Fund of MNGT Test 2

• Four functions of management:

  Planning

  Organizing

  Leading

  Controlling
• Planning - Setting goals and deciding how to achieve them; also, coping with uncertainty by formulating future courses of action to achieve specified results
• Planning - Setting goals and deciding how to achieve them; also, coping with uncertainty by formulating future courses of action to achieve specified results
• Plan - A document that outlines how goals are going to be met
• Business plan - A document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success
• Business model - Outline of need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses
• Three Types of Planning:

  Strategic

  Tactical

  Operational
• Strategic planning - Determines what the organization’s long-term goals should be for the next one to five years with the resources they expect to have available
• Tactical planning - Determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years; done by middle management
• Operational planning - Determining how to accomplish specific tasks with available resources within the next 1-week to 1-year period; done by first-line managers
• SMART goals - A goal that is Specific, Measurable, Attainable, Results oriented, and has Target dates
• SMART Goals:

  Specific

  Measurable

  Attainable

  Results-Oriented

  Target Dates
• Forecasting - vision or projection of the future
• Trend analysis - hypothetical extension of past series of events into the future
• Contingency planning - Also known as scenario planning and scenario analysis; the creation of alternative hypothetical but equally likely future conditions
• Benchmarking - A process by which a company compares its performance with that of high-performing organizations
• SWOT analysis - Also known as a situational analysis, the search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization
• Internal Environment (SWOT)

  Organizational strengths

  Organizational weaknesses
• Organizational strengths - The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission
• Organizational weaknesses - The drawbacks that hinder an organization in executing strategies in pursuit of its mission
• External Environment (SWOT)

  Organizational opportunities

  Organizational threats
• Organizational opportunities - Environmental factors that the organization may exploit for competitive advantage
• Organizational threats - Environmental factors that hinder an organization’s achieving a competitive advantage
• Three Levels of Organizational Culture:

  Observable artifacts

  Espoused values

  Basic Assumptions
• Observable artifacts - Physical Manifestation of Culture
• Espoused values - Explicitly stated values and norms preferred by an organization
• Enacted values - Values and norms actually exhibited in the organization
•  Basic Assumptions - core values of the organization
• Four Types of Organizational Culture:

  Clan Culture

  Adhocracy Culture

  Market Culture

  Hierarchy Culture
• Clan culture - Type of organizational culture that has an internal focus and values flexibility rather than stability and control

  • Internal focus
  • Flexibility over stability
• Adhocracy culture - Type of organizational culture that has an external focus and values flexibility

  • External focus 
  • Value Flexibility
  • Adaptable, creative, and quick to respond to changes in the marketplace
• Market culture - Type of organizational culture that has a strong external focus and values stability and control

  • Focused on external environment 
  • Values stability and control
  • Driven by competition and desire to deliver results
• Hierarchy culture - Type of organizational culture that has an internal focus and values stability and control over flexibility

  • Has an internal focus 
  • Values stability control over flexibility
  • Formalized, structured work environment
• Elements of an Organization:

  Common Purpose

  Coordinated effort

  Division of Labor

  Hierarchy of Authority

  Span of Control

  Authority - Accountability - Responsibility - Delegation

  Centralization - Decentralization
• Common purpose - A goal that unifies employees or members and gives everyone an understanding of the organization’s reason for being
• Coordinated effort - The coordination of individual efforts into a group or organization-wide effort
• Division of labor - Also known as work specialization; arrangement of having discrete parts of a task done by different people. The work is divided into particular tasks ­assigned to particular workers
• Hierarchy of authority - Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time
• Flat organization - Organizational structure with few or no levels of middle management between top managers and those reporting to them
• Unity of command - Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands