BUS 110 Module 3 Ch. 7 Ch. 8 My

7. Of the following​ terms, which offers a graphical representation of a​ company's lines of communication and illustrates a formal strategy for achieving​ objectives? A. Groupthink B. Departmentalization C. Span of management D. Cohesiveness E. Organization chart

organization chart

6. __________ drives​ decision-making power downward to the lower sections of a company in order to influence increased receptiveness within in the company. A. Departmentalization B. Work specialization C. Centralization D. Decentralization E. Span of management

decentralization

QUIZ 1. Moving decision making as far down the organizational pyramid as possible by empowering employees to make decisions about particular situations is part of which managerial​ role? A. Analytical B. Forecasting C. Interpersonal D. Informational E. Decisional

decisional

3. ________ focuses on establishing strategies and objectives for a company and proposing the best ways to achieve them. A. Coaching B. Controlling C. Organizing D. Leading E. Planning

planning

10. Alyssa is an employee at​ Maddison, Inc. She works with a group of employees who are responsible for analyzing and determining various methods to enhance their​ company's quality,​ efficiency, and performance evaluations. Alyssa is part of a​ _____________. A. ​cross-functional team B. functional team C. ​problem-solving team D. ​self-managed team E. task force

​problem-solving team

Characteristics of effective teams

* 5 to 12 members * Includes members who perform task-specialist roles and socioemotional roles * Clear sense of purpose * Open and honest communication * Empathy and mutual understanding * Creative thinking * Accountability * Focus * Decision by consensus

The Planning Function

* Defining the mission and values - Strategic planning, memorialized in a Mission Statement, Vision Statement, and Values Statement * Assessing strengths, weaknesses, opportunities, and threats (SWOT) * Developing forecasts - Quantitative and qualitative forecasts * Analyzing the competition (SWOT) * Establishing goals and objectives - Goals should be specific, measurable, attainable, relevant, and time related (SMART) * Developing action plans

The Roles of Management

* Interpersonal roles - Providing leadership * Informational roles - Collecting and analyzing data * Decisional roles

Essential Management Skill

* Interpersonal skills - Communication skills are most important * Technical skills - Knowledge and ability to perform the tasks required in a particular job - Includes administrative skills * Conceptual skills - Ability to visualize how the pieces fit together * Decision-making skills - Recognize and define the problem or opportunity - Identify and develop options - Analyze the options - Select the best option - Implement the decision - Monitor the results

The Organizing Function

**The process of arranging resources to carry out an organization's plans** * Top managers - Overall responsibility for the organization (CEO, CFO, COO, etc.) - Make all *long range* plans * Middle Managers - Translate strategic goals and objectives into actions that allow the company to meet those targets * First line managers - Oversee the work of non-managerial employees - Put into action the plans developed at higher levels

The Leading Function

**The process of influencing and motivating people to work willingly and effectively toward common goals** * Developing an effective leadership style - Autocratic - Democratic - Laissez-faire * Coaching and mentoring - Translate strategic goals and objectives into actions that allow the company to meet those targets * Managing change - Identify everything that needs to change - Identify the forces acting for and against change - Choose the approach best suited to the situation - Reinforce changed behavior and monitor continued progress * Building a positive organizational culture

The Controlling Function

**The process of keeping the company's activities on track toward previously established goals** * The control cycle - Establish performance standards (benchmarking) - Measure performance against standards - Respond as needed * Crisis Management: maintaining control in extraordinary circumstances - Contingency plans

Managing an Unstructured Organization

**Unstructured organizations use digital technologies to rapidly form and reform work patterns that bear almost resemblance to classic structures Potential challenges of unstructured organizations * Complexity and control issues * Uncertainty * Loss of meaning and connection * Diminished loyalty * Career development * Management succession * Accountability and liability

Coaching and Mentoring

**coaching** - helping employees reach their highest potential by meeting with them, discussing problems that hinder their ability to work effectively, and offering suggestions and encouragement to overcome these problems. **Coaching** involves taking the time to meet with employees, discussing any problems that may hinder their ability to work effectively, and offering suggestions and encouragement to help them find their own solutions to work-related challenges. (Note that the term executive coaching usually refers to hiring an outside management expert to help senior managers.) **mentoring** - a process in which experienced managers guide less-experienced colleagues in nuances of office politics, serving as role models for appropriate business behavior and helping to negotiate the corporate structure * Similar to coaching but based on long-term relationships between senior and junior members of an organization. * Mentor usually experienced manager or employee who can help guide other managers/employees through corporate maze. * Mentors have deep knowledge of the business/can explain office politics, serve as role models for appropriate business behavior, provide valuable advice how to succeed w/in organization. * Mentoring programs = help newly promoted managers make transition to leadership roles & help women & minorities prepare for advancement.

The Control Cycle

A good way to understand managerial control is to envision the **control cycle, a four-step process** of (1) establishing performance standards based on the strategic plan, (2) measuring performance, (3) comparing performance to standards, and (4) responding as needed specific steps taken in any situation depend on industry, the company, the functional area w/in the company, the manager's leadership style some cases control cycle is a formal process w/ explicit measurements, reports, and other tools - others control is subtle

Ensuring Team Productivity

Advantages of working in teams * Higher quality decisions * Increased diversity of views * Increased commitment to solutions and changes * Lower levels of stress and destructive internal competition * Improved flexibility and responsiveness Disadvantages of working in teams * Inefficiency * Groupthink * Diminished individual motivation * Structural disruption * Excessive workloads

