Ch6 Flashcards
managers
the people who plan, organize, lead, and control the operations of an organization
management
the process of planning, organizing, leading, and controlling a business’s financial, physical, human, and information resources in order to achieve its goals
efficiency
achieving the great result with a given amount of input
effectiveness
achieving organizational goals
planning
the part of a manager’s job concerned with determining what a business needs to do and the best way to achieve it
strategic plans
plans that reflect decisions about resource allocations, company priorities, and steps needed to meet strategic goals
tactical plans
short-range plans concerned with implementing specific aspects of a company’s strategic plans
operational plans
plans setting short-term targets for daily, weekly, or monthly performance
organizing
the part of a manager’s job concerned with mobilizing the necessary resources to complete a specific task
leading
part of manager’s job concerned with guiding and motivating employees to meet the firm’s objectives
controlling
part of a manager’s job concerned with monitoring firm’s performance, and, if needed, acting to bring it in line with firm’s goals
four characteristics of the work of ceos by Mintzbeg
- work at an unrelenting pace
- activities were fragmented and brief, and in various areas
- preferred live action and emphasized work activities that are current
- attracted to verbal media
10 roles of a manager
- figurehead (interpersonal role)
- leader (interpersonal role)
- liaison (interpersonal role)
- monitor (informational role)
- disseminator (informational role
- spokesperson (informational role
- entrepreneur (decision-making role)
- disturbance handler (decision-making role)
- resource allocator (decision-making role)
- negotiator (decision-making role)
levels of management
top, middle, and first-line
top manager
managers responsible for a firm’s overall performance and effectiveness and for developing long-range plans for the company (ceo, president, vice president, etc)
- set general policies, make strategies, approve important decisions
- represent company when dealing with other firms and govt
middle managers
responsible for implementing the decisions made by top managers (plant manager, operations manager, division manager, etc)
first-line managers
managers responsible for supervising the work of employees
- ensure employees understand and are properly trained in company policies
- supervisor, office manager, etc
areas of management
human resources, operations, information, marketing, and finance
human resource managers
responsible for hiring, training, evaluating, and paying employees
operations manager
responsible for controlling production, inventory, and quality of a firm’s products
information manager
managers responsible for the design and implementation of systems to gather, process, and disseminate information
marketing manager
responsible for getting products and services to buyers
financial manager
managers responsible for planning and overseeing financial resources of a firm
basic management skills
technical, human relations, conceptual, time management, and decision-making
technical skills
skills associated with performing specialized tasks within a firm
- especially important for first-line managers
human relations skills
skills in understanding and getting along with people
- help managers lead, motivate, communicate with, and get along with their subordinates
conceptual skills
abilities to think in the abstract, diagnose and analyze various situations, and see beyond the present
four leading causes of wasted time
paperwork, phone, meetings, and email
non-logical and emotional factors influencing decision making
organizational politics, intuition, escalation of commitment, and risk propensity
organizational politics
actions that people take when they try to get what they want
intuition
innate belief about smthg, often without conscious consideration
escalation of commitment
condition in which a decision-maker becomes so committed to a course of action that he/she stays with it even when there is evidence that the decision was wrong
risk propensity
extent to which a decision-maker is willing to gamble when making a decision
strategic management
process of helping an organization maintain an effective alignment with its environment
strategy
the broad set of organizational plans for implementing the decisions made for achieving organizational goals
vision
indicates why it exists and what kind of organization it wants to be
mission statement
organization’s statement of how it will achieve its purpose in the environment in which it conducts its business
long-term goals
goals set to be achieved over long periods of time, usually 5+ years
intermediate goals
goals to be achieved within 1-5 yrs
short-term goals
goals set for very near future, usually less than one yr
SMART goals
specific, measurable, achievable, relevant, and time-framed
strategy formulation
creation of a broad program for defining and meeting an organization’s goals
- setting strategic goal
- analyzing organization and environment
- matching organization and environment
strategic goal
long-term goals created from the firm’s mission statement
SWOT analysis
identification and analysis of organization’s strengths, weaknesses, opportunities, and threats
organizational analysis
process of analyzing a firm’s strengths and weaknesses
environmental analysis
process of scanning the environment for threats and opportunities
levels of strategy
corporate-level = identifies the businesses a company will be in, and how the businesses are related
business-level= identifies the ways a business will compete in its chosen line of products or services
functional = identify the basic courses of action that each department in the firm will pursue so that it contributes to achieving the business’s overall goals
examples of corporate-level strategies
concentration, growth, integration, diversification, and investment reduction
concentration strategy
involves focusing the company on one product or product line that it knows very well
examples of growth strategies
market penetration = boosting sales of current products by selling agrgressively in firm’s current markets
geographic expansion - expanding operations in new geographic areas or countries
product development = making improved products for current markets
horizontal integration
acquiring control of competitors in the same or similar markets with the same/similar products
vertical integration
owning or controlling the inputs to the firm’s processes and/or the channels through which the products or services are distributed
diversification
expanding into related or unrelated products or market segments
conglomerate diversification = diversifying into products/markets unrelated to firm’s present business
related diversification = adding new but related products/services to an existing business
investment reduction
reducing the company’s investment in one or more of its lines of business
three competitive strategies
cost leadership = becoming low-cost leader in a country
differentiation strategy = firm seeks to be unique in its industry along some dimension that is valued by buyers
focus strategy = selecting a market segment and serving the customers in that market niche better than competitors
contingency planning
identifying aspects of a business or its environment that might require changes in strategy
crisis management
an organization’s methods for dealing with emergencies
corporate culture
shared experiences, stories, beliefs, and norms that characterize a firm
