Understanding Business Chapter 7

performance standards

Poppy is a sales manager for Shimmer Sisters Cosmetics. She told her team she expects each of them to increase their customer interactions by at least 5% in the next month.

Which task is associated with the organizing function of management?

Preparing an organizational chart

Which of the following tasks are associated with the planning function of management?

Setting organizational goals

Objectives

Specific, short-term statements detailing how to achieve the organizations goals

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

An organization that sets its vision hopes to achieve what two objectives?

giving the organization a sense of purpose giving the organization a set of values

What term defines the broad, long-term accomplishments an organization wishes to attain?

goals

Functions included in staffing an organization are

retaining hiring recruiting

control function of management

rewards people for work well done takes corrective action when necessary measures performance relative to the planned objectives and standards

The definition of ______ ______ states: managers who are directly responsible for supervising workers and evaluating their daily performance.

supervisory management

In order to motivate others and create the environment needed to motivate themselves, a leader must

- communicate a vision - embrace change - establish corporate values

control process steps

1. establish standards 2. measure performance 3. compare performance to standards 4. communicating results and deviations to employees and management 5. take corrective action, if necessary

Planning Setting organizational goals, developing strategies to reach these goals, determining resources needed, and setting precise standards are all tasks associated with the _________________ function of management.

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. is a key management function because the success of the other functions depends on it.

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 functuon that includes hiring, motivating, and retaining the best people available to accomplish company objectives

Leading

A means 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. The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals

SWOT analysis

A planning tool used to analyze an organizations strengths, weaknesses, opportunities, and threats.

Mission Statement

An outline of the fundamental purpose of the organization. should address the organization's self-concept, its philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service.

The is the job title of the person responsible for obtaining funds and planning budgets in an organization.

CFO

What three positions are considered as top management in an organization?

Chief Operating Officer Chief Financial Officer Chief Executive Officer

Decision Making

Choosing among two or more alternatives

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of idea's

External Customers

Dealers, who buy products to sell to others, and ultimate customers (or end user) who buy products for their own personal use

Leaders

Embrace and manage change Establishes corporate values and ethics

managers

Employees who get things done using an organization's financial resources, information, equipment

In most high-tech industries, the best way to respond quickly to rapid technological changes is to keep most authority and responsibility in the hands of a few key managers who provide precise, detailed directions to the workers.

False

Knowledge Management

Finding the right information, keeping that information in a readily accessible place, and making the information known to everyone in the firm

______ are long-term accomplishments an organization wishes to attain. ______ are short-term statements detailing how to achieve the organization's goals.

Goals; Objectives

Which of the following tasks are associated with the leading function of management?

Guiding and motivating employees Clarifying policies to reach objectives

Internal Customers

Individuals and units within the firm that receive services from other individuals or units

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 able to do whatever it takes to accomplish those objectives

Participative Leadership

Leadership styles that consist of managers and employees working together to make decisions

PMI (Pluses, Minuses and Implications)

Listing all the plusses for a solution in one column, all the minusses in another column, and the implications in a third column

Who performs tactical planning in an organization?

Managers or teams of managers at lower levels

First Line managers (Supervisory Management )

Managers who are directly responsible for supervising workers and evaluating their daily performance Ex: Supervisors, Foremen, Department heads, Section Leaders

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?

SWOT analyis

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.

Managers

Strive to produce order and stability Carries out the vision of the company

The definition of _________________ ________________states; skills that involve the ability to perform tasks in a specific discipline or department.

Technical Skills

Goals

The broad, long-term accomplishments an organization wishes to attain

Top Management

The highest level of management, consisting of the president and other key company executives who develop strategic plans. Ex: CEO, President, Vice-President

Tactical Planning

The identification of specific, short-range objectives by lower-level managers.

Middle Management

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactile planning and controlling. Ex: Plant managers, Division heads, Branch managers

Contingency Planning

The preparing of alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.

