Chapter 8 Definitions

Resources

A general term that incorporates human resources, natural resources, and financial resources.

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Organizing

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 organizations goals and objectives.

Leading

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organizations goals and objectives.

Controlling

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. An encompassing explanation of why the organization exists and where its trying to head A set of fundamentals beliefs that guide a business in the decision they make

Vision Values

Mission Statement

An outline of the fundamental purposes of an organization. It should address: The organizations self-concept Company philosophy and goals Long-term survival Customer needs Social responsibility The nature of the companys product or service

Goals The broad, long-term accomplishments an organization wishes to attain.

Objectives

Specific, short-term statements detailing how to achieve the organizations goals. (Must be measurable).

SWOT analysis

Strengths, Weaknesses, Opportunities, and Threats. A planning tool used to analyze an organizations strengths, weaknesses, opportunities, and threats.

Strategic planning

Outlines how the company will meet its objectives and goals.

Tactical planning

The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.

Operational planning

The process of setting work standards an schedules necessary to implement the companys tactical objectives

Contingency planning Crisis planning

The process of preparing alternatives courses of action that may be used if the primary plans dont achieve the organizations objective. Involves reacting to sudden changes in the environment Choosing among two or more alternatives. Steps. 1. 2. 3. 4. 5. 6. 7. Define the situation. Describe and collect needed information. Develop alternatives. Develop agreement among those involved. Decide which alternative is the best. Do what is indicated (begin implementation). Determine whether the decision was a good one and follow up.

Decision making

Problem solving

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas

PMI

Listing all the Pluses for a solution in a column, all the Minuses in another, and the Interesting in a third column.

Organization Chart

A visual device that shows relationships among people and divides the organizations work; it shows who is accountable for the completion of specific work and who reports to whom.

Top management

Highest level of management, consisting of the president and other key company executives, who develop strategic plans

Middle management

The level of management that includes general managers, division managers, and branch and plant managers, who are responsible for tactical planning and controlling.

Supervisory management

Managers who are directly responsible for supervising workers and evaluating their daily performance

Technical skills

Skills that involve the ability to perform tasks in a specific discipline or department

Human relations skills

Skills that involve communication and motivation; they enable managers to work through and with people

Conceptual skills

Skills that involve the ability to picture the organization as a whole and the relationships among its various parts.

Autocratic leadership Participative (democratic) leadership Free-rein (laissezfaire) leadership

Leadership style that involves making managerial decisions without consulting others

Leadership style that consist of managers and employees working together to make decisions

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

Knowledge management External customers

Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm Dealers, who buy products to sell to other, and ultimate customers (or end users), who buy products for their own personal use

Internal customers

Individuals and units within the firm that receive services from other individuals or units

What managers do Planning Setting organizational goals. Developing strategies to reach those goals. Determining resources needed. Setting precise standards. Leading Guiding and motivating employees to work effectively to accomplish organizational goals and objectives. Giving assignments. Explaining routines. Clarifying policies. Providing feedback on performance

Organizing Allocating resources, assigning tasks, and establishing procedures for accomplishing goals. Preparing a structure (Organizational chart) showing lines of authority and responsibility. Recruiting, selecting, training, and developing employees. Placing employees where theyll be most effective.

Controlling Measuring results against corporate objectives. Monitoring performance relative to standards. Rewarding outstanding performance. Taking corrective action when necessary

Leaders must: 1. 2. 3. 4. Communicate a vision and rally others around that vision Establish corporate values Promote corporate ethics Embrace transformational change

The 12 Rules of Leadership 1. Set a good example 2. Give your people a set of objectives and a sense of direction 3. Keep your people informed of new developments of the company and how theyll affect them 4. Ask your people for advice

The 7 donts of Leadership 1. Trying to be liked rather than respected 2. Failing to ask subordinates for their advice and help 3. Failing to develop a sense of responsibility in subordinates 4. Emphasizing rules rather than skill 5. Failing to keep criticism constructive

5. Let your people know that you support them 6. Dont give orders 7. Emphasize skills, not rules 8. Give credit where credit is due 9. Praise in public 10. Criticize in private 11. Criticize constructively 12. Make it known that you welcome new ideas

6. Not paying attention to employee gripes and complaints 7. Failing to keep people informed

Controlling five steps 1. 2. 3. 4. 5. Establishing clear performance standards. Monitoring and recording actual performance (results). Comparing results against plans and standards Communicating results and deviations to the employees involved Taking corrective action when needed and providing positive feedback for work well done

Whats the difference between goals and objectives? What does a company analyze when it does a SWOT analysis? Whats the difference between strategic, tactical, and operational planning? What are the seven Ds in decision making? What are some characteristics of leadership today that make leaders different from traditional managers? Explain the differences between autocratic and democratic leadership styles What is the first step in developing a knowledge management system?