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Mngt. Exam 2
Terms in this set (120)
coping with uncertainty by formulating future courses of action to achieve specific results; setting goals & deciding how to achieve them; make a blueprint for action that describes what you need to do to realize your goals
a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success
a large scale action plan that sets the direction for an organization; represents an "educated guess" about what must be done in the long term for the survival or the prosperity of the organization or its principal parts
a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals (involves top, middle, and first-line managers)
what management scholar says that companies such as Apple have been successful because they've been able to unleash the spirit of "strategy innovation"?
ability to reinvent the basis of competition within existing industries - "bold new business models that put incumbents on the defensive"
expresses the purpose of the organization
expresses what the organization should become; where it wants to go strategically
top managers determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available (VP, general manager, CEO, division heads)
middle managers determine what contributions their departments or similar work units can make during the next 6-24 months (functional managers, product-line managers, department managers)
first-line managers determine how to accomplish specific tasks with available resources within the next 1-52 weeks (unit managers, team leaders, first-line supervisors)
specific commitment to achieve a measurable result within a stated period of time; also known as an objective; 3 types: strategic, tactical, & operational
type of goal set by and for top management and focuses on objectives for the organization as a whole
type of goal set by and for middle managers and focuses on the actions needed to achieve strategic goals
type of goal set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals
defines the course of action needed to achieve the stated goal
defines how you conducted your business based on the action plan; designed for a 1-year period; identifies clear targets such as revenue, cash flow, and market share
plans developed for activities that occur repeatedly over a period of time; consists of policies, procedures and rules
standing plan that outlines the general repose to a designated problem or situation
standing plan that outlines the response to a particular problem or circumstance
standing plan that designates specific required action
plans developed for activities that are not likely to be repeated in the future
single-use plan encompassing a range of projects or activities
single-use plan of less scope and complexity than a program
SMART goals stands for what?
specific measurable attainable results-oriented target-dates
attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company
-"performing different activities from rivals, or performing from rivals, or performing similar activities in different ways"
to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission (also called organizational assessment)
current reality assessment
explains how the organization's mission is to be accomplished
process of choosing among different strategies and altering them to best fit the organization's needs
putting strategic plans into effect
consists of monitoring the execution of strategy and making adjustments if necessary
means gaining information about one's competitors activities so that you can anticipate their moves and react appropriately; (public prints and advertising, investor information, informal sources)
SWOT analysis stands for what?
strengths weaknesses opportunities threats (strengths and weaknesses are internal - inside matters; opportunities and threats and external - outside matters)
skills and capabilities that give the organization special companies and competitive advantages in executing strategies in pursuit of its mission
organizational strengths (SWOT)
drawbacks that hinder an organization in executing strategies in pursuit of its mission
organizational weaknesses (SWOT)
environmental factors that the organization may exploit for competitive advantage
organizational opportunities (SWOT)
environmental factors that hinder an organization's achieving a competitive advantage
organization threats (SWOT)
attention to detail and a frugality that shuns waste of every kind
parts were supplied by outside companies rather than trusted traditional suppliers
stressed commitment to customers (still ranks high in quality)
type of forecasting that is a hypothetical extension of a past series of events into the future
type of forecasting that is a creation of alternative hypothetical but equally likely future conditions (also called scenario planning and scenario analysis)
a process by which a company compares its performance with that of high-performing organizations
a common grand strategy that involves expansion, as in sales revenues, market share, number of employees, or number of customers
a common grand strategy that involves little or no significant change
a common grand strategy that involves reduction in the organization's efforts (retrenchment)
what are Porter's 4 competitive strategies?
cost-leadership, differentiation, cost-focus, and focused-differentiation
one of Porter's 4 competitive strategies that keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market
one of Porter's 4 competitive strategies that offer products that are of unique and superior value compared to those of competitors but to target a wide market
one of Porter's 4 competitive strategies that keep the costs of a product below those of competitors and to target a narrow market
one of Porter's 4 competitive strategies that offers products that are of unique and superior value compared to those of competitors and to target a narrow market
company makes and sells only one product within its market; benefit = focus but the risk = vulnerability
single-product strategy (focused but vulnerable)
operating several businesses in order to spread the risk (related, unrelated)
advantages of related diversification:
reduced risk, management efficiencies, and synergy
a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market
consists of using questioning, analysis, and follow through in order to mesh strategy with reality, align people with goals, and achieve results promised (central part of any company's strategy)
what are the 3 core processes of business?
people, strategy, and operations (consider WHO will benefit you in the future, consider HOW success will be accomplished, and consider WHAT path will be followed)
what are the 2 types/systems of decision making? (1)___; (2)___
(1) intuitive and largely unconscious; (2) analytical and conscious
choice made from among available alternatives
process of identifying and choosing alternative courses of action
name the 4 stages of rational decision making 1. ___ 2.__ etc.