Transparency

The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

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.

Strategic Planning

The setting of major goals of the organization by top manager. the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

What are two characteristics that define goals?

They are broad. They are long-term.

Who performs strategic planning?

Top management

Management Levels

Top-level managers - highest level of management, consisting of the president and other key company executives who develop strategic plans. Ex: CEO, President, Vice-President Middle-level managers - includes general managers, division managers, and branch and plant managers who are responsible for tactile planning and controlling. Ex: Plant managers, Division heads, Branch managers Frontline managers (supervisory managers) - directly responsible for supervising workers and evaluating their daily performance Ex: Supervisors, Foremen, Department heads, Section Leaders

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 do not.

The tasks managers perform to organize a firm to achieve its goals include:

allocating resources establishing procedures assigning tasks

When organizing a firm, top managers:

assign tasks establish procedures allocate resources

Leadership Styles

autocratic - making managerial decisions without consulting others participative - involves managers and employees working together to make decisions free-rein - managers set objectives and employees are free to do what ever is appropriate to accomplish those objectives

The tasks of the Chief Financial Officer include:

collecting funds obtaining funds planning budgets

The ______ function of management measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when needed.

control

CFO

corporate officer tasked with obtaining funds, planning budgets, and collecting funds

Which term defines having to choose among two or more alternatives?

decision making

External customers

end users dealers

Leaders in traditional organizations who direct employees are likely to:

explain routines provide performance feedback give specific assignments

Which three managers would be classified as middle management?

general managers plant managers division managers

Vision

gives it a sense of purpose and a set of values that unites workers in a common destiny. is a broad explanation of why the organization exists and where it is trying to go.

Tactical plans that are detailed and short term state

how it will be done who is to do it what is to be done

Leadership

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 styles - auatocratic participative free-rein

knowledge managers

keeping information in a readily accessible place making information known to everyone in the organization finding the right information

Good ________________motivate workers and create an environment for them to motivate themselves.

leaders

in an organization,______ establish a vision and corporate values, while ______ carry out that vision.

leaders managers

Which level of management includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling?

middle management

A(n) _________ is a specific, short-term statement of how to achieve the organization's long-term ___________.

objective; goals

In order to accomplish their goals, managers must ________________ a firm by allocating resources and assigning tasks.

organize

A SWOT Analysis is a(n) Blank______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

organizing

What function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives?

organizing

Which three tasks are associated with the management function known as organizing?

places employees and resources where they will be effective in achieving the organization's goals designs the structure of the organization creates an organization chart showing lines of responsibility and authority

A SWOT Analysis is a(n) ______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

planning

Which management function is considered to be key because accomplishing the other functions depends heavily on it?

planning

Management Functions

planning - anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. EX: Setting organizational goals 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 EX: places employees and resources where they will be effective in achieving the organization's goals/designs the structure of the organization/creates an organization chart showing lines of responsibility and authority leading - creating a vision for the organization, communicating it to others, and motivating them to achieve goals EX:Guiding and motivating employees Clarifying policies to reach objectives controlling - 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 do not.

middle management

plant managers division managers general managers no supervisors

Conceptual skills are used by managers to

see the interrelationships among an organization's departments picture the organization as a whole delegate work fairly among workers

Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its

self-concept product or service offering

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

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 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 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

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

SWOT analysis?

to evaluate a company's ability to pursue market opportunities and defend against threats to evaluate the strengths and weaknesses of a company's resources analysis - to evaluate the strengths and weaknesses of a company's resources to evaluate a company's ability to pursue market opportunities and defend against threats

Human relations skills are those associated with leadership such as

training and development delegating coaching

A ______________ gives an organization a sense of purpose and a set of values that unite workers.

vision

During strategic planning, top managers decide:

what products or services to sell which customers to serve geographic areas in which to compete

In which two situations is autocratic leadership effective?

working with new, unskilled workers emergencies