MGT 301 exam 2
Terms in this set (78)
Managerial Decision Making
The process by which
Managers respond to
opportunities and threats that confront them by analyzing options and making determinations about specific organizational goals and courses of action.
Routine, virtually automatic process
Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats
Classical Model of
A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.
The most appropriate decision in light of what managers believe to be the most desirable future consequences for their organization.
The Classical Model of Decision Making
The Administrative Model
Approach to d-making that explains why d-making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.
Cognitive limitations that constrain one's ability to interpret, process, and act on information.
Because of risk and uncertainty, ambiguity, and time constraints
Searching for and choosing a satisfactory response, rather than trying to make the best decision
Bounded rationality and Incomplete Information result in
Advantages of Group Decision Making
-Superior to individual d-making
-Choices less likely to fall victim to bias
-Able to draw on combined skills of group members
-Improve ability to generate feasible alternatives
Potential Disadvantages of Group Decision Making
-Can take much longer than individuals to make decisions
-Can be difficult to get two or more managers to agree because of different interests and preferences
-Can be undermined by biases
Pattern of faulty , biased d-making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision
technique for avoiding groupthink. Devil's Advocate presents preferred alternative, criticizes it, and encourages group to reassess before finalizing decision
A broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors.
Identifying and selecting appropriate goals and courses of action for an organization.
A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.
Three Steps in Planning
1. Determining the Organization's Mission and Goals
-Define the business and establish major goals.
2. Formulating Strategy
-Analyze current situation and develop strategies.
3. Implementing Strategy
-Allocate resources and responsibilities to achieve strategies.
Levels and Types of Planning
A plan that indicates in which industries and national markets an organization intends to compete.
Outlines the specific methods a division, business unit, or organization will use to compete effectively against its rivals in an industry
A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.
used in programmed decision situations
Examples of Standing Plans
-Policies - general guides to action
-Rules - formal written specific guides to action
-Standard operating procedures (SOP) - specify an exact series of actions to follow
Developed to handle non-programmed decision-making in one-of-a-kind situations
Examples of Single-Use Plans
Programs - integrated plans achieving certain goals.
Project - specific action plans to complete programs.
Defining the Business
-Who are our customers?
-What customer needs are being satisfied?
-How are we satisfying customer needs?
Establishing Major Goals
Provides the organization with a sense of direction
Driving the organization's total costs down below the total costs of rivals.
Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.
of Low-Cost and Differentiation Strategy
Principal Corporate-Level Strategies
Concentration on a single industry
-Customizing products and marketing strategies to specific national conditions
-Helps gain local market share
-Raises production costs
-Selling the same standardized product and using the same basic marketing approach in each regional market
-Cost savings from not having to customize
-Vulnerable to local competitors that differentiate products to meet local tastes
Four Ways to Expand Internationally
plan of action to improve the ability of each of an organization's departments to performs its task-specific activities in ways that add value to an organization's goods and services
The coordinated series of functional activities necessary to transform inputs such as new product concepts, raw materials, component parts, or professional skills into the finished goods or services customers value and want to buy.
development of a set of functional-level strategies that support a company's business-level strategy and strengthen its competitive advantage
-A low price
-Quick service and good after-sales service
-Products with many useful or valuable features
-Products that are tailored to their unique needs
Customer Relationship Management (CRM)
A technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time
-High quality is one of the most powerful ways to meet customer needs and wants.
-Quality-focused activities take place throughout the value chain.
-Product quality has high focus on the middle area of the value chain
Total quality management (TQM)
focuses on improving the quality of an organization's products and stresses that all of an organization's value-chain activities should be directed toward this goal
-The fewer the input resources required to produce a given volume of output, the higher will be the efficiency.
-Efficiency improvement efforts often focus on the materials management and production functions in the value chain.
-inventory system gets components to the assembly line just as they are needed to drive down costs. (Kanban, Walmart, service vs manufacturing)
-Major cost savings can result from increasing inventory turnover and reducing inventory holding costs
New Product Development
To give customers more of what they want, companies need to develop new products and services, and improve existing ones.
Two types of Improving Innovation
-Quantum product innovation
-incremental product innovation
Quantum product innovation
The development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.
Incremental product innovation
The gradual improvement and refinement of existing products that occur over time as existing technologies are perfected.
formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals.
The process by which managers create a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way
The process by which managers establish working relationships among employees to achieve goals.
The way an organization's structure works depends on the choices managers make about:
-How to group tasks into individual jobs -How to group jobs into functions and divisions
-How to allocate authority and coordinate functions and divisions
-The process by which managers decide how to divide tasks into specific jobs.
-The appropriate division of labor results in an effective and efficient workforce.
The process of reducing the tasks each worker performs.
Increasing the number of different tasks in a given job by changing the division of labor
Increasing the degree of responsibility a worker has over a job
The Job Characteristics Model
An organizational structure composed of all the departments that an organization requires to produce its goods or services.
-An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.
-Product, market, geographic
The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources
Hierarchy of Authority
An organization's chain of command, specifying the relative authority of each manager
Span of Control
The number of subordinates who report directly to a manager
Minimum Chain of Command
Always construct hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources
Centralization of authority
The concentration of authority at the top of the managerial hierarchy
Decentralization of authority
Distributing authority to lower levels: giving lower-level managers and non-managerial employees the right to make important decisions about how to use organizational resources
The shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals.
The shared standards that org members use to evaluate whether they have helped the company achieve its vision and goals.
specify the kinds of shared beliefs, attitudes, and behaviors that its members should observe and follow
-Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve
-Helps achieve the building blocks of competitive advantage: efficiency, quality, responsiveness to customers, and innovation.
Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively.
Three Types of Control
-Control that allows managers to anticipate problems before they arise.
-Giving stringent product specifications to suppliers in advance
Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise.
Control that gives managers information about customers' reactions to goods and services so corrective action can be taken if necessary.
Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
-gradual, incremental, and narrowly focused
-constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate changes in the environment
-Rapid, dramatic, and broadly focused
-Involves a bold attempt to quickly find ways to be effective
-Likely to result in a radical shift in ways of doing things, new goals, and a new structure for the organization
YOU MIGHT ALSO LIKE...
Introduction to Business | Gaspar, Bierman, Kolari, Hise, Smith, Arreola-Risa
Chapters 5-8 -- Management
Management 3013 Exam 2
OTHER SETS BY THIS CREATOR
301 exam one
MIS Test 4
MIS test 3
MIS test 2