Intro to Business Packet 2
Determinants of Organizational Structure
flexibility and growth in response to environmental and strategic changes most organizations change their structures on an almost continuous basis
Tactical Plan
generally short-term plan concerned with implementing specific aspects of a company's strategic plans
Long-Term Goals
goal set for an extended time, typically five years or more into the future
Setting Business Goals
goals are performance targets - the means by which organizations and their managers measure success or failure at every level
Intermediate Goals
goals set for a period of one to five years
Short-Term Goals
goals set for the very near future, less than 1 year
Work Teams
groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision
Conscientiousness
highly conscientious people tend to focus on relatively few tasks at one time, as a result they are likely to be organized, responsible and well-disciplined less conscientious people tend to pursue a wider array of tasks, so they are often more disorganized, irresponsible and less self-disciplined
Human Resources Managers
hire and train employees evaluate performance determine compensation
Contingency Planning
identifying aspects of a business or its environment that might entail changes in strategy identify in advance important aspects of a business or its market that might change identifies the ways in which a company will respond to changes
SWOT Analysis
indetification and analysis of organizational strengths and weaknesses and enviromental opportunities and threats as part of strategy formation s - strengths w - weaknesses o - opportunites t - threats
Divisional Structure
organization structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella
Mission Statements
organization's statement of how it will achieve its purpose in the environment in which it conducts its business a company's mission is usually easy to identify business sometimes have to rethink their strategies and missions as the competitive environment changes
Matrix Structure
organizational structure created by superimposing one from of structure onto another
Line Authority
organizational structure to which authority flows in a direct chain of command from the top of the company to the bottom
Crisis Management
organizations methods for dealing with emergencies
Meetings
person handling the meeting should specify a clear agenda, start on time, keep everyone focused on the agenda and end on time
Social Skills
person's ability to get along with others and establish positive relationships
Empathy
person's ability to understand and have compassion for how others are feeling
Individual Differences
personal attributes that vary from one person to another
Financial Managers
plan and oversee its accounting functions and financial resources
Strategic Plan
plan reflecting decisions about resources, allocations, company priorities and steps needed to meet strategic goals
Operation Plan
plan setting short-term targets for daily, weekly or monthly performance
Organizational Citizenship
positive behaviors that do not directly contribute to the bottom line
Intrapreneuring
process of creating and maintaining the innovation and flexibility of small-business environment within the confines of a large organization
Departmentalization
process of grouping jobs into logical units
Strategic Movement
process of helping an organization maintain an effective alignment with its enviroment the starting point in strategic management is setting goals
Delegation
process through which a manager allocates work to subordinates
Purposes of Goal Setting
provides direction and guidance for managers at all levels helps firms allocate resources helps define corporate culture helps managers asses performance
Self Awareness
refers to a person's capacity for understanding how she is feeling
Extraversion
refers to a person's comfort level with relationships extroverts are sociable, assertive and open to establishing new relationships introverts are much less sociable and assertive and more reluctant to begin new relationships
Corporate Strategy
strategy for determining a firm's overall attitude toward growth and the way it will manage its business or product lines the purpose is to determine what business or businesses a company will own and operate
Business (or Competitive) Strategy
strategy, at the business-unit or product-line level, focusing on improving a firm's competitive postion
Emotionality
the degree to which people tend to be positive or negative in their outlook and behaviors toward others positive - relatively poised, calm and resilient negative - more excitable, insecure, reactive and moody
The Person - Job Fit
the extent to which a person's contributions and the organization's inducements match one another
Emotional Intelligence - of Emotional Quotient (EQ)
the extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others and possess social skills
Employee Behavior
the pattern or actions by the members of an organization that directly or indirectly influences the organization's effectiveness
Job Specialization
the process of identifying the specific jobs that need to be done and designating the people who will perform them
Personality
the relatively stable set of psychological attributes that distinguish one person from another
Motivation
the set of forces that cause people to behave in certain ways
Corporate Culture
the shared experiences, stories, beliefs and norms that characterize an organization
Performance Behavior
the total set of work-related behaviors that the organization expects employees to display
Classical Theory of Motiation
theory holding that workers are motivated solely by money following this study, managers and researchers alike focused more attention on the importance of good human relations in motivating employee performance
Theory X
theory of motivation holding that people are naturally lazy and uncooperative
time is wasted when managers have to sort through spam and a variety of electronic folders, in-boxes and archives
Customer Departmentalization
to offer products and meet needs identifiable customer groups
Absenteeism
when an employee does not show up for work work does not get done someone must be hired to do it or others in the organization must pick up the slack results indirect costs to a business
Formulating Strategy
Creation of a broad program for defining and meeting an organization's goals
Strategy
broad set of organizational plans for implementing the decisions made for achieving organizational goals
Agreeableness
a person's ability to get along with others a person with a high level of agreeableness is gentle, cooperative, forgiving, understanding and good-natured in their dealings with others a person with a low level of agreeableness is often irritable, short-tempered, uncooperative, stubborn and generally antagonistic towards other people
Motivating Oneself
a person's ability to remain optimistic and to continue striving toward goals in the face of obstacles and failure
Attitudes
a person's beliefs and feelings about specific ideas, situations or people people's attitudes affect their behavior in organizations people in an organization form attitudes about many different things employees are likely to have attitudes about salary, promotion opportunities, bosses, benefits and so on especially important attitudes are job satisfaction and organizational commitment
Managing Emotions
a person's capacity to avoid letting anxiety, fear, anger and other emotions interfere with getting things accomplished
Conceptual skills
abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation recognize new market opportunities and threats analyze the probable outcomes of their decisions top managers depend mostly on conceptual skills, first-line managers least
Functional Departmentalization
according to group functions or activities
Staff Members
advisers and counselors who help line departments in making decisions but do not have the authority to make final decisions
Managing Change
