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Final Exam Review Commerce.docx

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McMaster University
Rita Cossa

Final Exam Review Commerce Chapter 12 Resources: a general term that incorporates human resources, natural resources, and financial resources Management: the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources Planning: a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. Organizing: a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives. Leading: creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives What Managers Do Planning Setting organizational goals Developing strategies to reach those goals Determining resources needed Setting precise standards Organizing  Allocating resources, assigning tasks and establishing procedures for accomplishing goals  Preparing a structure (organization chart) showing lines of authority and responsibility  Recruiting, selecting, training, and developing employees  Placing employees where they’ll be most effective Leading  Guiding and motivating employees to work effectively to accomplish organizational goals and objectives  Giving assignments  Explaining routines  Clarifying policies  Providing feedback on performance Controlling  Measuring results against corporate objectives  Monitoring performance relative to standards  Rewarding outstanding performance  Taking corrective action when necessary Controlling: a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for a good job, and taking corrective action if they are not. Vision: an encompassing explanation of why the organization exists and where it is trying to head. Values: a set of fundamental beliefs that guide a business in the decisions they make Mission Statement: an outline of the fundamental purposes of an organization Meaningful mission statement includes:  The organization’s self-concept  Company philosophy and goals  Long-term survival  Customer needs  Social responsibility  The nature of the company’s product or service Goals: the broad, long-term accomplishments an organization wishes to attain Objectives: specific, short-term statements detailing how to achieve the organization’s goals SWOT Analysis: a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats. Strategic Planning: the process of determining the major goals of the organization and the policies and strategies for obtaining and using natural resources to achieve those goals. SWOT Analysis Potential Internal Strengths  An acknowledged market leader  Core competencies in key areas  Proven and respected management Potential Internal Weaknesses  No clear strategic direction  Weak market image  Subpar profitability Potential External Opportunities  Falling trade barriers in attractive foreign markets  New government policies  Increases in market demand Tactical Planning: the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. Operational Planning: the process of setting work standards and schedules necessary to implement then company’s tactical objectives. Contingency Planning: the process of preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives. Crisis Planning: involves reacting to sudden changes in the environment. Decision Making: Seven D’s 1. Define the situation 2. Describe and collect needed information 3. Develop alternatives 4. Develop agreement among those involved 5. Decide which alternative is best 6. Do what is indicated 7. Determine whether the decision was a good one to follow up Problem Solving: the process of solving the everyday problems that occur. Problem solving is less formal than decision-making and usually calls for quicker action. Brainstorming: coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas. PMI: listing of all plusses for a solution in one column, all the minuses in another, and the interesting in a third column. Organizational Chart: a visual device that shows relationships among people and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom. Top Management: highest level of management, consisting of the president and other key company executives, who develop strategic plans. Middle Management: the level of management that includes general managers, division managers, and branch managers, who are responsible for tactical planning and controlling. Supervisory Management: managers who are directly responsible for supervising workers and evaluating their daily performance. Technical Skills: skills that involve the ability to perform tasks in a specific discipline or department. Human Relations Skills: skills that involve communication and motivation; they enable managers to work through and with people. Conceptual Skills: skills that involve the ability to picture the organization as a whole and the relationships among its various parts. Autocratic Leadership: leadership style that involves making managerial decisions without consulting others. Participate (democratic) Leadership: leadership style that consists of managers and employees working together to make decisions. Free-rein (laissez-faire) Leadership: leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives. Knowledge Management: finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm. 5 Steps of Controlling 1. Establishing clear performance standards. This ties the planning function to the control function. Without clear standards, control is impossible. 2. Monitoring and recording actual performance 3. Comparing results against plans and standards 4. Communicating results and deviations to the employees involved 5. Taking corrective action when needed and providing positive feedback for work well done. Chapter 13 Motivation: a person’s internal drive to act. Intrinsic Reward: the good feeling you have when you have done a good job. Extrinsic Reward: something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions. Scientific Management: studying workers to find the most efficient ways of doing things and then teaching people those techniques. Time-motion Studies: studies, begun by Fredrick taylor, of which tasks must be performed to complete a job and the time needed to do each task. Principle of Motion Economy: theory developed by frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions. Hawthorne Effect: the tendency for people to behave differently when they know they are being studied Maslow’s Hierarchy of Needs: theory of motivation that places different types of human needs in order of importance, from basic physiological needs to safety, social, and esteem needs to self-actualization needs. 5 Needs 1. Phsiological needs-basic survival needs for food 2. Safety needs- the need to feel secure at work and at home 3. Social needs- the need to feel loved, accepted, and part of the group 4. Esteem needs- the need for recognition and acknowlgement from others, as well as self-respect and a sense of status or importance 5. Self-actualization needs- the need to develop to one’s fullest potential Motivators: in Herzberg’s theory of motivating factors, jobs factors that cause employees to be productive and that give them satisfaction Job Enrichment: a motivational strategy that emphasizes motivating the worker through the job its self Job Enlargement: a job enrichment strategy that extends the work cycle by adding related tasks to the job description. Job Rotation: a job enrichment strategy that involves moving employees from one to another. Theory X management: -The average person dislikes work and will avoid it at all costs -Because of the dislike, workers must be forced, controlled, directed or threatened with punishment to make them work -The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security -Primary motivators are fear and money Theory Y management: -Most people like to work, it is as natural as play a
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