Chapters 1-5 Business

List the 5 Management Functions

• Planning

• Organizing

• Staffing

• Leading

• Controlling

At what level are the most managers?

Lower level manager

How often do managers complete the five management functions

on a regular basis

Classical management studies what?

the way work is organized in order to increase worker productivity

Behavioral Management focuses on what?

relationship between managers and employees

Quality Management is total commitment by everyone to do what?

improve the quality of procedures and products by reducing waste, errors, and defects

Review the challenges and changes that managers face in the workplace today

• much more educated

• virtual communication

• more work completed by automated machines

  • competition is global

What is the definition of a management strategy?

a carefully developed overall approach to leading an organization

The three roles of managers include

Communicators, Relationship Builders, and Decision Making

List some different aspects of those three roles

Communicators: acts as a spokes person, communicate frequently

Relationship Builders: resolve conflict, motivate people

Decision Making: allocating resources, solve problems, and reward success

What is the definition of a problem?

a difficult situation requiring a solution

List the seven problem solving steps in order

• Identify the Problem

• Gather Relevant Info or Data

• Determine Alternative courses of action

• Evaluate each Alternative

• Select an Optimal Solution

• Implement the Decision

• Evaluate the Decision and Make Changes

Examples of resources include:

People, Money, Facilities, Equipment, and Materials

Who makes decision about how company resources are used?

lower level managers

Supervisors are usually found at what level of the management pyramid?

lower level

What is contingency planning and what is the “pay off” (advantage) of doing contingency planning?

an alternative course of action to be followed if a specific problem arises → pay off is that problems can be solved quickly if/when they occur

Leadership is the ability to do what?

to influence individual and groups to cooperatively achieve common goals

Effective leaders have excellent human relations skills which refers to what?

how well people get along when working together

What is the definition of power?

the ability to control behavior

Communication, Networking, Professionalism and Teamwork are examples of:

soft skills

Explain why employers place more importance on hiring employees with various soft skills more than specific hard skills

because hard skills can be learned

Explain the characteristics of the Autocratic leadership style

gives clear, direct and precise orders with detailed instructions, managers handle problems, seldom consult with employees

Explain the characteristics of the Democratic leadership style

encourages workers to share in decision making, planning and discussing problems is time consuming, workers have more responsibility

Explain the characteristics of the Open leadership style

gives little to no direction to employees, little to no oversight, works best with experienced workers where little change occurs

Planning involves what?

analyzing information and making decisions what needs to be done

Lack of effective business planning often leads to what?

business failures

The five elements of a business plan include:

nature of the business, goals and objectives, marketing plan, financial plan, and organizational plan

The first two elements of a business plan are referred to as

SWOT Analysis

SWOT stands for

(Internal) Strengths, (Internal) Weaknesses, (External) Opportunities, and (External) Threats

The definition of a mission statement is

a short specific statement of the business’s purpose and direction

Two types of planning include

strategic and operational

The definition of strategic planning is

provides the needed information for making decisions about the direction and goals of a business (tells us where the business is going)

The definition of operational planning is

determines how work will be done, who will do it and what resources are needed (directs day-day activities)

Definition of Budgets

a written financial plan

Definition of Schedules

a time plan for reaching objectives

Definition of Policies

guidelines (work rules)

Definition of Procedures

sequence of steps to be followed for performing a specific task

Definition of Standards

specific measure of something (quality, timeliness)

Definition of Research

collecting data to provide information needed for decision making

An organizational chart shows what?

the major work units (identifies lines of authority)

Goals must be (four things):

specific and meaningful, achievable, clearly communicated, and consistent with overall company goals

What are some characteristics of “great places to work”?

• perform better financially

• less turnover and employee stress

• greater productivity

• more qualified applicants

• higher customer satisfaction

What are some reasons the Baby Boomer generation still works?

good health or financial need

What challenges do supervisors sometimes face and why?

supervisors moving up in management → moving from co-worker to boss

Staffing focuses on

finding the right individuals who can perform the work

Before a team can be effective, members must clearly understand what?

the activities to be completed

A group of people who cooperate to achieve a common goal is

a work team

Effectiveness of a work team is influenced by whom?

both the team members and the managers

Communication is

the process of exchanging information, ideas, and thoughts between individuals or groups

What three things are considered a leading activity?

effective communications, employee motivation, and consensus building

The motivation theory that describes individual needs in five categories that from a hierarchy was developed by:

Maslow

The order of Maslow’s theory was

1) Physiological (needs)

2) Safety (security)

3) Love and Belonging (social needs)

4) Esteem (recognition and respects)

5) Self-Actualization (need to grow emotionally, intellectually, be creative, and achieve full potential)

Employees who take personal responsibility for their own work and set personal goals have a high need for

achievement

Who developed a motivation theory that suggests individuals are influenced most strongly by the need for achievement, affiliation, or power

McClelland

According to Herzberg, which of the following is likely to increase worker satisfaction?

challenging work

According to Herzberg, pay and fringe benefits, working conditions, and type of supervision are examples of:

hygiene factors

The first step in an effective change process is

to carefully plan for change

What is most likely the response of employees to change in the company?

they don’t like change and don’t respond well when it is introduced

The greatest resistance to change is experienced when

it occurs suddenly, people are not prepared for change, and no reasons for the change are given

Regular, open, two-way communication between managers and employees is important in an

effective change process

The management function that provides information needed to improve the management process and business operations is

controlling

What is the correct order of steps in controlling?

establish and follow standards, measure performance, and take corrective action

Managers can increase profits by

increasing sales and decreasing costs

Perfection- having no errors- may be the only acceptable standard for

some products and services

What are the common types of standards in a business?

quantity, quality, time, and cost

The number of units to be produced, numbers of sales prospects to be contacted, and number of lines of information to be entered are examples of

quantity standards

Generally, to which standard do most businesses pay the greatest attention?

cost standards

What is the difference between current performance and the standard

variance

When budget problems are identified early, managers have time to

take corrective action

management is most concerned when performance is

lower than standards

standards are less likely to be accurate when

new procedures are implemented

low inventories are to lost sales as high inventories are to

increased costs

standards should be revised when it is clear they will not

accurately reflect performance and when attempts to improve performance have not been successful

JIT

Just in Time Inventory Control, keep perfect amount of stock available

Just-in-Time inventory controls allow a business to

maintain low inventory levels

Employee absenteeism is a

major cost to businesses