Management Test 2

  1. type of plan that generally covers up to one year
    short range plan
  2. 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
    long range plans
  3. plan that covers the time span between short range and long range plans - 1-3 years
    intermediate plans
  4. equivalent to top level long range planning - done by top level managers
    strategic planning
  5. 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
    operations or tactical planning
  6. address the what-ifs of the managers job - most needed in rapidly changing environments
    Contingency Plans
  7. statements outlining what yo uare trying to achieve; they give an organization and its members direction and pupose
  8. generally go beyond the organizations current fiscal year - must support and not conflict with the organizational mission
    long-range objectivs
  9. should be derived from an in-depth evaluation of long range objectives - there to provide meaningful steps for long range objective
    short range objectives
  10. philosophy based on converting organizational objectives into personal objectives - increase morale for lower levels
    management by objectives (MBO)
  11. 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
  12. 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
  13. require specific and definite actions to be taken or not tobe taken in a given situration - leave little doubt
  14. procedures and rules are subsets of
  15. outlines the basic steps that management plans to take to reach an objective or a set of objectives
  16. 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
    corporate strategies aka grand strategies
  17. 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-
    growth strategies
  18. a growth strategie - sell more of a product that you already produce
  19. a growth strategy - the organization purchases supploier or buyer
    vertical growth
  20. a growth strategy - the organization buys related products and sells them - can be unrelated
  21. a corporate strategy - used when the organization is satisfied with its present course - maintain the status quo
    stability strategies
  22. corporate strategy - used when a company wants or needs to reduce its operations - turnaround, divestiture, and liquidation
    defensive or retrenchment strategies
  23. a defensive strategy - reverse a negative trend and get the organization back to profitability
  24. a defensive strategy - selling off part of the organization
  25. a defensive strategy - organization dissolves completely
  26. a corporate strategy - used when an organization simultaneously employs different strategies for different parts of the company
    combination strategies
  27. 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
    business strategy
  28. a business strategy - try to offer product that is less expensive - Wal Mart
    overall cost leadership
  29. 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
  30. a business strategy - pick particular part of the population and tailor the business to them - Curves - Invisalign
  31. 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
    Functional Strategies
  32. the application of the basic planning process at the highest levels of the organization
    Strategic Management
  33. first phase in strateic management in which the initial strategic plan is developed
    formulation phase
  34. second phase in strategic management in which the strategic plan is put into effect
    implementation phase
  35. third phase in strategic management in which the implemented strategic plan is monitored, evaluated and updated
    evaluation phase
  36. 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
  37. a technique for evaluating an organization's internal strengths and weaknesses and its external opportunities and threats
    SWOT Analysis
  38. What does SWOT stand for
    Strengths, Weaknesses, Opportunities, and Threats
  39. 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
    Five force model
  40. 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
  41. the right to issue directives and expend resources - a function of position in the organizational hierarchy
  42. 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
  43. Organizational Sources of power
    • Reward power - capacity to reward
    • Coercive power - capacity to punish-Hoosiers
    • Legitimate power - organizational hierachy
  44. Personal sources of power
    • Expert Power - skill
    • Referent power - personal characteristics that make you want to associate with that person
  45. 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
    Theory X
  46. the expenditure of physical and mental effort in work is as natural as play or rest
    Theory Y
  47. 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
    Self Fulfilling prophecy
  48. Who came up with Theory X, Y and the self fulfilling prophecy
    Douglas Mc Gregor
  49. stressed what the leader was like rather than what the leader did
    trait theory
  50. a leadership style - makes most decisions for the group
    autocratic leader
  51. allows people within the group to make all decisions
    laissez faire leader
  52. gues and encourages the group to make decision
    democratic leader
  53. 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
    Ohio State Studies
  54. came up with four systems for management
    1 Exploitative Authorative
    2. Benevolent Authoritative
    3. Consultative
    4. Participative
    Participative is the best
    University of Michigan Studies
  55. Univ. of Michigan - system 1 leader takes advantage of subordinantes and always makes decisions for them
    Exploitative Authoratative
  56. Univ. of Michigan - system 2 leader makes decision for the group - think decision is in the best interest - like a parent
    Benevolent Authoritative
  57. Univ. of Michigan - system 3 leader asks for input but still makes decision themselves
  58. Univ. of Michigan - system 4 Leader and Subordinates make decisions together - the best
  59. focuses on the style of leaderhip that is most effective in particular situations - task motivated or relationship motivated leaders
    Contingency Approach to Leadership
  60. gain satisfaction from the performance of a task
    task motivated leader
  61. gain satisfaction from interpersonal relationships
    relationship motivated leaders
  62. 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
    least prefered coworker scale
  63. dimension of the contingency approah to leadership - degree to which others trust and respect the leader and the leader's friendliness
    leader member relations
  64. dimension of the contingency approah to leadership - degree to which job tasks are structured
    task structure
  65. dimension of the contingency approah to leadership - power and influence that go with a job
    position power
  66. as the level of maturity of followers increases structure should be reduced while emotional suppport should first be increased and then gradually dcreased
    situationl leadership theory
  67. 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
    Transactional leadership
  68. involves cultivating employee acceptance of the group mission - mutual encouragement
    transformational leadership
  69. 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
    Charismatic leadership
  70. 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
    corporate culture
  71. how does culture originate? (4)
    History, Environment, Selection process, and Socialization process
  72. characterized by individualists who regularly take high risks and get quick feedback on whether their decisions are right or wrong
    Tough Person, Macho Culture
  73. encourages employees to take few risks and to expect rabid feedback- activity is the key to success
    work-hard/play-hard culture
  74. requires big stakes decisions, with considerable time passing before the results are known.
