intro to business chapter 7

DECISION MAKING

Decision Making -- Choosing among two or more alternatives.

RATIONAL DECISION-MAKING MODEL

Define the situation. Describe and collect needed information. Develop alternatives. Decide which alternative is best. Do what is indicated. Determine whether the decision was a good one and follow up.

SETTING GOALS and OBJECTIVES

Goals -- The broad, long-term accomplishments an organization wishes to attain. Objectives -- Specific, short-term statements detailing how to achieve the organization's goals.

DEFINING THE MISSION

Mission Statement -- Outlines the organization's fundamental purposes. It includes: the organization's self-concept its philosophy long-term survival needs customer needs social responsibility nature of the product or service

SHARING the VISION

More than a goal, it's a broad explanation of why the organization exists and where it's trying to go.

OPERATIONAL and CONTINGENCY PLANNING

Operational Planning -- The process of setting work standards and schedules necessary to implement the company's tactical objectives. Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don't work out.

PROBLEM SOLVING

Problem Solving -- The process of solving the everyday problems that occur; less formal than decision making and needs quicker action. Problem-solving techniques include brainstorming and PMI -- Listing all the pluses for a solution in one column, all the minuses in another and the implications in a third.

STRATEGIC and TACTICAL PLANNING

Strategic Planning -- Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them. Tactical Planning -- The process of developing detailed, short-term statements about what is to be done, who is to do it and how.

WHAT IS MANAGEMENT?

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

MANAGEMENT LEVELS

Top Management -- The highest level, consists of the president and other key company executives who develop strategic plans. Middle Management -- Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling. Supervisory Management -- Those directly responsible for supervising workers and evaluating daily performance.

PLANNING ANSWERS FUNDAMENTAL QUESTIONS

What is the situation now? SWOT Analysis -- Analyzes the organization's Strengths, Weaknesses, Opportunities and Threats. How can we get to our goal from here? Strategic planning Tactical planning Operational planning Contingency planning

TODAY'S MANAGERS

Younger and more progressive. Growing numbers of women. Fewer from elite universities. Emphasis is on teams and team building. Managers need to be skilled communicators and team players.