ADM MIDTERM NOTES:
CHAPTER 1-7
Chapitre 1:
- Business create a growing economy (produces more goods and services but uses fewer
resources over time) – engine for growth
- Business: all profit-seeking activities and enterprises that provide goods and services
necessary to an economy system
- Profits: rewards for business people who take risks involved to offer goods and services
to customers
Chapter 7:
- Management: the process of achieving organizational goals through people and other
resources
• Top management : Chief executive office, chief financial officer, Premier, Mayor
Develop long-range strategic plans for the organization
Inspire executives and employees to achieve their vision for the company`s future
need mostly conceptual and human skills
• Middle management: Regional manager, division head, director, dean
Focus on specific operations, products, or customer groups within an organization
responsible for developing detailed plans and procedures to implement the firm`s
strategic plans
Need mostly human skills, some conceptual and sometechnical
• Supervisory (first-line management): Supervisor, Department Chairperson, Program
manager
Implement the plans developed by middle managers
Responsible for non-manager employees
Motivate workers to accomplish daily, weekly and monthly goals
Need mostly human skills and technical skills
- Skills needed :
• Technical skills: managers ability to understand and use the techniques, tools,
knowledge and equipment of a specific department or area of study • Human skills: interpersonal skills that enable a manager to work effectively with and
through pple
• Conceptual skills: ability to see the organization as a unified whole and to understand
how each part of the overall organization interacts with other parts
- Managerial functions :
1- Planning,
2- organizing,
3- directing,
4- controlling : 4 steps:
- Setting performance standards, monitor actual performance, compare actual
performance with the standards, making corrections if needed
- SWOT= Strengths, weakness, opportunities, threats
- Decision types :
• Decision making: the process of seeing a problem/ opportunity, assessing possible
solutions, selecting and carrying out the best-suited plan, and assessing the results
• Programmed decision: involves simple common and frequently-occuring problems
that already have solutions
• A non-programmed decision involves a complex and unique problem /opportunity
with important results for organisation
Decision making: see problem/opportunity, develop possible ways of taking action,
evaluate options, select and carry out one option, assess outcome
- Leadership: ability to direct or inspire pple to reach goals (involves influence of power)
3 common traits : Empathy, self-awareness, objectivity in dealing with others
- Leadership styles:
• Autocratic: Leader-centered; make decisions on own without consulting employees
• Democratic : involves employees in decision, delegate assignments, and ask them
for suggestions
• Free-rein leadership: involves minimal supervision; leave most decisions to
employees
- Organization: a structured group of pple working together to achieve common goals 3
key elements: human interaction, goal directed activities, structure - Departmentalization: the process of dividing work activities into units within the
organization
• Product departmentalization: organized based on the goods and services a company
offers
• Geographical departmentalization: organized by geographical regions within a
country, for a multinational firm, by region and throughout the world
• Customer departmentalization: organized by different types of customers the
organization serves
• Functional departmentalization: organized by business functions such as finance,
marketing, human resources and production
• Process departmentalization: organized by work processes necessary to complete
production of goods or services
- Delegation: the managerial process of assigning work to employees
- Span of management: number of employees a supervisor manages
- Centralization: decision-making is retained at the top of the management hierarchy
- Decentralization: decision making is shifted to the lower levels. Many firms believe it
enhances their flexibility and responsiveness to customer needs
- Line organizations: oldest and simplest form; direct flow of authority from CEO to
employees (chain of
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