What are the four functions of management?
What is Planning?
- Delivering strategic value
- The management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue.
What is Organizing?
- Building a dynamic organization
- The management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals.
What is Leading?
- Mobilizing people
- The management function that involves the manager's efforts to stimulate high performance by employees.
What is Controlling?
- Learning and changing
- The management function of monitoring performance and making needed changes.
Management is the process of working with people and resources to accomplish organizational goals effectively and efficiently.
What is effectiveness?
Achieving organizational goals
What is efficiency?
Achieving goals with minimal waste of money, time, materials, and people.
What are the three management levels and skills?
- Technical skills
- Conceptual and decisional skills
- Interpersonal and communication skills
What are Technical skills?
The ability to perform a specialized task involving a particular method or process.
What are Conceptual and decisional skills?
The ability to identify and resolve problems for the benefit of the organization and its members.
What are Interpersonal and communication skills?
People skills; the ability to lead, motivate, and communicate effectively with others.
What is Control?
Any process that directs the activities of individuals toward the achievement of organizational goals.
What are the three types of control?
- Bureaucratic control
- Market control
- Clan control
What is Bureaucratic control?
The use of rules, regulations, and authority to guide performance.
What is Market control?
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
What is Clan control?
Control based on the norms, values, shared goals, and trust among group members.
What is Management audit?
An evaluation of the effectiveness and efficiency of various systems within an organization.
What is External audit?
An evaluation conduted by one organization, such as CPA firm, on another organization.
What is Internal audit?
A periodic assessment of a company's own planning, organization leading and controlling processes.
What are the main differences between Manufacturing vs. Services?
Manufacturing and Service Organizations differ chiefly because manufacturing is goods-oriented (tangible) and service is act-oriented.
- In nearly all cases, certain issues or items are more important than others.
- Recognizing this allows managers to focus their attention to those efforts that will do the most good.
What is Pareto Phenomenon?
a few factors that account for a high percentage of occurence of some event(s). (The critical few factors should receive the highest priority. This is a concept that is appropriately applied to all areas and levels of management.)
What is System?
a set of interrelated parts that must work together.
The business organization is a system composed of ___________.
What are the three subsystems?
- Marketing subsystem
- Operations subsystem
- Finance subsystem
The systems approach.....
- Emphasizes interrelationships among subsystems.
- Main theme is that the whole is greater than the sum of its parts.
- The output and objectives of the organization take precedence over those of any one subsystem.
What is Competitiveness?
- How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.
- Organizations compete through some combination of their marketing and operations functions. (Ex. What do customers want? How can these customer needs best be satisfied?)
What is Strategy?
A plan for achieving organizational goals. (Serves as a roadmap for reaching the organizational destinations)
What are the two types of strategies that organizations have?
- Organizational strategies
- Functional level strategies
What are Organizational strategies?
- Overall strategies that relate to the entire organization.
- Support the achievement of organizational goals and mission.
What are Functional level strategies?
Strategies that relate to each of the functional areas and that support achievement of the organizational strategy.
What is Tactics?
- The methods and actions taken to accomplsh strategies.
- The "how to" part of the process
What is Operations?
The actual "doing" part of the process
Effective strategy formulation requires taking into account:
- Core competencies - special attributes or abilities that give an organization a competitive edge.
- Environmental scanning (SWOT) - considering of events and trends that present threats or opportunities for a company.
Successful strategy formulation also requires taking into account:
- Order qualifiers - characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase.
- Order winners - characteristics of an organization's goods or services that cause it to be perceived as better than the competition.
What is The Balanced Scorecard Approach?
A top-down management system that organizations can use to clarify their vision and strategy and transform them into action.
What are the key points of The Balanced Scorecard Approach?
- Develope objectives
- Develop metrics and targets for each objective
- Develop initatives to achieve objectives
- Identify links among the various perspectives (Finance, Customer, Internal business processes, and Learning and growth)
- Monitor results
What is the equation for Productivity?
Productivity = Output/Input
What is Standardization?
Extent to which there is an absence of variety in a product, service or process same. Or things are the same.
What are the Advantages of Standardization?
- Fewer parts to deal with in inventory & manufacturing
- Reduced training costs and time
- More routine purchasing, handling and inspection procedures
- Orders fillable from inventory
- Opportunities for long production runs and automation
- Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures
What are the Disadvantages of Standardization?
- Designs may be frozen with too many imperfections remaining.
- High cost of design changes increases resistance to improvements
- Decreased variety results in less consumer appeal.
What is Mass Customization?
- A strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service.
- Facilitating Techniques: (Delayed differentiation - producing basically standardized goods, but incorporating some degree of customization & Modular design - a form of standardization in which component parts are grouped into modules that are easily replaced or interchanged.)
What is Capacity?
- The upper limit or ceiling on the load that an operating unit can handle
- Capacity needs include (Equipment, Space, and Employee skills)
- impact the ability of the organization to meet future demands
- affect operating costs
- are a major determinant of initial cost
- often involved long-term commitment of resources
- can affect competitiveness
- affect the ease of management
- are more important and complex due to globalization
- need to be planned for in advance due to their consumption of financial and other resources
What are the Basic Layout Types?
- Product layouts: uses standardized processing operations to achieve smooth, rapid, high-volume flow.
- Process layouts: can handle varied processing requirements.
- Fixed-Position layout: the product or project remains stationary, and workers, materials, and equipment are moved as needed.
- Combination layouts: the three basic layout types are ideal models, which may be altered tos atsfy the needs of a particular situation.
What is Line Balancing?
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.
Why is line balancing important?
- It allows us to use labor and equipment more efficiently.
- To avoid fairness issues that arise when one workstation must work harder than another.
What is Cycle Time?
- The maximum time allowed at each workstation to complete its set of tasks on a unit.
- Cycle time also establishes the output rate of a line