(3) management basics Flashcards
organizational decision making
the process thru which managers identify organizational problems and attempt to resolve them; identify the problem, generate solutions, evaluate/choose among solutions, implement the solution
risk
the possibility that a chosen action could lead to losses rather than the intended results
uncertainty
a condition which the decision maker must choose actions without complete knowledge of the consequences that will follow implementation
decision making types
rational model - suggests managers engage in completely rational decision processes, make optimal decisions, and hold/understand all info relevant to their decisions when they make them
non-rational model - suggests info-gathering and processing limitations make it hard for managers to make optimal decisions
non-rational models
bounded rationality - suggests manager’s ability to be rational in making decisions is limited by cognitive capacity and time constraints
satisficing model - managers seek alternatives only until they find one that looks satisfactory, than seeking the optimal decision
incremental model - managers make the smallest response possible that’ll reduce the problem to a tolerable level
garbage can model - managers behave in random pattern in making non-programmed decisions
complacency
a condition which individuals either don’t see the signs of danger/opportunity or ignore them
defensive avoidance
a condition which individuals either deny the importance of danger/opportunity or deny any responsibility for taking action
panic
a reaction which individuals become so upset they frantically seek a way to solve a problem
deciding to decide
a response which decision makers accept the challenge of deciding what to do abt a problem and follow an effective decision making process
the planning process
1) mission - organization’s purpose/reason to exist
2) goal - a future target/end result that it wishes to achieve
3) plan - actions planned to try to reach a goal
4) goal attainment
mission statement
a broad declaration of the basic, unique purpose of the operations that distinguish the organization from others of its type
types of goals
strategic goals - set by top management
tactical goals - often set by middle management for specific dept. and units
operational goals - set by lower management that address specific measurable outcomes required from lower level
management by objectives (MBO)
a process thru which specific goals are set collaboratively for the organization as a whole and every unit and individual within it; goals are then used as a basis for planning & managing organizational activities, assessing & rewarding contributions
MBO strengths and weaknesses
s: helps coordinate goals/plans, clarifies priorities and expectations, enables vertical & horizontal communication, fosters employee motivation
w: tends to weaken without strong commitment from top management, needs training of managers, can be misused as a punitive device, overemphasis of quantitative goals
strategy
an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage; large-scale action plans for interacting with the environment in order to achieve long-term goals
strategic management
full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns; a process thru which managers form and implement strategies optimizing strategic goal achievement, given available environment and internal conditions
strategic content
functional level - strategies for activities within organizations
business level - functional strategies to achieve competitive advantage by using core competencies in specific markets
corporate level - strategies to gain a competitive adv. by managing corporations’ business in various industries and markets
SWOT analysis
a method of analyzing organization’s competitive situation by assessing its strengths, weaknesses, environmental opportunities, and threats
Porter’s five forces model
analyzes the nature and intensity of competition in a given industry in terms of five major forces
hypercompetition
a state of rapidly escalating competition which competition makes aggressive moves that have the cumulative effect of creating continual disequilibrium and change in the industry