Designing an Effective Organization Structure

An Organization Chart provides a visible representation of how employees and tasks are grouped Identifying core competencies - What business functions should they focus on and what functions should they outsource Identifying job responsibilities - Work specialization - division of labor * Defining the chain of command - Span of management - The number of people a manager directly supervises * Centralization vs. decentralization - Decentralization pushes decision-making authority down to lower levels

Organizing the Workforce

Functional structures * Groups employees according to their skills and job requirements - Examples include Accounting, Engineering, R & D, etc. Divisional structures * Groups employees into business units - Examples include Product Divisions, Customer Divisions, Geographical Divisions Matrix structures * Employees from functional departments form teams - Often requires reporting to two bosses Network structures (virtual organization) * Connects a variety of partners and suppliers that perform selected tasks for headquarters organization

SWOT Analysis

Internal: Strengths - respected brand, financial resources, strong management, design patents Weaknesses-aging facilities, talent shortage, narrow customer base Positive/Helpful - Strengths/Opportunities Negative/Harmful - Weaknesses, Threats External: Opportunities - new products, attractive merger candidates, new markets in Asia Threats - liability lawsuits, pending regulations, shrinking demand for existing products

Learning Objective 1: Explain the importance of management, and identify the three vital management roles. management, managerial roles

SUMMARY: Although managers usually don't do the hands-on work in an organization, they create the environment and provide the resources that give employees the opportunities to excel in their work. Managerial responsibilities include creating the organizational framework, fostering a positive culture, setting expectations, and providing resources. The three vital managerial roles are interpersonal (interacting with others), informational (receiving and sharing information), and decisional (making decisions).

Learning Objective 4: Describe the leading function, leadership style, and organizational culture. leading, autocratic leaders, democratic leaders, participative management, laissez-faire leaders, employee empowerment, coaching, mentoring, organizational culture

SUMMARY: Leading is the art and science of influencing and motivating people to work toward common goals. Leaders can exhibit a range of styles in what they choose to focus on (strategic versus operational matters) and how they make things happen (forcing versus enabling). Three specific leadership styles are autocratic, democratic, and laissez-faire. Organizational culture is the set of underlying values, norms, and practices shared by members of an organization.

Essential Management Skills

Skills managers rely on to perform their functions and maintain a high level of quality in their organizations Interpersonal, technical, conceptual, decision making

Decision Point: SWOT Classification You suggest that the managers spend some time brainstorming on other strengths, weaknesses, opportunities, and threats impacting the business. They come up with the following list. Consider each of the factors identified by the management team and identify it as a strength, weakness, opportunity, or threat. Then drag the statement into the appropriate quadrant of the SWOT analysis.

Strengths high-quality clothing reputable customer service Opportunity possible expansion of product line to women's wear for younger customers strong website with good functionality Weaknesses Several stores need extensive remodeling due to age Threat Increasing online retail and e-commerce purchases by target market weak economy changing customer tastes high employee turnover in several stores increasing price pressure from suppliers

Decision Point: SWOT Analysis: Classifying Women's Discretionary Spending To get the senior management team thinking in the right direction in terms of the SWOT analysis, you continue your presentation with some examples. You hand out some data from a market research study that suggests that discretionary spending by women over the age of 45 (the company's target market) is 2.5 times higher than that of the average U.S. consumer. You ask them how they would characterize this information in terms of a SWOT analysis. What would be their correct response?

You chose opportunity. That was the best choice. This is an external factor (outside the control of the company), and it is favorable for the company, so it would be considered an opportunity.

You meet with the executive team and learn more about the company. When the company was founded over 40 years ago, it focused on providing quality, classic apparel and accessories for mature women. Over the years, the company made an effort to keep up with fashion trends and fads, but in the process lost much of its customer base, who wanted timeless, quality apparel. Sales slumped, and executives are stumped about what to do next. You suggest the company should go back to its roots and revamp its mission statement as a first step in its makeover. Which of the following mission statements would be most appropriate for the company?

To provide our customers with classically styled career and casual women's apparel and accessories and enjoyable shopping experiences that drive long-term loyalty and shareholder value. You chose providing classic apparel and enjoyable shopping experiences. That was the best choice. It is very specific regarding the company's customers, the services it provides, and what the company wants to achieve.

Organizing in Teams

What is a team? * Two or more people who work together to achieve a shared goal Types of teams * Problem solving teams * Self managed teams * Functional teams - command team * Cross-functional teams - horizontal team * Virtual teams - different geographical locations * Social networks and virtual communities

Decision Point: Classifying Plans You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans.

When asked to identify whether the objectives belonged in the company's strategic, tactical, or operational plan, you correctly placed most of the objectives. Good job! see list 3 out of 5 You suggest that the managers spend some time brainstorming on other strengths, weaknesses, opportunities, and threats impacting the business. They come up with the following list. Strengths High quality clothing​​ Reputable customer service Strong website with good functionality Weaknesses ​Several stores need extensive remodeling due to age Weak economy​ Opportunities Possible expansion of product line to women's wear for younger customers​ ​Increasing online retail and e-commerce purchases by target market Threats Changing customer tastes High employee turnover in several stores Increasing price pressure from suppliers it in the eText Decision Point: Classifying Plans Points 3 out of 5 You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans. Strategic Plannning Increase sales revenue from $8.2 million to $10 million.​​ ​Upgrade website to make it mobile-friendly and linked with company social media sites. Increase market share in Midwestern region by 20% within the next 5 years. Tactical Planning Hire temporary workers to staff expanded hours of operation during holiday season. Increase sellling space by 25% in the Meadowville store by completing an addition to the building by year-end. Develop and implement a company-wide orientation program for new hires.​ Maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales. Operational Planning Hire two new online customer service associates by the end of the month.​ Hire a new web designer. Perform physical inventory of stores. it in the eText Decision Point: Classifying Plans Points 3 out of 5 You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans. Strategic Plannning Increase sales revenue from $8.2 million to $10 million.​​ ​Upgrade website to make it mobile-friendly and linked with company social media sites. Increase market share in Midwestern region by 20% within the next 5 years. Tactical Planning Hire temporary workers to staff expanded hours of operation during holiday season. Increase sellling space by 25% in the Meadowville store by completing an addition to the building by year-end. Develop and implement a company-wide orientation program for new hires.​ Maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales. Operational Planning Hire two new online customer service associates by the end of the month.​ Hire a new web designer. Perform physical inventory of stores.