1. identify the problem or opportunity
2. think up alternative solutions
3. evaluate alternatives and select a solution
4. implement and evaluate the solution chosen
what explains how managers should make decisions and assumes managers will make logical decisions that will be optimum in furthering the organization's best interests (also called the classical model)
rational model of decision making
what assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions?
nonrational model of decision making
what are some assumptions of the rational model of decision making?
its complete information, no uncertainty; logical, unemotional analysis; best decision for the organization
suggests that the ability of decision makers to be rational is limited by numerous constraints (complexity, time & money, cognitive capacity)
managers seek alternatives until they find one that is satisfactory, not optimal
making a choice without the use of conscious thought or logical interference (sources are expertise and feelings)
(part of the dismal record of business ethics) someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas
(part of the dismal record of business ethics) a graph of decisions and their possible consequences (used to create a plan to reach a goal)
sophisticated forms of business data analysis; portfolio analysis, time-series forecast; also called business analytics
what are the key attributes among analytics competitors?
use of modeling (going beyond simple descriptive statistics), having multiple applications (not just one), and support from the one
includes not only data in corporate databases, but also web-browsing data trials, social network communications, sensor data, and surveillance data
process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information
big data analytics
reflects the combination of how an individual perceives and responds to information; value orientation; tolerance for ambiguity
what are the 4 decision-making styles?
directive, analytical, conceptual, and behavioral
decision making style that says people are different, logical, practical, and systematic in their approach to solving problems (action oriented, decisive, and like to focus on facts)
directive (high tolerance)
decision making style that considers more information and alternatives
analytical (low tolerance)
decision making style that takes a broad perspective to problem solving; likes to consider many options and future possibilities
conceptual (low tolerance)
decision making style that is supportive, receptive to suggestions, shows warmth; prefer verbal to written information
behavioral (high tolerance)
1 of the 3 effective reactions of Deciding to Decide that asks: "How high priority is this situation?"
1 of the 3 effective reactions of Deciding to Decide that asks: "How believable is the information about the situation?"
1 of the 3 effective reactions of Deciding to Decide that asks: "How quickly must I act on the information about the situation?"
occurs when group members strive to agree of the sake of unanimity and thus avoid accurately assessing the decision situation
what are 3 examples of when a group can help in decision making?
when it can increase quality, when it can increase acceptance, and when it can increase development
occurs when members in a group are able to express their opinions and reach agreement to support the final decision
technique used to help groups generate multiple ideas and alternatives for solving problems
a computer-based information system that provides a flexible tool for analysis and helps managers focus on the future (business intelligence)
decision support system (computer-aided decision making)
what reflects the extent to which your personality and values match the climate and culture in an organization
the set of shared, taken-for-granted implicated assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments; who does what and who reports to whom
what are the 4 types of organizational culture?
clan, adhocracy, market, and hierarchy
type of organizational culture that is internal focused, values flexibility rather than stability, and encourages collaboration among employees
type of organizational culture that has an external focus and attempts to innovate products by being adoptable, creative, and quick to respond to changes in the marketplace
type of organizational culture that is focused on the external environment and is driven by competition and a strong desire to deliver results
type of organizational culture that has an internal focus and is apt to have a formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms
what are the 3 levels of organizational culture? (level 1: ___, level 2: ___, level 3: ___)
level 1: observable artifacts, level 2: espoused values, level 3: basic assumptions
level of organizational culture where there are physical manifestations such as manner of dress, awards, myths, and stories about the company; visible behavior exhibited by managers and employees
level 1: observable artifacts
level of organizational culture with explicitly stated values and norms preferred by an organizations (espoused values) and represent the values and norms actually exhibited in the organization (enacted values)
level 2: enacted values
level of organizational culture that represents the core values of the organization's culture; those taken for granted and highly resistant to change
level 3: basic assumptions
employees are happier with what type of cultures?
what type of cultures tend to produce better results?
a system of consciously coordinated activities or forces of 2 or more people (for profit, nonprofit, mutual-benefit)
box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations
a common element of organizations: that unifies employees or members and gives everyone an understanding of the organization's reason for being
a common element of organizations: the coordination of individual effort into group wide effort
a common element of organizations: arrangement of having discrete parts of a task done by different people
division of labor
a common element of organizations: control mechanism for making sure the right people do the right things at the right time (unity of command)
hierarchy of authority
a common element of organizations: refers to the number of people reporting directly to a given manager (narrow or wide)
span of control
a common element of organizations: rights inherent in a managerial position to make decisions and utilize resources; obligation you have to perform the tasks assigned to you; process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
authority, responsibility, and delegation
a common element of organizations: important decisions are made by higher-level managers vs. important decisions are made by middle-level and supervisory-level managers
centralization (vs.) decentralization of authority
traditional design that says authority is centralized in a single person with few rules and low work specialization
traditional design that says people with similar occupational specialities are put together in formal groups (ex: XYZ has chief of med. services, director of administrative services, and director of outpatient services)
traditional design that says people with diverse occupational specialties are put together in formal groups by similar products, customers, or geographic regions
traditional design where an organization combines functional and divisional chains of command in a grid so that there are 2 command structures --> vertical and horizontal
teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
(design that opens boundaries between organizations): organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
(design that opens boundaries between organizations): firm assembles product chunks, or modules, provided by outside contractors
(design that opens boundaries between organizations): company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary"
organization whose members are geographically apart, usually working with email, collaborative computing, and other computer connections
tendency of the parts of an organization to disperse and fragment
tendency of the parts of an organization to draw together to achieve a common purpose
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