LESSON 8 & 9 Flashcards
It is a primary management function that involves setting the direction and goals of an organization, establishing a system that will define the activities of the organization, and formulating a plan to ensure that the system works toward achieving the goals of the organization
Planning
Possible actions that a manager can choose from in making a decision
Alternatives
Recorded data that can be presented as print material, online, content and other media
Documentation
It describes what the company wants to achieve and where it wants to go im the future
Vision statement
Types of vision statements
Graphic, Directional, Focused, Flexible, Feasible, Desirable, Easy to communicate (GDFFFDE)
It describes a company’s reason for its existence
Mission statement
Specific accomplishments or action plans that are usually attained after a long period
Goals
Refer to action plans that involve shorter periods and more measurable outputs
Objectives
Type of plan that is designed by top management such as the CEO or president
Strategic plans
Type of plans that creates specific plans for specific areas of the company
Tactical plans
Type of plans that are also specific procedures and processes made by frontline or low-level managers
Operational plans
Set of principles that guide managers in addressing a particular issue
Policy
A regulation which describes and regulates the functions of an organization
Rule
A step-by-step process in accomplishing a task or achieving an objective
Procedure
It is a special plan created for unexpected scenarios or changes
Contingency plan
It is a plan made in preparation for any kind of crisis such as industrial disasters like fire, or natural disasters like earthquakes and typhoons
Crisis management plan
What are the five steps in the planning process?
- Formulates goals and objectives
- Identify the courses of action
- Assign responsibilities
- Document the plan and distribute to people concerned
- Review the plan and adjust accordingly
Strategy that is comprehensive and detailed for it is the backbone of subsequent plans and are usually conducted by the CEO and other members of the top management
Corporate strategy
This strategy is concerned with building a competitive advantage for a single business unit of a diversified company
General business strategy
Is a strategy that determines a particular function or process and is formulated by middle-level management officers
Functional strategy
Is a strategy that is narrower and more focused formulated by low-level managers of frontline supervisors
Operational strategy
A type of resource that includes the capital or investment that a company needs to start and sustain the business
Financial resources
A type of resource that is considered as the company’s primary assets and are composed of employees who possess the skills and competencies needed for specific tasks and operations
Human resources
A type of resource that include the production facilities, distribution channels, and information technology systems that enable the execution of strategies
Physical resources
It isa common techniques used by groups of planners in selecting a common solution for a problem
Brainstorming
This is a highly structured method that allows members to give their own inputs based on an agenda
Nominal group technique
This is a planning technique where planning is not done bu meeting group member s but by distributing written questionnaires
Delphi technique
Excellent tool for weighing different alternatives
Decision tree
Managers use this method in evaluating alternatives in purchasing equipment,furniture, and fixtures
Payback method
Decision model that involves a logical step by step analysis of several possible contributing factors in making the decision
Rational/Logical decision model
A phenomenon wherein a manager may not be able to solve complex problems in a logical manner due to the fact that the human mind has its limits
Bounded rationality
Also known as “rules of thumb”
Decision heuristics
Decision model wherein managers usually rely on their “gut feeling”
Intuitive decision model
Decision model where once a manger decides on a solution, they will no longer look for other alternatives
Predisposed decision model
Refers to the tendency to look at situations based on subjective standards or perspectives
Cognitive bias
This type of error happens when a manager, despite their knowledge of s project’s failure, continues to acquire more resources to pursue the project instead of abandoning it
Escalating commitment
This happens when a manager holds on to their prior belief that a project will succeed even when evidence to the contratry has been provided
Prior hypothesis bias
It is the tendency to make generalizations based on a small sample or simple experience
Representativeness
It refers to the tendency to conclude that the results of onesitustion can be repeated in a similar situation
Reasoning by analogy
It is a type of error that many top level managers commit when they become overconfident regarding their ability to solve problems
Illusion of control
This kind of bias correlates the outcome with how a problem or decision is framed
Framing bias
This error is committed when managers immediately use available resources on a project that us expected to immediately provide profit, rather than holding off and waiting for a later opportunity that will generate even greater profit
Availability error
A decision model that offers a systematic way of evaluating alternatives by implementing a rational process of analyzing aspects of a situation or problem
Kepner-Tregoe matrix model
Decision mode that focuses on selecting the best leadership style suited for planning and decision making
Vroom-Yetton-Jago decision model
Decision model that was brought about by the application of military tactics in business situations
Observe-Orient-Decide-Act (OODA) decision model
It is a social group that has well coordinated processes and activities for the purpose of achieving its objectives and is connected to the environment where it exists
Organization
It is the authority given to managers that are classified and find and it clarifies the line of authority of top level, middle level, and low level management and avoid confusion among employees as to who the immediate superiors are
Hierarchy
What does the organizational design and structure focus on
The overall design of an organizational structure focuses on three aspects: Work activities, reporting relationships, and departmental grouping options.