Decision Point: Setting Business Goals Once you've completed drafting a new mission statement for the client, you decide it's time to turn your attention to the company's long-term goals. You draft an email to the president of the company: To: Emerson Coates, President Subject: Strategic Plan Emerson, as discussed in our meeting last week, I'd like to review the company's long-term goals as soon as possible -- hopefully by Friday, so that I can have questions and comments ready for our next meeting. Please let me know if you have any questions. What should be one of the company's long-term goals?

You chose "Increase market share by 20% within the next 5 years." That was the best choice. Increasing market share by 20% within the next 5 years would be a long-term goal. Long-term goals relate to an extended period of time, typically 5 years or more.

Decision Point: Defining SWOT Analysis A more detailed analysis of the company's strategic plan leads you to believe that, although the company has done a relatively good job of identifying its strategic goals, its next logical step would be to analyze the organization and the environment by performing a SWOT analysis. At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers don't seem to quite understand what a SWOT analysis is.

You chose internal Strengths and Weaknesses as well as external Opportunities and Threats. That was the best choice. A SWOT analysis assesses an organization's internal strengths and weaknesses (the S and W) and environmental (or external) opportunities and threats (the O and T).

Decision Point: Contents of a Strategic Plan Along with a list of its long-term goals, Emerson Coates sends over the company's strategic plan, and you begin a detailed review. You quickly notice that there are some elements of the plan that really don't belong there. Which of the following elements will you choose to retain?

You chose the company's plan to expand its presence. That was the best choice. The strategic plan reflects decisions about resource allocations, company priorities, and the steps needed to meet strategic goals. The plan to expand the company's presence in the Western U.S. by opening 8 new stores is a strategic goal and should be retained in the strategic plan.

Decision Point: Contents of a Strategic Plan Along with a list of its long-term goals, Emerson Coates sends over the company's strategic plan, and you begin a detailed review of the plan. You quickly notice that there are some elements of the plan that really don't belong there. Which of the following elements will you choose to retain? Select an option from the choices below and click Submit. **The company's plan to grow sales to exceed $10 million per year within the next 5 years** The company's plan to replace store managers at underperforming stores The company's plan to increase efficiencies through the use of wireless technology

You chose the company's plan to grow sales. That was the best choice. The strategic plan reflects decisions about resource allocations, company priorities, and the steps needed to meet strategic goals. The plan to grow sales to exceed $10 million per year within the next 5 years is a strategic goal and should be retained in the strategic plan.

Decision Point: Getting to Know the Company Your first step as a turnaround consultant is to get more familiar with the company. What should you review first in order to understand more about the company?

You chose the mission statement. That was the best choice. The mission statement is a great place to start because an organization's mission statement explains how it will achieve its purpose in the environment in which it conducts business.

Decision Point: SWOT Analysis: Classifying Changes in Income and Spending To get the management team thinking in the right direction in terms of the SWOT analysis, you continue your presentation with some examples. You display a chart from the Bureau of Economic Analysis that shows that real disposable personal income and consumer spending have decreased each month for the past four months. You ask them how they would characterize this information in terms of a SWOT analysis. What would be their correct response? Select an option from the choices below and click Submit. Strength Threat Opportunity Weakness

You chose threat. That was the best choice. This is an external factor (outside the control of the company), and it is not favorable for the company, so it would be considered a threat.

goal

a broad, long-range target or aim

objective

a specific, short-range target or aim

managerial roles

all managerial roles that leaders must play can be grouped into three main categories: interpersonal informational decisional

management pyramid

an organizational structure divided into top, middle, and first-line managers

Developing an Effective Leadership Style

autocratic leaders - leaders who do not involve others in decision making leadership style viewed as finding the right balance between **what** the leader focuses on and **how** he or she makes things happen in the organization. 3 basic types of leadership styles: 1. **autocratic leaders** - control the decision-making process in their organizations often restricting the decision-making freedom of subordinates - gen. has bad reputation, when it's overused or used inappropriately, produce bad results or stunt organization's growth. times necessary to guide firm through challenging situations or bring uncooperative units in line * manager makes the decisions and issues directives down the chain of command, subordinates have little or no freedom to make decisions, deviate from plans, or provide contrary input. 2. **democratic leaders** - in contrast, delegate authority and involve employees in decision making. Also known as **collaborative leaders**, these managers invite and seek out input from anyone in the organization who can add insight to the decision-making process. i.e. Salesforce installed internal social networking application gave everyone in company chance to share info, CEO Mark Benioff began monitoring flow of insights/realized some of most valuable info about customers was coming from employees upper management didn't normally communicate w/ - opened annual strategic planning mtg. to entire company via social networking style often called **participative mangement** * leaders who delegate authority and involve employees in decision making * manager shares decision-making authority, seeking input and inviting subordinates to participate in a coordinated planning process; group can encourage a change of course if needed. participative management - a philosophy of allowing employees to take part in planning and decision making 3. **Laissez-faire** translated "hands-off" i.e. Danny Wegman take role of supporters/consultants encouraging employees' ideas, offering insights or opinions when asked. * leaders who leave most decisions up to employees, particularly decisions concerning day-to-day matters * when overall strategic direction//priorities in place, emphasize **employee empowerment** giving employees the power to make decisions that apply to their specific aspects of work. * manager acts as advisor and supporter, offering input when asked but generally letting subordinates chart and adjust their own course toward mtg. agreed-upon goals and objectives. **employee empowerment** granting decision-making and problem-solving authorities to employees so they can act w/o getting approval from management.

