MGMT 1281 Saint Martins University Introduction to Business Management Questions Hi one more quiz on June 8 th Business Essentials Ninth Canadian Edition

MGMT 1281 Saint Martins University Introduction to Business Management Questions Hi one more quiz on June 8 th Business Essentials
Ninth Canadian Edition
Chapter 6
Managing the Business
Enterprise
Learning Objectives
• Describe the four functions that constitute the
management process.
• Identify types of managers by level and area.
• Describe the five basic management skills.
• Explain the importance of setting goals and
strategic management in organizational success.
• Discuss contingency planning and crisis
management in today’s business world.
• Explain the idea of corporate culture and why it is
important.
The Management Process (LO 6-1) (1 of 5)
Leading
Planning
Functions of
Management
Organizing
Controlling
The Management Process (LO 6-1) (2 of 5)
• Planning
– determining what the business needs to do and the best way to
achieve it
The Management Process (LO 6-1) (3 of 5)
• Organizing
– determining how to use existing resources to implement the plan
– arranging jobs in a structure to create an efficient task system
The Management Process (LO 6-1) (4 of 5)
• Leading
– guiding and motivating subordinates to meet objectives
– managers have various responsibilities with regard to their
employees
Authority to give orders
Ability to guide employees
Power to motivate subordinates
The Management Process (LO 6-1) (5 of 5)
• Controlling: managers monitor the firm’s performance
Types of Managers (LO 6-2) (1 of 2)
Levels of Management
Top Management
• responsible for overall
performance of the firm
Middle Management
• responsible for implementing
decisions of top managers
First-line Management
• responsible for supervising
employees
Types of Managers (LO 6-2) (2 of 2)
Areas of Management
Marketing Managers
Financial Managers
Operations Managers
Human Resource Managers
Information Managers
Basic Management Skills (LO 6-3) (1 of 4)
Technical skills
Human Relations
skills
Conceptual skills
Time Management
skills
Decision-Making
skills
Basic Management Skills (LO 6-3) (2 of 4)
• Time-Management Skills
– productive use of time
• Leading causes of
wasted time
–
–
–
–
paperwork
telephone
meetings
email
Basic Management Skills (LO 6-3) (3 of 4)
• Decision-Making Skills
Recognize and define the decision situation
Identify alternatives
Evaluate the alternatives
Select the best alternative
Implement the chosen alternative
Follow up and evaluate the results
Basic Management Skills (LO 6-3) (4 of 4)
Behavioral Aspects of Decision Making
Organizational
Politics
Intuition
Escalation of
Commitment
Risk Propensity
Setting Goals and Formulating Strategy
(LO 6-4) (1 of 4)
• Strategic Management
– process of aligning the
organization with its external
environment
• Strategic Goals
– performance objectives that
a firm plans to achieve
Setting Goals and Formulating Strategy
(LO 6-4) (2 of 4)
• Purpose of Setting Goals
Provides direction, guidance, and
motivation
Assists in allocating resources
Helps to define corporate culture
Helps managers assess
performance
Setting Goals and Formulating Strategy
(LO 6-4) (3 of 4)
Kinds of Goals
Long-term
Intermediate
Short-term
• five or more years
• one to five years
• less than one year
Setting Goals and Formulating Strategy
(LO 6-4) (4 of 4)
SMART Goals
Specific
Measurable
Achievable
Relevant
Time-Framed
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (1 of 8)
• Mission Statement
– how the organization will
achieve its purpose (reason
for being)
– clarifies who the organization
serves, what it offers, and
how it will be provided
– includes core values and
ethical commitment
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (2 of 8)
Formulating Strategy
Setting strategic goals
• long-term goals based on the mission statement
Analyzing the organization and its environment (SWOT)
Matching the organization to its environment
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (3 of 8)
Analyzing the Organization and Its Environment
Internal
• Strengths
External
• Opportunities
SWOT Analysis
Internal
• Weaknesses
External
• Threats
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (4 of 8)
Matching the Organization and Its Environment
Final step in strategy formulation
Matching company strengths
to environmental
opportunities
Minimizing the impact of
threats and company
weaknesses
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (5 of 8)
Hierarchy of Plans
• Strategic plans
– associated with senior management
– establish long-term plans (2-5 years)
• Tactical plans
– usually created by middle managers
– support the strategic plans & define resource allocation (1-2 years)
• Operational plans
– executed and finalized by first-line managers
– for short-term targets of less than a year (usually monthly, weekly or daily)
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (6 of 8)
Levels of Strategies
• Corporate-level strategy
– what businesses will we pursue?
