Studied by 4 people
planning
setting goals and deciding how to achieve them; coping with uncertainty by formulating future courses of action to achieve specified results
three types of planning
-strategic
-operational
-tactical
strategic planning
-top management
-determines what the organization’s long-term goals should be for the next 1-5 years with the resources they expect to have available
tactical planning
-middle management
-determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years
-short term goals
operational planning
-first-line management and team leaders
-determining how to accomplish specific tasks with available resources within the next 1 week to 1 year period
-short term goals
how do the three levels of planning work together?
strategic (passed down)→ tactical (passed down) → operational
SMART goals
a goal that is Specific, Measurable, Attainable, Results-oriented, and has Target dates
SWOT Analysis
Strengths (internal), Weaknesses (internal), Opportunities (external), Threats (external)
forecasting
vision or projection of the future
trend analysis
hypothetical extension of a past series of events into the future
contingency planning
the creation of alternative hypothetical but equally likely future conditions
look at current trends
discontinuities
visualize future possibilities
benchmarking
process by which a company compares its performance with that of high-performing organizations
three levels of organizational culture
observable artifacts
espoused values
basic assumptions
observable artifacts
-physical manifestations of culture
most visible level
manner of dress, awards, myths, and stories about the company, rituals and ceremonies, decorations, as well as visible behavior
espoused values
-explicitly stated values and norms
explicitly stated values and norms preferred by an organization, as may be put forth by the firm’s founder or top managers
basic assumptions
-core values of the organization
unobservable
represent the core values of an organization’s culture-- those are taken for granted and, as a result, are difficult to change.
four types of organizational culture
-clan
-hierarchy
-market
-adhocracy
clan culture
-internal focus
-values flexibility over stability
-collaboration among employees
-family-like, a strong sense of community
adhocracy culture
-external focus
-values flexibility
-adaptable, creative, and quick to respond to changes in the marketplace
market culture
-focused on the external environment
-values stability and control
-driven by competition and a strong desire to deliver results
hierarchy culture
-has an internal focus
-values stability and control over flexibility
-formalized, structured work environment
-at extreme: may seem like company values efficiency more than it does its people
how do employees learn culture in an organization?
-symbols
-stories
-heroes
-rites and rituals
-organizational socialization
symbol
an object, act, quality, or event that conveys meaning to others
story
narrative based on true events, which is repeated--and sometimes embellished upon-- to emphasize a particular value
hero
person whose accomplishments embody the values of the organization
rites and rituals
activities and ceremonies, planned and unplanned, that celebrate important occasion and accomplishments in an organization’s life
organizational socialization
the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization
division of labor
arrangement of having discrete parts of a task done by different people. the work is divided into particular tasks assigned to particular workers
unity of command
principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands
span of control
the number of people reporting directly to a given manager
-wide and narrow
wide span of control
manager has several people reporting
narrow span of control
manager has a limited number of people reporting
authority
the right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources
with authority comes: accountability, responsibility, and ability to delegate one’s authority
accountability
describes expectation that managers must report and justify work results to the the managers above them
responsibility
the obligation one has to perform the assigned tasks
delegation
process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
centralization
organizational structure in which important decisions are made by upper managers--power is concentrated at the top
advantages of centralization
-there is less duplication of work because fewer employees perform the same task; rather, the task is often performed by a department of specialists
decentralization
organizational structure in which important decisions are made by middle-level and supervisory-level managers--power is delegated throughout the organization
advantages of decentralization
-managers are encouraged to solve their own problems rather than escalate the decision to a higher level of management
-decisions are made more quickly, which increases the organization’s flexibility and efficiency
traditional organizational designs:
-simple
-functional
-division
-matrix
simple structure
authority is centralized to a single person
-found in very early stages of an organization
functional structure
people with similar occupational specialties are put together in formal groups
divisional structure
people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions
matrix structure
combines functional and divisional chains of command in a grid so that there are two command structures--vertical and horizontal
horizontal structure
teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
open boundary organizational designs:
-hollow structure
-modular structure
-virtual structure
hollow structure
structure in which the organization has a central core of key functions and outsources other functions who can do them cheaper or faster
modular structure
a firm assembles product chunks, or modules, provided by outside contractors
virtual structure
an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections
6 sources of power
-legitimate
-reward
-coercive
-expert
-referent
-informational
legitimate power
power that results from managers’ formal positions within the organization
-power given; can be taken away
reward power
power that results from a manager’s authority to reward their subordinates
-power given; can be taken away
coercive power
results from manager’s authority to punish their subordinates
-power given; can be taken away
expert power
power resulting from one’s specialized information or expertises
-power comes from person; cannot be taken away
referent power
power deriving from one’s personal attraction (strong, visionary)
-power comes from person; cannot be taken away
informational power
power deriving from one’s access to information
transactional leadership
leadership style that focuses on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance
transformational leadership
leadership style that transforms employees to pursue organizational goals over self-interests
-influenced by 2 factors: individual characteristics and organizational culture
servant leadership
focuses on providing increased service to others--meeting the goals of both followers and the organization--rather than to yourself
four steps of the control process
establish standards
measure performance
compare performance to standards
take corrective action
three types of control
feedforward
concurrent
feedback
feedforward control
-focuses on preventing future problems
-collects information about past performance in order to establish new standards→ plans then made to avoid pitfalls prior to starting a task
concurrent control
-entails collecting performance information in real-time
-enables managers to measure performance and determine if employee behavior and organizational processes conform to regulations and standards
-technology is typically used
feedback control
-collecting performance information after a task or project is done
-this information is used to correct or improve future performance
what are the 2 core principals of total quality management (TQM)
people orientation
improvement orientation
people orientation (TQM)
everyone involved with the organization should focus on delivering value to customers
improvement orientation (TQM)
everyone should work on continuously improving the work processes
budget
-formal financial projection
-states an organization’s planned activities for a given period of time in quantitative terms
balance sheet
a summary of an organization’s overall financial worth--assets and liabilities--at a specific point in time
income statement
summary of an organization’s financial results--revenue and expenses--over a specified period of time
Note
Flashcard