Chapter 6
Steps in the decision making process
1. Recognize and define the decision situation. 2. Develop options. 3. Analyze options. 4. Select the best option. 5. Implement the decision. 6. Monitor the consequences.
6 Steps in the Decision Making Process
1. Recognize and define the decision situation. 2. Develop options. 3. Analyze Options. 4. Select the Best option. 5. Implement the Decision. 6. Monitor the consequences.
Management
A process designed to achieve an organizations objective by using its resources effectively and efficiently in a changing environment. (Effectively means having the intended result, efficiently means accomplishing the objectives with a minimum of resources).
Retail store example (pt 1)
A retailing store with a 5 year strategic plan to invest $5 billion in 500 new retail stores may develop 5 tactical plans (each covering one year) specifying: How much to spend to set up each new store? Where to locate? Where to open each new store?
Human Relations Skills
Ability to deal with people, both inside and outside the organization. Those who can relate, communicate well, understand the needs, and show true appreciation for others are more successful. Important in organizations that provide services, such as hospitals, airlines, and banks.
Human Relations Skills
Ability to deal with people, both inside and outside the organization. Those who can relate, communicate well, understand the needs, and show a true appreciation for others are more successful. Important in organizations that provide services, such as hospitals airlines and banks.
Analytical skills
Ability to identify relevant issues, recognize their importance, understand relationships between them and perceive underlying causes of a situation. Most important to the success of top level managers. Resolving ethical issues often requires analytical skills.
Analytical Skills
Ability to identify relevant issues, recognize their importance, understand relationships between them, and perceive underlying causes of a situation.
Conceptual skills
Ability to think in abstract terms and see how parts fit together to form the whole. Needed by most top-level managers. Evaluate where the company will be in the future.
Conceptual Skills
Ability to think in abstract terms and see how parts fit together to form the whole. Needed most by top level managers. Evaluate where the company will be in the future.
Agendas and Networking
Agenda: Calendar containing specific and vague items that cover short-term goals and long term objectives. Helps manager determine what must be done. Technology tools can help manage agendas. Networking: Building of relationships and sharing of information with colleagues who can help managers achieve the items on their agendas. Provide information and advice on diverse topics. Social media sites have increased ability to network.
Crisis management or contingency planning
An element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, and computer virus. 51% of companies have outdated disaster recovery and business continuity plans. Herbalife does businesses in 90 countries and contingency plans must often be made for fluctuating exchange rates.
Crisis Management or Contingency Planning
An element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus (51% of companies have outdated disaster recovery and business continuity plans. Herbalife does business in 90 countries, and contingency plans must often be made for fluctuating exchange rates).
Managing Automation and robots in the workplace
As digital technology and automation came to the forefront in business operations, many thought the managerial function would no longer be necessary - however, the opposite has proven to be true. Technical and leadership skills valued more highly among today's managers as their formal roles of overseeing employees on a production line have declined. These duties are now delegated to employees who oversee the operations of the machines on the production lines.
Levels of management
As the pyramid shape implies, there are generally more middle managers than top managers, and still more first-line managers
Leadership styles
Autocratic: Make all the decisions then tell employees what must be done and how to do it. Democratic: Involve employees in decisions. Free-rein: Let employees work without much interference; setting performance standards and letting employees find their own way to meet them.
Networking
Building of relationships and sharing of information with colleagues who can help managers achieve the items on their agendas. Provide information and advice on diverse topics. Social media sites have increased ability to network.
Agenda
Calendar containing specific and vague items that cover short-term goals and long-term objectives. Helps managers determine what must be done. Technology tools can help manager agendas.
Controlling
Controlling the organizations activities to keep it on course. The process of evaluating and correcting activities to keep the organization on course. Measuring performance, comparing performance with standards and objectives, identifying deviations from the standards, investigating the causes of deviations, and taking corrective action when necessary.
Managerial Roles
Decisional (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator), Informational (Monitor, Disseminator, Spokesperson), Interpersonal (Figure, Leader, Liaison).
Managerial roles
Decisional: Entrepreneur, disturbance handler, resource allocater, negotiator. Informational: Monitor, disseminator, spokesperson. Interpersonal: Figure, leader, liaison.
