Management Test 2

type of plan that generally covers up to one year

type of plan that spans at least three to five years - can be up to 20 years - possible at any level in the organization but carried out primarily at the top levels

plan that covers the time span between short range and long range plans - 1-3 years

equivalent to top level long range planning - done by top level managers

short range planning and concentrates on the formulation of functional plans - done by managers in all leevels of the organization and especially by middle and lower level managers

address the what-ifs of the managers job - most needed in rapidly changing environments

statements outlining what yo uare trying to achieve; they give an organization and its members direction and pupose

generally go beyond the organizations current fiscal year - must support and not conflict with the organizational mission

should be derived from an in-depth evaluation of long range objectives - there to provide meaningful steps for long range objective

philosophy based on converting organizational objectives into personal objectives - increase morale for lower levels

broad general guides to action that constrain or direct objective attainment - establish boundaries - don't tell employees exactly what to do byt they provide expectations

a series of related steps or tasks expressed in chronological order for a specific purpose - step by step methods through which policies are achieved - emphasixe details

require specific and definite actions to be taken or not tobe taken in a given situration - leave little doubt

procedures and rules are subsets of

outlines the basic steps that management plans to take to reach an objective or a set of objectives

strategies that address which businesses the organization will be in and how resources will be allocated among those buisness are - involve long range time horizon - describes the way in which the organization will pursue its objectives

a corporate strategy are used when the organization tries to expand in terms of sales, product line, number of employees or similar measures include concentration, vertical growth, and diversification-

a growth strategie - sell more of a product that you already produce

a growth strategy - the organization purchases supploier or buyer

a growth strategy - the organization buys related products and sells them - can be unrelated

a corporate strategy - used when the organization is satisfied with its present course - maintain the status quo

corporate strategy - used when a company wants or needs to reduce its operations - turnaround, divestiture, and liquidation

a defensive strategy - reverse a negative trend and get the organization back to profitability

a defensive strategy - selling off part of the organization

a defensive strategy - organization dissolves completely

a corporate strategy - used when an organization simultaneously employs different strategies for different parts of the company

the second primary level of strategy formulation - focus on how to compete in a given business - classifications - overall cost leadership, differentiation, and focus -how to compete

a business strategy - try to offer product that is less expensive - Wal Mart

a business strategy - provide unique experience to customer so they will pay premium - Panera and Starbucks -purpose is to gain the brand loyalty of customers and a resulting lower sensitivity to price - 1154 Lil

a business strategy - pick particular part of the population and tailor the business to them - Curves - Invisalign

third primary level or strategy - narrower in scope than business strategies and deal with the activities of the different functional areas of the business - production, finance, marketing, HR, etc. - short range step by step methods to be used

the application of the basic planning process at the highest levels of the organization

first phase in strateic management in which the initial strategic plan is developed

second phase in strategic management in which the strategic plan is put into effect

third phase in strategic management in which the implemented strategic plan is monitored, evaluated and updated

defines basic purpose of the organization, why does the organization exist, description of the basic products/services, definition of markets or sources of revenue, keep it short

a technique for evaluating an organization's internal strengths and weaknesses and its external opportunities and threats

What does SWOT stand for

evaluates a companies competitive health - five forces -
1. Suppliers
2. Buyers
3. Rivalry among existing firms
4. Threat of new entrants
5. Threat of substitutes

a measure of ap erson's potential to get others to do what he or she wants them to do as well as to avoid being forced by others to do what he or she does not want to do. Positve is voluntary negative is forced

the right to issue directives and expend resources - a function of position in the organizational hierarchy

the ability to inflence people to willingly follow one's guidance or adhere to one's decisions- obtaining followers and influencing them in setting and achieving objectives

Organizational Sources of power

Personal sources of power

the average human being has an inherent dislike of work and will avoid it if possible - average person prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all

the expenditure of physical and mental effort in work is as natural as play or rest

the relationshipe between a leader's expecations and the resulting performance of subordinates - a leader's attitude toward human nature has a large influence on how that person behaves as a leader

