Chapter 7

Question 1

Centralization

Answer 1

Decision making based at the top of the management hierarchy

Question 2

Chain of Command

Answer 2

Set of relationships that indicate who directs which activities and who reports to whom

Question 3

Committee Organization

Answer 3

Organizational structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manager

Question 4

Competitive Differentiation

Answer 4

Unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers

Question 5

Controlling

Answer 5

Function of evaluating an organization’s performance against its objectives

Question 6

Decentralization

Answer 6

Decision makeup based at lower levels of the organization

Question 7

Delegation

Answer 7

Managerial process of assigning work to employees

Question 8

Departmentalization

Answer 8

Process of dividing work activities into units within the organization

Question 9

Directing

Answer 9

Guiding and motivating employees to accomplish organizational objectives

Question 10

Management

Answer 10

Process of achieving organizational objectives through people and other resources

Question 11

Middle Management

Answer 11

Second tier in the management pyramid that focuses on specific operations within the organizations

Question 12

Mission Statement

Answer 12

Written explanation of an organization’s business intentions and aims

Question 13

Objectives

Answer 13

Guideposts by which managers define the organization’s desired performance in such areas as new-product development, sales, customer service, growth, environmental and social responsibility, and employee satisfaction.

Question 14

Organization

Answer 14

Structured group of people working together to achieve common goals

Question 15

Organization Chart

Answer 15

Visual representation of a firm’s structure that illustrates job positions and functions.

Question 16

Organizing

Answer 16

Process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives

Question 17

Planning

Answer 17

Process of anticipating future events and conditions and determining courses of action for achieving organizational objectives

Question 18

Span of Management

Answer 18

Number of subordinates a manager can supervise effectively

Question 19

Strategic Planning

Answer 19

Process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives

Question 20

Supervisory Management

Answer 20

First-line management; includes positions such as supervisor, line manager, and group leader; responsible for assigning non-managerial employees to specific jobs and evaluating their performance every day

Question 21

SWOT Analysis

Answer 21

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a firm can then develop the best strategies for gaining a competitive advantage

Question 22

Top Management

Answer 22

Managers at the highest level of the management pyramid who devote most of their time to developing long-range plans for their organizations

Question 23

Vision

Answer 23

Ability to perceive marketplace needs and what an organization must do to satisfy them