MGMT 300 Study Set
Advantages of planning
- Helps managers become future-oriented - Enhances decision coordination - Emphasizes organizational objectives - Helps ensure sustainability of the firm
Steps in the Planning Process
- Step 1 - State Organizational Objectives Managers begin the planning process with a clear statement and understanding of the organization's objectives - Step 2 - List Alternative Ways of Reaching Objectives Managers need to list as many alternatives as possible for reaching the firm's objectives - Step 3 - Develop Premises on Which to Base Each Alternative Managers need to identify the premises and assumptions upon which the alternatives are based - Step 4 - Choose the Best Alternative for Reaching Objectives Managers determine which alternative best accomplishes an organizational objective -Step 5 - Develop Plans to Pursue the Chosen Alternative Managers begin their strategic/long-range and tactical/short-range plans based on the chosen alternative - Step 6 - Put the Plans into Action Managers implement the plan and evaluate the results of the planning process
Disadvantages of MBO
- Time-consuming - Increased paperwork
disadvantages of planning
- can take up too much managerial time -managers must balance organizing influencing and controlling
What is involved with the organizing function of management
-Assigning the tasks developed -creating ways to put the plans to action -being flexible to meet challenges
Nominal Group technique
-Each group member rights down ideas -Each member presents ideas -The Entire group discuss ideas together -Secret ballot after discussion - Idea with most votes is chosen
Advantages of management by objectives
-Emphasizes what should be done to achieve org goals -Secures employee commitment to org goals
List and describe the different types of strategic business units (SBUs) in the BCB Growth-Share Matrix.
-Single Business or collection of related business -Has its own competitors -Has a manager who is accountable for its ops -Is an area that can be independently planned within the org
Paradox of Choice
-Too many alternatives leading to less effective decision making -Likely because too many alternatives lead to decreased motivation to make a decision
what is involved with the planning function of management
-choosing tasks to attaining org goals -indicating when they should be performed -concerned with org success in the long and short run
what is involved in the controlling function
-gather info that measures performance in the org -compare present performance to establish standards -determine whether org should be modified to meet standards
Types of organizational resources
-money -raw materials -people -capital resources
what is involved in the leading function
-motivating -taking care of peope in the org -guiding org members in appropriate directions
management efficiency
-proportion of total org resources that contribute to productivity during manufacturing process
Seven Challenges to exceptional mgmt
-staying ahead of rivals -know of technology -diversity -globalization -ethical standards -sustainability -meaningfulness
advantage/disadvantage of consensus
Advantages o More people focused on the decision o Employees are committed when involved with making it Disadvantages o Group can't come up with a unanimous decision o More time consuming
A disadvantage of planning is that it ___________________.
Can take up too much managerial time
A choice made between two or more alternatives is an _______
Decision
The more resources unused during the production process, the more _____________ the manager.
Efficient
what three aspects should be examined when conducting an environmental analysis
General Env Industry Env Internal Env
Which of the following is the fundamental purpose of planning?
Helping the organization reach its objectives
The first step in the decision making process is to ___________
Identify Existing problem
Which of the following is the ability to manage people during implementation?
Interacting Skills
Motivating employees to perform better so that they can achieve the organization's goal is known as ________________.
Leading
Commitment Principle
Managers should commit funds for planning only if they can anticipate, in the foreseeable future, a return on planning expenses as a result of long-range planning analysis
After setting worker objectives, the next step in a management by objectives program is to _____________.
Monitor Progress
Brainstorming technique
Negative feedback is forbidden until all members have presented alternatives that they perceive as valuable
___________ is the purpose for which - and the reason why - an organization exists.
Organizational Mission
____________ involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
Planning
Delphi Technique
Problem is identified Group is asked to come up with an anonymous response to serveys Response compiled and sent to all members Individuals asked to generate new solutions that has not yet been generated
Programmed Decision
Routine and repetitive, org develops specific ways to handle these decision
_____________ occurs when an individual makes a decision that is not optimal, but is good enough.
Satisficing
Two Factors of making a decision
Scope of decision and level of management
The proportion of the total management system that a decision will affect is called the:
Scope of the decision
Which business strategy is applied to cash cows?