Developing Forecasts

by very nature, planning requires managers to make predictions about the future forecasting notoriously difficult/error-prone part of strategic planning managers need to predicts not only **WHAT** will or will not occur, but **WHEN** it will occur and **HOW** it will affect their business. **forecasting crucial to every company's success b/c it influences the decisions managers make regarding virtually every business activity, and misreading the future can damage or even destroy a company 2 categories: **quantitative forecasts** - typically based on historical data or tests and often involve complex statistical computations **qualitative forecasts** - which are based more on intuitive judgments neither foolproof - but both valuable tools often used together help managers fill in unknown variables that crop up in planning process i.e. managers can make statistical projections of next year's sales based on data from previous years while factoring in their judgment about impact of new competitors, changing regulations, or other external forces represents a paradox b/c future is simply not predictable technology, fashion, other influential forces often move forward in lurches and leaps difficult to predict extraordinary events - wars, economic meltdowns, natural disasters play havoc w/ best forecasts - single surprising development can trigger chain reaction of other developments might have been impossible to envision before. ***one key element in art of management is crafting plans solid enough to move company forward in strategically coherent direction while staying alert to changing conditions & being flexible enough to adapt quickly when things do change***

8. Which of the following represents a conduit for the flow of power in a company and connects various levels and groups of people within that​ company, thereby allowing for efficient function and separation of​ tasks? A. Span of management B. Decentralization C. Departmentalization D. Chain of command E. Network structure

chain of command

Analyzing the competition

competitive context company operates needs to be thoroughly understood and factored into strategic planning process. * performing SWOT analysis on each major competitors good first step ** identifying **their** strengths/weaknesses helps pinpoint **your** opportunities/threats competitive analysis should always keep customer's perspectives in mind you may believe you have best product, best reputation, best customer service, but only beliefs that matter are the target customer's conversely you might believe that competitor's less-expensive products inferior, but those products might well be good enough to meet customer's needs - meaning that the higher cost of your higher-quality products puts you at a disadvantage

strategic planning process

consists of six interrelated steps: * defining the organization's mission, vision, and values; * performing a SWOT analysis * developing forecasts * analyzing the competition * establishing goals and objectives * developing action plans

planning

establishing objectives and goals for an organization and determining the best ways to accomplish them

5. At ABC​ Manufacturing, Susan is directly responsible for ensuring that essential work is accomplished according to performance criteria. Susan can be described as a​ _____ at ABC. A. corporate officer B. top manager C. coach D. middle manager E. ​first-line manager

first-line manager

7.1 The Roles of Management are Explain the importance of management and identify the three vital management roles.

management is one of the most vital professions in the contemporary economy managers who effectively & ethically guide their companies contribute greatly to our standard of living and our economic security managers who fail, through poor planning, misguided decisions, or questionable ethics, can create havoc that extends far beyond the walls of their own companies. **Management is one of the most important functions in society, not just within the sphere of business**

7.2 The Planning Function

managers - engage in planning when they develop strategies, establish goals and objectives for the organization, translate those strategies & goals into action plans.

4. Assessment of an​ organization's strengths and weaknesses relative to the opportunities and threats it faces is included in which of the strategic planning​ processes? A. Defining the​ organization's mission,​ vision, and values B. Analyzing the competition C. Performing a SWOT analysis D. Developing action plans E. Developing forecasts

performing a SWOT analysis

Mentoring Moment: A Hierarchy of Plans The final step in formulating strategy is creating actual plans. These plans can be viewed on three levels: strategic, tactical, and operational. The levels constitute a hierarchy because implementing the plans are practical only when there is a logical flow from one level to the next. Strategic planning is an organization's process of defining its strategy -- or priorities -- and making decisions on resource allocations to address those priorities. Generally, strategic plans are created by top management with input from others in the organization. These are long-term plans, reaching out 5 or more years. Tactical planning is shorter-term planning for implementing specific aspects of the company's strategic plan. Think of it this way: The strategic plan addresses the question "What?", whereas tactical plans address the question "How?". These plans typically involve upper and middle management and outline what the company needs to accomplish within a 1-year timeframe. Operational plans are developed by mid-level and lower-level managers and describe the day-to-day operations of the company. Think of an operational plan as a roadmap to achieve the tactical goals. These plans establish short-term targets for daily, weekly, or monthly performance. Think you've got it?

see list

2. When developing goals and​ objectives, the goals and objectives should be​ SMART, which stands for​ __________. A. ​specific, meaningful,​ attainable, realistic, and timely B. ​strengths, measurable,​ attainable, relevant, and threats C. ​specific, measurable,​ attainable, relevant, and​ time-limited D. ​simple, meaningful,​ attainable, realistic, and timely E. ​simple, measurable,​ attainable, relevant, and​ time-limited

specific, measurable, attainable, relevant, and time-limited

Decision Point: SWOT Classification You suggest that the managers spend some time brainstorming on other strengths, weaknesses, opportunities, and threats impacting the business. They come up with the following list. Consider each of the factors identified by the management team and identify it as a strength, weakness, opportunity, or threat. Then drag the statement into the appropriate quadrant of the SWOT analysis. High quality clothing Reputable customer service Possible expansion of product line to women's wear for younger customers Several stores need extensive remodeling due to age Increasing online retail and e-commerce purchases by target market Weak economy Strong website with good functionality Changing customer tastes High employee turnover in several stores Increasing price pressure from suppliers

strength:

organizing - second major function of managers

the process of arranging resources to carry out the organization's plans to organize effectively, managers must think through all the activities that employees perform, as well as all the facilities and equipment employees need in order to complete those activities. managers give people the ability to work toward company goals by determining who will have the authority to make decisions, to perform or supervise activities, and to distribute resources.

