Karteikarten
Exam 2
Karten in diesem Stapel (70)
- 1The first step in the planning process isunderstanding the environment.
- 2In order to enhance employee motivation, goals should bemoderately difficult.
- 3A(n) ________ is a statement of the organization’s unique purpose and its scope of operations.mission
- 4Achieving a target level of market share for a specific product is an example of a(n)operational goal
- 5Tactical goals are established bymiddle-level managers
- 6Complexity makes long-range planningdifficult
- 7Intermediate plans are especially important formiddle-level managers
- 8A plan designed to allow a company to react to an unforeseen circumstance is referred to as a(n)reaction plan.
- 9One reason a firm may use a planning staff isto reduce the workload of individual managers.
- 10The board of directors of an organization is responsible formission statements
- 11Line managers play an important role in the planning process because theymust execute plans developed by top management.
- 12To respond to extreme economic shifts, an organization should developcontingency plans.
- 13Tactical plans must flow from and be consistent withstrategic plans
- 14Plans that are narrowly focused, have short time frames, and involve lower-level managers areoperational plans.
- 15The broadest form of single-use plans areprograms
- 16The narrowest form of standing plans arerules
- 17Goals are often inappropriate because they areunattainable
- 18Managers must understand that effective planning willeliminate the need for adjustments and exceptions.
- 19Formal goal setting occasionally fails because oftoo much required paperwork and record-keeping.
- 20Under formal goal setting, yearly goals should be discussedevery three months.
- 21Action Planope-rationalizes any other kind of plan.
- 22Two types of operational plansare single use plans and standing plans.
- 23Single Use plansare developed to carry out a course of action that is not likely to be repeated in the future.
- 24Program - Single Use plansis a single use plan for a large set of activities it might consist of identifying procedures for introducing a new product line, opening a new facility or changing the organization's mission.
- 25Project - Single Use planssimilar to a program but is generally of less scope and complexity. A project may be part of a broader program or it may be self-contained single –use plan.
- 26Standing plansA general guide for action
- 27Policy - Standing plansis the most general form of standing plan. A policy specifies the organization's general response to a designated problem or situation.
- 28Standing operating procedure - Standing plansanother type of standing plan is the standard operating procedure or SOP. An Sop is more specific than a policy, in that it outlines the steps to be followed in particular circumstances.
- 29Rules and regulations - Standing plansthe narrowest of the standing plans, rules and regulations, describe exactly how specific activities are to be carried out rather than guiding decision-making, rules and regulations actually take the place of decisions making in various situations.
- 30Board of directorsestablishes the corporate missions and strategy. In some companies, they take an active role in the planning process.
- 31Chief Executive Officerusually the president or the chair of the board of directors. Single most important person in any organization is planning process. Plays a major role in the complete planning process and is responsible for implementing the strategy.
- 32Executive Committeeusually composed of the top executives in the organization working together as a group. Committee members usually meet regularly to provide input to the CEO on the proposals that affect their own units and to review the strategic plans that develop from this input. Members of the committee are often assigned to various staff committees, subcommittees and task forces to concentrate on specific projects or problems that might confront the entire organization at some time in the future.
- 33Line ManagementFinal component of most organized planning actives is line management.
- 34Strategic Plansis a general plan outlining decisions of resource allocation, priorities and action steps necessary to reach strategic goals. These plans are set by the board of directors and top management, generally have extended time horizon and address questions of scope, resource deployment, competitive advantage and synergy. More specific and concrete focus
- 35Tactical PlansDeveloped to implement specific parts of a strategic plan. Typically involve upper and middle managers. Concerned more with getting things done then with deciding what to do.
- 36Operational Plansfocuses on carrying out tactical plans to achieve operational goals. Developed by middle and lower-level managers. Short term focus and relatively narrow in scope.
- 37Inappropriate Goalspaying a large dividend to stockholder may also be inappropriate if it comes at the expense of research and development. Goals may also be inappropriate if they are unattainable.
- 38Improper Reward SystemIn an improper reward system acts as a barrier to goal setting and planning. If an organization places too much emphasis on short-term performance and results, managers may ignore long-term issues as they set goals and formulate plans to achieve higher profits in the short term.
- 39Dynamic and complex environmentThe nature of an organization’s environment is also a barrier to effective goal setting and planning. Rapid change, technological innovation, and intense competition can all increase the difficulty of an organization’s accuracy assessing future opportunities and threats.
- 40Reluctance to Establish GoalsReluctance to establish goals of either managers or the units under their responsibility. May be due to a lack of confidence or fear of failure.
- 41Resistance to ChangePlanning essentially involves changing something about hew organization.
