MBA 600- management exam

Mission Statement

A broadly stated definition of an organization's basic business scope and operations that distinguishes it from similar types of organizations.

Strategic management

Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals.

Scenario Building

An approach where managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.

Differentiation Strategy

which managers seek to distinguish the organization's products and services from those of others in the industry.

Stretch Goals

A reasonable yet highly ambitious and compelling goal that energizes people and inspires excellence.

Operational Plans

Specifies the action steps toward achieving operational goals and supports tactical activities.

Core Competence

something that the organization does particularly well in comparison to others.

BCG Matrix

A concept developed that evaluates strategic business units with respect to two dimensions—business growth rate and market share—and classifies them as cash cows, stars, question marks, or dogs.

Contingency Plan

Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

decentralized planning

An approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans.

Planning

The management function concerned with defining goals for future performance and how to attain them

SWOT analysis

An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance.

Mission

An organization's purpose or reason for existence.

Focus Strategy

where managers use either a differentiation or a cost leadership approach, but they concentrate on a specific regional market or buyer group

Cost Leadership Strategy

which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.

Key performance indicators (KPIs)

Tools used to assess what is important to an organization and how well the organization is progressing toward attaining its strategic goal, so that managers can establish lower

Strategic goals

A broad statement of where an organization wants to be in the future; pertains to the organization as a whole rather than to specific divisions or departments.

tactical goals

The outcome that major divisions and departments must achieve for an organization to reach its overall goals.

diversification

The strategy of moving into new lines of business.

goal

A desired future state that the organization wants to realize.

tactical plans

Designed to help execute major strategic plans and to accomplish a specific part of a company's strategy.

strategy

A plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals.

operational goals

A specific, measurable result that is expected from departments, work groups, and individuals.

plan

A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.

management by means (MBM)

An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves.

Strategic Plans

Action steps by which an organization intends to attain strategic goals.

Management by objectives (MBO)

A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

Competitive advantage

Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace.

division of labor

The degree to which organizational tasks are subdivided into separate jobs. Also called work specialization.

organization structure

The framework in which an organization defines how tasks are divided, resources are deployed, and departments are coordinated.

organizing

The deployment of organizational resources to achieve strategic goals; involves assigning tasks, grouping tasks into departments, and allocating resources.

chain of command

An unbroken line of authority that links all individuals in the organization and specifies who reports to whom.

organization chart

The characteristics of vertical structure are portrayed in the organization chart, which is the visual representation of an organization's structure.

authority

The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes desired by the organization.

responsibility

The duty to perform the task or activity that one has been assigned.

line authority

The formal power to direct and control immediate subordinates.

flat structure

An organizational structure characterized by an overall broad span of management and relatively few hierarchical levels.

decentralization

Means that decision authority is pushed down to lower organization levels.

centralization

Means that decision authority is located near top organization levels.

tall structure

An organizational structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

delegation

When managers transfer authority and responsibility to positions below them in the hierarchy.

accountability

Means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

span of management

The number of employees reporting to a supervisor; sometimes called span of control.

staff authority

The right to advise, counsel, and recommend in the manager's area of expertise.

departmentalization

The basis for grouping individual positions into departments and departments into the total organization.

functional structure

An organizational structure in which activities are grouped together by common function from the bottom to the top of the organization.A group of employees from various functional departments that meet as a team to resolve mutual problems.

cross

functional teams

two

boss employees

matrix approach

A structural approach that uses both functional and divisional chains of command simultaneously, in the same part of the organization.

team

based structure

made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

matrix boss

A functional or product supervisor responsible for one side of the matrix.

divisional structure

An organizational structure that groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks.

permanent teams

A group of employees from all functional areas permanently assigned to focus on a specific task or activity.

virtual network structure

An organizational structure in which the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

coordination

The managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

top leader

In a matrix structure, the person who oversees both the product and the functional chains of command and is responsible for the entire matrix.

collaboration

A joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.

re

eningeering

mass production

Characterized by long production runs to manufacture a large volume of products with the same specifications.

service techonolgy

Characterized by intangible outputs and direct contact between employees and customers.

task force

A temporary team or committee designed to solve a problem involving several departments.

continuous process production

Involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.

project management

A manager who is responsible for a specific work project that involves people from various functions and levels of the organization.

technical complexity

The degree to which complex machinery is involved in the production process to the exclusion of people.

small

batch production

relational coordination

Frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.

leadership

The ability to influence people toward the attainment of organizational goals.

corporate goverance

Refers to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with stakeholders.

humility

Being unpretentious and modest rather than arrogant and prideful.

authentic lendership

Leadership by individuals who know and understand themselves, who espouse and act consistent with higher

traits

Distinguishing personal characteristics, such as intelligence, self

servant leader

A leader who serves others by working to fulfill followers' needs and goals, as well as to achieve the organization's larger mission.

interactive leadership

A leadership style characterized by values such as inclusion, collaboration, relationship building, and caring.

leadership Grid

A two

initiating structure

Describes the extent to which a leader is task oriented and directs subordinates' work activities toward goal accomplishment.

neutralizer

A situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors.

charismatic leader

A leader who has the ability to inspire and motivate people to transcend their expected performance, even to the point of personal sacrifice.

consideration

Describes the extent to which a leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust.

strenghts

Natural talents and abilities that have been supported and reinforced with learned knowledge and skills.

substitute for leadership

A situational variable that makes a leadership style redundant or unnecessary.

contingency approaches

A model of leadership that describes the relationship between leadership styles and specific situations.

situational model

A leadership model that links the leader's behavioral style with the readiness level of followers.

vision

An attractive, ideal future that is credible yet not readily attainable.

transformational leaders

A leader distinguished by a special ability to bring about innovation and change by creating an inspiring vision, shaping values, building relationships, and providing meaning for followers.

pragmatic survivor

A follower who has qualities of all four follower styles, depending on which fits the prevalent situation.

uncritical thinking

Failing to consider the possibilities beyond what one is told, accepting others' ideas without thinking.

critical thinking

Thinking independently and being mindful of the effect that one's behavior has on achieving goals.

transactional leaders

A leader who clarifies subordinates' roles and task requirements, initiates structure, provides rewards, and displays consideration for followers.

alienated follower

A person who is an independent, critical thinker but is passive in the organization.

passive follower

A person who exhibits neither critical independent thinking nor active participation.

conformist

A follower who participates actively in the organization but does not use critical thinking skills.

effective follower

A critical, independent thinker who actively participates in the organization.

power

The potential ability to influence the behavior of others.

referent power

Power that results from characteristics that command subordinates' identification with, respect and admiration for, and desire to emulate the leader.

expert power

Power that results from a leader's special knowledge or skill in the tasks performed by subordinates.

influence

The effect a person's actions have on the attitudes, values, beliefs, or behavior of others.

legitimate power

Power that stems from a manager's formal position in an organization and the authority granted by that position.

reward power

Power that results from the authority to bestow rewards.

coercive power

Power that stems from the authority to punish or recommend punishment.