Ch 7 - Business Foundations
______ is 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.
Leadership
participative (democratic) leadership
Leadership style that consists of managers and employees working together to make decisions.
autocratic leadership
Leadership style that involves making managerial decisions without consulting others.
free-rein leadership
Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
______________ leadership, also known as democratic leadership, is a leadership style that consists of managers and employees working together to make decisions.
Participative
______ is a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Planning
__________ is a key management function because the success of the other functions depends on it.
Planning
________________ is a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Planning
Which of the following tasks are associated with the organizing function of management?
Preparing an organizational chart
The process of analyzing an organization's strengths, weaknesses, opportunities, and threats is a(n) _______________ analysis.
SWOT
Which of the following tasks are associated with the planning function of management?
Setting organizational goals
human relations skills
Skills that involve communication and motivation; they enable managers to work through and with people.
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 relationships among its various parts.
objectives
Specific, short-term statements detailing how to achieve the organization's goals.
goals
The broad, long-term accomplishments an organization wishes to attain.
Technical skills are the ability to
perform tasks such as filing tax forms or assembling a keyboard
When top management is deciding the organization's major goals, policies, and the resources needed to get there, they are doing _____________ planning.
strategic
The definition of ______ ______ states: the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.
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 is called
strategic planning
The definition of _____________ management or first-line management states: managers who are directly responsible for supervising workers and evaluating their daily performance.
supervisory
A detailed, short-term plan about what is to be done, who is to do it, and how is a(n)______ plan.
tactical
Setting shorter-term, specific plans such as annual budgets and deciding on other activities necessary to meet strategic objectives are tasks associated with ______ planning.
tactical
The short-term statements about what is to be done, who will do it, and when are set by managers at lower levels of the organization are known as _____________ plans.
tactical
The definition of ____________ ___________ states: the process of developing detailed, short-term statements about what is to be done, who is to do it, and how.
tactical planning
Tactical planning is usually done by
teams of lower level managers lower level managers
The definition of states: skills that involve the ability to perform tasks in a specific discipline or department.
technical skills
Strategic planning is done by ___________ level management.
top
The definition of ______ ______ states: highest level of management, consisting of the president and other key company executives who develop strategic plans.
top management
The definition of _____________ ____________ states: highest level of management, consisting of the president and other key company executives who develop strategic plans.
top management
Who performs strategic planning?
top management
The presentation of an organization's facts and figures so its status is clear and apparent to all stakeholders is
transparency
Problem solving differs from decision making because problem solving
usually requires faster action is less formal
A ______ gives the organization a sense of purpose and a set of values that unite workers in a common destiny.
vision
A ______________ gives an organization a sense of purpose and a set of values that unite workers.
vision
Kendra is considering opening a new business. While writing 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 was Kendra performing?
A SWOT analysis
planning
A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
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.
staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives.
controlling
A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.
SWOT analysis
A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.
Why is planning a key management function?
Accomplishing the other functions depends heavily on having a good plan.
vision
An encompassing explanation of why the organization exists and where it is trying to go.
mission statement
An outline of the fundamental purposes of an organization.
How can we get to our goal from here?
Answering this question is often the most important part of planning. It takes four forms: strategic, tactical, operational, and contingency
______ leadership is a leadership style that involves making managerial decisions without consulting others.
Autocratic
_____________ leadership is a leadership style that involves making managerial decisions without consulting others.
Autocratic
The job title for the president of a company is usually:
CEO
The corporate officer tasked with obtaining funds, planning budgets, and collecting funds is the:
Chief Financial Officer
decision making
Choosing among two or more alternatives.
Which of the following tasks are associated with the leading function of management?
Clarifying policies to reach objectives Guiding and motivating employees
brainstorming
Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.
