate waste, reduce costs, or add value. c. Deal with complexity. d. Deal with changes and uncertainties.

a. Decentralize decision making and facilitate teamwork.

What term is used to describe the process of identifying alternatives and choosing a course of action? a. Decision-making b. Implementation c. Leadership d. Supervisory management

a. Decision-making

What is an example of the organizing function of managment? a. Making work assignments b. Inspiring employees to work harder c. Making a step-by-step strategy for reaching goals d. Conducting regular quality inspections

a. Making work assignments

Paul: Paul determined that he needs 100 new employees to meet the customer demands in his new IT consulting firm. a. Planning b. Organizing c. Leading d. Controlling

a. Planning

Michelle: Michelle is charged with developing strategies for Toyota to replace all recalled accelerator pedals. a. Planning b. Organizing c. Leading d. Controlling

a. planning

The four functions of management

are not a step-by-step process, but rather they occur simultaneously to operate an organization.

Control standards can be set for almost anything, but they are easier to measure if they ______.

are quantifiable

If Martha's employees believe they cannot meet the goal of selling $60,000 of merchandise, then there will be issues with

attainability.

In a staff meeting of the General Maintenance company, Julian reports that third-quarter earnings have met the company's goals set at the beginning of the year. Morgan also gives a report telling her supervisors how redistribution of labor and lowered materials costs contributed to the third-quarter gains. What principle of business management does Morgan's report exemplify? a. Effectiveness b. Efficiency c. Management d. labor relations

b. Efficiency

Which level of planning involves the highest level of managers? a. Tactical planning b. Strategic planning c. Operational planning

b. Strategic planning

Which part of the decision-making process involves coming up with creative and innovative ideas for how to solve a problem? a. The problem identification step b. The potential solutions step c. The weighing solutions step d. The implementation and evaluation step

b. The potential solutions step

Matthew: Matthew carefully places employees in departments where they will be most effective and have the greatest impact on productivity. a. Planning b. Organizing c. Leading d. Controlling

b. organizing

Tomasz: Tomasz is a line supervisor at a manufacturing plant. He is responsible for assigning work to employees. a. Planning b. Organizing c. Leading d. Controlling

b. organizing

What general term is used to describe issues that interfere with successfully achieving goals in business? a. Competition b. Problems c. Opportunities d. Sabotage

b. problems

You are an owner at a local bakery. There has been a natural disaster in the area where your suppliers are. This has caused issues for them, and everyone in the supply chain is now concerned about price increases. This is tough because you need to either reduce margins or raise prices, and your primary customers are very price sensitive. In which column of your SWOT analysis should you list these factors? a. Opportunities b. Threats c. Weaknesses d. Strengths

b. threats

What is the best definition of problems in business? a. Issues that cause technology glitches b. Favorable situations that aid in meeting or surpassing goals c. Difficulties that get in the way of business success d. Difficulties in the home lives of employees

c. Difficulties that get in the way of business success

Barrie is a distribution manager of a small press. Over the past three quarters, revenues have consistently not met company goals. Barrie calls a meeting of all supervisory managers to decide how to improve the situation. As they begin the problem identification step, what should they do first? a. Consider a variety of solutions. b. Hire a specialist to help with decision-making. c. Figure out the root cause of their declining revenues. d. Consider how other company employees might be blamed for falling revenues.

c. Figure out the root cause of their declining revenues.

Ava: Ava motivates employees to accomplish organizational goals. a. Planning b. Organizing c. Leading d. Controlling

c. leading

Chloe: Chloe is the CEO of a small textile company. She rewards the top employee each year with a Star Performer Award. a. Planning b. Organizing c. Leading d. Controlling

c. leading

Frank discovers that workers on the evening shift are consistently late, so he devises a new policy in which employees are only allowed three late clock-ins before they are terminated. These actions are part of the ________ function.

controlling

What is an example of the planning function of management? a. Setting up a system for production b. Writing a mission statement c. Establishing a method of tracking productivity and quality d. Holding a January staff meeting to set goals for the year

d. Holding a January staff meeting to set goals for the year

You and your colleagues are preparing for a meeting with the CEO to discuss some recent difficulties that are hindering achievement of goals. What phase of the decision-making process are you in? a. Implementing and evaluating the chosen solution b. Thinking of possible solutions c. Weighing the alternatives and choosing one d. Identifying the problem

d. Identifying the problem

Which example best represents the top level of management? a. Lin ensures that whenever she completes a task, she reports it to upper management. b. Miguel meets with lower-level managers to communicate and put into action the plans he has received from his boss. c. Raquel meets with employees to give them feedback and directions for the week's work. d. Thom meets with executives to decide the direction of a new marketing campaign.

d. Thom meets with executives to decide the direction of a new marketing campaign.

Santiago: Santiago realized that Jared was not performing to standard. He put Jared on a performance improvement plan. a. Planning b. Organizing c. Leading d. Controlling

d. controlling

In Business management, the term _____________ is used to describe success in meeting goals, while _______________ is used to mean cost-effective use of resources in order to make sure goals are met.

effective; efficient

When a company sets a control standard, it is ______.

establishing the desired performance level for a given goal

In the problem identification stage of decision-making, it is important to look beyond day-to-day difficulties to find circumstances that present the chance for meeting or surpassing goals. These circumstances are known as ______.

opportunities

external

opportunities and threats

In business, favorable situations that offer the possibility of advancement are called

opportunities.

If Frank makes Justin a night-shift supervisor, he would be engaging in which function of management?

organizing

4 functions of management

planning, organizing, leading, controlling

If Frank is researching the number of customers who have gluten or wheat allergies, and then he begins to devise a strategy to cater to these individuals, Frank would be involved in

planning.

If Martha set a goal for employees to sell $60,000 of merchandise during the month of December and gave them a directive to reorganize the break-room under the same deadline, then employees might question which of the five essential goal-accomplishment factors?

relevancy

When creating a SWOT analysis, what is the purpose of listing a company's weaknesses?

so the business recognizes and can try to improve those weaknesses to win over consumers

If Martha states that the company needs to sell at least $60,000 of merchandise in the month of December, then this is

specific and time-bound.

Workers often do not understand what the goals of the organization actually are, and this could be resolved by making sure goals are

specific.

Internal

strengths and weaknesses

SWOT analysis

strengths, weaknesses, opportunities, threats

The things a business currently possesses and does well are called

strengths.

Which level of management would be most likely to be involved in planning how to introduce workers to a new manufacturing process over the next six months?

supervisory management

Vertical Hierarchy of Authority

• In a two-person organization, the owner might communicate with just an assistant. • In a complex organization, the president might talk principally to the vice presidents, who talk to the assistant vice presidents, and so on.

The Mission Statement

•Identifies the goods or services the organization provides and the reasons for providing them. •Answers the basic question of why an organization was created in the first place and why it still exists today.

participative (democratic) leadership

•Leaders involve employees in decision-making. •It helps to improve job satisfaction, but doesn't always improve effectiveness.

autocratic leadership

•Leaders make decisions without consulting others. •It is effective when employees need direction or are developing a skill.

free-rein (laissez-faire) leadership

•Leaders set objectives but let teams decide the means to achieve them. •It is successful while working with highly skilled professionals who can operate autonomously.