Chapter 6

Question 1

Managers

Answer 1

people who plan, organize, lead and control the operations of an organization

Question 2

Management

Answer 2

the process of planning, organizing, leading and controlling a business’s financial, physical, human and info resources to achieve its goals

Question 3

Planning

Answer 3

portion of a manager’s job that deals with determining what the business needs to do and the best way to achieve it

Question 4

Organizing

Answer 4

a portion of a manager’s job concerned with mobilizing the necessary resources to complete a particular task

Question 5

Leading (or directing)

Answer 5

portion of a manager’s job concerned with guiding and motivating employees to meet the firm’s objectives

Question 5

Controlling

Answer 5

portion of a manager’s job concerned with monitoring the firm’s performance and, if necessary acting to bring it in line with the firm’s goals

Question 6

Top managers

Answer 6

managers responsible for a firm’s overall performance and effectiveness and for developing long-range plans for the company

Question 7

Middle manager

Answer 7

managers responsible for supervising the work of employees

Question 8

Technical skills

Answer 8

skills in understanding and getting along with people

Question 9

Conceptual skills

Answer 9

ability to think in the abstract, diagnose and analyze various situations and see beyond the present situation

Question 10

Time management skills

Answer 10

skills associated with the productive use of time

Question 11

Decision-making skills

Answer 11

skills in defining problems and selecting the best courses of action

Question 12

Organizational politics

Answer 12

actions that people take as they try to get what they want

Question 13

Escalation of commitment

Answer 13

manager makes a decision and remains committed to its implementation in spite of clear evidence that it was a bad decision

Question 14

Risk propensity

Answer 14

manager makes a decision and remains committed to its implementation in spite of clear evidence that it was a bad decision

Question 15

Risk propensity

Answer 15

how much a manager is willing to gamble when making decisions

Question 16

Strategic management

Answer 16

process of helping an organization maintain an effective alignment with its environment

Question 17

Goals

Answer 17

objective that a business plans to attain

Question 18

Strategy

Answer 18

board set of organizational plans for implementing the decisions made for achieving organizational goals

Question 19

Visions (or purpose)

Answer 19

statement indicating why an organization exists and what kind of organization it wants to be

Question 20

Mission statement

Answer 20

organization’s statement of how it will achieve its purpose in the environment in which it conducts its business

Question 21

SMART goals

Answer 21

goals that are Specific, Measurable, Achievable, Results oriented and Time framed

Question 22

Strategy formulation

Answer 22

creation of a board program for defining and meeting an organization’s goals

Question 23

Strategic goals

Answer 23

long term goals derived directly from the firm’s mission statement

Question 24

SWOT analysis

Answer 24

identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation

Question 25

Strategic plans

Answer 25

pans that reflect decisions about resource allocations, company priorities and steps needed to meet strategic goals

Question 26

Tactical plans

Answer 26

short-range concerned with implementing specific aspects of a company’s strategic plans

Question 27

Operational plans

Answer 27

plans setting short-term targets for daily, weekly, or monthly performance

Question 28

Corporate-level strategy

Answer 28

identifies the various businesses a company will be in and how the businesses will relate to each other

Question 29

Business-level strategy

Answer 29

identifies the ways a business will compete in its chosen line of products or services

Question 30

Functional strategies

Answer 30

identifies the basic courses of action each department in the firm will pursue so that it contributes to the business’s overall goals

Question 31

Competitive strategy

Answer 31

a plan to establish a profitable and sustainable competitive position

Question 32

Contingency planning

Answer 32

identifying aspects of a business or its environment that might require changes in strategy

Question 33

Crisis management

Answer 33

an organization’s methods for dealing with emergencies

Question 34

Corporate culture

Answer 34

the shared experiences, stories, beliefs, and norms that characterize a firm

Question 35

Describe the four functions that constitute the management process.

Answer 35

The four core functions in the management process are:

• Planning: This involves setting goals and deciding on the best course of action to achieve them.
• Organizing: Managers allocate resources (such as personnel, finances, or equipment) to ensure the execution of plans.
• Leading (Directing): This function involves guiding and motivating employees to work towards organizational goals.
• Controlling: Monitoring progress towards the goals, and taking corrective actions when necessary.

Question 36

Identify types of managers by level

Answer 36

• Top-level managers: These include roles like CEOs, presidents, and other senior executives who are responsible for the entire organization.
• Middle-level managers: These managers oversee major departments or divisions and report to top-level managers.
• First-line managers: These are supervisors who directly manage employees and oversee day-to-day operations.

Question 37

Identify types of managers by area.

Answer 37

• Functional managers: Oversee specific functions like marketing, finance, or production.
• General managers: Responsible for the overall performance of a unit or department.

Question 38

Describe the five basic management skills.

Answer 38

• Technical skills: Understanding and expertise in specific tasks or fields (e.g., IT, engineering, etc.).
• Human skills: The ability to work well with others, communicating and motivating employees effectively.
• Conceptual skills: The ability to understand complex situations and solve problems.
• Decision-making skills: Evaluating situations and choosing appropriate actions or solutions.
• Time-management skills: Effectively managing one’s time to prioritize tasks and meet deadlines.

Question 39

Explain the importance of goal setting and strategic management in organizational success.

Answer 39

• goal setting provides direction and a clear focus for employees and the organization
• strategic management involves setting long-term goals and implementing plans to achieve those objectives

Question 40

Discuss contingency planning and crisis management in today’s business world.

Answer 40

• contingency planning involves preparing for unexpected events by creating alternative courses of action
• crisis management refers to the steps taken by an organization to manage and mitigate crises

Question 41

Explain the idea of corporate culture and why it is important.

Answer 41

• Corporate culture refers to the shared values, beliefs, and behaviors within an organization
• influences how employees interact with each other and with external stakeholders
• strong, positive culture promotes employee satisfaction, enhances teamwork, and helps attract and retain top talent.
  -shapes organization’s reputation and impacts overall success