– how do these businesses relate to each other?
• Business-Level (competitive) strategy
– how will we compete in our chosen area?
• Functional strategy
– what actions can our department pursue to reach the overall
goals?
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (7 of 8)
Corporate-Level Strategies
Concentration
Growth
Integration
Diversification
Investment reduction
Strategic Management: Setting Goals and
Formulating Strategy (LO 6-4) (8 of 8)
Business-Level (Competitive) Strategies
Cost Leadership
Differentiation
Focus
Contingency Planning and Crisis
Management (LO 6-5)
• Contingency Planning
– identify in advance
changes that might occur
and ways the company
can respond to changes
• Crisis Management
– methods for dealing with
emergencies
Management and Corporate Culture (LO 6-6)
(1 of 2)
• Corporate Culture
– a firm’s personality
▪ shared experience of
employees
▪ stories, beliefs, and norms
that characterize the
organization
▪ culture can direct
employee’s efforts
Management and Corporate Culture (LO 6-6)
(2 of 2)
• Communicating the Culture
–
–
–
–
ensure new and existing managers understand the culture
develop a clear mission statement
communicate the culture to employees
reward those who understand and maintain the culture
• Managing Change
– Cultural change process
▪ management formulates vision of new company
▪ new systems of appraisal and compensation
Quick-Check Questions (1 of 10)
1) Tactical planning is concerned with:
A) finding the optimal solution for an emergency situation.
B) developing specific short-run strategies about what needs
to be done, who will do it, and how it will be accomplished.
C) devising alternative courses of action to be used if the
original plan does not work out.
D) setting long-run goals that will dictate the strategic plan of
the organization.
Quick-Check Questions (2 of 10)
1) Tactical planning is concerned with:
A) finding the optimal solution for an emergency situation.
B) developing specific short-run strategies about what needs
to be done, who will do it, and how it will be accomplished.
C) devising alternative courses of action to be used if the
original plan does not work out.
D) setting long-run goals that will dictate the strategic plan of
the organization.
Answer: B) developing specific short-run strategies about what
needs to be done, who will do it, and how it will be accomplished.
Quick-Check Questions (3 of 10)
2) When Jasmine analyzes monthly sales figures for her flower
shop, and uses this information to determine whether or not
sales targets have been met, she is involved in the _________
function of the management process.
A)
B)
C)
D)
leading
planning
controlling
organizing
Quick-Check Questions (4 of 10)
2) When Jasmine analyzes monthly sales figures for her flower
shop, and uses this information to determine whether or not
sales targets have been met, she is involved in the _________
function of the management process.
A)
B)
C)
D)
leading
planning
controlling
organizing
Answer:
C) controlling
Quick-Check Questions (5 of 10)
3) All managers require human relations, conceptual, time
management, and decision-making skills, but top managers
depend most on ______________.
A)
B)
C)
D)
human relations skills
conceptual skills
time management skills
decision-making skills
Quick-Check Questions (6 of 10)
3) All managers require human relations, conceptual, time
management, and decision-making skills, but top managers
depend most on ______________.
A)
B)
C)
D)
human relations skills
conceptual skills
time management skills
decision-making skills
Answer:
B) conceptual skills
Quick-Check Questions (7 of 10)
4) Effective goal setting is helped by comparing the outcomes to
the SMART guideline. What does SMART stand for?
A) Specific, Measurable, Achievable, Realistic, and Timeframed
B) Simple, Mature, Achievable, Responsible and TimeFramed
C) Simple, Maximized, Achievable, Reliable and Time-Framed
D) Specific, Mature, Aggressive, Realistic and Time-Framed
Quick-Check Questions (8 of 10)
4) Effective goal setting is helped by comparing the outcomes to
the SMART guideline. What does SMART stand for?
A) Specific, Measurable, Achievable, Realistic, and Timeframed
B) Simple, Mature, Achievable, Responsible and TimeFramed
C) Simple, Maximized, Achievable, Reliable and Time-Framed
D) Specific, Mature, Aggressive, Realistic and Time-Framed
Answer:
A) Specific, Measurable, Achievable, Realistic, and Time-framed
Quick-Check Questions (9 of 10)
5) When one company buys a competitor in the same industry it
is known as ____________.
A)
B)
C)
D)
horizontal integration
diversification
vertical integration
lateral divestment
Quick-Check Questions (10 of 10)
5) When one company buys a competitor in the same industry it
is known as ____________.