Who came up with Theory X, Y and the self fulfilling prophecy

stressed what the leader was like rather than what the leader did

a leadership style - makes most decisions for the group

allows people within the group to make all decisions

gues and encourages the group to make decision

leader behavior description questionaire - two leader behavier- consideration( how attentive they were to subordinate's needs) and Inititating structure - organizing tasks - if high on consideration had satisfied subordinantes- relationship depends on group led and no relationship between leader effectiveness and initiating structure

came up with four systems for management
1 Exploitative Authorative
2. Benevolent Authoritative
3. Consultative
4. Participative
Participative is the best

Univ. of Michigan - system 1 leader takes advantage of subordinantes and always makes decisions for them

Univ. of Michigan - system 2 leader makes decision for the group - think decision is in the best interest - like a parent

Univ. of Michigan - system 3 leader asks for input but still makes decision themselves

Univ. of Michigan - system 4 Leader and Subordinates make decisions together - the best

focuses on the style of leaderhip that is most effective in particular situations - task motivated or relationship motivated leaders

gain satisfaction from the performance of a task

gain satisfaction from interpersonal relationships

used to measure whether a person is a task or relationship oriented leader depending on how person talks about this shows if they are task or relationship motivated - dwight is task moticated

dimension of the contingency approah to leadership - degree to which others trust and respect the leader and the leader's friendliness

dimension of the contingency approah to leadership - degree to which job tasks are structured

dimension of the contingency approah to leadership - power and influence that go with a job

as the level of maturity of followers increases structure should be reduced while emotional suppport should first be increased and then gradually dcreased

takes the approach that leaders engage in an enemotional baraining relationship with their followers - tells employees what they need to do to obtain rewards - takes corrective action only when employees fail to meet performance objectives

involves cultivating employee acceptance of the group mission - mutual encouragement

presents a uinque situation in which the leader and followers develop a relationship based directy on the personality of that leader often in the face of a lack of any proven skills or experience

the way we do things around here - communicates how people in an organization should behave by establishing a value system conveyed through rites, rituals, myths, legends, and actions - two forms of expression - substance and form

how does culture originate? (4)

characterized by individualists who regularly take high risks and get quick feedback on whether their decisions are right or wrong

encourages employees to take few risks and to expect rabid feedback- activity is the key to success

requires big stakes decisions, with considerable time passing before the results are known.

involves low risk coupled with little feedback

Covers Skill Variety, Task Identity, Task significance, Autonomy, and Feedback

a group of people working together in some type of concentrated or coordinated effort to achieve objectives

refers to the sum of the personal contacts and interactions and the associated groupings of people working within the formal organization

reasons for organizing

speicializes, efficient, parts create a richer whole by combinging efforts

everyone has a seperate task that benefits the organization as a whole- better use of resources

based on specialization of work - more work can be produced with the same effort through increased efficiency and quality - can result in job boredom and humiliation

advantages of horizontal division of labor 6

based on the establishment of lines of autority and defines the levels that make up the certical organization structure. Facilitates the flow of communication

refers to the different types of operations preformed - job rotation encourages multiple skills and cross training - how many things you do while working # of tasks

refers to the freedom of employees to plan and organize their own work, work at their own pace, and move around and communicate as desire - can you make decisions for yourself

the ability to influence, command, or apply force

power derived from the rights that come with a position and represents the legitimate exercise of power

accountability for the achievement of objectives, the use of resources, and the adherence to organizational policy

Authority starts at the top and goes down through the levels

a managers source of authority lies with his or her subordinates because they have the poer to either accept or reject the managers command

little authority is delegated to lower levels of management

a great deal of authority is delegated to lower levels of management

a form of decentralization that invloves giving subordinates substantial authority to make decisions

for empowerment to work you must have

work units without a frontline manager and empowered to control their own work - employees make all the decisions - including hireing and firing

authority and responsibility must coincide and subordinates must accept authority and responsibility

