BADM ch 6

Identify the various areas of management specialization, and describe the responsibilities of each

A financial manager is primarily responsible for an organization's financial resources. An operations manager manages the systems that convert resources into goods and services. A marketing manager is responsible for facilitating the exchange of products between an organization and its customers or clients. A human resources manager is charged with managing an organization's human resources programs. An administrative manager (also called a general manager) is not associated with any specific functional area but provides overall administrative guidance and leadership.

Describe the four forms of organizational structure.

A line structure is a management system in which the chain of command goes directly from person to person throughout the organization. A line and staff structure not only utilizes the chain of command from a line structure but also provides line managers with specialists, called staff managers. The matrix structure combines vertical and horizontal lines of authority. In a network structure (sometimes called a virtual organization), administration is the primary function performed, and other functions such as engineering, production, marketing, and finance are contracted out to other organizations.

What is a plan? Differentiate between the major types of plans

A plan is an outline of the actions by which an organization intends to accomplish its goals and objectives. Resulting from the strategic planning process, an organization's strategic plan is its broadest plan, developed as a guide for major policy setting and decision making. A tactical plan is a smaller-scale plan developed to implement a strategy. Most tactical plans cover a one- to three-year period. An operational plan is designed to implement tactical plans. Operational plans are usually established for one year or less and deal with how to accomplish the organ-ization's specific objectives. A contingency plan outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective.

Describe the three levels of management.

A top manager is an upper-level executive who guides and controls an organization's overall fortunes. A middle manager implements the strategy and major policies developed by top management. A first-line manager coordinates and supervises the activities of operating employees. First-line managers spend most of their time working with and motivating their employees, answering questions, and solving day-to-day problems.

Describe the two spans of management.

A wide span of management exists when a manager has a larger number of subordinates. A narrow span exists when the manager has only a few subordinates.

What is the difference between a committee and a task force?

An ad hoc committee is created for a specific short-term purpose, such as reviewing the firm's employee benefits plan. Once its work is finished, the ad hoc committee disbands. A standing committee is a relatively permanent committee charged with performing a recurring task. A firm might establish a budget review committee, for example, to review departmental budget requests on an ongoing basis. Finally, a task force is a committee established to investigate a major problem or pending decision.

What are the advantages and disadvantages of using committees?

Committees offer some advantages over individual action. Their several members are able to bring information and knowledge to the task at hand. Furthermore, committees tend to make more accurate decisions and to transmit their results through the organization more effectively. However, committee deliberations take longer than individual actions. In addition, unnecessary compromise may take place within the committee, or the opposite may occur, as one person dominates (and thus negates) the committee process.

For each skill, provide two reasons why a successful manager should have that skill.

Conceptual skills aid the ability to think in abstract terms. They allow a manager to see the "big picture" and understand how the various parts of an organization or idea can fit together. Top-level managers especially need analytical skills to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems. Examples of interpersonal skills are the ability to relate to people, understand their needs and motives, and show genuine compassion. The better the manager's interpersonal skills, the more likely the manager will be able to lead and motivate employees. First-line managers (and, to a lesser extent, middle managers) need the technical skills relevant to the activities they manage. Although these managers may not perform the technical tasks themselves, they must be able to train subordinates, answer questions, and otherwise provide guidance and direction. Oral communication skills are used when a manager makes sales presentations, conducts interviews, and holds press conferences. Written communication skills are important because a manager's ability to prepare letters, e-mails, memos, sales reports, and other written documents may spell the difference between success and failure.

Describe the major components of a TQM program.

Customer satisfaction. Strengthening supplier partnerships. Continuous quality improvement.

Describe the major steps in the managerial decision-making process.

Decision making is the process of developing a set of possible alternative solutions and choosing one alternative from among that set. The first step, identifying the problem or opportunity, is essential to solving the problem. The second step, generating alternatives, requires that managers be open to fresh, innovative ideas as well as to more obvious answers. The third step, selecting an alternative, requires that a manager reach a final decision. The fourth step, implementing the solution, requires time, planning, and preparation of personnel.

Why does a manager need to evaluate the solution and look for problems after a solution has been implemented?

If the alternative that was chosen removes the difference between the actual condition and the desired condition, the decision is considered effective. If the problem still exists, managers may select one of the following choices: Decide to give the chosen alternative more time to work. Adopt a different alternative. Start the problem identification process all over again. Failure to evaluate decisions adequately may have negative consequences.

What are the problems with the spans of managment

In a taller organization, administrative costs are higher because more managers are needed. Communication among levels may become distorted because information has to pass up and down through more people. Although flat organizations avoid these problems, their managers may perform more administrative duties simply because there are fewer managers. Wide spans of management also may require managers to spend considerably more time supervising and working with subordinates.

In what ways can informal groups affect a business?

Informal groups can be powerful forces in organizations. They can restrict output, or they can help managers through tight spots. They can cause disagreement and conflict, or they can help to boost morale and job satisfaction. They can show new people how to contribute to the organization, or they can help people to get away with substandard performance.

what are three ways to reduce the negative effects of specialization?

Job rotation, job enlargement, and job enrichment can reduce the negative effects of specialization.