Production and Operations Manager
Develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace.
Authentic Leaders
Different from other types of leadership because it is not exclusive. Democratic and Free-rein leaders could qualify. Passionate about goals and mission of company, display corporate values in the workplace, from long-term relationships with stakeholders. Kim Jordan of New Belgium Brewing is an authentic leader.
Authentic Leadership:
Different from the other 3 leadership styles because it is not exclusive. Both democratic and free-rein leaders could qualify as authentic leaders. Passionate about goals and mission of company, display corporate values in the workplace, form long-term relationships with stakeholders. Kim Jordan of New Belgium Brewing is an authentic leader.
Directing
Directing employees' activities towards achievement of objectives. Motivating and leading employees to achieve organizational objectives. Telling employees what to do and when to do it using deadlines, then encourage them to do their work. Determining and administering rewards and recognition. Providing incentives but recognition and appreciation are often best motivators. Ask workers to contribute ideas for reducing costs, making equipment more efficient, improving customer service, or even developing new products.
Managers who have decided to eliminate a significant number of employees from the organization are engaging in _____.
Downsizing
Management is a process designed to achieve an organization's objectives by using its resources effectively and efficiently. Match the term to its definition. Efficiently Effectively having the intended result. accomplishing the objectives with a minimum resources.
Efficiently: accomplishing the objectives with a minimum resources. Effectively: having the intended result.
Acquiring Supplies
Ensuring that products are made available to customers. In global markets firms enlist hundreds of diverse suppliers.
Importance of Management
Every organization must acquire resources to effectively pursue objectives and coordinate use to turn out final goods and services.
The importance of management
Every organization must acquire resources to effectively pursue objectives and coordinate use to turn out final goods and services. Employees: Important in helping a firm attain its objectives Recruit, train, compensate, and provide benefits to foster loyalty. Acquiring Supplies: Ensuring that products are made available to customers. In global markets firms enlist hundreds of diverse suppliers. Financial resources: To pay for essential activities Owners, shareholders, banks, and other financial institutions.
Areas of management (pt 1)
Financial manager: Focus on obtaining the money needed for the successful operation of the organization and using that money in accordance with organization's goals. Production and Operation managers: Develop and administer activities involved in transforming resources into goods, services, and ideas ready for the marketplace. Human Resources manager: Handle the staffing function and deals with employees in a formalized manner.
Financial manager
Financial managers are responsible for obtaining the necessary funding for organizations to succeed both in the short term and in the long term. This financial manager of a city hedge fund analyzes data from financial charts.
Recognizing and defining the decision situation
First step in the decision making process. Situations may be positive or negative. Situations calling for small-scale decisions occur without warning. Large-scale decisions generally occur after some warning signs. Once a situation is recognized, management must define it.
Financial Manager
Focus on obtaining the money needed for the successful operation of the organization and using that money in accordance with organizational goals.
Selecting the best option, Implementing the decision
Fourth step in the decision making process is selecting the best option. Often a subjective procedure. Fifth step in the decision making process is implementing the decision. This step can be fairly simple, or very complex, depending on the nature of the decision. Prepare for unexpected consequences.
5 Rules of Successful Diversity Recruiting
Get everyone involved, showcase your diversity, work with diversity groups within your community, spend money, sell - sell - sell and measure your return on investment. A diverse workforce is better at making decisions regarding issues related to consumer diversity.
Five rules of successful Diversity Recruiting
Get everyone involved, showcase your diversity, work with diversity groups within your community, spend money, sell, sell, sell, and measure your return investment. A diverse workforce is better at making decisions regarding issues related to consumer diversity.
Human Resource Manager
Handle the staffing function and deals with employees in a formalized manner.
Staffing
Hiring people to carry out the work of the organization. Managerial duties Recruiting Determining what skills are needed for specific jobs Motivating and training employees Determining pay and benefits Preparing employees for higher-level jobs
Employees
Important in helping a firm attain its objectives. They recruit, train, compensate, and provide benefits to foster loyalty.
Democratic Leaders
Involve employees in decisions.
