Chapter 6 Flashcards
Define the functions of managements
Planning, leading, organizing, controlling
Define planning + types
Series of activities developed to allow business to achieve all their goals; strategic, tactical, operational
Define organizing
Determining how to use existing resources to implement the plan; arranging jobs in a structure to create an efficient task system
Define leading
Guiding, motivating subordinates in order to meet objectives; various responsibilites to employees such as authority to give orders, ability to guide employees, power to motivate
Define controlling
Managers monitor firm’s performance and can adjust according to if standards are being met or not
What are the 3 levels of management
Top, middle, first- line
Define top management
Responsible for overall performance of the firm
Define middle management
Responsible for implementing decisions of top managers
Define first-line managers
Responsible for supervising employees
What are the 5 areas of management
Marketing; financial; operations; human resources; information
What are the 5 basic management skills
Technical, human relations, conceptual, time management, decision-making
Define time management skills and causes for it not working (time loss)
Productive use of time; paperwork, phone, meetings, emails
Define decision making skills
Recognizing, defining decision situation; identifying alternatives; evaluating them; selecting the best; implementing; following up and evaluating results
What are the behavioural aspects of decision making (4)
Organizational politics; intuition; escalation of commitment; risk propensity
Define strategic management
Process of aligning its organization with its external environment
Define strategic goals
Performance objectives that a firm plans to achieve
What is the purpose of setting goals (4)
Providing direction, guidance, motivation; assisting in allocating resources; helping define corporate culture; helping managers assess performance
Define the 3 types of goals and their respective lengths
Long term 5+ years; intermediate 1-5; short less than 1 year
What are SMART goals
Specific
Measurable
Achievable
Relevant
Time-framed
Define a mission statement
How org. will achieve purpose (reason for existing); clarifying who it serves, what it offers, how it will provide; includes core values, ethical commitment
How is a strategy formulated
Long-term goals based on mission statement; analyze org. and enviro. (SWOT); match org to enviro.
How does a business analyze its organization and envrionment
SWOT analysis
1. (internal) strengths
2. (internal) weaknesses
3. (external) opportunities
4. (external) threats
How does a business match the organization and environment
By matching company strengths to enviro. opportunities and minimizing the impact of threats and company weaknesses
Define strategic plans
Associated with senior management; establishes long term planes (2-5 years)
Define tactical plans
Usually created by middle managers; supports strategic plans and defines resource allocations (1-2 years)
Define operational plans
Executed and finalized by first-line managers for short-term targets (monthly, weekly, daily)
What are the 3 levels of strategies
Corporate, business, functional
Define corporate-level strategy and types (5)
What businesses will we pursue; how do they relate to each other; concentration, growth, integration, diversification, investment reduction
Define business-level strategy and types
Competitive; how will we compete in our chosen area; cost leadership, differentiation, focus
Define functional strategy
What actions can our department pursue to reach overall goals
Define contingency plan
Identifying in advance any changes that might occur and ways that the company can respond to these changes
Define crisis management
Methods for dealing with emergencies
Define corporate culture
Firm’s personality; shared experiences of employees; stories, beliefs, norms characterizing it; culture can direct employees’ efforts
How does a business communicate its culture
Ensure both new and existing managers understand it; develop clear mission statement; communicate to employees; reward those who understand and maintain it
How does managing change in a cultural change process
Management formulates vision of new company, new systems of appraisal and compensation
