ADM 1300 B Definitions for Midterm
YUJIE YI #7038840
Chapter 7 Management, Leadership, and Internal Organization
- Management: the process of using resource to achieve goals efficiently and
- Manager: the person who are responsible for supervising resources to achieve
3 Managerial Skills: Technical (1 level), Human, and Conceptual (top level).
- Technical skills: the manager’s ability to understand and use the techniques,
knowledge, tools, and equipment of a specific department or area of study.
- Human skills: interpersonal skills, including the ability to communicate with,
motivate, and lead employees to complete their assigned activities, that help
managers to work effectively with people.
- Conceptual skills: help a manager to see the organization as a single unit and to
understand how each part of the overall organization interacts with other parts.
Managerial Functions: Planning, Organizing, Leading/ Direcing, Controlling
- Planning: used to select goals and a course of action to achieve goals
The process of looking forward to future events and conditions and deciding on
the courses of action for achieving organizational goals
- Organizing: structuring workplace to achieve goals; mobilizing resources,
arranging work; creating organizational structure
1 /12 The process of blending human and material resources through a formal structure
of tasks and authority: arranging work, dividing tasks among employee, and
coordinating them to ensure plans are carried out and goals are met
- Leading: managers articulate vision/ strategy of organization by power,
persuasion, communication and motivation.
Guiding and motivating employees to accomplish organizational goals
- Controlling: essential to assess outcomes
The function of assessing an organization’s performance against its goals
Vision: the ability to perceive marketplace needs and what an organization must do to
Planning: Strategic, Tactical, Operational, and Contingency
- Strategic Planning: the most far-reaching level of planning- the process of
deciding on the primary objectives of an organization and then taking action and
setting aside resources to achieve those objectives
- Tactical Planning: involves carrying out the activities set out in the strategic
plans. Tactical plans guide the current and short-term activities required to carry
out the overall strategies.
- Operational Planning: sets the detailed standards that help to carry out tactical
plans. It involves choosing specific work targets and assigning employees and
teams to carry out plans.
- Contingency Planning: to resume operations as quickly and as smoothly as
possible after a crisis ADM 1300 B Definitions for Midterm
YUJIE YI #7038840
The 5 Planning Steps:
- Establish a goal
- Is there a gap
- Develop plans
- Implement the plan
The Strategic Planning Process:
- Define the mission
Mission statement: a written description of an organization’s overall business
purpose and aims
- Assess competitive position (SWOT analysis)
SWOT analysis: strengths, weakness, opportunity and threats. By assessing all
four factors one by one, a firm can then develop the best strategies for gaining a
- Set objectives.
- Create strategies for competitive differentiation
3 12 Competitive differentiation: the unique mix of a company’s abilities and resources
that set it apart from its competitors.
- Turn strategy into action
- Evaluate and refine
Leadership: the ability to direct or inspire people to reach goals
3 Styles of Leadership: Autocratic, Democratic, and Free-rein
- Autocratic leadership: centered on the boss
- Democratic leadership: employee involvement in the decision-making process,
empowerment (giving employees shared authority, responsibility, and decision-
making with their managers)
- Free-rein leadership: minimal supervision
Organization: a structured group of people working together to achieve common
- Decide on the specific work activities needed to carry out plans and achieve
- Group all work activities into a pattern or structure that makes sense ADM 1300 B Definitions for Midterm
YUJIE YI #7038840
- Assign activities to specific employees and give them the resources they need
- Coordinate the activities of different groups and individuals
- Evaluate the results of the organizing process
Departmentalization: the process of dividing work activities into units within
the organization. 5 major forms: product, geographical area, customer, function,
Delegation: the managerial process of assigning work to employees.
Types of Organization Structures: line, line-and-staff, committee, and
Chapter 5 & 6 Entrepreneurship and Options for Business Ownership
Startup Your Own Business
- Small business: an independent business with fewer than 100 employees and
revenues less than $2 million, not dominant in its market
- Entrepreneur: a person who seeks a profitable opportunity and takes the
necessary risks to set up and operate a business
- Business plan: a formal document that details a company’s goals, methods,
- Debt financing: borrowed funds that entrepreneurs must repay.
5 12 - Equity financing: funds invested in new ventures in exchange for part
- Venture capitalists: business firms or groups of individuals that invest in
new and growing firms in exchange for an ownership share.
- Angel investors: wealthy individuals who invest directly in a new venture in
exchange for an equity stake.
- Categories of Entrepreneurs: classic, serial, social
- Franchising: a contract-based business arrangement between a manufacturer
or other supplier, and a dealer, such as a restaurant operator or retailer.
- Franchisee: the individual or business firm purchasing a franchise
- Franchisor: the firm whose products are sold to customers by the franchisee.