intro to management exam one (copy)

action plan

action plan

defines the course of action needed to achieve a stated goal

business model

how its strategy will create value for the customer and at the same ttime generate revenues sufficient to cover costs and realize a profi

business plan

a document that outlines a firms goals, the strategy for achieving them, and the standards for measuring success

cascading goals

process of ensuring that the strategic goals set at the top level align, downward with more specific short term goals at lower levels within an organization, including employees objectives and activities

long term goals

generally referred to as strategic goals, span 1-5 years and focus on achieving the strategies identified in a company’s strategic plan

management by objectives (MBO)

a 4 step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employees performance, and (4) the manager makes a performance appraisal and rewards the employee according to results

mission statement

expresses the purpose of the organization

objective

specific commitment to achieve a measurable result within a stated period of time

operating plan

a plan that breaks long term output into short term targets or goals

operational planning

determine how to accomplish specific tasks with available resources within next 1-52 weeks

short term goals

sometimes referred to as tactical or operational goals, generally span 12 months and are connected to strategic goals in a hierarchy known as means-end-chain

SMART goals

specific, measurable, attainable, result-oriented, & target dates

strategic management

process that involves managers from all parts of the organization in the formulation and the implantation of strategies and strategic goals

strategic planning

determine what the organizations long term goal should be for the next one to five years with the resources they expect to have available

strategy

sets the long term goals and direction for the organization

tactical goals

also known as a short term goal, span for 12 months

tactical planning

they determine what contributions their department or similar work units can make with their given resources during the next 6-24 months

values statement

expresses what the company stands for, its core priorities, the values it employees embody, and what its products contribute to the world

vision

long term goal describing “what” an organization wants to become

vision statement

expresses what the organization should become, where it wants to go strategically

benchmarking

a process by which a company comapres it performance with that of a high-performing organization

business level strategy

focuses on individual business units or product/service lines

contingency planning

creation of alternative hypothetical but equally likely future conditions

corporate level strategy

focuses on the organization as a whole

cost focus strategy

keep the cost of a product below those of competitors and targets a narrow market

ex: claires

cost leadership strategy

keep the costs, and hence process, of a product or service below those of competitors and targets a wide market

ex: walmart

differentiation strategy

offer products that are of unique and superior value compared to those of competitors and target a wide market

ex: patagonia

diversification

moving into and/or operating new lines of business; products may be related or unrelated

execution

consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, allign people with goals, and achieve results promised

focused-differentiation strategy

offer products that are of unique and superior value compared to those of competitors and target a narrow market

ex: lululemon

forecast

a vision or projection of the future

functional-level strategy

plan of action by each functional area of the organization to support higher level strategies

SWOT

strengths, weaknesses (internal)

opportunities, threats (external)

porter 4 competitive strategies

cost-leadership

differentiation

cost focus

focused differentiation

related diversification

when a company purchases a new business that is related to the company’s existing business portfolio

scenario analysis

the creation of alternative hypothetical but equally likely future conditions

strategic control

monitoring the execution of strategy and taking corrective action, if necessary

trend analysis

hypothetical extension of a past series of events into the future

unrelated diversification

occurs when a company acquires another company in a completely unrelated business

vertical integration

firm explands into businesses or activities that provide the supplies (product inputs) it needs or that distribute and sell its products

VRIO

a framework for analyzing a firms resource or capability to determine its competitive strength or power- value, rarity, imitability, organization

accountability

describes expectation that managers must report and justify work results to the managers above them

adhocracy culture

type of organizational culture that has an external focus and values flexibility

ex: google

authority

the right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources

boundaryless organization

a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers, and customers

centralized authority

organizational structure in which important decisions are made by upper managers-power is concentrated at the top

clan culture

type of organizational culture that has an internal focus and values flexibility rather tha stability and control

ex: chick-fil-a

corporate culture

set of shared taken-for-granted implicit assumptions that group holds and that determines how it perceives, thinks about, and reacts to its various enviroments

customer divisions

divisional structure in which all activities are grouped around common customers or clients

decentralized authority

organizational structure where important decisions are made by middle and supervisory level managers, power is delegated throughout the organization