Successful Tips for Leadership
Leadership is the ability to influence employees at work toward organizational goals. Communicate objectives and expectations, gain the respect and trust of the stakeholders, develop shared values, acquire and share knowledge, empower employees to make decisions, be a role model for appropriate behavior, and provide rewards and take corrective action to achieve goals.
Seven tips for successful leadership
Leadership is the ability to influence employees to work toward organizational goals. Communicate objectives and expectations. Gain the respect and trust of stakeholders. Develop shared values. Acquire and share knowledge. Empower employees to make decisions. Be a role model for appropriate behavior. Provide rewards and take corrective action to achieve goals.
Free-rein leaders
Let employees work without much interference; setting performance standards and letting employees find their own way to meet them.
Autocratic Leaders
Make all decisions then tell employees what must be done and how to do it.
Administrative Manager
Manage an entire business or a major segment of a business; do not specialize in a particular function.
Which discipline is the process of planning, organizing, leading, and controlling people and organizational resources in order to accomplish the goals of the organization?
Management
Management in practice
Management is not a cut-and-dried process; there is no mathematical formula for managing a firm and achieving goals. Management expert, John P. Kotter, says manager's functions can be boiled down to 2 basic activities. Figuring out what to do despite uncertainty, great diversity, and an enormous amount of potentially relevant information. Getting things done through a large and diverse set of people despite having little direct control over most of them.
Management in Practice
Management not a cut-and-dried process; there is no mathematical formula for managing a firm and achieving goals. Management expert, John P. Kotter says manager's functions can be boiled down to two basic activities. 1. Figuring out what to do despite uncertainty, great diversity, and enormous amount of potentially relevant information. 2. Getting things done through a large and diverse set of people despite having little direct control over most of them.
Management and Managers
Management: A process designed to achieve an organizations objectives by using its resources effectively and efficiently in a changing environment. Effectively means having the intended result. Efficiently means accomplishing the objectives with a minimum of resources. Managers: Those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing and controlling the organization's activities to reach its objectives.
Areas of management (pt 2)
Marketing manager: Responsible for planning, pricing, and promoting products and making them available to customers through distribution. Information Technology (IT) manager: Responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks. Administrative manager: Manage an entire business or a major segment of a business; do not specialize in a particular function.
Directing
Motivating and leading employees to achieve organizational objectives. Telling employees what to do and when to do it using deadlines, then encourage them to do their work. Determining and administering rewards and recognition. Providing incentives but recognition and appreciation are often the best motivators. Ask workers to contribute ideas for reducing costs, make equipment more efficient, improving customer service, or even developing new products.
What three items are included in the staffing function of management?
Motivation and training recruiting and hiring compensation and benefits
Organizing
Organizing resources and activities to achieve the organizations objectives. The structure of resources and activities to accomplish objectives in an efficient and effective manner. Helps create synergy, establish lines of authority, improve communication, helps avoid duplication of resources, and improves competitiveness by speeding up decision making.
Select from the following the activities managers engage in so as to reach the organization's objectives. (Select four answers) Directing Organizing Financing Controlling Marketing Planning
Planning Organizing Directing Controlling
Planning
Planning activities to achieve the organizations objectives. Planning is the process of determining the organizations objectives and deciding how to accomplish them; the first function of management. (Mission is the statement of an organizations fundamental purpose and basic philosophy. Objectives are measurable statements on common issues such as profit, competitive advantage, efficiency, and growth. Goals are the results the company wants to achieve. Plans specify what should be done, by whom, where, when, and how.)
Planning
Planning is the process of determining the organization's objectives and deciding how to accomplish them; the first function of management. Mission is the statement of an organization's fundamental purpose and basic philosophy . Objectives are measurable statements on common issues such as profit, competitive advantage, efficiency and growth. Goals are the results the company wants to achieve. Plans specify what should be done, by whom, where, when, and how.
Management functions
Planning: Planning activities to achieve the organization's objectives. Organizing: Organizing resources and activities to achieve the organization's objectives. Staffing: Staffing the organization with qualified people. Directing: Directing employees' activities toward achievement of objectives. Controlling: Controlling the organization's activities to keep it on course.
