Chapter 5 BUSA

What is the toughest part of problem solving?

Selecting the best option

Although the strategic planning process begins at the top of the organization, the planning process does not end there. The execution of the strategic plan involves managers at all levels and follows this order:

Set goals, create objectives, develop tactical plans, operationalize plans

tactical plans

Short-term plans that specify the activities and resources needed to implement a company's strategic plan.

technical skills

Skills needed to perform specific tasks.

decision-making skills

Skills used in defining a problem, analyzing possible solutions, and selecting the best outcome.

interpersonal skills

Skills used to get along with and motivate other people.

time-management skills

Skills used to manage time effectively.

conceptual skills

Skills used to reason abstractly and analyze complex situations.

matrix structure

Structure in which employees from various functional areas form teams to combine their skills in working on a specific project.

First-line managers Responsibilities

- Report to middle managers - Supervise employees - Coordinate activities - Are involved in day-to-day operations

Middle managers Responsibilities

- Report to top management - Oversee first-line managers - Develop and implement activities - Allocate resources

Top managers Responsibilities

- Set objectives - Scan environment - Plan and make decisions

How to solve a problem

1. Identify the problem you want to work on 2. Gather relevant data 3. Clarify the problem 4. Generate possible solutions 5. Select the best option 6. Implement your decision and monitor your choice

Five-step control process

1. Set standards by which performance will be measured 2. Measure performance. 3. Compare actual performance with the standard and identify any deviations from the standard 4. Determine the reasons for the deviations. 5. Take corrective action if needed.

centralization

Decision-making process in which most decision making is concentrated at the top.

decentralization

Decision-making process in which most decision making is spread throughout the organization.

operational plans

Detailed action steps to be taken by individuals or groups to implement tactical plans.

You are the manager of a Crocs shoe store in Honolulu. Business is booming so you hire a new worker to unload boxes of shoes and stack them in the storage room. You estimate that the worker can unload and place 25 boxes in an hour. After a few weeks, you do a time check on the worker and find that he can unload only 15 boxes an hour, 10 below what you expected. What should you do now?

Determine the reason for the 10-box deviation and take corrective action if needed

organization chart

Diagram representing the interrelationships of positions within an organization.

autocratic leadership style

Management style identified with managers who tend to make decisions without soliciting input from subordinates.

democratic leadership style

Management style used by managers who generally seek input from subordinates while retaining the authority to make the final decision.

laissez-faire leadership style

Management style used by those who follow a "hands-off" approach and provide relatively little direction to subordinates.

transactional leaders

Managers who exercise authority based on their rank in the organization and focus their attention on identifying mistakes.

transformational leaders

Managers who mentor and develop subordinates and stimulate them to look beyond personal interests to those of the group.

span of control

Number of people reporting to a particular manager.

organizational structure

Organizational arrangement of jobs in an organization that's most appropriate for the company at a specific point in time.

product division

Organizational structure made up of divisions based on product lines.

customer division

Organizational structure that groups employees into customer-based business segments.

geographical division

Organizational structure that groups people into divisions based on location.

process division

Organizational structure that groups people into operating units based on various stages in the production process.

leadership style

Particular approach used by a manager to interact with and influence others.

reporting relationships

Patterns of formal communication among members of an organization.

Let's say you are a manager in a large organization. Which of the following best describes the functions you will perform?

Planning, organizing, directing, and controlling

restructuring

Process of altering an existing organizational structure to become more competitive under changing conditions.

delegation

Process of entrusting work to subordinates.

strategic planning

Process of establishing an overall plan or course of action for an organization.

departmentalization

Process of grouping specialized jobs into meaningful units.

contingency planning

Process of identifying courses of action to be taken in the event that a business is adversely affected by a change.

specialization

Process of organizing activities into clusters of related tasks that can be handled by specific individuals or groups.

management

Process of planning for, organizing, directing, and controlling a company's resources so that it can achieve its goals.