management

the process of planning, organizing, leading, and controlling to meet organizational goals

management

the process of planning, organizing, leading, and controlling to meet organizational goals. the interrrelated tasks of planning, organizing, leading, and controlling in pursuit of organizational goals more than 1/3 people who take on new managerial positions fail w/in first 18 months

The Management Pyramid - Typical corporate hierarchy

top, middle, bottom Top managers - CEO, CTO, CFO, CIO, vice president Middle Managers - Controller, manager, director First-line managers - supervisor, department head

Strategic Plans

plans that establish the actions and the resource allocation required to accomplish strategic goals, they're usually defined for periods of two to five years and developed by top managers

The Controlling Function Learning Objective 5 Describe the controlling function, and explain the four steps in the control cycle.

**controlling** - the process of measuring progress against goals and objectives and correcting deviations if results are not as expected. **controlling** is the management function of keeping a company's activities on track toward previously established goals. Nature of control varies widely - directly intervening in a process to modify policies or systems in a way that enables employees to reach their objectives.

Crisis Management: Maintaining Control in Extraordinary Circumstances

**crisis management** - procedures and systems for minimizing the harm that might result from some unusually threatening situations. involves the decisions and actions needed to keep a company functioning smoothly and to tend to stakeholder needs during and after an emergency successful crisis management requires clear thinking and quick action while a crisis is unfolding, but smart companies don't wait until a crisis hits. **crisis management** plan needs to contain both **contingency plans** to help managers make important decisions in a limited time frame and **communication plans** to reach affected parties quickly and forestall rumors and false information. should clearly specify which people authorized to speak for company, provide contact information for key executives, include list of news outlets/social media tools used to disseminate information. in today's media-saturated environment, companies need begin communicating w/in minutes after crisis hits, reach those who need information, avoid appearance of stonewalling or confusion

Establishing Performance Standards

**first step of control cycle** - managers set **standards**the criteria against which performance will be measured. top managers set standards for the organization as whole = revenue and profitability targets for individual areas of responsibility - middle & first-line managers set standards based on overall organizational standards of performance **web analytics** software can deliver data about online traffic but might not answer crucial questions such as why website visitors abandon online shopping carts w/o buying anything **benchmarking** - collecting and comparing process and performance data from other companies - common approach to setting standards comparing company's key performance attributes w/ those of industry leaders one of most important performance variables that fall under managerial control is **quality** a measure of how closely a product, activities, or outcomes conforms to predetermined standards and customer expectations -

Building a Positive Organizational Culture

**organizational culture** (sometimes called corporate culture) a set of shared values and norms that support the management system and that guide management and employee behavior - set of underlying values, norms, and practices shared by members of an organization. Culture can be negative or positive force in an organization, and managers set the tone by establishing expectations, defining rules and policies that shape behavior, and acting as role models. Creating Ideal Culture in your company (You can't create a culture directly, but you can establish the behaviors and values that in turn do create a culture.) vision company values people community communication employee performance Positive cultures create an environment that encourages employees to make smart decisions for the good of the company and its customers. companies w/ legendary corporate cultures Wegmans Nordstrom Southwest Airlines employees routinely go extra mile to make sure customers treated well dysfunctional cultures can lead employees make decisions bad for customers and bad for company

Measuring Performance and Responding as Needed

**second step of control cycle** managers assess performance using both **quantitative (specific, numerical)** and **qualitative (subjective)** performance measures many companies use **balanced scorecard** a method of monitoring the performance from four perspectives: finances, operations, customer relationships, and the growth and development of employees and intellectual property. **third step** managers compare performance w/ the established standards. If level of performance falls short, next step is usually to take corrective action to improve performance. some cases managers might decide level of performance originally hoped for is not realistic

Learning Objective 2: Describe the planning function, and outline the strategic planning process. planning, strategic plans, mission statement, vision statement, values statement, goal, objective

SUMMARY: Planning is the process of developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans. Plans vary in their time frame and scope, from high-level, long-range strategic plans to lower-level, short-term tactical and operational plans. The strategic planning process consists of six interrelated steps: defining the organization's mission, vision, and values; performing a SWOT analysis; developing forecasts; analyzing the competition; establishing goals and objectives; and developing action plans.

Learning Objective 5: Describe the controlling function, and explain the four steps in the control cycle. controlling, standards, benchmarking, quality, balanced scorecard, crisis management

SUMMARY: The controlling function consists of the activities and decisions involved in keeping a company's activities on track toward previously established goals. The four steps in the control cycle are establishing performance standards based on the strategic plan, measuring performance, comparing performance to standards, and responding as needed.

Learning Objective 3: Describe the organizing function, and differentiate among top, middle, and first-line management. organizing, management pyramid, top managers, middle managers, first-line managers

SUMMARY: The organizing function involves arranging an organization's resources in the best way possible to help reach its goals and objectives. Top managers grapple with long-range, strategic issues and often must make decisions about events and conditions several years into the future. They also have important communication roles, representing the company to external stakeholders. Middle managers usually have responsibility over individual divisions or facilities and are charged with translating strategic plans into the tactical plans that will allow the company to reach its goals and objectives. First-line managers supervise nonmanagement employees; they have the shortest time horizons and greatest tactical perspective.

