Business 1: Test #2 (Ch.7-12)

Fayol introduced such principles as unity of command in his book. What did that mean?

Each worker is to report to one, and only one boss. ( to prevent confusion or power struggles)

____ -____ __________ is often the most successful leadership style in certain organizations, such as those in which managers supervise doctors, professors, engineers, or other professionals. The traits managers need in such organizations include warmth, friendliness, and understanding

Free-rein leadership

Fayol introduced such principles as division of labor in his book. What did that mean?

Functions are to be divided up into areas of specializaiton such as production, marketing, anf finance.

participative (democratic) leadership

involves managers and employees working together to make decisions

Strategic Planning

is done by top management and determines the major goals of the organization and the policies, strategies, and resources it will need to achieve them. --> The setting of broad, long-range goals by top. managers.

vision

is more than a goal; it's a broad explanation of why the organization exists and where it's trying to go. It gives the organization a sense of purpose and a set of values that unite workers in a common destiny.

Staffing

is recruiting, hiring, motivating, and retianing the best people available to accomplish the compnay's objects.

The further up the managerial ladder a person moves, the less important his or her ___ ______ become.

job skills

_________ is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way the organization does business or order to improve its effectiveness and efficiency.

leadership

Problem-solving

lesss formal than decision making and usually calls for wuicker action to resovle everyday issues.

conceptual skills

let the manager picture the organization as a whole and see the relaitonship among various parts. They are needed in planning, organizing, controlling, systems development, problem analysis, decidion making, coordinating, and delegating.

autocratic leadership

making managerial decisions without consulting others

Free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

________ strive to produce order and stability, whereas _______ embrace and manage change.

managers, leaders

Not unitl the 1900's and the introduction of ____ __________ did production processes and business organization become so complex.

mass production

Leading

means creating a vision for the organization and comunicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timeley manner.

mass production

methods for efficiently producing large quantitites of goods

The ___________ plan is the department manager's tool for daily operations.

operational

__________, or structuring, begins with the division of labor.

organizing

mission statement

outlines the organization's funcamental purposes. It should adress: The organizatio's self-concept. Its philosophy. Long-term survival needs. Customer needs. Social responsisbility. Nature of the product or services.

The trend today is to have ________ _____ to help monitor the environment, find business opportunities, and watch for challenges.

planning teams

What are the four functions of management

planning, organizing, leading, controlling

________ are broad guidelines for action, and __________ determine the best way to use resources.

policies, strategies

Structuring the business, making appropriate division of labor using job specialization and departmentalization, establishing procedures, and assigning authority are tasks found in most firms. These are all examples of __________ __ ____________.

principles of organization

The ________ ________-______ _____ is a series of steps managers often follow to make logical, intelligent, well-founded decisions.

rational decision-making model

Instead of creating detailed strategic plans, the leaders of market-based companies often simply ___ _________. They want to stay flexible, listen to customers, and seize opportunities - expected or not.

set direction

Objectives

specific, short-term statments detainling how to achieve the organization's goals.

At the _________ ________ stage, top managers of the company decide which customers to serve, when to serve them, what products or services to sell, and the geogrpahic areas in which to compete.

strategic planning

Whereas _________ ________ looks at the organization as a whole, ___________ ________ focuses on specific supervisors, department managers, and individual employees.

strategic planning, operational planning

What are four forms of planning?

strategic, tactical, operational, and contingency.

Because workers and management need to agree on them, setting goals is often a ____ _______

team process

A manager must have three categories of skills:

technical skills, human relations skills, and conceptual skills

Top management

the highest level, consiste of the president and othe key executives who develop strategic plans. Job titles and abbreviations you're likely to see often are chief exective officer (CEO), chief operating officer (COO), chief financial officer (CFO), and chief information officer (CIO) or in some companies chief knowledge officer (CKO).

Transparency

the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.

Tactical Planning

the process of developing detailed, short-term statments about what is to be done, who is to do it, and how. The identification of specific, short-range objectives by lower-level managers.