It identifies the essential tasks and operations of the company, establishes effective work relationships, and divides the company into departments that will contribute toward achieving its goals and objectives
Organizational design
It is the framework that shows how each component of the company relates to one another
Organizational structure
It is a rigid and tightly controlled structure that resembles a bureaucracy
Mechanistic structure
It’s a structure that is more flexible and highly adaptable and it is the centralized and less formal
Organic structure
It refers to the way jobs are divided into steps or individual tasks
Work specialization
Refers to the grouping of similar functions, jobs, and tasks into departments
Departmentalization
A type of the Departmentalization where personal and tasks related to a single company operation are grouped together
Departmentalization may be functional
Type of departmentalization by groups personal and resources based on product, service, process, geographic location, or customer
Divisional departmentalization
It indicates the communication and relationship between employees and managers
Chain of command
It’s the right inherent in the managerial position to give directions or tell people what to do and expect them to undertake it
Authority
Is this the obligation to perform duties assigned to an employee
Responsibility
It refers to the number of employees and managers can effectively and efficiently manage
Span of control
Refers to the extent authority in decision making is given to a small group of people in the organization
Degree of centralization
Occurs when major decisions are made by the top management and the decisions and actions of lower management and employees must have approval from the top
Centralization
It occurs when lower management is allowed to make important decisions, and it is applicable to companies that are widely dispersed in several areas, or with businesses that encounter uncertain business environments
Decentralization
What is the process of standardizing jobs in establishing rules and guidelines that guide employees
Formalization
It is the most basic structure and it is applicable to small businesses were majority of the power and decision making rests on the owner
Simple organizational structure
It organizes the company by grouping together similar functions in two departments
Functional
Where employees follow the chain of command and top managers delegate tasks the lower level managers and employees
Vertical hierarchy
It emphasizes hierarchy and specialization among departments
Functional organizational structure
This design organizes a company in the divisions that corresponds to certain products or services
Divisional grouping
This organizational structure allows employees in each division to concentrate on their own divisions performance
Divisional organizational structure
This design combines both the functional and divisional structures in organizing a company
Multi-focused grouping
It is an example of a Multi-focused grouping design
Matrix structure
It’s a matrix that organizes the company in the way that gives functional managers primary authority
Functional matrix
It’s a matrix that assigns greater authority to the product managers
Product matrix
This structure is often used in larger companies and set up as a grid where employees have dual reporting relationships
Matrix organizational structure
It’s a grouping that illuminates the complexities of hierarchies and division
Horizontal grouping
A structure that promotes flexibility and quick response to changes
Horizontal structure
A team based organizational structure that organizes employees into teams whose members perform various functions
Horizontal design
Organizational design that takes advantage of the latest advances in information and communication technology
Virtual network grouping
This organizational structure hires only a few employees which amounts to a lesser costs for salaries and benefits
Network organizational structure
What does EMDPIM stand for
1.) Entrepreneurial organization
2.) Machine organization
3.) Diversified organization
4.) Professional organization
5.) Innovative organization
6.) Missionary organization
Who expanded the identification of classifications of organizations
Henry Mintzberg
Who propose the Bureaucracy organization theory
Max weber
This organization theory emphasize a formal rigid structure and legitimate authority in organization
Bureaucracy
Who is the proponent of the scientific management organization theory
Frederick Taylor
What did the scientific management and organizational theory help with
This theory made improvements in industrial engineering, particularly with time in patient studies
Who are the proponents of the systems theory
Karl Ludwig von Bertalanffy and Kenneth Boulding
What does the systems theory say
Is emphasizes that a system is a collection of parts that I coordinated in accomplishing a particular goal
This theory recognizes that that was the single best way of managing an organization
Contingency theory
Refers to the allocation of tasks to employees
Simple delegation
Delegation that allow subordinates to do tasks or responsibilities outside of the regular work, enabling them to exercise a certain level of authority be on their position
Delegation of authority
It is the act of making employees accountable for their own actions
Empowerment
Structure of an organization that rests on authority and responsibility
Formal organization
Structure of an organization that is defined as informal and buy the personal relationships established among employees
Informal organization
It is the variation or differences in certain characteristics of things or people
Diversity
Too much rigidity or excessive conformity the rules and regulation that paralyzes decision making an action in the organization
“Red tape”