    bet-your-company culture
  75. involves low risk coupled with little feedback
    process culture
  76. Covers Skill Variety, Task Identity, Task significance, Autonomy, and Feedback
    Job Characteristics Model JCM
  77. a group of people working together in some type of concentrated or coordinated effort to achieve objectives
  78. refers to the sum of the personal contacts and interactions and the associated groupings of people working within the formal organization
    informal organization
  79. reasons for organizing
    • establish lines of authority
    • improves efficiency and quality (Synergism)
    • improve communication
  80. speicializes, efficient, parts create a richer whole by combinging efforts
  81. everyone has a seperate task that benefits the organization as a whole- better use of resources
    Division of labor
  82. 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
    horizontal division of labor
  83. advantages of horizontal division of labor 6
    • 1. employee only required to have a few skills
    • 2. training is easier so is selecting
    • 3. employees are more efficient
    • 4. Ability to capitalize on employees best skills
    • 5. When divide everyone can work at the same time
    • 6. creates standard process
  84. based on the establishment of lines of autority and defines the levels that make up the certical organization structure. Facilitates the flow of communication
    Vertical divison of labor
  85. 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
    job scope
  86. 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
    job depth
  87. the ability to influence, command, or apply force
  88. power derived from the rights that come with a position and represents the legitimate exercise of power
  89. accountability for the achievement of objectives, the use of resources, and the adherence to organizational policy
  90. Authority starts at the top and goes down through the levels
    formal theory of authority
  91. a managers source of authority lies with his or her subordinates because they have the poer to either accept or reject the managers command
    acceptance theory of authority
  92. little authority is delegated to lower levels of management
  93. a great deal of authority is delegated to lower levels of management
  94. a form of decentralization that invloves giving subordinates substantial authority to make decisions
  95. for empowerment to work you must have
    • participation
    • innovation
    • access to information
    • accountability
  96. work units without a frontline manager and empowered to control their own work - employees make all the decisions - including hireing and firing
    self managed work teams
  97. authority and responsibility must coincide and subordinates must accept authority and responsibility
    parity principle
  98. 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
    reasons managers are reluctant to delegate
  99. states that managers should concentrate their efforts on matter that deviate significantly from normal and let subordinates handle routine matters
    exception principle
  100. 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
    Unity of command principle
  101. 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
    scalar principle
  102. number of subordinates a manager can effectively manage
    span of management
  103. factors affecting the span of management 5
    • complexity
    • variety
    • proximity
    • quality of subordinates
    • quality of manager
  104. flexible working hours- allow employees to choose, within certain limits when they start and end their workday
  105. the practice of working at home or while traveling and being able to interact with the office, or working at a satellite office
  106. a relativelty new concept whereby two or more parttime employees perform a job that would normally be held by one fulltime employee
    job sharing
  107. organizing growth stage - characterized by the absence of formal policies, objectives, and structure - center on one individual and one functional area
    craft or family stage
  108. organizing growth stage - the organization grows at an increasing then decreasing rate - atmosphere of optimism
  109. entrepreneur replaced or evolved into professional manager who performs the processes of planning, organizing, staffing, moticating, and controlling - written policies and plans
    professional management stage
  110. uses a series of boxes connected with one or more lines to graphically represent the organizaiton's structure
    organizing charts
  111. 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
  112. 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
  113. a factor affecting organization - mechanistic vs organic (Burns and Stalker)
  114. rigid delineation of functional duties
    precise job descriptions
    fixed authorty/responsibility
    well developed organizational hierarchy
    mechanistic (burns and stalker)
  115. less formal job descriptions
    emphasis on adaptability
    more participation at all levels
    less fixed authority
    organic(burns and stalker)
  116. three modes of production - joan woodward
    • 1. unit of small batch production
    • 2. large batch or mass production
    • 3. continuous flow production
  117. custom made products - orange county choppers - organic
    unit or small batch production
  118. ford making the same model t - focus is on efficiency and low cost - mechanistic
    large batch or mass production
  119. technologically complex- how things operate - chemical plant - organic ( must respond quickly to problems)
    continuous flow production
  120. 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
  121. 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
    functional departmentalization
  122. 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)
    product departmentalization
  123. 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
    geographic departmentalization
  124. based on division by customers served - retail vs wholesale customers
    Customer departmentalization
  125. Simple numbers (# of employees)
    process or equipment ( unit, continous flow, lg batch)
    time or shift (convenience stores)
    other types of departmentalization
  126. departmentalize on one basis then another as the organization grows
    hybrid departmentalization
  127. 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
    line structrue
  128. the addition of staff specialists to a line structured organization creates
    a line and staff structure
  129. advisory and supportive in nture - they contribute to the efficiency and maintenance of the oranization
    staff functions
  130. directly involved in producing and marketing the organization's goods or services
    line functions
  131. 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
    matrix structure
  132. 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
    horizontal structure
  133. has relatively few levels and relatively large spans of management at each level
    flat structure
  134. has many levels and relatively small spans of management
    tall structure
  135. Japanese have fewer ____ and flatter ____
    managers and structures
  136. today is trending toward ____ and ____ structure
    horizontal and virtual
  137. a group of people formally appointed and oranized to consider and decide certain matters
  138. to use a committe effectively
    • members must know the purpose
    • know how long the will work together
    • what can it do (decisions)
    • choose people with appropriate talent
  139. a type of cmmittee that is responsible for reviewing the major policy and strategy decisions proposed by top management
    board of directors
Card Set
Management Test 2
Management Test 2