- 42ConstraintsConstraints that limit what an organization can do are another major obstacle. Common constraints include a lack of resources, government restrictions and strong competition.
- 43Programmed vs. non-programmed decisionsDecision making process includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.
- 44Programmedis one that is relatively structured or recurs with some frequency (or both). Usually based on procedures that were systematically designed.
- 45Non-Programmed Decisionrelatively unstructured and occurs much less often. (Example decision to buy a company) Each one is treated unique, investing enormous amount of time, energy and resources into exploring the situation from all perspectives. Intuition and experience are a major factor in non-programmed decisions. Most decisions made by top managers involving strategy and organization design are non-programmed.
- 46DisadvantagesBiggest drawback of group and team decision making is the additional time and hence the greater expense entailed. May also represent undesirable compromised and hiring a compromise top manager may be a bad decision in the end because he or she may not be able to respond adequately to various sub units in the organization nor have everyone complete support.
- 47Advantagessimply that more information is available in a group or team setting. A group represents a variety of education, experience and perspective. Can identify and evaluate better than one person alone.
- 48Escalation of commitmentSometimes decision makers becomes so committed to their decisions and then become so committed to the course of action suggested by those decisions that they stay with them even when the decisions appear to have been wrong.
- 49Recognizing and defining the decision situationThe first step in rational decision making is recognizing that a decision is necessary – that is, there must be some stimulus or spark to initiate the process.
- 50Identifying AlternativesOnce the decision situation has been recognized and defined, the second step is to identify alternative courses of defective action.
- 51Evaluating alternativesthe third step in the decision making process is evaluating each of the alternatives.
- 52Selecting an alternativeEven though many alternatives fail to pass the triple tests of feasibility, satisfactorily and affordable consequences, two or more alternatives may remain. Choosing the best of these is real Crux of decision-making.
- 53Implementing the chosen alternativeafter an alternative has been selected, the manager must put it into effect. Implementation is easy in some decision situations, others it’s more difficult.
- 54Following up and evaluating the resultsFinal Step is decisions making process requires that managers evaluate the effectiveness of their decisions that is, they should make sure that the chosen alternative has served its original purpose.
- 55Risk propensityis the extent to which a decision maker is willing to gamble when making a decision.
- 56State of Riskthe availability of each alternative and its potential payoff and cost are all associated with probability estimates.
- 57State of UncertaintyMost of the major decision-making in contemporary organizations is done under state of uncertainty. The decisions maker does not know all alternatives, the risk associated with each, or the likely consequences of each alternative.
- 58State of CertaintyWhen decision maker knows with reasonable certainty what the alternatives are and what condition are associated with each alternative, a state of certainty exists.
- 59Franchisingis an arrangement that permits the franchisee (buyer) to sell the product of the franchiser (seller). Franchises offer many advantage to both sellers and buyers. Franchisers benefit from the ability to grow rapidly by using the investment money provided by franchisees.
- 60Venture Capitalistare investors seeking to make profits on companies with rapid growth potential. Most of them do not lend money. They invest it, supply capital in return for stock. The venture capital company may also demand a representative on the board of directors.
- 61Entrepreneuris someone who engages in assuming the risk of a startup or new venture.
- 62Entrepreneurships the process of planning, organizing, operating and assuming the risk of a startup or new venture.
- 63Reasons for Success#1New business owners must be committed to succeeding and be willing to put in the time and effort to make it happen. Having positive feelings and a good outlook on life may also play an important role.
#2Careful analysis of market conditions can help new businesses owners assess the probable reception of their products in the marketplace. This will provide insights about market demand for proposed products and services.
#3 Managerial competence also contributed to success. Successful new business owners may acquire competence through training or experience or by using the expertise of others.
#4 Finally, luck also plays a role in the success of some firms. - 64Benefits of Specialization #1#1 Workers performing small, simple tasks will become very proficient at each task.
#2 transfer time between tasks decreases. If employees perform several different tasks, sometime is lost.
#3 The more narrowly defined a job is, the easier it is to develop specialized equipment to assist with that job.
#4 When an employee who performs a highly specialized job is absent or resigns, the manager can train someone new at relatively low cost. - 65Job Specializationis the degree to which the overall task of the organization is broken down and divided into smaller component parts. Job specialization evolved from the concept of division of labor.
- 66Job RotationInvolves systematically moving employees from one job to another.
- 67Job Enlargementwas developed to increase the total number of tasks a workers perform.
- 68Job Enrichmentassumes that increasing the range and variety of tasks is not sufficient by itself to improve employee motivation.
- 69Job Characteristics ApproachAlternative to job specialization that does take into account the work system and employee preferences.
- 70Decentralizationis the process of systematically delegating power and authority across a wide variety of positions and departments.