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strategic tactical operational |
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broad statements describing where the organization wants to be in the future decisions made by top level management |
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the results that major divisions and departments within the organization tend to achieve decisions made my middle-level and lower-level management |
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describe specific results expected from departments, work groups, and individuals set by lower-level and non-supervisory employees |
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criteria for effective goals |
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specific and measurable specified time period challenging but realistic linked to rewards consistent with organization mission and values |
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4 activities for goal planning |
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setting goals develop an action plan review the progress appraise the overall performance |
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future responses to be taken in the case of emergencies, setbacks, or unexpected conditions |
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looking at current trends and visualizing possibilities |
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the set of decisions and actions used to formulate and implement strategies decision making by strategists non-program affect the entire organization |
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a choice made from the available alternatives |
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the process of identifying problems and opportunities and then resolving them |
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made in response to recurring organizational problems |
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made in response to situations that are unique, poorly defined and largely unstructured, and have important consequences for the organization |
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4 positions on the decision-making scale |
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certainty risk uncertainty ambiguity and conflict |
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all the information the decision maker needs is fully available |
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a decision has clear-cut goals and good information is available, but the future outcomes are subject to change |
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managers know the goals they want to achieve, but information about alternatives and future events is incomplete |
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goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable most difficult decision situation |
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classical decision-making model |
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problem is defined decision maker is rational and uses logic |
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more management levels lower span of control more red tape centralized decision making more mechanistic less use of teams lower level of empowerment |
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fewer levels of management wider span of control less red tape decentralized decision making more flexible greater use of teams higher level of empowerment |
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one best way work specialization job enlargement |
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formal task assigned to individuals and departments lines of authority span of manager's control unity of command principle |
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types of organizational structures |
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functional divisional Strategic Business Units Matrix Structure |
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a company is organized according to business activity accounting, marketing, HR |
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company is organized according to organizational processes/outputs Midwest division |
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company is organized by combining similar divisions |
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dual lines of authority violates the unity of command principle most complex form of organizational structure |
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when a manager passes on authority or responsibility to its subordinates |
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organizational development |
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a planned, systematic process seeks to improve the organization's efficiency and effectiveness |
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3 stages of organizational development |
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Definition
unfreezing changing/intervention refreezing |
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why do managers make bad decisions? |
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being influenced by initial impressions justifying past decisions seeing what you want to see being influenced by problem framing overconfidence |
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administrative decision-making model |
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descriptive approach more realistic bounded rationality satisficing |
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political decision-making model |
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make decisions supported by others so we can build connections and relationships coalition building/networking resembles the real environment |
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recognition of decision requirement diagnosis develop alternatives selection of desired alternative implementation of chosen alternative evaluation and feedback circular |
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directive analytic conceptual behavioral |
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people in management positions have formal authority to direct and control immediate subordinates |
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the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed generally leads to horizontal coordination |
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inventor champion sponsor critic |
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create uniqueness in the minds of the consumer |
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keeping the costs as low as possible throughout the entire supply/distribution change |
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untapped niche in the market that will yield a profit needs and wants are currently not being met |
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Porter's 5 competitive forces |
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threat of new entrants bargaining power of buyers bargaining power of suppliers threat of substitute products intensity of competition |
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Porter's 3 Competitive Strategies |
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differentiation cost leadership focus strategy |
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the set of decisions and actions used to formulate and implement strategies |
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assess external environment assess internal environment |
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future responses to be taken in the case of emergencies, seta |
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looking at current trends and visualizing possibilities |
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responses to unimaginable occurrences |
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strategic goals tactical goals operational goals |
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Term
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Definition
broad statements describing where the organization wants to be in the future decisions made by top level mgt |
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Term
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Definition
goals for major divisions and departments within the org decisions made by middle-level and lower-level mgt |
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Term
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Definition
describe specific results expected from departments, work groups, and individuals set by lower-level and non-supervisory employees |
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Term
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Definition
level 1 drives level 2, which drives level 3 |
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criteria for effective goals |
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Definition
specific and measurable defined time period challenging but realistic linked to rewards consistent with organization mission and values |
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general statement of values that answers what is the company's business |
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a desired future state that the organization attempts to realize |
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recurring problems apply rule |
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unique situations
poorly defined
unstructured
important consequences |
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innovative group decision making |
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Definition
start with brainstorming engage in rigorous debate avoid groupthink know when to bail act with speed don't ignore a crisis |
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visual representation of an organization's structure |
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rotate jobs or add jobs happens when jobs lead to boredom or reduction in productivity |
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types of organizational structures |
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functional divisional SBUs matrix |
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right to advise, recommend, and counsel in the staff specialists' area of expertise communication relationship narrower |
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steps for organizational development |
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unfreezing changing refreezing |
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makes people aware of the problem and the need for change |
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retrain employees to think or act differently if you can change attitude, you can change behavior, which results in a change in outcome |
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reward employees for performing desired change so that it becomes permanent |
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fear of the unknown consistency inconsistent goals/values lack of understanding and trust |
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approaches for improving compliance and reducing resistance |
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force change educative self-interest |
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separate small, highly autonomous, secretive group that focuses on breakthrough ideas for the business |
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technique for determining which forces drive a proposed change and which forces restrain it use to change from traditional to JIT inventory system |
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