Contingency Planning

the process of preparing alternative courses or action the firm can use it its primary plans don't work out.--> Backup plans in case primary plans fail.

departmentalization

the process of setting up individual departments to do specialized tasks

Operational Planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives. -->the setting of work standards and schedules

What are the six D's of the rational decision-making model?

1. Define the situation 2. Describe and collect needed information 3. Develop alternatives 4. Decide which alternative is best. 5. DO what is indicated (begin implementation) 6. Determine whether the decision was a good one, and follow up.

Controlling consists of five steps:

1.)Establishing clear performance standards. This ties the planning function to the control function. Without clear standards, control is impossible. 2.) Monitoring and recording actual performance or results. 3.) Comparing results againsts plans and standards. 4.) Communicating results and deviations to the approiate employees. 5.) Tlking corrective action when needed and providing positive feedback for work well done.

Fayol introduced such principles as hierarchy of authority in his book. What did that mean?

All workers should know to whom they report. managers should have the right to give orders and expect others to follow.

Currently, the leadership trend is to empower employees. When a leader empowers employees, the leader is giving them:

As much frredom as possible to become self-directed and self-motivated.

What are some disadvantages to centralized authority?

Better adaptation to customer wants More empowerment of workers Faster decision making Higher morale

brainstorming

coming up with as many solutions as possible in a short period of time with no censoring of ideas.

The ___ is often also the president of the firm and is responsible for all top level decisions.

CEO

___s are responsible for introducing change into an organization. The ___ is responsible for putting those changes into effect. His or her tasks include structuring work, controlling operations, and rewarding people to ensure that everyone strives to carry out the leader's vision.

CEO, COO

Often, the ___ participates in the decision to cut the COO position.

CFO

The ___ is responsible for obtaining funds, planning budgets, collecting funds, and so on.

CFO

The ___ or ___ is responsible for getting the right information to the other managers to they can make correct decisions.

CIO, CKO

___s or ___s are more important than ever to the success of their companies, given the crucial role that information technology has come to play in every aspect of business.

CIOs or CKO

Many companies today are eliminating the ___ function as a cost -cutting measure and assigning that role to the ___.

COO, CEO

Leaders must:

Communicate a vision and rally others around that vision. Establish corporate values. Promote corporate ethics. Embrace change. Stress accountabiity and responsisbility.

benchmarking

Comparing an organization's practices, processes, and products against the world's best.

The following are examples of which aspect of management? Measuring results against corporate objectives. Monitoring performance relative to standards. Rewarding outstanding performance. Taking corrective action when necessary.

Controlling

Fayol introduced such principles as the Unity of command. What does that mean?

Each worker is to report to one, and only one boss. ( in order to prevent confusion, or power struggles)

Henry Fayol

He published his book Administration industrielle et generale in 1919. It was popularized in the U.S. in 1949 under the name Gneral Industrial Management. Fayol introduced such principles as the following: Unity of command Hierarchy of authority Division of labor Subordination of individual interests to the general interest Authority. Degree of centralization Clearn communication channels Order Equity Esprit de corps

Planning

Includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

What does structuring an organization consist of?

It consists of devising a division of labor ( sometimes resulting in specialization); setting up teams or departments to do specific task (like production and accounting); and assigning responsibility and authority to people. It also includes allocating resources (such as funds for various departments), assigning specific tasks, and estabishing precedures for accomplishing the organizational objectives. From the start, you have to make ethical decisions about how you'll treat workers and how you will benefit the community. You may develop an organization chart that shows relationships among people: who is accountable for completion of specific work, and who reports to whom. Finall, you'll monitor the environment to see what competitors are doing and what customers are demanding. Then you may have to adjust to stay competitive.

The following are examples of which aspect of management? Guiding and motivating employees to work effectively to accomplish organiational goals and objectives. Giving assignments. Explaining routines. Clarifying policies. Providing feedback on performance.

Leading

Fayol introduced such principles as the authority in his book. What did that mean?