Leaders must therefore:
Communicate a vision and rally others around that vision. The leader should be openly sensitive to the concerns of followers, give them responsibility, and win their trust. A successful leader must influence the actions of others. David Calhoun took the reins at Boeing in the middle of a crisis over the company's handling of two crashes involving its 737 Max plane. He set a new commitment to full transparency at the company to regain confidence in Boeing with consumers, employees, and the Federal Aviation Administration.16 Establish corporate values. These include concern for employees, for customers, for the environment, and for the quality of the company's products. When companies set their business goals, they're defining the company's values as well. The number one trait that others look for in a leader is honesty. The second requirement is that the leader be forward looking. Page 183 Promote corporate ethics. Ethical behavior includes an unfailing demand for honesty and an insistence that everyone in the company gets treated fairly (see the Making Ethical Decisions box). That's why we stress ethical decision making throughout this text. Many businesspeople have made the news by giving away huge amounts to charity, thus setting a model of social concern for their employees and others. Embrace change. A leader's most important job may be to transform the way the company does business so that it's more effective (does things better) and more efficient (uses fewer resources to accomplish the same objectives). Stress accountability and responsibility. If there is anything we learned from the financial crisis in 2008 that involved failures of banking managers and other industry and government managers, it is that leaders need to be held accountable and need to feel responsible for their actions. A keyword that emerged from the financial crisis is transparency. Transparency is the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
The definition of ______ ______ states: skills that involve the ability to picture the organization as a whole and the relationship among its various parts.
Conceptual skills
leading
Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives in a timely manner.
external customers
Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.
The rational decision-making model is a series of steps managers often follow to make logical, intelligent, and well-founded decisions. Think of the steps as the six Ds of decision making:
Define the situation. Describe and collect needed information. Develop alternatives. Decide which alternative is best. Do what is indicated (begin implementation). Determine whether the decision was a good one, and follow up.
Controlling consists of five steps:
Establishing clear performance standards. This ties the planning function to the control function. Without clear standards, control is impossible. Monitoring and recording actual performance or results. Comparing results against plans and standards. Communicating results and deviations to the appropriate employees. Taking corrective action when needed and providing positive feedback for work well done.
______ customers include dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.
External
knowledge management
Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.
empowerment
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.
enabling
Giving workers the education and tools they need to make decisions.
top management
Highest level of management, consisting of the president and other key company executives who develop strategic plans.
Which of the following are among the three categories of skills managers must have?
Human relations skills Conceptual skills Technical skills
internal customers
Individuals and units within the firm that receive services from other individuals or units.
______ ______ is finding the right information, keeping information in a readily accessible place, and making the information known to everyone in the firm.
Knowledge management
______ is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way the organization does business in order to improve its effectiveness and efficiency.
Leading
______ is creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives.
Leading
PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
_______________ is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
Management
supervisory management
Managers who are directly responsible for supervising workers and evaluating their daily performance.
In fact, technology research firm Gartner suggests that AI algorithms could take over almost 70 percent of the routine work currently performed by managers within the next four years. For example, managers often spend a considerable amount of their work time performing tasks such as filling in forms, updating information, and approving workflows. Automating these tasks through AI would allow managers to focus on human strengths in areas such as strategic planning and decision making where machines lack an element of creativity.
Massachusetts Institute of Technology (MIT) economics professor David Autor believes that middle management positions are particularly vulnerable to the wave of AI implementation. He cites dire prospects specifically for managers in finance and inventory management where considerable time is spent translating data in order to make specific decisions. Other economists predict very dramatic changes in many upper-tier white-collar positions such as accounting and law because of machine advances. Even though some management positions face a rocky future due to AI advancements, most economists are still upbeat about the future of management. Humans still play a vital role in designing experiments and reviewing data traces in order to plan the evolution of the machines, and there is still a level of reasoning only human strategists can do. A manager's ability to think strategically and intuitively promises to be even more prized in this era of strategic human-machine partnerships.
Which of the following tasks are associated with the leading function of management?
Motivating employees to accomplish organization goals
A mission statement outlines the organization's fundamental purposes. It should address which of the following?
Nature of the product or service Customer needs Organization's self concept
______ leadership (also known as democratic leadership) is a leadership style that consists of managers and employees working together to make decisions.
Participative
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.
A mission statement should address the following:
The organization's self-concept. Its philosophy. Its long-term survival needs. Its customer needs. Its social responsibility. The nature of its product(s) or service(s).
transparency
The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
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.
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.
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.
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, leading, and controlling people and other organizational resources.
______ is the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
Transparency
______ is a broad explanation of why the organization exists and where it is trying to go.
Vision
The procedure you'll follow in planning your life and career is basically the same as the one businesses use. It answers several fundamental questions:
What is the situation now? How can we get to our goal from here?