The vertical connecting lines in an organization chart show the firm's ________________________ which shows the authority relationships among people working at different levels of the organization (that is to say, they show who reports to whom).

chain of command

All managers need strong

communication, decision-making, and time-management skills

If you are coming up with creative solutions to complex, sometimes ambiguous problems, you are using your _________________skills.

conceptual

Top managers need _____________ skills

conceptual

When a manager measures results and compares the actual results with the planned results, the manager is performing the __________________ function.

controlling

You work on the "Peeps" production line at Just Born. Your boss is likely a ______________________ manager.

first-line

Let's say you are the chief executive officer (CEO) of Trimpers, an amusement park. Trimpers has only one location and provides only one service - amusement rides. You have three people reporting to you: the vice president of marketing, the vice president of finance, and the vice president of operations. Each of these three individuals has two people reporting to them. Your company's organization chart would most likely be drawn up using a:

functional structure

Midlevel managers need ____________ skills

interpersonal

Controlling

involves comparing actual to expected performance and taking corrective action when necessary.

Phil Knight, founder of Nike, earned a reputation as a ________________________leader by adopting a hands-off approach and providing very little direction to his subordinates.

laissez-faire

When the Chief Executive Officer (CEO) of Mary Kay, Inc. indicates that the company's purpose is "to enrich the lives of women and their families around the world," the CEO is quoting the company's:

mission statement

Planning

plan, organize, direct, and control resources to achieve specific goals.

standard

predetermined target for performance

1. Attending college is expensive. To cover your tuition and other costs, you work part-time as an assistant manager at the local one-screen movie theater. You have held this position for three years. Recently, you notice that the line of those buying tickets has been moving slowly. Since you just read about the five-step control process, you decide to use this approach to fix the "slow-line" problem. Your first step is to decide how many minutes each worker should take to service a ticket buyer. The figure you arrive at is called a(n)________________________.

standard

Lower level managers need ___________ skills

technical

Most likely you will be hired for your first job out of college based on your _______________ skills.

technical

Directing

the process of providing focus for employees and motivating them to achieve organizational goals.

So-called ___________________ leaders mentor and develop subordinates and provide them with challenging opportunities. They work one-to-one with subordinates to help them meet their professional and personal needs.

transformational

goals

Major accomplishments that a company wants to achieve over a long period of time.

organizing

Management process of allocating resources to achieve a company's plans.

directing

Management process that provides focus and direction to others and motivates them to achieve organizational goals.

crisis management

Action plans that outline steps to be taken by a company in case of a crisis.

SWOT analysis

Approach used to assess a company's fit with its environment by analyzing its strengths, weaknesses, opportunities, and threats.

chain of command

Authority and reporting relationships among people working at different levels of an organization.

Organizations face the risk of encountering crises that require immediate attention. Rather than wait until such a crisis occurs and then scramble to figure out what to do, many organizations practice crisis management. In spite of crisis management training, which company will be remembered for its chief executive officer's (CEO) poor job at crisis management?

BP (oil spill)

A plan enables a manager to take a business concept beyond the idea stage. Executing a plan includes all of the following steps EXCEPT:

Brainstorming alternative approaches to achieve your goals

functional organization

Form of business organization that groups together people who have comparable skills and perform similar tasks.

divisional organization

Form of organization that groups people into several smaller, self-contained units, or divisions, which are accountable for their own performance.

manager

Individual in an organization who is responsible for making a group of people more effective and efficient.

objectives

Intermediate-term performance targets that direct the activities of an organization toward the attainment of a goal.

Organizing

allocating resources (people, equipment, and money) to carry out the company's plans.

You work as a chef at an expensive Italian restaurant. The chef tends to make decisions without seeking input from the other chefs. He expects the chefs to take responsibility for performing the required tasks without undue explanation. Most of those working in the kitchen dislike working for the head chef who follows a(n) ___________________________leadership style.

autocratic

first-line managers

Those at the bottom of the management hierarchy who supervise employees and coordinate their activities.

top managers

Those at the top of the management hierarchy who are responsible for the health and performance of the organization.

middle managers

Those in the middle of the management hierarchy who report to top management and oversee the activities of first-line managers.

______________ leadership is effective in organizations that value team building and information sharing.

Transformational