Management

Management

The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals.

Resources

Includes people and their skills, machinery, raw materials, computers, information technology, patents, financial capital, and loyal customers/employees.

Organizational performance

A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals.

Efficiency

A measure of how well or productively resources are used to achieve a goal.

Effectiveness

A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

Managerial tasks

Include planning, organizing, leading, and controlling to manage people in an organization.

Planning

Deciding what goals the organization wants to pursue and how to allocate resources to achieve those goals.

Organizing

Creating a structure of working relationships allowing members of the organization to interact and cooperate to achieve goals.

Leading

Articulating a clear vision for members to accomplish and energizing employees to understand their role in achieving organizational goals.

Controlling

Evaluating how well an organization has achieved its goals and determining if corrective actions are needed.

Mintzberg’s managerial roles: Decisional

Roles include entrepreneur, disturbance handler, resource allocator, and negotiator.

Mintzberg’s managerial roles: Interpersonal

Roles include figurehead, leader, and liaison.

Mintzberg’s managerial roles: Informational

Roles include monitor, disseminator, and spokesperson.

Three levels of management

Include CEO (top manager), top managers (responsible for all departments), middle management (supervise first-line managers), and first-line managers (supervise non-managerial employees).

Managerial skills

Include conceptual skills (analyzing situations), human skills (leading and controlling behavior), and technical skills (job-specific skills).

Restructuring

Simplifying or downsizing an organization’s operations to lower operating costs.

Outsourcing

Contracting with another company, often in a low-cost country, to perform tasks that were previously done internally.

Empowerment

Giving employees more authority and responsibility.

Building competitive advantage

The ability of one organization to outperform others by producing goods or services more efficiently and effectively.

Increasing efficiency

Reducing the quantity of resources used to produce goods.

Increasing quality

Improving skills and outcomes.

Innovation

How quickly a firm can introduce new or improved products to the market.

Ethics

Inner guiding moral principles that influence behavior.

Ethical dilemma

A situation where a person must choose between actions that could benefit themselves or others but may conflict with personal or ethical standards.

Stakeholders

Individuals or groups affected by how a company behaves, including stockholders, employees, suppliers, customers, and the community.

Social responsibility

A company's obligation to make decisions that protect and promote the welfare of its stakeholders and society.

Formal group

Two or more people formally assigned to work together to achieve a common goal.

Synergy

The advantage gained when individuals work together to produce a greater outcome than by individual efforts.

Team

A group whose members work intensely together to achieve a common goal.

Group cohesiveness

The degree to which members of a group are attracted to each other and motivated to stay in the group.

Mission statement

A broad declaration of an organization's overriding purpose and what distinguishes it from competitors.

Scenario planning

The generation of multiple forecasts of future conditions and analysis of how to respond.

SWOT analysis

A planning exercise identifying an organization's strengths, weaknesses, opportunities, and threats.

Hypercompetition

An industry characterized by intense, ongoing competition due to technological advancement or changing customer preferences.

Low-cost strategy

A strategy aiming to lower total costs below competitors' total costs.

Differentiation strategy

Differentiating products on relevant dimensions valued by customers.

Diversification

Expanding a company's business operations into a new industry.

Related diversification

Entering a new industry and establishing a business division linked to existing divisions.

Unrelated diversification

Establishing divisions or acquiring companies in new industries not linked to current operations.