Intro to Business: Chapter 7

planning

a key management function because accomplishing other functions depends heavily on planning

good leaders

motivate workers and create an environment for them to motivate themselves

goals

the broad, long-term accomplishments an organization wishes to attain

top management

highest level of management, consisting of the president, and other key company executives who develop strategic plans - strategic planning is done by top level management

managers need conceptual skills for which of the following tasks

- systems development - coordinating - planning - organizing

decided by top management during strategic planning

- what products to sell - which customers to serve - when to serve customers - the geographic areas in which to compete

kendra is considering opening a new business. while working the business plan, she is answering the following questions: what external success factors affect the industry? how does her business measure up to competition? what can my bakery do to survive and prosper during a recession? what is kendra performing?

a SWOT analysis

planning

a management function that includes anticipating trends and determining the most strategies and tactics to achieve organizational goals and objectives - set organizational goals - develop strategies to reach those goals - determining resources needed planning is what helps managers understand the environment in which their business must operate. ex. when people's tastes and preferences for restaurant meals change, food services managers to to be ready to respond with menu alternatives.

what is the difference between a manager and a leader

a manager plans, organizes, and controls functions within an org. a leader has vision and inspires others to grasp that vision, establishes corporate values, emphasizes corporate ethics, and doesn't fear change

ethical behavior

includes an unfailing demand for honesty and an insistence that everyone in the company gets treated fairly

autocratic leadership 1 - leadership style

leadership style that involves making managerial decisions without consulting others - effective in emergencies and when absolute followership is needed (ex: fighting fires) - is also effective sometimes with new, relatively unskilled workers who need clear direction and guidance

in order to motivate others and create the environment needed for them to motivate themselves, a leader must

- communicate a vision - embrace change - establish corporate values

good leaders must (p 191)

- communicate a vision and rally around that vision - establish corporate values - promote corporate ethics - embrace change - stress accountability and responsibility

the standards used in the control process must be

- specific - attainable - measurable

the CEO is responsible for introducing ___ into an organization

change

tactical planning is usually done by

- lower level managers - teams of lower level managers

organization chart is useful visual aid because

- shows who reports to whom - shows the division of work in an organization

the ___ also known as CKO, is responsible for getting the right information to other managers so they can make correct decisions

Chief Knowledge Officer

what managers do

Planning - setting organizational goals - developing strategies to reach those goals - determining resources needed - setting precise standards Organizing - allocating resources, assigning tasks, and establishing procedures for accomplishing goals - preparing a structure (organization chart) showing lines of authority and responsibility - recruiting, selecting, training, and developing employees - placing employees where they'll be most effective Leading - guiding and motivating employees to work effectively to accomplish organizational goals and objectives - giving assignments - explaining routines - clarifying policies - providing feedback on performance Controlling - measuring results against corporate objectives - monitoring performance relative to standards - rewarding outstanding performance - taking corrective action when necessary ** empowering employees means allowing them to participate more fully in decision making **

staffing

a management function that includes recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives

leaders must establish ___ ___ that include concern for employees, for customers, for the environment, and for the quality of the company's products to carry out the company's vision

corporate values

leadership

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

leading

creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objects. aka: directing

external customers

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

controlling

establishes clear standards to determine whether an organization is progressing towards its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not measuring whether what actually occurs meets the organizations's goals

knowledge management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm - "knowledge is power" - empowering employees means giving that knowledge--the information they need to do the best job they can

___ leadership is often the most successful leadership style in organizations in which managers supervise doctors, professors, engineers, or other highly skilled professionals

free-rein

computech is a firm with many skilled engineers and programmers. what type of leadership style should it have

free-rein

empowerment

giving employees the authority to make a decision without consulting the manager and the responsibility to respond quickly to customer requests when a leader empowers employees, that leader is giving them as much freedom as possible to become self-directed and self-motivated

enabling

giving workers the education and tools they need to make decisions - key to success of empowerment - without the right training, coaching, and tools, workers cannot assume the responsibilities and decision-making roles that make empowerment work

what's the difference between goals and objectives?

goals are broad, long-term achievements that the organizations aim to accomplish, whereas objectives are specific, short-term plans made to help reach the goals an objective is a specific, short-term statement of how to achieve the organization's long-term goals.

skills needed at various levels of management

importance: 1st (most) to 3rd (least) top managers: - technical skills (3rd) - human relations skills (2nd) - conceptual skills (1st) middle managers: - technical skills (equal) - human relations skills (equal) - conceptual skills (equal) first-line managers: - technical skills (1st) - human relations skills (2nd) - conceptual skills (3rd) all managers need human relations skills. at the top, managers need strong conceptual skills and rely less on technical skills. middle managers need a balance between conceptual, human relations, and technical skills. first-line managers need strong technical skills and rely less on conceptual skills.

internal customers

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

participative (democratic) leadership 2 - leadership style

leadership style that consists of managers and employees working together to make decisions involves employees meeting and contributing to decisions - research has shown that employee participation in decisions may not always increase effectiveness, but it usually does increase job satisfaction - many large organizations like Google, Apple, IBM, Cisco and ATT and most small firms have been highly successful using a democratic style of leadership that values traits such as flexibility, good listening skills, and empathy - employees meet to discuss and resolve management issues by giving everyone some opportunity to contribute to decisions

