Management 3303 - exam 2- ch. 5-8
Procedure
( or standard operating procedure ) is a standing plan that outlines the response to particular problems or circumstances
Porter's four competitive strategies
(also called four generic strategies) are (1) cost-leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation
Single- product strategy
a company makes and sells only one product within its market
Contingency Planning
also known as scenario planning and scenario analysis- is the creation of alternative hypothetical but equally likely future conditions
Predictive modeling problems
is a data-mining technique used to predict future behavior and anticipate the consequences of change
Stability strategy
is a grand strategy that involves little or no significant change.
Policy
s standing plan that outlines the general response to a designated problem or situation
Organizational Weaknesses
the drawbacks that hinder an organization
Common purpose
unifies employees or members ad gives everyone and understanding of the organization's reason for being
Escalation of commitment bias
whereby decision maker increase their commitment to a project despite negative information about it
Grand Strategy
which after an assessment of current organizational performance, then explains how the organization's mission is to be accomplished. Three common grand strategies are growth, stability, and defensive.
Consensus
which occurs when member are able to express their opinions and reach agreement to support the final decision
Enacted values
which present the values and norms actually exhibited in the organization
Project
a single-use plan of less scope and complexity than a program
Matrix Structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal.
Diagnosis
analyzing the underlying causes
Single-use plan
are plans developed for activities that are not likely to be repeated in the future
Standing Plan
are plans developed for activities that occurs repeatedly over a period of time
Rites and Rituals
are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations' life
strategic positioning
attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company
Mechanistic Organization
authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
Organic Organization
authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
Strategic control
consist in monitoring the execution of strategy and making adjustments , if necessary
Mission Statement
expresses the purpose of the organization
Planning/ Control Cycle
1-make the plan, 1- carry out the plan, 3-control the direction by comparing results with the plan 4- control the direction by in two ways- namely, a) by corresponding deviations in the plan being, carried out, or b) by improving future plans
Business Plan
a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success?
Modular Structure
a firm assembles product chunks, or modules, provided by outside contracts
strategy
a large-scale action plan that sets the direction for an organization
Deciding to decide
a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps
Defensive Avoidance
a manager cant find a food solution and follows by (a) procrastinating, (b) passing the buck, or (c)denying the risk of any negative consequences
Relaxed avoidance
a manager decides to take no action in the belief that there will be no great negative consequences
Panic
a manager is so frantic to get rid of the problem that he or she cant deal with the situation realiscally
Relaxed changed
a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk
Objective
a specific commitment to achieve a measurable result within a stated period of time.
Rule
a standing plan that designates specific required action
Rational model of decision making
also called the classical model, explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests
Goal
also know as an objective: a specific commitment to achieve a measurable result within a stated period of time.
SWOT analysis
also known as a situational analysis- which is a search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization
DIvision of labor
also known as work specialization, is the arrangement of having discrete parts of a task done by different people
Espoused values
are the explicitly stated values and norms preferred by an organization
Fit perspective
assumes that an organization's culture must align, or fit, with its business or strategic context.
Adaptive perspective
assumes that the most effective cultures help organizations anticipate and to environmental changes
Strength perspective
assumes that the strength of a corporate culture is related to a firm's long term financial performance
Environmental Scanning
careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans
Action Plan
defines the course of action needed to achieve the stated goal
Organizational Threats
environmental factors that hinder and organization's achieving a competitive advantage
Organizational Opportunities
environmental factors that the organization may exploit for competitive advantage
Defenders
expert at producing and selling narrowly defined products or services
Non-rational models of decision making
explain how manager make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions
Vision Statement
expresses what the organization should become, where it wants to go strategically
Prospectors
focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen
Geographic divisions
group activities around defined regional locations
Product divisions
group activities around similar products or services
Organizational life Cycle
has a natural sequence of stages: birth, youth, midlife, and maturity
Market culture
has a strong external focus and values stability and control
Adhocracy culture
has an external focus and values flexibility
Clan Culture
has an internal focus and values flexibility rather than stability and control
Hierarchy culture
has an internal focus and values stability and control over flexibility
Simple structure
has authority centralized in as single person, a flat hierarchy , few rules, and low work specialization
Staff personnel
have authority functions: they provide advice, recommendations, and research to line managers
Line managers
have authority to make decisions and usually have people reporting to the,
Centralized Authority
important decisions are made by higher-level managers
Decentralized authority
important decisions are made by middle-level and supervisor- level managers
Means-end Chain
in the chain of management (operational, tactical, strategic) the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends.
Unity of command
in which an employee should report to no more than one manager
Related diversification scenario analysis
in which an organization under one ownership operates separate business that are related to one another
Incremental model
in which managers take small short-term steps to alleviate a problem
Organization chart
is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations
Decision
is a choice made from among available alternatives
Organizational Structure
is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals
Management by Objectives (MBO)
is a four-step process in which (1) managers and employees jointly set objectives or the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results
Growth Strategy
is a grand strategy that involves expansion- as in sales revenues, market share number of employees, or number of customers of (nonprofit) clients served.