Managers have the right to give orders and the power to reinforce obediance. Authority and responsibility are related: whenever authority is exercised, responsibility arises.

________ or teams of ________at lower levels of the organization normally make tactical plans.

Managers, managers

What are some of the changes in management today?

Organizations are being designed around pleasing the customer at a profit. They must remain flexible and adaptable. The trend is to empower employwees, giving them as much freedom as possible to become self-directed and self-motivated. In most large firms, managers no longer tell people exactly what to do becasue knowledgable workers and others often know how to do their jobs better than the manager does.

The following are examples of which aspect of management? Allocating resources, assigning tasks, establishing procedures for accomplishing goals. Preparing a structure (organizational chart) showing lines of authority and responsibility. Recruiting, selecting, training, and developing employees. Placing employees where they'll be most effective.

Organizing

The following are examples of which aspect of management? Setting organizational goals. Developing strategies to reach those goals. Determining resources needed. Setting precise standards.

Planning

________ is a key management function because accomplishing the other functions depend heavily on it.

Planning

The following questions are part of ____ ________ : What is the situation now? WHat are the success factors affecting industry participants and how do we compare? What is the state of the economy and other environemnts? What opportunities exist for meeting people's needs? What products and customers are most profitable? Who are our majo competitors? What threats are there to our business.

SWOT analysis

________ ________ can unclude setting annual budgets and deciding on other activities necessary to meet strategic objectives.

Tactical planning

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

economies of scale

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

The economic and competitive environments change so rapidly that its wise to have a ___________ plan in anticipation of such changes.

contingency

What are the levels of management

Top Managment, Middle Management, Supervisory (First-Line) Managemnt, And Nonsupervisory

True or False? The average cost of goods decreases as production level rises

True (economies of scale)

Fayol introduced such principles as subordination of individual interests to the general interest in his book. What did that mean?

Workers are to think of themselves as coordinated team. THe goals of the team are more important that the goals of the individual workers.

internal customers

individuals and units within the firm that receive services from other individuals or units

organizational chart

a chart that shows relationships among people.

Controlling

a managemnet function that involves establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding peole for doing a good job, and taking corrective action if they are not.

crisis planning

a part of contingency planning that anticipates sudden changes in the environment. For example, many cities and businesses have developed plans to respond to terrorist attacks.

SWOT analysis

a plannign tool used to analyze an orgnizations strength's, weaknesses, opportunities, and threats.

PMI

aka lisitng all the Pluses for a solution in one column, all the Minuses in another, and the Implications in a third. THe idea is to make sure the pluses excced the minuses.

technical skills

are the ability to perform tasks in a specific discipline (such as selling a product or developing software) or department (such as marketing or informaiton systems).

Goals

are the broad, long-term accomplishments an organization wiches to attian.

This style of leadership is effect in emergencies and when absolute followership is needed - for example, when fighting fires. It is also effective sometimes with new relatively unskilled workers who need clear direction and guidance.

autocratic leadership

Problem solving techniques include _____________ and ___.

brainstoring, PMI

policies

broad guidelines for action

Decision making

choosing among two or more alternatives, which sounds easier than it is.

External Customers

dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

strategies

determine the best way to use resources

dividon of labor

determining what work needs to be done and then dividing up the tasks among each person based on skill

job specialization

dividing tasks into smaller jobs.

knowledge management

finding the right information, keeping it in a readily accessible place, and making it known to everyone in the firm together

Empowerment

giving employees the authority to make decision without consulting the manager and the responsiblity to respond quickly to customer requests.

Enabling

giving workers the education and tools they need to make decisions.

human relations skills

include communication and motivation; they enable managers to work through and with people.

Organizing

included designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives.

middle management

included general managers, division managers, and branch and plant managers (in colleges, deans, and department heads) who are responsible for tactical planning and controlling.

supervisory management

includes those directly responsible for supervising workers and evaluating their daily performance; they're often known as the first-line managers ( or supervisors) becasue they're the first level above workers. THis si the first managment position you are most likely to aquire after college.