Fostering Teamwork

Team development * Forming * Storming * Norming * Performing * Adjourning Team Conflict * Constructive vs. destructive conflict * Causes of team conflict - Poor communication - Competition for scarce resources - Disagreement over responsibilities - Basic differences in values and personalities Solutions to team conflict * Proactive attention * Communication and openness * Research * Flexibility * Fair play * Alliance

Decision Point: Setting Business Goals Once you've completed drafting a new mission statement for the client, you decide it's time to turn your attention to the company's strategic management in terms of setting goals and formulating strategy. You draft an email to the president of the company. To: Emerson Coates, President Subject: Strategic Plan Emerson, as discussed in our meeting last week, I'd like to review the company's long-term goals as soon as possible -- hopefully by Friday, so that I can have questions and comments ready for our next meeting. Please let me know if you have any questions. What should be one of the company's long-term goals?

You chose "Open a minimum of 5 stores at outlet malls within the next 5 years." That was the best choice. Opening a minimum of 5 stores at outlet malls within the next 5 years would be a long-term goal. Long-term goals relate to an extended period of time, typically 5 years or more.

Decision Point: The Organization Chart You ask Janeen for a copy of the current organization chart, and she confesses that they don't have one. "Let me explain," says Janeen. "I started this business about 8 years ago as a day spa. We offered facials, therapeutic massages, pedicures, and manicures, so I had some aestheticians, massage therapists, and nail technicians, as well as a receptionist." While she is talking, she is putting up sticky notes on an easel in her office. You look at what she has posted on the easel. How would this organization be best described? Select an option from the choices below and click Submit. Flat organizational structure with a wide span of control Tall organizational structure with a narrow span of control Flat organizational structure with a narrow span of control Tall organizational structure with a wide span of contro

You chose a flat organizational structure with a narrow span of control. That was an OK choice. The spa does have a flat organizational structure, because there is only one layer of management in the company. However, all employees report directly to Janeen.

Decision Point: Defining SWOT Analysis A more detailed analysis of the company's strategic plan leads you to believe that, although the company has done a relatively good job of identifying its strategic goals, its next logical step would be to analyze the organization and the environment by performing a SWOT analysis. At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers don't seem to quite understand what a SWOT analysis is. Select an option from the choices below and click Submit. A SWOT analysis is an assessment of the organization and its environment. It examines a company's internal Situation and Workforce as well as its external Objectives and Tactics. A SWOT analysis is an assessment of the organization and its environment. It examines a company's external Strengths and Weaknesses as well as its internal Opportunities and Threats. A SWOT analysis is an assessment of the organization and its environment. It examines a company's external Situation and Weaknesses as well as its internal Organization and Tactics. A SWOT analysis is an assessment of the organization and its environment. It examines a company's internal Strengths and Weaknesses as well as its external Opportunities and Threats.

You chose internal Strengths and Weaknesses as well as external Opportunities and Threats. That was the best choice. A SWOT analysis assesses an organization's internal strengths and weaknesses (the S and W) and environmental (or external) opportunities and threats (the O and T).

Assessing Strengths, Weaknesses, Opportunities, and Threats

before establishing long-term goals, company needs to have clear assessment of strengths & weaknesses relative to opportunities & threats it faces **commonly referred to as SWOT- strengths, weaknesses, opportunities, and threats** Strengths - positive internal factors that contribute to a company's success - anything from team of expert employees to financial resources to unique technologies Weaknesses are negative internal factors that inhibit the company's success, such as obsolete facilities, inadequate financial resources to fund growth, or lack of managerial depth and talent. Identifying a firm's internal strengths and weaknesses helps management understand its current abilities so it can set proper goals next step identify external opportunities and threats that might significantly affect the firm's ability to attain desired goals Opportunities are positive situations that represent the possibility of generating new revenue shrewd managers/entrepreneurs recognize opportunities before others do then promptly act on their ideas Threats are negative forces that could inhibit a firm's ability to achieve its objectives, including such external factors as new competitors, new government regulations, economic contraction, changes in interest rates, disruptions in supply, technological advances that render products obsolete, theft of intellectual property, product liability lawsuits, and even the weather. depending on company & industry may be helpful to consider internal threats if they have potential to disrupt business

Managing Change

change presents major leadership challenge for one simple reason: **people don't like change, don't like being told need to change** may fear unknown may be unwilling to give up current habits, benefits may not trust motives of people advocating change, may have experienced too many change initiatives didn't yield promised results To improve chances of success when organization needs change steps: 1. **Identify everything that needs to change**. Changes can involve the structure of the organization, technologies and systems, or people's attitudes, beliefs, skills, or behaviors.23 One particular challenge for managers advocating change is understanding the ripple effect the change will have throughout the organization. 2. **Identify the forces acting for and against a change**. By understanding these forces, managers can work to amplify the forces that will facilitate the change and remove or diminish the negative forces. 3. **Choose the approach best suited to the situation**. Managers can institute change through a variety of techniques, including communication, education, participation in decision making, negotiation, visible support from top managers or other opinion leaders, or coercive use of authority (usually recommended only for crisis situations). When managers engage people in the change, asking for their input and advice so they can help design the changes, they'll be much more likely to embrace the new way of doing things.25 4. **Reinforce changed behavior and monitor continued progress**. Once a change has been made, managers need to reinforce new behaviors and make sure old behaviors don't creep back in.

