Management 3303 - exam 2- ch. 5-8

Procedure

( or standard operating procedure ) is a standing plan that outlines the response to particular problems or circumstances

Porter's four competitive strategies

(also called four generic strategies) are (1) cost-leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation

Single- product strategy

a company makes and sells only one product within its market

Contingency Planning

also known as scenario planning and scenario analysis- is the creation of alternative hypothetical but equally likely future conditions

Predictive modeling problems

is a data-mining technique used to predict future behavior and anticipate the consequences of change

Stability strategy

is a grand strategy that involves little or no significant change.

Policy

s standing plan that outlines the general response to a designated problem or situation

Organizational Weaknesses

the drawbacks that hinder an organization

Common purpose

unifies employees or members ad gives everyone and understanding of the organization's reason for being

Escalation of commitment bias

whereby decision maker increase their commitment to a project despite negative information about it

Grand Strategy

which after an assessment of current organizational performance, then explains how the organization's mission is to be accomplished. Three common grand strategies are growth, stability, and defensive.

Consensus

which occurs when member are able to express their opinions and reach agreement to support the final decision

Enacted values

which present the values and norms actually exhibited in the organization

Project

a single-use plan of less scope and complexity than a program

Matrix Structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal.

Diagnosis

analyzing the underlying causes

Single-use plan

are plans developed for activities that are not likely to be repeated in the future

Standing Plan

are plans developed for activities that occurs repeatedly over a period of time

Rites and Rituals

are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations' life

strategic positioning

attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

Mechanistic Organization

authority is centralized, tasks and rules are clearly specified, and employees are closely supervised

Organic Organization

authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks

Strategic control

consist in monitoring the execution of strategy and making adjustments , if necessary

Mission Statement

expresses the purpose of the organization

Planning/ Control Cycle

1-make the plan, 1- carry out the plan, 3-control the direction by comparing results with the plan 4- control the direction by in two ways- namely, a) by corresponding deviations in the plan being, carried out, or b) by improving future plans

Business Plan

a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success?

Modular Structure

a firm assembles product chunks, or modules, provided by outside contracts

strategy

a large-scale action plan that sets the direction for an organization

Deciding to decide

a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps

Defensive Avoidance

a manager cant find a food solution and follows by (a) procrastinating, (b) passing the buck, or (c)denying the risk of any negative consequences

Relaxed avoidance

a manager decides to take no action in the belief that there will be no great negative consequences

Panic

a manager is so frantic to get rid of the problem that he or she cant deal with the situation realiscally

Relaxed changed

a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk

Objective

a specific commitment to achieve a measurable result within a stated period of time.

Rule

a standing plan that designates specific required action

Rational model of decision making

also called the classical model, explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests

Goal

also know as an objective: a specific commitment to achieve a measurable result within a stated period of time.

SWOT analysis

also known as a situational analysis- which is a search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization

DIvision of labor

also known as work specialization, is the arrangement of having discrete parts of a task done by different people

Espoused values

are the explicitly stated values and norms preferred by an organization

Fit perspective

assumes that an organization's culture must align, or fit, with its business or strategic context.

Adaptive perspective

assumes that the most effective cultures help organizations anticipate and to environmental changes

Strength perspective

assumes that the strength of a corporate culture is related to a firm's long term financial performance

Environmental Scanning

careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans

Action Plan

defines the course of action needed to achieve the stated goal

Organizational Threats

environmental factors that hinder and organization's achieving a competitive advantage

Organizational Opportunities

environmental factors that the organization may exploit for competitive advantage

Defenders

expert at producing and selling narrowly defined products or services

Non-rational models of decision making

explain how manager make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions

Vision Statement

expresses what the organization should become, where it wants to go strategically

Prospectors

focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen

Geographic divisions

group activities around defined regional locations

Product divisions

group activities around similar products or services

Organizational life Cycle

has a natural sequence of stages: birth, youth, midlife, and maturity

Market culture

has a strong external focus and values stability and control

Adhocracy culture

has an external focus and values flexibility

Clan Culture

has an internal focus and values flexibility rather than stability and control

Hierarchy culture

has an internal focus and values stability and control over flexibility

Simple structure

has authority centralized in as single person, a flat hierarchy , few rules, and low work specialization

Staff personnel

have authority functions: they provide advice, recommendations, and research to line managers

Line managers

have authority to make decisions and usually have people reporting to the,

Centralized Authority

important decisions are made by higher-level managers

Decentralized authority

important decisions are made by middle-level and supervisor- level managers

Means-end Chain

in the chain of management (operational, tactical, strategic) the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends.

Unity of command

in which an employee should report to no more than one manager

Related diversification scenario analysis

in which an organization under one ownership operates separate business that are related to one another

Incremental model

in which managers take small short-term steps to alleviate a problem

Organization chart

is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations

Decision

is a choice made from among available alternatives

Organizational Structure

is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals

Management by Objectives (MBO)

is a four-step process in which (1) managers and employees jointly set objectives or the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results

Growth Strategy

is a grand strategy that involves expansion- as in sales revenues, market share number of employees, or number of customers of (nonprofit) clients served.

