Definitions Flashcards
Planning
Defining goals for future organisational performance and deciding o the tasks and use of resources needed to attain them.
Organising
Assigning tasks, grouping of tasks into departments and allocating resources to departments.
Leading
involves the use of influence to motivate employees to achieve the organisation’s goal.
Controlling
Monitoring employees’ activities, keeping the organisation on track towards its goals, and making corrections as needed.
Organisational performance
the organisation’s ability to attain its goals by using resources in an efficient and effective manner.
Organisation
a social entity that is goal-directed and deliberately structured
Effectiveness
The degree to which the organisation achieves a stated goal.
Efficiency
the use of minimal resources, raw materials, money and people, to produce a desired volume of output.
Scientific Management (F.W. Taylor) - management knows best
Emphasised a rational, scientific approach to the study of management; sought to make organisations efficient operating machines.
Humanistic perspective (Mary Parker Follett and Chester Barnard)
Emphasised the importance of understanding human behaviours, need and attitudes in the workplace.
Organisation’s external environment
Reflects an open systems view of organisations.
P in PEST analysis
Political-Legal
Political activities and legislation targeting organisational behaviour; the political regime and stability of the region.
E in PEST analysis
Economic
The Overall economic health of the region in which the organisation operates; interest rates and monetary policies; costs of raw materials.
S in PEST analysis
Social-Cultural
The demographics, the customs and values, and lifestyle trends of the population in which the organisation operates.
T in PEST analysis
Technological
Advances in technology and scientific knowledge.
Coping with uncertainty
- Adapting the organisation to changes in the environment
2. Shaping the environment to the organisation’s needs.
Goal
a desired future state that the organisation attempts to realise
Plan
a blueprint specifying the resource allocations, schedules and other actions necessary for attaining goals.
SMART goals
Specific, Measurable, Aggressive yet attainable, Relevant, Time-bound
MBO (Peter Drucker)
Management by objectives
- Set Goals
- Develop action plans
- Review progress (and take corrective action)
- Appraise performance
Planning in a turbulent environment (3 plannings)
- Contingency planning/ Scenario planning
- brainstorm possible scenarios, extrapolate current situation, consider future discontinuous
- develop strategies to deal with each scenario (contingency planning) - Crisis management planning
- mitigate the effects of sudden and devastating events - Decentralised emergent planning
- decentralised planning staff, more informal, strategic direction
Strategic management
the set of decisions and actions used to formulate and implement strategies (or plans) that aim to give an organisation its competitive advantage.
Formulation
planning and decision making that leads to establishment of the organisation’s goals and a specific strategic plan.
Execution
use of managerial and organisational tools to direct resources towards achieving strategic outcomes.
VRIO framework
Valuable, Rareness, Imitability, Organisation
Core competencies
resources and capabilities that generate sustainable competitive advantage for an organisation
Business level strategy
Differentiation, Cost Leadership and Focus
Corporate level strategy
considers an organisation to be a portfolio of businesses, resources, capabilities or activities.
Strategic vehicles
- Growth/ innovation from within
- Mergers and acquisitions
- Strategic partnerships
heuristics
intuitive shortcuts learned from experience
Organisational structure
the framework in which the organisation defines how tasks are divided, the work of employees and departments coordinated, and authority distributed.
Contingency factors affecting organisational structure
Strategy, size, technology, environmental uncertainty.
organisational culture
the customary or traditional ways of thinking and doing things, which are shared to a greater or lesser degree by all members of the organisation and which new members must learn and at least partially accept in order to be accepted in the service of the firm.
Adaptability culture
Values creativity and innovation
encourage individual initiative and autonomy in decision making.
Achievement culture
Results-oriented
values competitiveness, personal initiative, cost-cutting and achievement
handsome rewards for high performers.
Involvement culture
high value on meeting the needs of employees
Values cooperation, consideration and equality.
Consistency culture
Values and rewards standardisation, control, and a well-defined structure for authority and decision making.
Uses an internal focus and a consistency orientation.
