Principles of Management Exam 2

Planning

Determining organizational goals and the means for achieving them.

Purpose of Planning

Provides direction and focus, reduces uncertainty and waste, sets a foundation for control and decision-making, and helps coordinate activities.

Types of Plans

Strategic plans guide tactical plans which in turn guide operational plans.

Objectives in Planning Process

What do we want to achieve?

Premises in Planning Process

What assumptions are we making?

Alternatives in Planning Process

What are possible courses of action?

Evaluate Alternatives

Comparing pros/cons and feasibility of options in the planning process.

Characteristics of Effective Goals

Specific, Measurable, Achievable, Relevant, Time-bound (SMART acronym).

Organizational Structure

How tasks are divided, grouped, and coordinated.

Organizational Design

The process of creating or changing organizational structure.

Differentiation

Division of labor into distinct tasks for specialization.

Integration

Coordination between units to achieve common goals.

Formalization

The degree to which jobs are standardized in an organization.

Unity of Command

Each employee reports to one supervisor.

Span of Control

The number of employees reporting to a manager.

Informalization

Unwritten rules and norms that guide behavior in an organization.

Guanxi

Building personal networks and trust, significant in Chinese culture.

Keiretsu

Close inter-company relationships and loyalty, significant in Japanese culture.

Human Resource Management (HRM)

Aligning people practices with organizational goals.

Job Analysis

Identifying duties, skills, and requirements for a job.

Recruiting

Attracting qualified candidates, either internally or externally.

Socialization

Integrating new employees into the organizational culture.

Performance Appraisal

Evaluating employee performance using objective and subjective measures.

Leadership

Influencing others toward achieving goals.

Leader-Member Exchange (LMX) Model

Focuses on relationship quality between leader and followers.

Transformational Leadership

Inspires enthusiasm and commitment through vision and confidence.

Transactional Leadership

Focuses on supervision and performance through rewards and punishments.

Sources of Leader Power

Legitimate, Reward, Coercive, Expert, and Referent powers.

Influence Tactics

Methods like rational persuasion, inspirational appeal, and consultation used to influence others.