Chapter 6 (6.1-6.5) Flashcards
Functions of Management
Planning
Leading
Organizing
Controlling
Planning
determining what the business needs to do and the best way to achieve it
Organizing
determining how to use existing resources to implement the plan - arranging jobs in a structure to create an efficient task system
Leading
guiding and motivating subordinates to meet objectives
Controlling
managers monitor the firm’s performance
Top Management
responsible for overall performance of the firm
Middle Management
responsible for implementing decisions of top managers
First-line Management
responsible for supervising employees
Areas of Management
Marketing Managers
Financial Managers
Operations Managers
Human Resource Managers
Information Managers
Time-Management Skills
productive use of time
Decision-Making Skills
Recognize and define the decision situation
Identify alternatives
Evaluate the alternatives
Behavioral Aspects of Decision Making
Organizational Politics
Intuition
Escalation of Commitment
Risk Propensity
Strategic Management
process of aligning the organization with its external environment
Strategic Goals
performance objectives that a firm plans to achieve
Purpose of Setting Goals
Provides direction, guidance, and motivation
Kinds of Goals
Long-term
five or more years
Intermediate
one to five years
Short-term
less than one year
SMART Goals
Specific
Measurable
Achievable
Relevant
Time-Framed
Mission Statement
how the organization will achieve its purpose (reason for being)
Setting strategic goals
long-term goals based on the mission statement
Analyzing the organization and its environment (S W O T)
Matching the organization to its environment
S W O T Analysis
Internal
Strengths
External
Opportunities
Internal
Weaknesses
External
Threats
Strategic plans
associated with senior management
establish long-term plans (2-5 years)
Tactical plans
usually created by middle managers
support the strategic plans & define resource allocation (1-2 years)
Operational plans
executed and finalized by first-line managers
for short-term targets of less than a year (usually monthly, weekly or daily)
Contingency Planning
identify in advance changes that might occur and ways the company can respond to changes