1. fear subordinates will fail in doing the task
2. belief that it is easier to do it themselves
3. fear that subordinates will look too good
4. attraction to power
5. comfort in doing the tasks of the previous job held
6. preconceived ideas about employees
7. desire to set the right example

states that managers should concentrate their efforts on matter that deviate significantly from normal and let subordinates handle routine matters

an employee should have one and only one immediate manager - key is to make sure employees clearly understand the lines of authority that directly affect them

authority in the organization flows through the chain of managers one link at a time, ranging from the highest to lowest ranks - chain of command

number of subordinates a manager can effectively manage

factors affecting the span of management 5

flexible working hours- allow employees to choose, within certain limits when they start and end their workday

the practice of working at home or while traveling and being able to interact with the office, or working at a satellite office

a relativelty new concept whereby two or more parttime employees perform a job that would normally be held by one fulltime employee

organizing growth stage - characterized by the absence of formal policies, objectives, and structure - center on one individual and one functional area

organizing growth stage - the organization grows at an increasing then decreasing rate - atmosphere of optimism

entrepreneur replaced or evolved into professional manager who performs the processes of planning, organizing, staffing, moticating, and controlling - written policies and plans

uses a series of boxes connected with one or more lines to graphically represent the organizaiton's structure

a factor affecting organization - appropriate structure will not guarantee success- structure can help or hinder implementation
chandler said structure should follow strategy - not the only variable to impact structure - matching strategy to structure is complex

a factor affecting organizaiton - sales volume, small vs large organization , change occurs naturally as an organization grows in size and becomes more structured - dictated by saels volume and number of employees

a factor affecting organization - mechanistic vs organic (Burns and Stalker)

rigid delineation of functional duties
precise job descriptions
fixed authorty/responsibility
well developed organizational hierarchy

less formal job descriptions
emphasis on adaptability
more participation at all levels
less fixed authority

three modes of production - joan woodward

custom made products - orange county choppers - organic

ford making the same model t - focus is on efficiency and low cost - mechanistic

technologically complex- how things operate - chemical plant - organic ( must respond quickly to problems)

a change affecting organization structure - the practice of subcontracting certain work fucnctions to an outside organizationgrouping jobs into related work units - changes affecting organization structure

defining organization units in terms of the nature of the work - no redundancy can capitalize on economies of scale(advantage) - functional areas might see selves as superior(negative) - seeing selves as superior can cause the departments to lose sight of overall purpose

all the activities needed to produce and market a product or service are usually under a single manager - allows employees to identify with a particular product- epartments might become overly competitive - no economies of scale - repeat activities (Toyota)

moist likely to occur in oranizations that maintain physically isolated and independent operations or offices - creates customer goodwill and high level of service - use of local employees

based on division by customers served - retail vs wholesale customers

Simple numbers (# of employees)
process or equipment ( unit, continous flow, lg batch)
time or shift (convenience stores)

departmentalize on one basis then another as the organization grows

a type of organization structure - authority originates at the top and moves downward in a line - simples organization structure (advantage) - managers role gets too broad ( disadvantage) exists in small organizations

the addition of staff specialists to a line structured organization creates

advisory and supportive in nture - they contribute to the efficiency and maintenance of the oranization

directly involved in producing and marketing the organization's goods or services

project teams (Armageddon) bring experts in to make up temporary team - choose best people for the project and go bakc to old ways - violates unity of command

consists of two groups - one group is composed of senior management who
are responsible for strategic decisions and policies - the sendo group
is compased of empowered emploees working together in different process
teams

has relatively few levels and relatively large spans of management at each level

has many levels and relatively small spans of management

Japanese have fewer ____ and flatter ____

today is trending toward ____ and ____ structure

a group of people formally appointed and oranized to consider and decide certain matters

to use a committe effectively

a type of cmmittee that is responsible for reviewing the major policy and strategy decisions proposed by top management