Interpersonal Roles

management largely question of getting work accomplished through the efforts of other people so a manager must play a number of interpersonal roles, including providing leadership to employees, building relationships, and acting as a liaison between groups and individuals both inside and outside the company (i.e. suppliers, govt agencies, consumers, labor unions, and community leaders) effective managers excel at networking, fostering relationships w/ many people w/in their own companies & w/in the industries & communities where their companies do business. **number of connections a person has becomes an increasingly important asset the higher he or she rises in an organization.**

Decisional Roles

managers up/down organizational ladder face endless stream of decisions most routine - i.e. choosing job candidates hire or setting prices new products other decisions - may occur only once or twice in manager's career i.e. responding product-tampering crisis or threat of hostile takeover some decisions made after extensive information gathering/analysis others made on spot w/ little but judgment/intuition to guide manager's choice one of most significant changes occurring in business management recent yrs - effort to push decision making as far down organizational pyramid as possible - giving whichever employees face particular situation authority to make decisions about it this approach accelerates but improves work flow/customer service & frees up high-level managers to work on more strategic matters **Being able to move among these roles comfortably while performing the basic management functions is just one of many skills managers must have.** **Four functions - planning, organizing, leading, controlling**

**Interpersonal skills**

skills required to understand other people and to interact effectively with them **Communication is the most important and pervasive interpersonal skill that managers use**. Effective communication not only increases a manager's and an organization's productivity but also shapes the impressions made on colleagues, employees, supervisors, investors, and customers. In your role as a manager, communication allows you to perceive the needs of these stakeholders (your first step toward satisfying them), and it helps you respond to those needs as the workforce becomes more diverse—and as more companies recognize the value of embracing diversity in their workforces—managers need to adjust their interactions with others, communicating in a way that considers the different needs, backgrounds, experiences, and expectations of their workforces.

Decision Point: Classifying Plans You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans.

st -Increase sales revenue from $8.2 million to $10 million increase market share in Midwestern region by 20% within the next five years tac- increase selling space by 25% in the Meadowville store by completing an addition to the building by year-end maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales op - hire two new online customer service associates by the end of the month hire temporary workers to staff expanded hours of operation during holiday season upgrade website to make it mobile-friendly and linked with company social media sites hire a new web designer develop and implement a company-wide orientation program for new hires perform a physical inventory of stores

Establishing Goals and Objectives

terms used interchangeably, goal as a broad, long-range accomplishment that the organization wants to attain and to think of an objective as a specific, short-range target designed to help reach that goal Wegman's- **goal** might be to capture 15% of the grocery market in the mid-Atlantic region over next 5 yrs. and an **objective** in support of that goal might be to open four new stores in Virginia next 2 yrs. Business people often advised make their goals and objectives **SMART** as **specific, measurable, attainable, relevant, and time limited** "substantially increase our sales" is poorly worded statement b/c it doesn't define what **substantially** means or when should be measured. Acronym can be helpful reminder to set meaningful goals, but as w/ paradox of forecasting, important to use good judgment & be flexible too

Informational Roles

the higher up managers are the more they rely on subordinates to collect, analyze, and summarize information - AND the greater the risk that they will fall out of touch with what is happening on the "front lines" where the essential day-to-day work of the organization is performed. today's companies devised powerful and clever ways to collect & process information for managers **executive dashboard** - just like car dashboard - provides quick-read summaries of vital performance variables dashboard provides quick summary managers must figure out what need to know - when they need to know it as you progress higher up in organization you need to monitor more information sources but see fewer details from each one managers communicate info to employees, other managers, other stakeholders. form of information - technical and administrative information to motivational pep talks to strategic planning - every form of media, private conversations to video conferences connect across country to around the world increasing use social media internal/external communication changing nature manager's informational role past = communication often concentrated formal channels tended to flow one direction at time, i.e. manager down to his/her subordinates or from "the company" to customers w/ social media conversational model emerging - more people participate./communication more immediate/less formal i.e. Southwest Airlines Nuts About Southwest blog team of employee/manager bloggers from around company conduct what amounts to multiple ongoing conversations w/thousands Southwest customers **Smart use of social media helping managers learn more from employees/customers/communicate w/stakeholder groups more effectively**

The Leading Function Learning Objective 4 Describe the leading function, leadership style, and organizational culture. management is not leadership

the process of guiding and motivating people to work toward organizational goals Leading is the process of influencing and motivating people to work willingly and effectively toward common goals. Managers with good leadership skills have greater success in influencing the attitudes and actions of others and motivating employees to put forth their best performance. all managers have to be effective leaders to be successful, management and leadership **NOT** the same management - rational, intellectual, practical side of guiding an organization leadership = inspirational, visionary, emotional side **BOTH** use power, **BUT** management involves **position power** (stems from individual's position in organization) where leadership involves **personal power** (stems from a person's own unique attributes such as expertise or charisma) successful leaders tend to share many same traits no magical set of personal qualities automatically destines someone for leadership Good leaders possess balance of types of intelligence: **Cognitive intelligence** involves reasoning, problem solving, memorization, and other rational skills. Obviously, leaders need a sufficient degree of cognitive intelligence to understand and process the information required for planning and decision making in their jobs. **Emotional intelligence** is a measure of a person's awareness of and ability to manage his or her own emotions. People with high emotional intelligence recognize their own emotional states and the effect those emotions have on others, they are able to regulate their emotional responses in order to control or reduce disruptive impulses and moods, and they have a high degree of empathy (the ability to understand others' feelings). **Social intelligence** involves looking outward to understand the dynamics of social situations and the emotions of other people, in addition to your own.15 Socially adept managers have a knack for finding and building common ground with people of all kinds. Moreover, leaders, in a sense, "infect" their organizations with their own emotions, positive or negative. all 3 types of intelligence essential to building the competencies lead to success **studies suggest both leadership & life, emotional & social intelligence play far greater role in success than purely cognitive intelligence.

