corporate level planning
Top management's decision pertaining to the organization's mission, overall strategy, and structure
(Business level) division level planning
1) Long-term divisional goals that will allow the division to meet corporate goals
2) Division's business level strategy and structure necessary to achieve divisional goals
Functional level planning
Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business level goals
strategy v mission statement
Strategy; cluster of decisions about goals to pursue and actions and resources to achieve them. Mission Statement: broad declaration of products/services/customers that distinguishes the organization from competitors.
Fayol and the planning process
Effective plans should have four qualities:
Unity-only one central guiding plan.
Continuity-planning is an ongoing process, continually modify at all levels to fit in one broad framework.
Accuracy -collect and utilize all information in planning process.
corporate level strategy
A plan concerned with deciding which industries a firm should compete in and how the firm should enter or exit industries
business level plan
Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure.
functional level strategy
A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.
policy vs. rule vs. Sops
Policy; course or principle of action adopted by organization. Rule; formal written instructions for actions under specific circumstances. SOP - specific written instruction to perform certain aspects of a task.
scenario planning
the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions. Also known as contingency planning - being prepared with plans to put in place if certain market or other events t
SWOT analysis
A planning exercise in which managers identify internal organizational strengths (S) and weaknesses (W) and external environmental opportunities (O) and threats (T). Scenario planning is often used to strengthen this analysis.
components SWOT
Strengths, Weaknesses, Opportunities, Threats
porter's five forces model
1. Buyer power 2. Supplier power 3. Threat of substitute products or services 4. Threat of new entrants 5. Rivalry among existing competitors
backward vs forward vertical integration
Backward integration- Produces inputs for the company's products.
Forward Integration- New industry that uses, distributes, or sells the company's products
synergy
the interaction of two or more things where the combined effect is greater than the sum of the individual effects
strategic alliance
A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
international expansion alternatives
Exporting, franchising, importing, joint venture, licensing, strategic alliance, wholly owned foreign subsidiary p 286-290
organization culture
The values and norms that are shared among employees of an organization.
organizational structure
A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals.
organizing vs planning, leading and controlling
...
process of designing working relationships
...
span of control
Refers to the number of individuals who report to a supervisor.
job design
The process by which managers decide how to divide tasks into specific jobs. The application of motivational theories to the structure of work for improving productivity and satisfaction:
matrix structure
Organizational structure that combines departmentalization by division and function to gain the benefits of both.
job enlargement vs job reduction
Job enlargement is increasing the number of different tasks that a worker performs within one particular job.
Job reduction is decreasing the number of tasks that a worker performs within one particular job
job enrichment
increasing the degree of responsibility a worker has over his or her job
autonomy
the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job
organization's hierarchy of authority
the chain of command and relative authority of each manager
chain of command
the vertical line of authority that clarifies who reports to whom throughout the organization
centralized vs. decentralized authority
Centralizing authority is when upper management keeps the authority and doesn't distribute it to lower management.
Decentralized authority is giving lower management and non-managerial employees the right to make important decisions about how to use organ
cross functional vs cross cultural teams
Cross functional team is a group of managers brought together from different departments to preform organizational tasks
organizational culture components
The shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals.
control function
measuring performance relative to the planned objectives and standards, rewarding people for work well done, and then taking corrective action when necessary
profit ratios
measures how efficiently managers are using the organization's resources to generate profits.
output control procedures
Profit ratios, ROI, liquidity ratios, leverage ratios, activity ratios.
characteristics of high performing organizations
...
steps in the control process
Step 1. Establish the standards of performance, goals, or targets against which performance is to be evaluated
Step 2. Measure actual performance
Step 3.Compare actual performance against chosen standards of performance
Step 4. Evaluate the result and ini
commonly used financial performance measures
Profit ratios, Return on Investment, Operating margin, liquidity ratios, leverage ratios, activity ratios.
forms of behavior control
Include direct supervision, Management by objective and Bureaucratic control
direct supervision
actively monitor and observe the behavior of their subordinates, teach subordinates the behaviors that are appropriate and inappropriate, and intervene to take corrective action as needed.
bureaucratic control and types of decisions
Bureaucratic control is the control by means of a comprehensive system of rules and standard operating procedures that shapes and regulates the behavior of divisions, functions, and individuals
control systems
Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working
feed forward control
mechanism for gathering information about performance deficiencies before they occur
feedback control
a mechanism for gathering information about performance deficiencies after they occur
goal setting theory
a theory that states that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement
mgt legal issues
...
structured vs unstructured vs situational job interviews
-Structured interview is a set of questions in which interviewer asks the same questions to everyone.
-Unstructured is when the interviewer asks different questions to everyone
-Situational is when the interviewer gives a situation and asks the interviewe
behavior appraisals vs trait appraisals
Behavior-Managers assess how workers perform their jobs
Trait-Managers assess subordinates on personal characteristics that are relevant to job performance, such as skills, abilities or personality
outsourcing vs regular employees
Outsourcing- to use outside suppliers and manufacturers to produce goods and services
Regular Employees- People working within the company and doing tasks internally
job analysis
identifying the tasks, duties, and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job
job specifications
Listing of the knowledge, skills, and abilities needed to perform the tasks described in a job description
job description
a formal, written explanation of a specific job, usually including job title, tasks, relationship with other jobs, physical and mental skills required, duties, responsibilities, and working conditions
tools for measuring personal characteristics
Personality test measure personality traits and characteristics relevant to job performance; must insure the tests are valid at predicting accurate results. p436
methods of performance appraisal
Trait, behavior, result, objective and subjective
360 degree feedback
a type of feedback in which you are rated by the CIRCLE of those around you; includes customer rating, supervisor rating, peer rating, and subordinate rating
types of benefit plans
Includes social security, workers' compensation, insurance, etc.
HRM process components
1. The kinds of training and development that are necessary
2. The way performance is appraised
3.The appropriate levels of pay and benefits
types of interviews
1. informal conversational approach - relies entirely on the spontaneous generation of questions in a natural flow of an interaction
2. General interview guide approach - involves outlining a set of issues to be explored with each respondent
3. standardiz
performance appraisal
an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination
performance feedback
the process of providing employees information regarding their performance effectiveness.