Chapter 8

Question 1

What are resources?

Answer 1

A general term that incorporates human resources, natural resources and financial resources

Question 2

What is management?

Answer 2

The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources

Question 3

What are the 4 functions of management?

Answer 3

1. Planning - includes anticipating trends and determining the best strategies and tactics to achieve organizational goals
2. Organizing - includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals
3. Leading - means creating a vision for the organization and communicating, guiding, training, coaching and motivating others to work effectively to achieve the organization’s goals and objectives
4. Controlling - involves establishing clear standards to determine whether an organization is progressing toward its goals and objectives, reporting the results achieved and rewarding people

Question 4

What are values?

Answer 4

A set of fundamental beliefs that guide a business in the decisions they make
Managing without establishing a vision is often counterproductive

Question 5

What is a mission statement?

Answer 5

An outline of the organization’s fundamental purposes

Question 6

What is the difference between goals and objectives?

Answer 6

Goals are the broad, long-term accomplishments an organization wishes to maintain

Objectives are specific, short-term statements detailing how to achieve the organization’s goals

Question 7

What are the 5 different types of planning?

Answer 7

1. Strategic
2. Tactical
3. Operational
4. Contingency
5. Crisis

Question 8

What is strategic planning?

Answer 8

Outlines how the company will meet its objectives and goals; it provides the foundation for the policies

Question 9

What is tactical planning?

Answer 9

The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

Question 10

What is operational planning?

Answer 10

The process of setting work standards and schedules necessary to implement the company’s tactical objectives

Question 11

What is contingency planning?

Answer 11

The process of preparing alternative courses of action that may be used if the primary plans do not achieve the organization’s objectives

Question 12

What is crisis planning?

Answer 12

Involves reacting to sudden changes in the environment

Question 13

What are the 7 D’s of decision making?

Answer 13

1. Define the situation
2. Describe and collect information
3. Develop alternatives
4. Develop agreement among those involved
5. Decide which alternative is best
6. Do what is indicated
7. Determine whether the decision was a good one and follow up

Question 14

What is an organizational chart?

Answer 14

A visual device that shows relationships among people and divides the organization’s work; it shows who is responsible for the completion of specific work

Question 15

What are the 3 levels of management?

Answer 15

1. Top Management - CEO, COO, CFO, CIO
2. Middle Management - general, division and branch managers
3. Supervisory Management - those directly responsible for supervising workers and evaluating their performance

Question 16

What are the 3 different types of skills?

Answer 16

1. Technical skills - involve the ability to perform tasks in a specific discipline or department
2. Human relations skills - involve communication and motivation
3. Conceptual skills - involve the ability to picture the organization as a whole

Question 17

What are the 3 leadership styles?

Answer 17

1. Autocratic Leadership - involves making managerial decisions without consulting others
2. Participative (democratic) leadership - consists of managers and employees working together to make decisions
3. Free-rein (laissez faire) leadership - involves managers setting objectives and employees being relatively free to do whatever they need to accomplish objectives

Question 18

What is the difference between transformational and transactional leadership?

Answer 18

Transformational - occurs when visionary leaders can influence others to follow them in working to achieve a desired outcome

Transactional - associated with employees who are motivated by a system of reward

Question 19

What are the five steps of the control process?

Answer 19

1. Establishing clear performance standards
2. Monitoring and recording actual performance (results)
3. Comparing results against plans and standards
4. Communicating results and deviations to the employees involved
5. Taking corrective action when needed and providing positive feedback for work well done