Stability
__________, the fourth step of the strategic management process, is putting formulated strategies into action.
Strategy Implementation
Applying specialized knowledge and expertise to work-related techniques is a characteristic of ________________.
Technical Skills
Framing Bias
The tendency of decision-makers to be influenced by the way a situation is presented
bandwagon effect
The tendency to do (or believe) things because many other people do (or believe) the same. Related to groupthink and herd behavior.
While decisions arrived at through consensus are said to have an advantage in that they include the input of several individuals, which of the following is a disadvantage of consensus decisions?
Too much time
What managers do which type planning?
Top Level- Strategic Planning Middle Level- Tactical Planning Lower Level- Operational Planning
Standing Plan
Used over and over again because it focuses on organizational situations that occur repeatedly
confirmation bias
a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence
Technical Skills (lower mgmt)
abilities and knowldge to perform specific tasks
Human skills (middle mgmt)
ability to interact or work with people
Consensus
an agreement by all individuals involved to make the decision
University principal of management
basic ingredients of successful management are applicable to all organizations
Satisficing
choosing a "good enough" alternative
operational planning
determine how to accomplish specific tasks with available resources within the next 1-52 weeks
tactical planning
determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months
Strategic Planning
determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available
After identifying the alternative ways in which the organization can reach its objectives, a manager should ______________.
develop premises on which to base each alternative
Single Use plan
focuses on unique and rare situation
In order to increase the quality of their objectives, managers should _________.
let the people responsible for attaining the objectives have a voice in setting them
Industry Environment
level that contains components that normally have specific and immediate implication for managing the org -Porters 5 force model
Strategic PLanning
long range planning focuses on the org as a whole
bounded rationality
managers do not always have access to the required resources to make a rational decision
Non-programmed decisions
one-shot decision less structured and requires more time
Examples of standing plan
policies procedures rules
Planning
process of determine how the org can get to where it wants to go and what it will do to accomplish it
Strategic management
process of ensuring that the org processes and benefits fro the use of an appropriate strategy
Management
process of reaching org goals by working with and though and other org resources
Examples of a single use plan
programs budgets
__________ is the strategy through which management attempts to strengthen or protect the amount of business an SBU is generating
retrenchment
Organizational Objectives
target toward which the open management system is directed
Management skills
that ability to carry out the process of a task by working with and through people and other org resources
Management principles are considered to be universal because _______________________.
the principles of planning, organizing, influencing, and controlling are the same across organizations
unrealistic optimism
the tendency to believe that positive events are more likely to happen to yourself than to others and that negative events are more likely to happen to others than yourself
availability bias
use of info that is readily available to memory to make judgement
Management Effectiveness
using organizational resources to meet org goals
Conceptual Skills
view the entire org as a whole
General Environment
• An orgs external environment that has long-term implications for managing the org o Economical o Social o Political o Legal o Technology o International
What are three generic strategies that companies can use to increase the competitiveness of their org?
• Differentiation- different brand image • Cost Leadership- offering lowest product price • Focus- focusing on the target audience or specific customer
What are the steps in the rational decision-making process?
• Identify existing problem • List alternatives • Pick the best alternative • Implement chosen alternative • Gather problem-related feedback
What are skills that enhance the success of strategy implementation?
• Interacting skills: Ability to manage people • Allocating skills: ability to provide the org resources necessary • Monitoring skills: ability to use information to determine whether a problem has arisen that is blocking implementation • Organizing skills: ability to build a network of people who can help solve problems
what are some guidelines for setting objectives?
• Involve org members in setting objects • Be specific and clear • Tie objectives to actions • Pinpoint expected results • Set stretch goals • Specify time frame for goals • State objectives clearly and simply
Describe Management by objectives
• Org objectives reviewed • Worker objectives set • Progress monitored • Performance evaluated • Rewards given • MBO for next normal operating period begins
What are the four different strategy types that are based on the BCG Matrix?
• Stars- large share, high growth market • Question Marks- small share, high growth market • Cash Cows- large share of a market, slightly growing • Dogs- small share of the market, small portion of the market
Porter's Five Forces
• Suppliers • New Entrants • Buyers • Substitutes • Industry Competitors
Describe MGMT process
•Organizational Resources (Input) Production Process (output) Finished Products