B A 2020- Chp 7&8 Notes
B A 2020- Chp 7&8 Notes B A 2020
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This 11 page Study Guide was uploaded by Julia Notetaker on Monday October 5, 2015. The Study Guide belongs to B A 2020 at Wayne State University taught by Sherilynn Perelli in Summer 2015. Since its upload, it has received 201 views. For similar materials see Introduction to Business in Business at Wayne State University.
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Date Created: 10/05/15
Chapter 7 Management and Leadership Management Definition the process used to accomplish organizational goals through planning organizing leading and controlling people and other organizational resources Planning Definition a management function that including anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives major objective is to please customers planning teams help monitor the environment find business opportunities amp watch for challenges Organizing Definition a management function that 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 and objectives responsibilities include preparing a structure organization chart showing lines of authority amp responsibility recruiting selecting training and developing employees placing employees where they ll be most effective Leading Definition creating a vision for the organization and guiding training coaching and motivating others to work effectively to achieve the organization s goals and objectives responsibilities include giving assignments explaining routines clarifying policies providing feedback on performance Controlling Definition a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives rewarding people for doing a good job and taking corrective action if they are not responsibilities include measuring results against corporate objectives monitoring performance relative to standards rewarding outstanding performance taking corrective action when necessary Vision Definition an encompassing explanation of why the organization exists and where it is trying to head it is more of a goal gives a sense of where an organization is trying to go sense of purpose like why it has started and what are you trying to accomplish in the long run Mission statement Definition an outline of the fundamental purposes of an organization addresses the main topics the organization s selfconcept its philosophy longterm survival needs customer needs social responsibility nature of the product or service Goals Definition the broad longterm accomplishments an organizations wishes to attain Obiectives Definition specific shortterm statements detailing how to achieve the organization s goals SWOT Analysis Definition a planning tool used to analyze an organization s strengths weaknesses opportunities and threats Figure 72 p184 It may not be important but be considerate use it or not Potential Internal STRENGTHS core competencies in key areas an acknowledged marker leader wellconceived functional area strategies proven management cost advantages better advertising campaigns Potential Internal WEAKNESSES no clear strategic direction obsolete facilities subpar profitability lack of managerial depth and talent weak market image too narrow a product line Potential External OPPORTUNITIES ability to serve additional customer groups expand product lines ability to transfer skillstechnology to new products falling trade barriers in attractive foreign markets complacency among rival firms ability to grow due to increases in market demand Potential External THREATS entry of lowercost foreign competitors rising sales of substitute products slower market growth costly regulatory requirements vulnerability to recession and business cycles changing buyer needs and tastes Strategic Planning Definition the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals Fig 73 p185 Types of Planning a Strategic planning the setting of broad longrange goals by top managers b Tactical planning Definition the process of developing detailed shortterm statements about what is to be done who is to do it and how it is to be done the identification of specific shortrange objectives by lowerlevel managers c Contingency planning Definition the process of preparing alternative courses of action that may be used if the primary plans don t achieve the organization s objectives backup plans in case primary plans fail d Operational planning Definition the process of setting work standards and schedules necessary to implement the company s tactical objectives the setting of work standards and schedules Decision Making Definition choosing among two or more alternatives The seven D s in decision making a Define the situation b Describe and collect needed information c Develop alternatives d Develop agreement among those involved e Decide which alternative is best f Do what is indicated being implementation g Determine whether the decision was a good one amp follow up Problem Solving Definition the process of solving the everyday problems that occur it is less formal than decision making and usually calls for quicker action problemsolving teams are two or more workers assigned to solve a specific problem Brainstorming Definition coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas Another technique PMI stands for Pluses for a solution in one column Minuses in another Implications in the third Organization Chart Definition a visual device that shows relationships among people and divides the organization s work it shows who reports to whom There are four types of management a Top Management Definition highest level of management consisting of the president and other key company executives who develop strategic plans Tasks amp Skills More conceptual skills then human relations skills and then technical skills Ex President Vicepresident b Middle Management Definition the level of management that includes general managers division managers and branch and plant managers who are responsible for tactical planning and controlling Tasks amp Skills Equal in conceptual skills human relations skills and technical skills Ex Plant managers division heads and branch managers c Supervisory Firstline Management Definition managers who are directly responsible for supervising workers and evaluating their daily performance Tasks amp Skills More technical skills then human relations skills and conceptual skills Ex Supervisors Foremen Department heads and Section leaders d NonSupervisory Ex Employees Technical Skills Definition skills that involve the ability to perform tasks in a specific discipline or department Human Relations Skills Definition skills that involve communication and motivation they enable managers to work through and with people Conceptual Skills Definition skills that involve the ability to picture the organization as a whole and the relationship among its various parts Staffing Definition a management function that includes hiring motivating and retaining the best people available to accomplish the company s objectives One person could be a good manager but not a good leader Here are the characteristics every good leader should follow Communicate a vision and rally others around that vision Establish corporate values Promote corporate ethics Embrace change Stress accountability and responsibility Transparency Definition the presentation of a company s facts and figures in a way that is clear and apparent to all stakeholders Leadership Styles There are three different types of leadership a Autocratic leadership Definition leadership style that involves making managerial decisions without consulting others More of BossCentered Leadership manager makes decision and announces it manager sells decision manager presents ideas and invites questions Q Coach Phil Jackson used this leadership style to take Los Angeles Lakers to 3 consecutive NBA championship in his first 3 seasons b Participative Democratic Leadership Definition leadership style that consists of managers and employees working together to make decisions Directed from BossCentered