A)
B)
C)
D)
horizontal integration
diversification
vertical integration
lateral divestment
Answer:
A) horizontal integration
Business Essentials
Ninth Canadian Edition
Chapter 7
Organizing the Business
Enterprise
Learning Objectives (1 of 2)
• Discuss the elements that influence a
firm’s organizational structure.
• Explain how specialization and
departmentalization are the building blocks
of organizational structure.
• Distinguish between responsibility and
authority and explain the differences in
decision making in centralized and
decentralized organizations.
Learning Objectives (2 of 2)
• Explain the differences between functional,
divisional, project, and international
organization structures, and describe the
most popular forms of organizational
design.
• Understand how the informal organization
is different from the formal organization.
What Is Organizational Structure? (LO 7-1)
(1 of 3)
• Organizational Structure
– specification of the jobs to be done and how they are related
▪ each organization (profit, not-for-profit, and government) must
develop a structure that meets its specific needs
What Is Organizational Structure? (LO 7-1)
(2 of 3)
• Determinants of
Organizational Structure
– purpose, mission, and strategy
– size, technology, and changes in
the environment
– it may be carefully planned or
develop as the organization
evolves
What Is Organizational Structure? (LO 7-1)
(3 of 3)
• Chain of Command
– the organizational chart shows employee positions and the flow of
decision-making power
The Building Blocks of Organizational
Structure (LO 7-2) (1 of 5)
• Specialization
– process of identifying
the specific jobs that
need to be done and
designating the people
who will perform them
• Departmentalization
– determining how tasks
should be grouped
together to make the
workplace more
efficient
The Building Blocks of Organizational
Structure (LO 7-2) (2 of 5)
• Specialization and Growth
– small companies have fewer employees (less specialization)
– large companies become more efficient through specialization
The Building Blocks of Organizational
Structure (LO 7-2) (3 of 5)
• Departmentalization:
grouping jobs into
logical units
– increases efficiency
(division of labour)
– better control and
coordination
– easier to monitor
performance
– profit centres are
accountable
The Building Blocks of Organizational
Structure (LO 7-2) (4 of 5)
Bases of Departmentalization
Functional
Customer
Product
Geographic
Process
The Building Blocks of Organizational
Structure (LO 7-2) (5 of 5)
Example of a firm using multiple forms of departmentalization
Establishing the Decision-Making Hierarchy
(LO 7-3) (1 of 8)
• Decision-Making Hierarchy
– defines who is responsible for making certain decisions
Three-step process
• assigning tasks
• performing tasks
• distributing authority
Establishing the Decision-Making Hierarchy
(LO 7-3) (2 of 8)
Assigning Tasks
Performing Tasks
• Responsibility
• Delegation
– duty to perform an
assigned task
• Authority
– power to make decisions
to complete a task
– assignment of a task,
responsibility, or
authority to a
subordinate
• Accountability
– Obligation of
subordinates to finish
tasks and justify
outcomes
Establishing the Decision-Making Hierarchy
(LO 7-3) (3 of 8)
Distributing Authority
• Centralization
– top managers reserve most of the decision-making rights
• Decentralization
– lower- and middle-level managers have some discretion in
making decisions on their own
Establishing the Decision-Making Hierarchy
(LO 7-3) (4 of 8)
• Span of Control
– number of subordinates
that a manager is
responsible for supervising
▪ wide span: many
subordinates
▪ narrow span: very few
subordinates
– complicated tasks require
more supervision and a
narrow span of control
Establishing the
Decision-Making
Hierarchy (LO 7-3)
(5 of 8)
Establishing the Decision-Making Hierarchy
(LO 7-3) (6 of 8)
Three Forms of Authority
Line authority
Staff authority
Committee/Team authority
Establishing the Decision-Making Hierarchy
(LO 7-3) 7 of 8)
Line Authority
• direct chain of
command (indicated
by a solid line in the
org. chart)
Staff Authority
• staff that
advise/support line
managers (indicated
by a dotted line in the
organizational chart)
Establishing the Decision-Making Hierarchy
(LO 7-3) (8 of 8)
Committee and Team
Authority
• authority granted to
committees/work teams
(permanent or
temporary)
• plan their work and
complete the task
independently
Basic Organizational Structures (LO 7-4) (1 of 5)
• Functional Structure
– units are formed
based on the job
functions (i.e. payroll,
accounting, sales &
purchasing)
Basic Organizational Structures (LO 7-4) (2 of 5)
• Divisional Structure
– divisions operating as semi-autonomous units and profit centres
▪ e.g., products, customers, or geography
Basic Organizational Structures (LO 7-4) (3 of 5)
• Project Organization
– used by organizations with
new product opportunities
or for special projects