Decision tree
is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal
Delphi technique
is a group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion
Trend analysis
is a hypothetical extension of a past series of events into the future
BCG Matrix
is a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market
Story
is a narrative based on true events, which repeated- and sometimes embellished upon- to emphasize a particular value
Hero
is a person whose accomplishments embody the values of the organization
Strategic management
is a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals
Program
is a single-use plan encompassing a range of projects or activities
Organization
is a system of consciously coordinated activities or forces of two or more people
Brainstorming
is a technique use to help groups generate multiple ideas and alternatives for solving problems
Forecast
is a vision or projection of the future
Symbol
is an object, act, quality, or event that conveys meaning to others
Intuition
is making a choice without the use of conscious thought or logical inference
SMART goal
is one that is Specific, Measurable, Attainable, Results-Oriented, and has a T-target
Scenario Planning
is the creation of alternative hypothetical but equally likely future conditions
Birth Stage
is the non bureaucratic stage, the stage in which the organization is created
Responsibility
is the obligation you have to perform the tasks assigned to you
Delegation
is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
strategy formulation
is the process of choosing among different strategies and altering them to best fit the organization's need
Decision making
is the process of identifying and choosing alternative courses of action
DIfferentiation
is the tendency of the parts of an organization to disperse and fragment
Integration
is the tendency of the parts of an organization to draw together to achieve a common purpose
Risk propensity
is the willingness to gamble of gaining an increased payoff
Cost- leadership strategy
is to keep the cost, and hence prices, of a product or service below those of competitors and to target a wide market
Cost-focus strategy
is to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market
Focused-differentiation Strategy
is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.
DIfferentiation Strategy
is to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market
Operating Plan
is typically designed for a 1-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flows, and market share.
Confirmation bias
is when people seek information to support their point of view and discount data that do not.
Mission
its purpose or reason for being
Analyzers
let other organizations take the risks of product development and marketing and then imitate ( or perhaps slightly improve on) what seems to work best.
Vision
long-term goal describing what an organization wants to become
Reactors
make adjustments only when finally forced to by environmental pressures
Accountability
managers must report and justify work results to the managers above them
Competitive intelligence
means gaining information about one's competitor's activities so that you can anticipate their moves and react approproately
Cascading
objectives down through the organization; that is, objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.
Groupthink
occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation
Goal displacement
occurs when the primary goal is subsumed by a secondary goal
DIversification
operating several businesses in order to spread the risk
Unrelated DIversification
operating several businesses under one ownership that are not related to one another
Defensive Strategy
or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.
Analytics
or business analytics, the term used for sophisticated forms of business data analysis
Hierarchy of authority
or chain of command, is a control mechanism for making sure the right people do the right time
Problems
or difficulties that inhibit the achievement of goals
Span of control (management)
or span of management, refers to the number of people reporting directly to a given manager.
Sunk-cost bias
or sunk-cost fallacy, is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it
Divisional Structure
people with diverse occupational specialities are put together in formal groups by similar products or services, customers or clients, or geographic regions.
Functional structure
people with similar occupational specialities are put together in formal groups
strategic implementation
putting strategic plans into effect
Authority
refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources
Decision-making style
reflects the combination of how an individual perceives and responds to information
Tactical Goals
set by and for middle managers and focus on the actions needed to achieve strategic goals
Strategic Goals
set by and for top management and focus on objectives for the organization as a whole
Planning
setting goals and deciding how to achieve them or is coping with uncertainty by formulating future courses of action to achieve specified results.
Opportunities
situations that present possibilities for exceeding, existing goals
Ethics officer
someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas
Electronic brainstorming
sometimes called brain-writing, in which members of a group come together over a computer network to generate idea and alternatives
Organizational culture
sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members
Heuristics
strategies that simplify the process of making decisions
Team-based structure
teams or work groups, either temporary or permanent, are used to improve horizontal relations and solve problems throughout the organization
Customer divisions
tend to group activities around common customers or clients
Porter's model for industry analysis
that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of supplies, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.
Satisficing model
that is, managers seek alternatives until they find one that is satisfactory, not optimal
Bounded rationality
the concept suggest that the ability of decision makers to be rational is limited by numerous constraints
Coordinated effort
the coordination of individual efforts into a group or organization-wide
Synergy
the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately
Midlife Stage
the organization becomes bureaucratic, a period of growth and expansion
Maturity Stage
the organization becomes very bureaucratic, large, and mechanistic
Network structure
the organization has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization
Youth Stage
the organization is in a per-bureaucratic stage, a stage of growth and expansion
Contingency design
the process of flitting the organization to its environment
Participative management (PM)
the process of involving employees in (a) setting goals, (b) making decision, (c) solving problems, and (d) making changes in the organization
Organizational Strengths
the skills and capabilities that give the organization special competences and competitive advantages in executing strategies in pursuit of its mission
Representativeness bias
the tendency to generalize from a small sample or a single event
Anchoring and adjustment bias
the tendency to make decisions based on and initial figure
Operational Planning
they determine how to accomplish specific tasks with available resources with in the next 1-57 weeks.
Tactical Planning
they determine what contributions their department or similar work units can make with their given resources during the next 6-24 months
Strategic Planning
they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available
Execution
they say, is not simply tactics, it is a central part of any company's strategy. It consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised.