MGMT 3661 Exam #2

CH. 5, 6, 8, 16, 14

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

1. observable artifacts
2. espoused values
3. 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

1. establish standards
2. measure performance
3. compare performance to standards
4. take corrective action

three types of control

1. feedforward
2. concurrent
3. 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)

1. people orientation
2. 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