analysis of the company's environment highlights extensive change as the most effective response to its problems; conflict and resistance top management begins to formulate a vision of a new company; it must include renewed focus on the activities of competitors and the needs of the customers the firm sets up new systems for appraising and compensating employees who enforce the firm's new values; the purpose is to five the new culture solid shape from within the firm
Turnover
annual percentage of an organization's workforce that leaces and must be replaced occurs when people quit their jobs for various reasons, including aspects of the job, the organization, the individual, the labor market and family influences an organization usually incurs cost as a result of turnover - lost productivity while seeking a replacement, training someone new, etc
International Organizational Structure
approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets
Geographic Departmentalization
areas of the country or the world served by a business
Delegation Process
assigning responsibility, the duty to perform an assigned task granting authority, the power to make the decisions necessary to complete the task creating accountability, the obligation employees have for the successful completion of the task
Staff Authority
authority based on expertise that usually involves counseling and advising line managers in areas such as law, accounting and human resources
Committee and Team Authority
authority, granted to committees or teams involved in a firm's daily operations
Tall Organizational Structure
characteristic of centralized companies with multiple layers of management
Flat Organizational Structure
characteristic of decentralized of management with relatively few layers of management
Discriminatory Harrassment
costs an organization both indirectly and (lowering morale, producing fear, driving off valuable employees) and directly (financial liability of the organization responds inappropriately) workplace violence is also a growing concern
Division
department that resembles a separate business in that it produces and markets its own products
Marketing Managers
development pricing promotion distribution of goods and services responsible for getting products from producers to consumers
Organization Chart
diagram depicting a company's structure and showing employees where they fit into its operation
Telephone Calls
experts suggest having an assistant screen all calls and setting aside a certain block of time each day to return the important ones
Information Managers
fairly new managerial position design and implement systems to gather, organize and distribute information
Job Satisfaction
morale, reflects the extent to which people have positive attitudes toward their jobs a satisfied employee tends to have low absenteeism, to be a good organizational citizen and to stay with the organization dissatisfied employees may be absent more often, may experience stress that disrupts co-workers, may be continually for another job
Decentralized Organization
most decision making authority is delegated to levels of management at points below the top
Centralized Organization
most decision making authority is held by upper level management
Paperwork
must learn to recognize those documents that require more attention
Informal Organization
network, unreleased to the firm's formal authority structure of everyday social interactions among company employees
Management and Technology skills
new forms of technology have added to a manager's ability to process information while simultaneously making it even more important to organize and interpret an ever-increasing wealth of input decisions are made quicker and more people are directly involved email, video-conferencing, and other forms of communication are breaking down beauracacies and the decision-making process is benefiting from group-building and teamwork
Span of Control
number of people supervised by one manager in a flat organization structure, the managers span of control is usually wide in a tall organization structure, the span of control tends to be narrower employees abilities and the supervisors managerial skills influence how wide or narrow the span of control should be, as do the similarity and simplicity of tasks and the extent to which they are interrelated
Goals
objective that a business hopes and plans for implementing the decisions made for achieving organizational goals
Functional Structure
organization structure in which authority is determined by the relationships between group functions and activities
Organizational Commitment
reflects an individual's identification with the organization and its mission a highly committed person will probably feel included in the organization and refer to it in personal terms, overlook minor sources of dissatisfaction and see them as a long-term member of the organization less committed person is more likely to see himself as an outsider and refer to the organization in impersonal terms, to express more dissatisfaction and to see himself as a temporary member of the organization
Openness
reflects how open or rigid a persons beliefs are people with high levels of openness are curious and willing to consider and accept new ideas people with low levels of openness tend to be less receptive to new ideas and less willing to change their minds
Chain of Command
reporting relationships within a company
Middle Manager
responsible for implementing the strategies and working toward the goals set by top managers
Top Manager
responsible for overall performance and effectiveness of the firm set general policies, formulate strategies and approve all significant decisions represent the company in dealings with other firms and with government depend mostly on conceptual skills
Operation Managers
responsible for production inventory quality control
First-Line Managers
responsible for supervising the work of employees ensure employees understand and are properly trained in company policies and procedures
Theft and Sabotage
result in direct financial costs
Profit Center
separate company unit responsible for its on coasts and profits
Psychological Contracts
set of expectations held by an employee concerning what he or she will contribute to an organization (referred to as contributions) and what the organization will in return the employee (referred to as inducements) a psychological contract is not written nor are all of the terms explicitly negotiated when an employer and employee perceive that the psychological contract is equitable, both will be satisfied with the relationship and will do what they can do to continue it
Three basic steps of Formulating Strategy
setting strategic goals analyzing the organization and environment matching the organization and its enviroment
Time Management skills
skills associated with the productive use of time
Decision-Making skills
skills in defining problems and selecting the best courses of action involves gathering facts identifying solutions evaluating alternatives implementing the chosen alternative periodically following up on and evaluating the effectiveness of the choice
Human Relations skills
skills in understanding and getting along with people
Technical skill
skills needed to perform specialized tasks
Global Management skills
special tools, techniques and skills needed to compete in a global environment need to understand foreign markets, cultural differences and the motives and practices of foreign rivals
Specialization and Growth
specialized jobs can be learned and filled more easily and performed more efficiently than non-specialized jobs jobs at lower levels of the organization are especially susceptible to becoming too narrowly defined and over specialized
Product Departmentalization
specific products or services being created
Organizational Structure
specification of the jobs to be done within an organization and the ways in which the relate to one another
Functional Strategy
strategy by which managers in specific are decide how best to achieve corporate goals through productively