Chapter 7

chief executive officer (CEO)

(often also the president of the firm) responsible for all top-level decisions and introducing change into an organization

knowledge management

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

strategic planning

-the process of determining the major goals of the organization -the policies and strategies for obtaining and using resources to achieve those goals

problem solving

-the process of solving the everyday problems that occur -less formal than decision making -usually calls for quicker action

operational planning

the process of setting work standards and schedules

participative (democratic) leadership

a leadership style that consists of managers and employees working together to make decisions

autocratic leadership

a leadership style that involves making managerial decisions without consulting others

free-rein leadership

a leadership style that involves: -managers setting objectives -employees being relatively free enough to do whatever it takes to accomplish those objectives

empowerment

giving employees -the authority to make decisions without consulting the manager -the responsibility of responding quickly to customer requests

enabling

giving workers the education and tools they need to make decisions

chief information officer (CIO)/chief knowledge officer (CKO)

responsible for getting the right information to their managers, so they can make correct decisions

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

objectives

specific, short-term statements, detailing how to achieve the organization's goals

rational decision-making model

the 7 steps managers follow to make logical, intelligent, and well-founded decisions

goals

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

transparency

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

tactical planning

the process of developing detailed, short-term statements about -what is to be done -who is to do it -how it is to be done

directing

the process of giving explicit instructions to workers -telling them what to do to meet the goals and objectives of the organization

contingency planning

the process of preparing alternatives that may be used if the primary plans don't achieve the organization's objectives

decision making

choosing among two/more alternatives

brainstorming

coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas

3 leadership styles

-autocratic -participative (democratic) -free-rein

leaders must:

-communicate a vision and get others to rally behind it -establish corporate values -promote corporate ethics -embrace change -stress accountability & responsibility

external customers

-dealers buy products to sell to others -ultimate customers/end users buy products for their own personal use

7 D's of decision making

-define the situation -describe and collect needed information -develop alternatives -develop an agreement for those involved -decide which alternative is best -do what is indicated (implement) -determine if the decision was a good one, and follow up

4 functions of management

-planning -organizing -leading -controlling

5 steps of controlling

1. establishing clear performance standards 2. monitoring & recording performance/results 3. comparing results against plans & standards 4. communicating results & deviations to employees 5. taking corrective action when needed/providing positive feedback for work well done

planning

a management function that includes: -anticipating trends -determining the best strategies to achieve organizational goals and objectives

leading

a management function that includes: -creating a vision for the organization -guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives

organizing

a management function that includes: -designing the structure of the organization -creating conditions & systems in which everyone/everything works together to achieve the organization's goals and objectives

staffing

a management function that includes: -hiring -motivating -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 -threats

vision

an explanation of why the organization exists and where it's trying to head

mission statement

an outline of the fundamental purposes of an organization

internal customers

individuals/units within the firm that receive services from other individuals/units

PMI

listing all the pluses for a solution in one column, minuses in another, and implications in the third

supervisory management

managers, directly responsible for -supervising workers -evaluating daily performance

chief operating officer (COO)

responsible for putting changes into effect tasks include: -structuring work -controlling operations -rewarding people (to ensure execution of leader's vision)

chief financial officer (CFO)

responsible for: -obtaining funds -planning budgets -collecting funds

human relations skills

skills that involve communication and motivation -enables managers to work through and with people

technical skills

skills that involve the ability to perform tasks in a specific discipline/department

top management

the highest level of management, consisting of the president and other key company executives who develop strategic plans

middle management

the level of management that includes: -general managers -division managers -branch & plant managers who are responsible for tactical planning and controlling

a mission statement should address:

the organization's: -self-concept -philosophy -long-term survival needs -social responsibility -nature of the product/service

management

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

problem-solving teams

two/more workers assigned to solve a specific problem