9. The number of employees a manager directly oversees is defined as​ ________. A. the span of management B. groupthink C. the chain of command D. cohesiveness E. a task force

the span of management

top managers

those at the highest level of the organization's management hierarchy, they are responsible for setting strategic goals, and they have the most power and responsibility int he organization upper-level managers, have the most power, take overall responsibility for an organization. incorporates corporate officers and usually next layer or two of management beneath them, depending on the size/structure of the company. term **executive** applies to top managers. typical job titles include the **C** level positions, i.e. chief marketing officer (CMO) and chief financial officer (CFO) and vice presidents (the largest corporations may have dozens of vice presidents overseeing various divisions or functions) **Top managers** - establish structure for organization as a whole, select the people who fill the upper-level positions. - make long-range plans - establish major policies - often represent the company to the media, the community, other stakeholders **2 significant ways top management differs from lower management tiers** 1. long time frames executives must work 2. magnitude of decisions they need to make given difficulty/importance of these strategic decisions, the ability to make tough judgment calls is highly valued in top executives

First-line managers

those at the lowest level of the management hierarchy, they supervise the operating employees and implement the plans set at the higher management levels ** oversee work of nonmanagerial employees ** put into action the plans developed at higher levels - supervisor, department head, office manager - types of employees these managers supervise vary widely - entry-level workers w/ limited experience and education to advanced experts in engineering, science, finance, other professional specialties like managers above them, first-line managers face challenges unique to their position in the hierarchy direct interface between **management** and employees, have most immediate responsibility for ensuring necessary work is done according to agreed-on performance standards. must deal w/ friction exists between employees/management supervisors usually involved in recruiting, hiring, training employees perform vital task making sure employees acquire skills need/adapt to organization's cultures

Middle managers

those in the middle of the management hierarchy, they develop plans to implement the goals of top managers and coordinate the work of first-line managers **middle management** term used disparagingly, giving impression middle managers are **bureaucrats** who clog up works w/o adding much value some highly regarded opinion leaders blame such managers for much that ails modern corporation. many companies **flattened** organizational structures by removing one or more layers of middle management ** middle managers play essential role translating strategic goals/objectives into actions that allow company to meet those targets. ** may not do day-to-day work, they're the ones who put the systems/resources in place so that front-line teams can work efficiently w/ coordinated purpose. ** provide vital coaching/mentoring for first-line managers making transition into management "It's the leaders in the middle who must communicate and execute strategy, solve problems, create efficiencies, and manage performance" - Steve Arneson leadership consultant Wharton prof Ethan Mollick - middle managers oversaw new game development greater impact on company performance than top managers who set strategy or developers who designed/created the games

Defining the Mission, Vision, and Values statements 1. mission 2. vision 3. values

to achieve any level of strategic clarity, planners first need to agree on basic principles that define the organization, such agreement can be articulated in three interrelated statements: 1- a mission statement is a brief expression of **WHY** the company exists - what the organization aims to accomplish for customers, investors, and other stakeholders i.e. medical device manufacturer Welch Allyn defines its mission as providing "superlative medical products, services and solutions which are used by healthcare professionals at the point of care in acute and primary settings all around the world. -- clearly defines the scope of company's activities & its priorities in serving its target customers. it eliminates activities the company could pursue such as consumer products but chooses not to 2. vision statement - brief expression of **WHAT** the company aspires to be. - i.e. global security company Northrop Grumman: "Our vision is to be the most trusted provider of systems and technologies that ensure the security and freedom of our nation and its allies" notice how statement differs in both content & tone from mission statement above **provides some focus (company wants to be the MOST TRUSTED provider, not largest or most technologically advanced) Also inspires employees w/ clear sense of purpose. **mission and vision are not universally agreed upon - some companies use terms interchangeably** 3. values statement identifies the principles that guide the company's decisions and behaviors and establish expectations for everyone in the organization - brief articulation of the principles that guide a company's decisions and behaviors i.e. in addition to such attributes as integrity, service, fun, and inclusiveness, Enterprise Holdings (parent company of Enterprise Rent-a-car, Alamo, National Car Rental) identifies hard work as one of its values ** mission, vision, values statements sometimes dismissed as vague "happy talk" that companies spend lots of time creating but never look again criticism sometimes deserved. ***If statements are*** ***1. crafted with the purpose of truly defining what the company stands for and 2. used in both strategic planning and the ongoing evaluation of the company's performance, they become essential parts of the company's "DNA"***

Developing Action Plans

w/ strategic goals/objective sin place, next step is develop plan to reach them. plans often organized in hierarchy just as company is. overall strategic plan might be supported at next level down by research & development plan, a manufacturing plan, and a marketing plan, describing how each functional area will help the company reach its strategic goals & objectives names/contents of **tactical plans** or **operational plans** vary widely by industry, company, and business function. some address actions required by particular department or functional area over recurring time frame i.e. quarter or year others address all the tasks involved in single project or event. **launch plan** for new product might cover period from several months or year before product is introduced to the public on through the launch date several months afterward such a plan identify all actions needed to coordinate launch of product, production ramp-up, promotional activities, sales training, physical distribution, every other task/resource allocation decision needed to get product off to successful start. **crafting solid plan & carrying it through to completion great ways to make name for yourself early in your career** = decide what needs done, coordinate resources, bring it in on schedule, on budget