delegation

process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

divisional structure

people with diverse occupational specialties are put together in formal groups according to products or services, customers or clients, or geographic regions

enacted values

values and norms actually exhibited in the organization

espoused values

explicitly stated values and norms preferred by an organization

functional structure

second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups

geographic divisons

divisional structure in which activities are grouped around defined regional locations

hierarchical culture

has an internal focus and values stability and control over flexibility

ex: amazon

horizontal design

teams or workgroups either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries

hollow structure

a network structure where the organization has a central core of key functions and outsources other functions to vendor who can do them cheaper or faster

market culture

has a strong external focus and values stability and control

ex: uber

matrix structure

combines functional and divisional chains of command in a grid so there are 2 command structures- vertical and horizontal

modular structure

a firm assembles product chunks, or modules, provided by outside contractors

narrow (tall) span of control

manager has a limited number of people reporting to a president

organizational culture

system of shared beliefs and values that develop within an organization and guides that behavior of its members

organizational design

creating the optimal structures of accountability and responsibility that an organization uses to execute its strategies

organizational socialization

process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization

organizational structure

formal system of task and reporting relationships that coordinates and motivates members to work together to achieve goals

product divisions

divisional structures in which activities are grouped around similar products or services

rites and rituals

activities and ceremonies that celebrate important occasions and accomplishments in an organizations life

simple structure

organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization

span of control

number of people reporting directly to a given manager

virtual structure

organization where members are geographically apart, working on computer connections; created specifically to respond an exceptional market opportunity that is often temporary

wide (flat) span of control

manager has several people reporting- a first-line supervisor may have 40 or more subordinates if little hands on supervision is required as is the case in some workplaces

360-degree feedback appraisal

appraised not only by managerial superiors but also by peers, subordinates, and sometimes clients

adverse impact

occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class over another group of people

ex: requiring workers to have a college degree can inadvertently create adverse impact on Hispanics because fewer Hispanics graduate from college than whites. (UNLESS DEGREE IS REQUIRED)

affirmative action

focuses on achieving equality of opportunity within an organization

arbitration

process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them

base pay

basic wage or salary paid employees in exchange for doing their job

behavioral-description interviews

interviewer explores what the applicant has actually done in the past

ex: describe a time when you dealt with an angry customer and explain how you managed the situation?

behaviorally-anchored rating scale (BARS)

rates employee gradations in performances according to scales of specific behaviors

benefits

additional non monetary forms of compensation designed to improve the lives of all employees in the organization

ex: health, dental, life insurance, disability protection, retirement plans, days off

collective bargaining

Negotiations between management and employees regarding disputes over compensation, benefits, working conditions, and job security

compensation

payment comprising three parts: wage or salaries, incentives, and benefits

cost of living adjustment (COLA)

clause in a union contract that ties future wage increases to increase in the cost of living

disparate treatment

results when employees from protected groups are intentionally treated differently

ex: making a decision to give all international assignments to people with no disabilities because of the assumption that they won’t need any special accommodations related to travel

employment at will

governing principle of employment in the great majority of states, that anyone can be dismissed at any time for any reason at all - or for no reason

employment tests

standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies

equal employment opportunity commission (EEOC)

job is to enforce anti-discrimination and other employment-related laws

external recruiting

attracting job applicants from outside the organization

forced ranking performance review systems

all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve

high performance work system (HPWS)

uses bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities; focuses on improving performance of collective human and social capital

ex: training and development programs

human capital

the economic or productive potential of employee knowledge, experience, and actions

human resource management

the process of planning for, attracting, developing, and retaining an effective workforce

incentives

consist of financial rewards intended to induce employee performance or productivity

ex: commissions, bonuses, profit-sharing plans, & stock options

internal recruiting

making people already employed by the organization aware of job opening

labor unions

organizations of employees formed to protect and advance their members interest by bargaining with management over job related issues

legal defensibility

the selection device measures job-related criteria in a way that is free from bias

mediation

where a neutral third party listens to both sides of a dispute, makes suggestions and encourages them to agree on a solution

objective appraisals

based on facts and are often numerical; measure desired results and hard to challenge legally

performance appraisal

management process that consists of assessing an employees performance and provide them with feedback