M Business Chapter 6 Questions

Explain why the American Hearth Association would need management, even though its goal is not profit related.

All organizations, whether profit or nonprofit organizations, are involved with the process of coordinating human, physical, and financial resources to achieve their objectives. Managers and employees or nonprofit organizations works together to achieve the objectives of their organizations.

Democratic Leaders

Allow their employees to get involved in decision making. They work well in organizations that allow people to participate in decisions, such as accounting firms, consulting agencies, middle- and upper- management areas, or corporations.

Why must a company have financial resources before it can use human and physical resources?

An organization must have financial resources in order to purchase human resources (hire people) and to purchase physical resources.

What are the three styles of leadership?

Autocratic Democratic Free-rein

Financial Management deal with what?

Deal primarily with the organizations financial resources

In what areas can managers specialize?

Financial Management Production and Operations Management Human Resource Management Marketing Management Information Technology Management Administration Management

Step three in the decision making process?

Involves analyzing the feasibility, appropriateness, and consequences of each option.

Step two in the decision making process?

Involves developing possible courses of action, both standard and creative ones.

Step one in the decision making process?

Involves recognizing and defining the situation

Step four in the decision making process?

Involves selecting the best option

What are Analytical Skills?

It is the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive their underlying causes.

What are Conceptual Skills?

It is the ability to think in abstract terms so that a manager can fit parts together to form a whole perspective of a business operation

What skills do managers need?

Leadership Technical Expertise Conceptual Skills Analytical Skills Human Relation Skills

Free-Rein Leaders:

Let their employees work without much interference. They work well in research and development firms where employees are highly educated and need freedom to conduct research projects.

Autocratic Leaders:

Make all the decisions and then tell employees what must be done and how to do it. They work best when dealing with lower-level employees who are poorly motivated and require more supervision to accomplish the task.

Why is management so important, and what is its purpose?

Management is the process of coordinating human, physical, and financial resources to achieve an organization's objectives. Management is important because people in an organization must work together to achieve some stated or implied objective. Management takes place in any organization calling for the coordination of resources.

Where do most Top Managers come from?

Many top executives come from financial management, production and operations management, or marketing management. Most top managers are actually administrative managers.

What do managers spend most of their time doing?

Most managers spend as much as 75% of their time working with others. They also spend a lot of time establishing and updating an agenda of goals, networking with their colleagues, and confronting the complex and difficult challenges in the business world today.

What is the focus of managers at the middle level?

Narrower focus under top managers. Who organize everything. Tactical plan. Pull down from Top and push down on the First line.

What is the focus of managers at the top level?

Overall responsibility for the organization. Strategic plan.

Name the five functions of management

Planning Organizing Staffing Directing Controlling

Step six in the decision making process?

Requires monitoring of the decisions consequences and seeing if you made the right choice

What is the Decision making process?

Six-step process that occurs at all management levels. The six steps should be viewed only as a broad framework to help people in their approaches to decision making.

What is the focus of managers at the first line level?

Supervise workers and day to day tasks. Implements the operational plan.

What is Leadership?

The ability to influence and motivate employees to work toward the achievement of organizational goals.

Step five in the decision making process?

The decision is implemented in this stage

What is Technical Expertise?

The specialized knowledge needed to perform a job, such as managing an auto production line.

What is the mathematical formula for perfect management?

There is NO mathematical formula for perfect management. Most managers decisions are largely subjective

Production and Operation Management deal with what?

They are concerned with the transformation of an organizations resources into goods, services, and ideas.

Marketing Managers deal with what?

They are responsible for planning, pricing, and promoting products and making them available to customers.

Information Technology Managers deal with what?

They deal primarily with establishing, maintaining, and controlling computer networks.

Human Resources Managers deal with what?

They deal with employees in a formalized manner as related to hiring, training, and benefits.

Administrative Managers specialize in what?

They do not specialize in any particular area but manage an entire business or major segment of a business.

What do Human Relation Skills involve?

They involve dealing with people both inside and outside the organization

Identify the three levels of management

Top Management (president/ CEO) Middle Management (plant manager) First-Line Management (supervisor)