Decision tree

is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal

Delphi technique

is a group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion

Trend analysis

is a hypothetical extension of a past series of events into the future

BCG Matrix

is a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market

Story

is a narrative based on true events, which repeated- and sometimes embellished upon- to emphasize a particular value

Hero

is a person whose accomplishments embody the values of the organization

Strategic management

is a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Program

is a single-use plan encompassing a range of projects or activities

Organization

is a system of consciously coordinated activities or forces of two or more people

Brainstorming

is a technique use to help groups generate multiple ideas and alternatives for solving problems

Forecast

is a vision or projection of the future

Symbol

is an object, act, quality, or event that conveys meaning to others

Intuition

is making a choice without the use of conscious thought or logical inference

SMART goal

is one that is Specific, Measurable, Attainable, Results-Oriented, and has a T-target

Scenario Planning

is the creation of alternative hypothetical but equally likely future conditions

Birth Stage

is the non bureaucratic stage, the stage in which the organization is created

Responsibility

is the obligation you have to perform the tasks assigned to you

Delegation

is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

strategy formulation

is the process of choosing among different strategies and altering them to best fit the organization's need

Decision making

is the process of identifying and choosing alternative courses of action

DIfferentiation

is the tendency of the parts of an organization to disperse and fragment

Integration

is the tendency of the parts of an organization to draw together to achieve a common purpose

Risk propensity

is the willingness to gamble of gaining an increased payoff

Cost- leadership strategy

is to keep the cost, and hence prices, of a product or service below those of competitors and to target a wide market

Cost-focus strategy

is to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market

Focused-differentiation Strategy

is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

DIfferentiation Strategy

is to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market

Operating Plan

is typically designed for a 1-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flows, and market share.

Confirmation bias

is when people seek information to support their point of view and discount data that do not.

Mission

its purpose or reason for being

Analyzers

let other organizations take the risks of product development and marketing and then imitate ( or perhaps slightly improve on) what seems to work best.

Vision

long-term goal describing what an organization wants to become

Reactors

make adjustments only when finally forced to by environmental pressures

Accountability

managers must report and justify work results to the managers above them

Competitive intelligence

means gaining information about one's competitor's activities so that you can anticipate their moves and react approproately

Cascading

objectives down through the organization; that is, objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.

Groupthink

occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation

Goal displacement

occurs when the primary goal is subsumed by a secondary goal

DIversification

operating several businesses in order to spread the risk

Unrelated DIversification

operating several businesses under one ownership that are not related to one another

Defensive Strategy

or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.

Analytics

or business analytics, the term used for sophisticated forms of business data analysis

Hierarchy of authority

or chain of command, is a control mechanism for making sure the right people do the right time

Problems

or difficulties that inhibit the achievement of goals

Span of control (management)

or span of management, refers to the number of people reporting directly to a given manager.

Sunk-cost bias

or sunk-cost fallacy, is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it

Divisional Structure

people with diverse occupational specialities are put together in formal groups by similar products or services, customers or clients, or geographic regions.

Functional structure

people with similar occupational specialities are put together in formal groups

strategic implementation

putting strategic plans into effect

Authority

refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources

Decision-making style

reflects the combination of how an individual perceives and responds to information

Tactical Goals

set by and for middle managers and focus on the actions needed to achieve strategic goals

Strategic Goals

set by and for top management and focus on objectives for the organization as a whole

Planning

setting goals and deciding how to achieve them or is coping with uncertainty by formulating future courses of action to achieve specified results.

Opportunities

situations that present possibilities for exceeding, existing goals

Ethics officer

someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas

Electronic brainstorming

sometimes called brain-writing, in which members of a group come together over a computer network to generate idea and alternatives

Organizational culture

sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members

Heuristics

strategies that simplify the process of making decisions

Team-based structure

teams or work groups, either temporary or permanent, are used to improve horizontal relations and solve problems throughout the organization

Customer divisions

tend to group activities around common customers or clients

Porter's model for industry analysis

that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of supplies, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.

Satisficing model

that is, managers seek alternatives until they find one that is satisfactory, not optimal

Bounded rationality

the concept suggest that the ability of decision makers to be rational is limited by numerous constraints

Coordinated effort

the coordination of individual efforts into a group or organization-wide

Synergy

the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately

Midlife Stage

the organization becomes bureaucratic, a period of growth and expansion

Maturity Stage

the organization becomes very bureaucratic, large, and mechanistic

Network structure

the organization has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization

Youth Stage

the organization is in a per-bureaucratic stage, a stage of growth and expansion

Contingency design

the process of flitting the organization to its environment

Participative management (PM)

the process of involving employees in (a) setting goals, (b) making decision, (c) solving problems, and (d) making changes in the organization

Organizational Strengths

the skills and capabilities that give the organization special competences and competitive advantages in executing strategies in pursuit of its mission

Representativeness bias

the tendency to generalize from a small sample or a single event

Anchoring and adjustment bias

the tendency to make decisions based on and initial figure

Operational Planning

they determine how to accomplish specific tasks with available resources with in the next 1-57 weeks.

Tactical Planning

they determine what contributions their department or similar work units can make with their given resources during the next 6-24 months

Strategic Planning

they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available

Execution

they say, is not simply tactics, it is a central part of any company's strategy. It consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised.