Exam 3


Terms in this set (...)

6. planning
the process of determining the organization's objectives and deciding how to accomplish them
the statement of an organization's fundamental purpose and basic philosophy
what questions should mission statements answer?
"What business are we in."
1. What are we.
2. Who are our customers.
3. What is our operating philosophy (basic beliefs, values, ethics)
4. What are our cure competencies and competitive advantages.
5. What are our responsibilities with respect to being a good steward of environment, financial, and human resources.
characteristics of effective goals
necessary to know what it is to be achieved, how much, when, and how succeeding at a goal is to be determined.
to be successful, goals should be specific
difference between goals and objectives
objectives are generally stated in such a way that they are measurable. objectives are the end result desired.
when efficiency is the goal, what should a company's focus be
make the best use of organizations resources
strategic planning
those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission
length of focus in tactical planning
usually cover a period of one year or less
purpose of tactical plans
plans designed to implement the activities and objectives specified in the strategic plan
operational plans
very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately strategic plan
crisis management
an element in planning that deals with potential disasters
the hiring of people to carry out the work of the organization
the elimination of a significant number of employees from an organization
motivating and leading employees to achieve organizational objectives
the process of evaluating and correcting activities to keep the organization on course
top-level managers
level of managers that would decide things like expanding and adding new products
typical positions in first line management
foreperson, supervisor, and office service manager (those who supervise both workers and the daily operations of an organization)
democratic leadership
involve the employees decisions; managers present a situation and encourage their subordinates to express opinions and contribute ideas
when should autocratic leadership be used
best for stimulating unskilled, unmotivated emploees
employee empowerment
when employees are provided with the ability to take on responsibilities and make decisions about their jobs
7. organizational culture
a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior
examples of informal organizational culture
dress codes, work habits, extracurricular activities, and stories
organizational chart
a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication
the grouping of jobs into working units usually called departments, units, groups, or divisions
product departmentalization
the organization of jobs in relation to the products of the firm
geographic departmentalization
the grouping of jobs according to geographic location, such as state, region, country, or continent
disadvantages of geographic departmentalization
organizing by region requires a large administrative staff and control system to coordinate operations
the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome
an organization in which decision-making authority is delegated as far down the chain of command as possible
advantages of decentralization
may increase organization's productivity in lower levels, and improves responsiveness and enhances creativity
span of management
the number of subordinates who report to a particular manager
larger number of layers in organizations leads to
tall organizations, span of management in narrow, administrative costs are higher
multidivisional structure
a structure that organizes departments into larger groups called divisions
matrix structure
a structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called project management structure
basis for using matrix structure
attempts to address issues that arise with growth, diversification, productivity and competitiveness
advantages of matrix structure
provide flexibility, enhances cooperation and creativity, enables the company to respond quickly to changes int he environment by giving special attention to specific projects or problems
task force
a temporary group of employees responsible for bringing about a particular change
focus group
tow or more individuals who communicate with one another, share a common identity, and have a common goal
self-directed work team
a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer
types of things upward communication shares
flows form lower to higher levels of the organization; examples are progress reports, suggestions for improvement, inquires, and grievances
primary responsibility of operations management
over seeing the production of goods and services; making sure organization is running as sooth as it can
8. inputs
the resources - such as labor, money, materials, and energy - that are converted into outputs
when does actual performance of a service occur
when service is actually used
primary reason for using standardization
cheaper and faster to make
making products to meet a particular customer's needs and wants
supply chain management
connecting and integrating all parties or members of the distribution system in order to satisfy customers
another word for purchasing
raw materials inventory
all material that have been purchased to be used as inputs for making other products
just-in-time (JIT) inventory management
a technique using smaller quantities of materials that arrive "just in time" for use in the transformation process and therefore require less storage space and other inventory management expenses