PMI

listing all the Pluses for a solution in one column, all the Minuses in another, and the Implications in a third column

supervisory management

managers who are directly responsible for supervising workers and evaluating their daily performance - first management position you are most likely to acquire after college

Chief Financial Officer (CFO)

responsible for obtaining funds, planning budgets, and collecting funds

Chief Operating Officer (COO)

responsible for putting changes made by the CEO into effect. tasks include structuring work, controlling operations, and rewarding people to ensure that everyone strives to carry out the leader's vision

human relations skills

skills that involve communication and motivation; they enable managers to work through and with people - training, development, coaching, and delegating skills: - motivation, communication, coaching, morale building

technical skills

skills that involve the ability to perform tasks in a specific discipline or department

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

objectives

specific, short-term statements detailing how to achieve the organization's goals

what qualities must standards possess to measure performance results?

standards must be specific, attainable, and measureable

middle management

the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

which leadership style is best?

the most effective leadership style depends on the people being led and the situation. the challenge of the future will be to empower self-managed teams

transparency

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

to perform a leadership function

you do NOT have to be a manager

contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

operational planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives the operational plan is the department manager's tool for setting daily and weekly standards and schedules to meet the company's tactical objectives

what does management look like today?

today, some managers tend to be more progressive. for ex: they emphasize teams and team building; the create drop-in centers, team spaces, and open work spaces. tend to guide, train, support, motivate, and coach employees rather than tell them what to do common roles more progressive managers play today: - team building - motivating - supporting - a cooperator - a team player

skills managers must have

conceptual human relations technical

reasons to account for changes in management

- younger - female - fewer educated at elite universities - know more about technology - emphasis on teamwork, motivation, cooperation

the control process

1) establish clear standards 2) monitor and record performance 3) compare results against standards 4) communicate results 5) if needed, take corrective action + rewards people for work well done ask "are standards realistic?"

free-rein leadership 3 - leadership style

leadership style that involves managers setting objectives and employees are free to do whatever is appropriate to accomplish those objectives - 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.

levels of management (top to bottom)

- top management: president, vice presidents, Chief Operating Officer (COO), Chief Financial Officer (CFO), Chief Executive Officer (CEO) - middle management: plant managers, division heads, branch managers - supervisory (first line) management: supervisors, foremen, department heads, section leaders - nonsupervisory: employees

primary functions of management

1) planning - anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives 2) organizing - designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objects 3) leading - creating a vision for the organization, and communicating, guiding, training, coaching and motivating others to achieve goals and objectives 4) controlling - means measuring whether what actually occurs meets the organization's goals - measuring results against corporate objectives - monitoring performance against standards - taking corrective action when necessary

brainstorming

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

organizing

a management function that includes 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 many organizations nowadays are designed around pleasing the customer at a profit. must remain flexible and adaptable

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats managers look at the Strengths and Weaknesses of the firm and the Opportunities and Threats facing it ex: - what is the situation now? - how can we get to our goal from here?

in the near future, organizations will demand a new kind of manager

a skilled communicator and team player as well as a planner, organizer, motivator, and leader

organization chart

a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom

vision

an encompassing explanation of why the organization exists and where it's trying to head more than a goal--gives the organization a sense of purpose and a set of values that unite workers in a common destiny

mission statement

an outline of the fundamental purposes of an organization should address: - the organization's self-concept - its philosophy - long term survival needs - customer needs - social responsibility - nature of the product or service

decision making

choosing among two or more alternatives seven D's of decision making: 1 - define the situation 2- describe and collect needed info 3 - develop alternatives 4 - develop agreement among those involved 5 - decide which alternative is best 6 - do what is indicated (begin implementation) 7 - determine whether the decision was a good one, and follow up

modern managers

emphasize teamwork and cooperation rather than discipline and order giving

Chief Executive Officer (CEO)

often also the president of the firm and is responsible for all top-level decisions

SWOT matrix

identifies potential strengths, weaknesses, opportunities, and threats organizations may consider in a SWOT analysis potential internal STRENGTHS - core competencies in key areas - an acknowledged market leader - well conceived functional area strategies - proven management - cost advantages - better advertising campaigns potential internal WEAKNESSES: - no clear strategic direction - obsolete facilities - subpar profitability - lack of managerial depth and talent - weak market image - too narrow a product line potential external OPPORTUNITIES - ability to serve additional customer groups - expand product lines - ability to transfer skills/technology to new products - falling trade barriers in attractive foreign markets - complacency among rival firms - ability to grow due to increases in market demand potential external THREATS: - entry of lower-cost foreign competitors - rising sales of substitute products - slower market growth - costly regulatory requirements - vulnerability to recession and business cycles - changing buyer needs and tastes

tactical planning

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

problem solving

the process of solving the everyday problems that occur. problem solving is less formal than decision making and usually calls for quicker action

management

the process used to accomplish organizational goals through planning, organizing, and controlling people and other organizational resources

types of planning

strategic: looks at the organization as a whole; long-range operational: focuses on specific supervisors, department managers, and individual employees; very short-term tactical: designed to implement the activities and objectives specified in the strategic plan; short-range

strategic planning

the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals ex: value menu ex (failure): blockbuster not successful in fighting of the introduction of new technology--making the company obsolete