Challenges of the Business World
Rapidly changing technology, increased scrutiny of individual and corporate ethic and social responsibility, impact of social media, changing nature of workforce, new laws and regulations, increased global competition, declining education standards, and making the best use of time.
Challenges of the business world
Rapidly changing technology, increased scrutiny of the individual and corporate ethics and social responsibility, impact of social media, changing nature of workforce, new laws and regulations, increased global competition, defining education standards, and making the best use of time.
Information Technology (IT) Manager
Responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks.
Marketing Manager
Responsible for planning, pricing, and promoting products and making them available to customers through distribution.
Developing options and analyzing options
Second step in the decision making process is developing options. A list of possible courses of action should include both standard and creative plans. Third step in the decision making process is analyzing options. Management must look at practicality and appropriateness of each option. Consider whether proposed option adequately addresses the situation.
Tactical Plans
Short range plans (one year or less) designed to implement the activities and objectives specified in the strategic plan. Keep the firm on course established in the strategic plan. An ever-changing market requires firms to develop short-run or tactical plan to deal with the changing environment.
Tactical plans
Short-range plans (one year or less) designed to implement the activities and objectives specified in the strategic plan. Keep the firm on course established in the strategic plan. An ever-changing market requires firms to develop short-run or tactical plan to deal with the changing environment.
Monitoring the consequences
Sixth step in the decision making process is monitoring the consequences. Has the implementation of the decision accomplished the desired result? If yes, then the decision was sound. If no, then more analysis is warranted.
Monster.com and staffing
Some companies choose to recruit people to hire through online job websites such as Monster.com. Monster.com is one of the world's largest employment websites. Using websites like monster.com falls under the staffing function of management.
Technical Expertise
Specialized knowledge and training needed to perform jobs related to particular areas of management. Needed most by first-line managers and least critical to top-level managers.
Staffing
Staffing the organization with qualified people. Hiring people to carry out the work of the organization. Managerial duties, recruiting, determining what skills are needed for specific jobs, motivating and training employees, determining pay and benefits, and preparing employees for higher-level jobs.
Retail store example (pt 2)
Tactical plans are designed to execute the overall strategic plan. They are easier to adjust or abandon if changes in the environment or the company's performance so warrant. Operational plans may specify the schedule for: Opening 1 new store Hiring and training new employees Obtaining new merchandise Opening for actual business
Technical Expertise
Technical Expertise- Specialized knowledge and training needed to perform jobs related to particular areas of management. Needed most by first-line managers and least critical to top-level managers.
Implementing the Decision
The Fifth step in the decision making process. This step can be fairly simple, or very complex, depending on the nature of the decision. Prepare for unexpected consequences.
Developing Options
The Second step in the decision making process. A list of possible courses of action should include both standard and creative plans.
Monitoring the Consequences
The Sixth Step in the decision making process. Has the implantation of the decision accomplished the desired result? If yes, then the decision was sound. If no, then more analysis is warranted.
Downsizing
The elimination of a significant number of employees from an organization. Production, sales and technical positions can be outsourced to countries with lower labor costs. Downsizing helps companies reduce costs quickly. This involves the loss of jobs and lowered morale for remaining employees. An effective manager will promote optimism and positive thinking while minimizing criticism and fault-finding.
Downsizing
The elimination of a significant number of employees from an organization. Production, sales and technical positions can be outsourced to countries with lower labor costs. Downsizing helps companies reduce costs quickly. This involves loss of jobs and lowered morale for remaining employees. An effective manager will promote optimism and positive thinking while minimizing criticism and fault-finding.
Recognizing and Defining the Decision Situation
The first step in decision making is recognizing and defining the situation. The situations may be positive or negative. Small-scale decisions occur without warning. Large scale decisions generally occur after some warning signs. Once a situation is recognized, management must define it.
Selecting The Best Option
The fourth step in the decision making process. Often a subjective procedure.
Top management
The president and other top executives of a business, such as the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operations Officer (COO), who have overall responsibility for the organization. In publically-owned corporations, CEO's boss is board of directors. Compensation committees work directors and CEOs to keep pay in line with performance. Workforce diversity is good for workers and for the bottom line.