– in a matrix organization,
the project manager and
regular line managers
share authority until the
project is completed
Basic Organizational Structures (LO 7-4) (4 of 5)
Example of a Matrix Organization
Basic Organizational Structures (LO 7-4) (5 of 5)
• International Organization
– designed to help a company succeed in international markets
– international departments & divisions, integrated global
organization
New Organizational Structures (LO 7-4) (1 of 2)
Organizational Design for the Twenty-First Century
Boundaryless organization
Team organization
Virtual organization
Learning organization
New Organizational Structures (LO 7-4) (2 of 2)
A Virtual Organization Model
The Informal Organization (LO 7-5) (1 of 3)
• Informal Organization
– network of social interactions
and relationships among
employees unrelated to the
formal structure
– a powerful force that can alter
the formal structure
▪ informal groups
▪ organizational grapevine
The Informal Organization (LO 7-5) (2 of 3)
• Informal Groups
– groups of individuals who decide to interact among themselves
even though they are not required to do so
▪ may work together or not
▪ may discuss business or other interests
▪ may or may not have a positive impact on the business
The Informal Organization (LO 7-5) (3 of 3)
• Organizational Grapevine
– an informal communication network that carries gossip and other
information
▪ managers must maintain open channels of communication
and respond to inaccurate information to minimize damage
▪ managers can use it to measure employee reactions, gain
information and improve decision making
Quick-Check Questions (1 of 10)
1) Organizational charts illustrate:
A) positions of seniority within an organization.
B) only those reporting relationships between middle
management and top management.
C) organizational structure, employee titles and their
relationship to one another.
D) operational plans.
Quick-Check Questions (2 of 10)
1) Organizational charts illustrate:
A) positions of seniority within an organization.
B) only those reporting relationships between middle
management and top management.
C) organizational structure, employee titles and their
relationship to one another.
D) operational plans.
Answer: C) organizational structure, employee titles and
their relationship to one another.
Quick-Check Questions (3 of 10)
2) Specialization permits higher levels of productivity through
efficiency gains. However, a potential risk of excessive
specialization is:
A) higher training costs
B) employee boredom, dissatisfaction and isolation
C) higher wage rates to compensate for poor working
conditions
D) excessive product defects
Quick-Check Questions (4 of 10)
2) Specialization permits higher levels of productivity through
efficiency gains. However, a potential risk of excessive
specialization is:
A) higher training costs
B) employee boredom, dissatisfaction and isolation
C) higher wage rates to compensate for poor working
conditions
D) excessive product defects
Answer:
B) employee boredom, dissatisfaction and isolation
Quick-Check Questions (5 of 10)
3) A company that emphasizes superior customer service needs
to respond quickly to satisfy customers. They are likely using
____________.
A)
B)
C)
D)
line authority
centralized decision making
decentralized decision making
functional authority
Quick-Check Questions (6 of 10)
3) A company that emphasizes superior customer service needs
to respond quickly to satisfy customers. They are likely using
____________.
A)
B)
C)
D)
line authority
centralized decision making
decentralized decision making
functional authority
Answer:
C) decentralized decision making
Quick-Check Questions (7 of 10)
4) Beta Engineering uses the _________ corporate structure,
where teams of specialists from various functional areas work
together on specific challenges and report to both a project
manager and a line manager.
A)
B)
C)
D)
functional
matrix
divisional
project
Quick-Check Questions (8 of 10)
4) Beta Engineering uses the _________ corporate structure,
where teams of specialists from various functional areas work
together on specific challenges and report to both a project
manager and a line manager.
A)
B)
C)
D)
functional
matrix
divisional
project
Answer:
B) matrix
Quick-Check Questions (9 of 10)
5) The __________ is an informal person-to-person means of
communicating information or rumours.
A)
B)
C)
D)
matrix
chain of command
hybrid chart
grapevine
Quick-Check Questions (10 of 10)
5) The __________ is an informal person-to-person means of
communicating information or rumours.
A)
B)
C)
D)
matrix
chain of command
hybrid chart
grapevine
Answer:
D) grapevine
Module #4
Managing People and
the Organization
Copyright © 2020 Pearson Canada Inc.
1-1
Agenda
• Review expectations of course participation
• Module #4
• Question/Answer
• Midterm check-up:
– Discuss upcom…
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