Chapters 7 Management process used to accomplish organizational goals through planning leading organizing and controlling Planning anticipating trends and determining the best strategies and tactics to achieve company success Organizing designing the structure of the organization and creating an organizational system Leading creating a vision for the business and workplace environment Controlling establishing clear standards and enforcing them Managers have Visions Visions are the explanations for why a company exists it s overarching goals and themes What is the business trying to do This differs from a Mission Statement because a mission statement outlines the business s purposes Goals long term accomplishments a company wishes to attain Objectives essentially short term goals SWOT analysis analyzes a company s strengths and weaknesses as well as the opportunities and threats facing a company Strategic Planning determining the major goals of the organization and the strategies and policies to help push for those goals Tactical Planning short term statements about what needs to be done by whom and how Operational Planning setting work standards and schedules to implement company objectives Contingency Planning preparing alternative plans of action if a rm s primary plans don t work out Under this umbrella is crisis planning anticipates for sudden change Decision making choosing among 2 or more alternatives 6 D s de ne describe develop decide do determine Problem solving solving everyday problems that occur quick decisions Brainstorming coming up with as many solutions to a problem as possible in a group setting No censoring of ideas PMI pluses minuses and implications to help with decision making Top management president and other key company executives that develop strategic plans Middle Management general managers division managers branch and plant managers responsible for tactical planning and controlling Supervisory Management directly responsible for supervising workers and evaluating their daily performance Skills Technical skills ability to performing tasks in speci c departments Human Relations skills skill that involve communication and motivation Conceptual skills ability to picture the organization as a whole and the relationships among various parts Staf ng hiring motivating and retaining the best available employees Transparency presentation of a company s facts and gures in a way that is clear to all stakeholders Leadership styles Autocratic leadership making managerial decisions without consulting others effective in emergencies Participative leadership managers and employees working together to make decisions Does not always increase effectiveness but it increases employee satisfaction Free rein leadership managers set objects and employees can do whatever they want in order to reach those objectives Empowering workers through enabling giving workers the tools and education to make decisions Knowledge management nding the right information keeping the information in an accessible place and making the information known to everyone in the rm External customers dealers and consumers who buy from dealers Internal customers individual and units within the rm that receive services from other individuals and units Chapter 8 organizing structuring giving out tasks division of labor how tasks are divided job specialization dividing tasks into smaller jobs departmentalization creating different departments to do certain tasks dividing organizations into separate units Ways to departmentalize a by product departments by product b by function departments by function c by customer group departments by customer group d by geographical location departments by geographical location e by process departments by process hybrid form departmentalization by using 2 or more of the above organization chart shows relationships among people who is responsible for the completion of what work and who reports to whom mass production ef ciently producing large quantities of goods economies of scale companies can reduce their production cost by purchasing raw materials in bulk as production levels rise the average costs of goods fall Fayol s book General and Industrial Management only report to one person everyone knows who they report to very cookie cutter decision making is mostly top management clear communication channels order and equality Weber was much more cookie cutter Employees only did well when told exactly what to do Consistent regulations and policies Organizational design hierarchy one person is at the top and there is a ranked system from the top down chain of command line of authority bureaucracy organization with many layers of management who set rules and regulations as well as oversee operations Change is hard Centralized authority decision making is centralized in the top level of management Decentralized authority decision making authority is delegated to lower level management Span of control number of subordinates a manager supervises or should supervises Tall organization structures many levels of management small span of control Short organization structures few levels of management large span of control Organizational models line organizations two way chain of communication responsibility and authority within an organization running from the top to the bottom with everyone reporting to only one person line and staff organizations line personnel responsible for directly achieving organizational goals production workers marketing people staff personnel assist line personnel in doing their jobs Market research legal advising staff personnel don t have authority to institute change while line personnel do Staff personnel strengthens the line personnel matrix style organizations specialists from different parts of the organization are brought together to work on speci c projects these are mostly short lived cross functional organizations long term matrix teams that work closely with customers suppliers and others high quality products cross functional self managed teams long term matrix teams empowered to make decisions without managerial approval real time present moment internet uses real time data transfers to lead to more transparency virtual cooperations a temporary networked organization made up of replaceable rms that join and leave as needed benchmarking comparing an organization s practices against the world leaders core competencies the things an organization
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