Top Management
The president and other top executives of a business, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization. In publically-owned corporations, CEO's boss is board of directors. Compensation committees work directors and CEOs to keep pay in line with performance. Workforce diversity is good for workers and for the bottom line.
Controlling
The process of evaluating and correcting activities to keep the organization on course. Measuring performance Comparing performance with standards or objectives Identifying deviations from the standards
Organizing
The structuring of resources and activities to accomplish objectives in an efficient and effective manner. Helps create synergy Establishes lines of authority Improves communication Helps avoid duplication of resources Improves competitiveness by speeding up decision making.
Analyzing Options
Third step in the decision making process. Management must look at practicality and appropriateness of each option. Consider whether proposed option adequately addresses the situation.
Managers
Those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organizations activities to reach its objectives.
Middle managers
Those members of an organization responsible for the tactical planning that implements the general guidelines established by top management. Have more focused responsibilities and spend more time organizing than other managers. In business, plant managers, division managers and department managers make up middle management. The ranks of middle managers have been shrinking as more companies downsize to be more productive.
Middle Managers
Those members of an organization responsible for the tactical planning that implements the general guidelines established by top management. Having more focused responsibilities and spend more time organizing than other managers. In business, plant managers, division managers and department managers make up middle management. The ranks of middle managers have been shrinking as more companies downsize to be more productive.
Strategic Plans
Those plans that establish long-range objectives and overall strategy or course of action by which a firm fulfills its mission. Generally cover periods: Plans to add products Purchase companies Sell unprofitable segments of the business Issue stock Move into international markets
Strategic Plans
Those plans that establish long-range objectives and overall strategy or course of action by which a firm fulfills its mission. Generally, covers periods ranging from one year or longer. Plans to add projects, purchase companies, sell unprofitable segments of the business, issue stock, and move into international markets.
First-Line managers
Those who supervise both workers and the daily operations of an organization. Responsible for implementing plans established by middle management and directing workers' daily performance. Spend most of their time directing and controlling. Commonly called foreman, supervisor, and office service manager.
First Line Managers
Those who supervise both workers and the daily operations of an organization. Responsible for implementing plans established by middle management and directing workers' daily performance. Spend most of their time directing and controlling. Commonly called foreman, supervisor and office service manager.
Financial Resources
To pay for essential activities. Owners, shareholders, banks, and other financial institutions.
Leadership in teams
Today, decisions made by teams are becoming the norm. Effective way for encouraging employee empowerment. Decision making in teams is collective. Most effective teams are when all employees are encouraged to contribute their ideas and recommendations. Outspoken employees dominate the team and engage in group think, in which team members go with the majority rather than what they think is the right decision. Training employees how to listen to one another and provide relevant feedback helps prevent.
Operational plans
Very short-term plans that specify actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan. Apply to details in executing activities quickly.
Operational Plan
Very short-term plans that specify actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan. Apply to details in executing activities quickly.
Websites like LinkedIn are helping managers and employees network with one another to achieve their professional goals.
Employee Empowerment
When employees are provided with the ability to take on responsibilities and make decisions about their jobs Participative corporate culture is beneficial - employees feel they are taking an active role in the firm's success. Leaders must adopt systems that support employee's ability to provide input and feedback on the company. Managers should be trained to empower employees to make decisions even in challenging situations.
Employee Empowerment
When employees are provided with the ability to take on responsibilities and make decisions about their jobs. Participative corporate culture is beneficial - employees feel they are taking an active role in the firm's success. Leaders must adopt systems that support employee's ability to provide input and feedback on the company. Manager should be trained to empower employees to make decisions even in challenging situations.
_____ means having the intended results; _____ means accomplishing the objectives with a minimum of resources. (two blanks, two words)
effectively;efficiently
______ can be defined as a process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.
management
Sandra is a no-nonsense manager with excellent budgeting skills. On projects that Sandra manages, the team always comes in under budget. When forecasting costs for a plan, Sandra is extremely accurate. Sandra is skilled at managing which resource for her company?
money