The tasks managers perform to organize a firm to achieve its goals include:
allocating resources assigning tasks establishing procedures
When organizing a firm, top managers:
assign tasks allocate resources establish procedures
A successful leader must:
be trusted be sensitive to the concerns of followers give followers responsibility
When a team comes up with as many solutions to a problem as possible without censoring each others' ideas, it is
brainstorming
The ___________ _____________ _____________ is often also the president of the firm and is responsible for all top-level decisions.
chief executive officer (CEO)
Human relations skills are those associated with leadership such as
coaching training and development delegating
The tasks of the Chief Financial Officer include:
collecting funds planning budgets obtaining funds
To be effective, leaders must ___________ a vision and rally others around it.
communicate
Managers at the top of an organization need more ______ skills, while first line managers need more ______ skills.
conceptual; technical
The ________________ function measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when needed.
control
External customers include
dealers end users
Choosing between buying more inventory for her bike shop or hiring another employee requires Gail to make a(n)
decision
The definition of ______ ______ states: choosing among two or more alternatives.
decision making
Managers classified as middle management include
division managers general managers plant managers
The trend that gives employees as much freedom as possible to be self-directed and self-motivated is to ________________ them.
empower
When you give employees as much freedom as possible to become self-directed and self-motivated you ________________ them.
empower
Managers practice the art of getting things done using organizational resources such as:
equipment information workers
Supervisory managers are those directly responsible for
evaluating first line workers' daily performance workers' daily performance
The control process provides __________ that lets managers and workers adjust to deviations from plans and changes in the environment.
feedback
The tasks of knowledge managers include
finding the right information making information known to everyone in the organization keeping information in a readily accessible place
During strategic planning, top managers decide:
geographic areas in which to compete which customers to serve what products or services to sell
David's manager told him the company wants to achieve a 50 percent market share within 5 years. David's manager was relaying a company:
goal
The broad, long-term accomplishments an organization wishes to attain are its
goals
The definition of ____________ states: the broad, long-term accomplishments an organization wishes to attain.
goals or goal
Functions included in staffing an organization are
hiring recruiting retaining
The definition of __________ _____________ skills states: skills that involve communication and motivation; they enable managers to work through and with people.
human relations
Good ___________ motivate workers and create an environment for them to motivate themselves.
leaders
Guiding and motivating employees to work effectively to accomplish organizational goals and objectives, giving assignments, explaining routines, clarifying policies, and providing feedback on performance are all tasks associated with the ___________ function of management.
leading
Guiding and motivating employees to work effectively to accomplish organizational goals and objectives, giving assignments, explaining routines, clarifying policies, and providing feedback on performance are all tasks associated with the ______________ function of management.
leading
The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals is
leading
The process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources is
management
Employees who get things done using an organization's financial resources, equipment, and information are
managers
In organizations, ____________ strive to produce order and stability, whereas _____________ embrace and manage change.
managers; leaders
The definition of ______ ______ states: the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.
middle management
The definition of _____________ ____________ states: the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.
middle management
A ______ ______ is an outline of the fundamental purpose and basic philosophy of an organization.
mission statement
A(n) __________________ is a specific, short-term statement of how to achieve the organization's long-term ________________.
objective; goals
The definition of _______________ states: specific, short-term statements detailing how to achieve the organization's goals.
objectives
The definition of ______ ______ states: the process of setting work standards and schedules necessary to implement the company's tactical objectives.
operational planning
The definition of ___________ ___________ states: the process of setting work standards and schedules necessary to implement the company's tactical objectives.
operational planning
In order to accomplish their goals, managers must _____________ a firm by allocating resources and assigning tasks.
organize
Allocating resources, preparing a structure, recruiting, selecting, and placing employees where they will be most effective are tasks associated with the _________________ function of management.
organizing
The ___________ function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives.
organizing
The _________________ function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives.
organizing
The function of management that designs the structures and systems in which everyone works together to achieve the organization's goals and objectives is:
organizing
SWOT Analysis is a ______________ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats. Listen to the complete question Need help? Review these concept resources.
planning
The management function that anticipates trends, then determines strategies and tactics to achieve them is
planning
The definition of ______ ______ states: The process of solving the everyday problems that occur. It is less formal than decision making and usually calls for quicker action.
problem solving
The definition of ____________ _______________ states: The process of solving the everyday problems that occur. It is less formal than decision making and usually calls for quicker action.
problem solving
Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its
product or service offering self-concept
Leaders in traditional organizations who direct employees are likely to:
provide performance feedback explain routines give specific assignments
A mission statement should address an organization's
self-concept customer needs
Tactical planning deals with:
setting annual budgets and deciding on activities to meet strategic objectives
Directive leaders are often needed in organizations with workers who lack ________ and ____________ needed to do the job.
skill; experience
The part of the management function of organizing that includes hiring, motivating, and retaining the best people is
staffing