towards SubordinateCentered manager presents tentative decision subject to change manager presents problem gets suggestions makes decisions manager defines limits asks group to make decision Q Many large organizations like Google Apple IBM Cisco amp ATampT c Free Rein Definition leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives SubordinateCentered Leadership manager permits employee to function within limits defined by superior Q Doctors professors engineers other professionals Enaang Definition giving workers the education and tools they need to make decisions Knowledge Management Definition finding the right information keeping the information in a readily accessible place and making the information known to everyone in the firm The Control Process Consists of 5 steps a Establish clear standards b Monitor and record performance c Compare results against standards d Communicate results e If needed take corrective action Feedback Are standards realistic External Customers Definition dealers who buy products to sell to others and ultimate customers or end users who buy products for their own personal use Internal Customers Definition individuals and units within the firm that receive services from other individuals or units Chapter 8 Structuring Organizations for Today s Challenge Economies of Scale Definition the situation in which companies can reduce their production costs if they can purchase raw materials in bulk the average cost of goods down as production levels increase Fayol s Principles of Organization Unity of command Hierarchy of authority Division of labor Subordination Authority Degree of centralization Clear communication channels Order Equhy Esprit de corps Hierarchy Definition a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person Weber s Principles of organization resembled Fayol s Weber emphasized Job descriptions Written rules decision guidelines and detailed records Consistent procedures regulations and policies Staffing and promotion based on regulations Chain of command Definition the line of authority that moves from the top of a hierarchy to the lowest level Bureaucracy Definition an organization with many layers of managers who set rules and regulations and oversee all decisions Centralized Authority Definition an organization structure in which decisionmaking authority is maintained at the top level of management Advantages Greater topmanagement control more efficiency simpler distribution system stronger brandcorporate image Disadvantages Less responsiveness to customers less empowerment interorganzational conflict lower morale away fro headquarters Decentralized Authority Definition an organization structure in which decisionmaking authority is delegated to lowerlevel managers more familiar with local conditions than headquarters management could be Advantages Better adaptation to customer wants More empowerment of workers Faster decision making Higher morale Disadvantages Less efficiency Complex distribution system Less topmanagement control Weakened corporate image Span of Control Definition the optimal number of subordinates a manage supervises or should supervise Narrow Span of Control Advantages more control by top management more chances for advancement greater specialization closer supervision Disadvantages less empowerment higher costs delayed decision making less responsiveness to customers Broad Span of Control Advantages reduced costs more responsiveness to customers faster decision making more empowerment Disadvantages fewer chances for advancement overworked managers loss of control less management expertise Tall Organization Structure Definition an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management Flat Organization Structure Definition an organization structure that has few layers of management and a broad span of control Departmentalization Definition the dividing or organizational functions into separate units Advantages employees can develop skills in depth and progress within a department as they master more skills the company can achieve economics of scale by centralizing all the resources it needs and locate various experts in that area employees can coordinate work within the function and top management can easily direct and control various departments activities Disadvantages departments may not communicate well employees may identify with their department s goals rather than the organization s the purchasing department may find a good value somewhere and buy a huge volume of goods which makes a purchasing look good but the high cost of storing the goods hurts overall profitability the company s response to external changes may be slow people may not be trainer to take different managerial responsibilities rather they tend to become narrow specialists department members may engage in groupthink they think alike and may need input from outside to become more creative Ways to departmentalize fig 85 p214 y product Marketing manager trade books college texts technical books By function President production marketing finance human resources accounting By customer group President consumers commercial users manufacturers institutions By geographic location Vice president international operations Canadian division Japanese division European division Korean division By process Production Manager cutters dyers stitchers Line organization Definition an organization that has direct towway likes of responsibility authority and communication running from the top to the bottom of the organization with all people reporting to only one supervisor Line Personnel Definition employees who are part of the chain of command that is responsible for achieving organizational goals Staff Personnel Definition employees who advise and assist line personnel in meeting their goals Matrix Organization Definition an organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a lineandstaff structure Advantages it gives managers flexibility in assigning people to projects it encourages interorganizational cooperation and teamwork it can produce creative solutions to product development problems it makes efficient use of organizational resources Disadvantages it is costly and complex it can confuse employees about where their loyalty belongs with the project manager or with their functional unit it requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems it may be only a temporary solution to a longterm problem Crossfunctional selfmanaged teams Definition groups of employees from different departments who work together on a longterm basis Networking Definition using communications technology and other means to link organizations and allow them to work together on common objectives Real time Definition the present moment or the actual time in which something takes place Virtual Corporation Definition a temporary networked organization made up replacebale firms that join and leave as needed Benchmarking Definition comparing an organization s practices processes and products against the world s best Core Competencies Definition those functions that the organization can do as well as or better than any other organization in the world Digital Natives Definition young people who have grown up using the internet and social networking Restructuring Definition redesigning an organization so that it can more effectively and efficiently serve its customers Inverted Organization Definition an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart see fig 89 p224 Organizational for corporate culture Definition widely shared values within an organization that provide unity and cooperation to achieve common goals Formal Organization Definition the structure that details lines of responsibility authority and position that is the structure shown on organization charts Informal Organization Definition the system that develops spontaneously as employees meet and form cliques relationships and lines of authority outside the formal organization
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