What is management?

Management is the process of coordinating people and other resources to achieve the goals of an organization.

How do large and small organizations use organization charts differently?

Most smaller organizations find organization charts useful. They clarify positions and report relationships for everyone in the organization, and they help managers track growth and change in the organizational structure. However, many large organizations, such as ExxonMobil, Kellogg's, and Procter & Gamble, do not maintain complete, detailed charts for two reasons. First, it is difficult to chart even a few dozen positions accurately, much less the thousands that characterize larger firms. Second, larger organizations are almost always changing parts of their structure. An organization chart would be outdated before it was completed.

Why is planning sometimes referred to as the "first" management function?

Planning is often referred to as the "first" management function because all other management functions depend on planning

What kind of motivations do different employees have?

Some are interested primarily in earning as much money as they can. Others may be spurred on by opportunities to get promoted.

Which leadership style is the best?

The "best" leadership occurs when the leader's style matches the situation. Each leadership style can be effective in the right situation. The most effective style depends on interaction among employees, characteristics of the work situation, and the manager's personality.

Describe the major leadership styles.

The autocratic leader holds all authority and responsibility, with communication moving from top to bottom. At the other extreme is the participative leader, who shares authority with employees by consulting with them. Communication flows horizontally among group members. The entrepreneurial leader is task-oriented and driven, inspiring employees to follow. However, because this type of leader tends to take the initiative and not consult with others, they are often puzzled when employees may not be as enthusiastic.

What are the three steps of controlling?

The control function involves the following three steps: setting standards or specific goals to which performance can be compared; measuring the actual performance and comparing it with the standard; and taking corrective action as necessary.

What are the four kinds of resources?

The four kinds of resources are material, human, financial, and informational.

How is the grapevine used in a business organization?

The grapevine is the informal communications network within an organization. Information can be transmitted through the grapevine in any direction—up, down, diagonally, or horizontally across the organizational structure. Subordinates may pass information to their bosses, an executive may relay something to a maintenance worker, or there may be an exchange of information between people who work in totally unrelated departments. Managers should respond promptly and aggressively to inaccurate grapevine information to minimize the damage that such misinformation might do. Moreover, the grapevine can come in handy when managers are on the receiving end of important communications from the informal organization.

Differentiate decentralized organization and centralized organization.

The pattern of delegation throughout an organization determines the extent to which that organization is decentralized or centralized. In a decentralized organization, management consciously attempts to spread authority widely across various organization levels. A centralized organization, on the other hand, systematically works to concentrate authority at the upper levels.

Identify and describe the three steps in the delegation process.

The three steps involved in delegation are (1) assigning responsibility, which is the duty to perform the job or task; (2) granting authority, which is the power within the organization to accomplish the task or job; and (3) creating accountability, which is the obligation of a subordinate to accomplish an assigned task or job.

What are the key skills that successful managers should have?

To be successful, a manager must possess conceptual, analytic, interpersonal, technical, and communication skills.

Why does top management need to be strongly committed to TQM programs?

Total quality management (TQM) is a much broader concept than just controlling the quality of the product itself. Total quality management is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement.

Explain the four types of corporate cultures.

a. Networked culture is a relaxed and informal environment. There is a strong commitment and a feeling of loyalty to the organization, characterized by a base of trust and friendship among employees. b. In the mercenary culture, employees are very intense, focused, and determined to win. In addition to employees working to earn money, feelings of passion, energy, sense of purpose, and excitement for one's work play a large role in motivating an organization's employees. c. Fragmented culture suggests that employees do not necessarily become friends but have a high degree of autonomy, flexibility, and equality. Employees in this type of culture consider themselves as working "at" the organization, not "for" it. d. In the communal culture, the positive traits of the networked culture and the mercenary culture are combined. Traits such as friendship, commitment, high focus on performance, and high energy contribute to the organization resulting in an environment where success by anyone is celebrated by all.

What is corporate culture?

defined as the inner rites, rituals, heroes, and values of a firm. It can have a powerful influence on how its employees think and act, as well as determine how the public perceives the organization.

What are the four most common bases for departmentalization?

function, product, location, type of costumers

Identify the major considerations when organizing a business.

job design. Divide the work that is to be done by the entire organization into separate parts, and assign those parts to positions within the organization. b. Departmentalization. Group the various positions into manageable units or departments. c. Delegation. Distribute responsibility and authority within the organization. d. Span of management. Determine the number of subordinates who will report to each manager. e. Chain of command. Establish the organization's chain of command by designating the positions with direct authority and those that are support positions.

What are the positive and negative effects of specialization?

or a number of reasons, some job specialization is necessary in every organization because the "job" of most organizations is too large for one person to handle. When a worker has to learn one specific, highly specialized task, that individual should be able to learn it very efficiently. A worker repeating the same job does not lose time changing from operations, as the pin workers did when producing complete pins. The more specialized the job, the easier it is to design specialized equipment. And finally, the more specialized the job, the easier is the job training. The most significant drawback is the boredom and dissatisfaction employees may feel when repeating the same job. Bored employees may be absent from work frequently, may not put much effort into their work, and may even sabotage the company's efforts to produce quality products