M1 Chapter 1 Flashcards
Effectiveness
how well the stated objectives or goals of the firm are met.
Efficiency
the prudent use of resources
The four main management functions:
1) Planning
2) organizing
3) leading
4) controlling
Planning
the process of determining organizational direction to achieve a desired performance
Goal
desired future state of the organization
Plan
a “roadmap” for how to meet the goal
Organizing
involves the deployment of resources, the assignment and grouping of tasks, the delegation of responsibility, and the implementation of hierarchical and reporting channels
Human Capital
skills, knowledge and networks that an organization’s people possess
Synergy
the sum of the whole being greater than the sum of the parts.
scalar chain
a reporting chain extending from bottom to top for every individual within the organization
Leading
involves the use of power and persuasion to motivate and unite people in the attainment of organizational goals
Controlling
the process of monitoring the progress and correcting the deficiencies of the organization as it moves towards the fulfillment of its goals
Value
The spread between what sell something for, and what the customer values it at.
Margin
The spread between what it costs us to make something and what we can sell it for
Competitive Advantage
what sets an organization apart from the competition
Differentiation Strategy
A strategy in which an organization sets its products or services apart by offering something new or different
Cost leadership
Being able to offer lower prices than other companies
Niche/focus
where a firm focuses on a subset of a larger industry or a particular customer base of a larger industry
Skills managers need
Conceptual Skills
Human Skills
Technical Skills
other: Ethnical Skills!
Conceptual Skills
the ability of a manager to see the organization as a whole and how each of the functions of the organization works in concert to achieve organizational goals
Human Skills
skills that allow us to relate to other people
Technical Skills
skills required to perform a specific task, such as those that are responsible for equipment on an assembly line, manufacturing processes, accounting, engineering, etc.
Mintzberg’s Three types of managerial roles:
1) Interpersonal Role
2) Informational Role
3) Decisional Role
Sub roles of interpersonal role
1) Figurehead sub-role
2) Leader sub-role
Interpersonal Role
Managers must interact with individuals both inside and outside the organization
Figurehead sub-role
a manager is the official representative of the organization or department – giving awards, hosting parties, signing documents
Leader sub-role
includes communicating, training, motivating, and re-directing constituents
Informational Role
Mintzberg felt this was the most important as accurate information is essential for good decision-making.
Sub roles of Informational Role
Monitor sub-role
Disseminator Sub-role
Spokesperson sub-role
Monitor sub-role
involves gathering of information from a variety of sources about anything that affects the company including competition, technology changes, market changes, and new products and services.
Disseminator sub-role
forwards pertinent information to others, primarily within the organization, including his subordinates
Spokesperson sub-role
responsible for transmitting information to people outside of the organization.
Sub-roles of decision role
Entrepreneur sub-role
Disturbance handler sub-role
Negotiator sub-role
Decision role
must be an entrepreneur, disturbance handler, resource allocator, and negotiator
Entrepreneur sub-role
be an agent for change and innovation
Disturbance handler sub-role
must fix problems between individuals or departments
Negotiator sub-role
is the formal representative of the organization with primarily those outside the organization such as a vendor.
Organizational skills
the ability to multitask, to shift focus from one task to another to another in rapid succession, to prioritize those tasks and follow up on the most important first
Span of management
the number of subordinates that report to a supervisor.
Outsourcing
Also known as offshoring - the assignment of labor or production to an external organization (including international), usually with the intent to save money
