Business Chapter 14

achieving the goals of an organization through planning, organizing, leading, and controlling organizational resources, including people, money, and time
management
determining organizational goals and action plans for how to achieve those goals
planning
determining a structure for both individual jobs and the overall organization
organizing
directing and motivating people to achieve organizational goals
leading
managers who the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources
top management
managers who supervise lower-level managers and report to a higher-level manager
middle management
checking performance and making adjustments as needed
controlling
managers who directly supervise nonmanagement employees
first line management
expertise in a specific functional area or department
technical skills
the ability to work effectively with and through other people in a range of different relationships
human skills
the ability to grasp a big picture view of the overall organization
conceptual skills
motivation theory that suggests that human needs fall into hierarchy and that as each need is met, people become more motivated to meet the next-highest need in the pyramid
maslow’s hierarchy of needs theory
physiological, safety, social, esteem, self actualization
maslow’s hierarchy
workers dislike work and will do everything they can do avoid it, fear is motivating, people prefer to be directed
theory x
work is as natural as play or rest, different rewards can be motivating, people can accept and seek responsibility
theory y
motivation theory that concerns the relationship among individual effort, individual performance, and individual reward
expectancy theory
a motivation theory that proposes that perceptions of fairness directly affect the worker motivation
equity theory
high level, long term planning that establishes a vision for the company, defines long terms objectives
strategic planning
more specific, shorter term planning that applies plans to specific functional areas
tactical planning
very specific short term planning that applies tactical plans to daily, weekly and monthly operations
operational planning
planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans
contingency planning
definition of an organization’s purpose, values, and core goals, which provides the framework for all other plans
mission
strategic planning tool that helps management evaluate an organization in terms of internal strength and weakness, and external opportunities and threats
SWOT analysis
concrete benchmarks that managers can use to measure performance in each key area of the organization
strategic goals
action plans that help the organization achieve its goals by forging the best fit between the firm and the environment
strategies
a visual representation of the company’s formal structure
organization chart
the extent to which decision making power is held by a small number of people at the top of the organization
degree of centralization
span of management, refers to the number of people a manager supervises
span of control
the division of workers into logical groups
departmentalization
organizations with a clear simple chain of command from top to bottom
line organizations
organizations with line managers forming the primary chain of authority in the company and staff departments working alongside the departments
line and staff organizations
managers who supervise the functions that contribute directly to profitability
line managers
managers who supervise the functions that provide advice and assistance to the line departments
staff managers
organizations with a flexible structure that brings together specialists from different areas of the company to work on individual projects
matrix organization
leaders who hoard decision making power for themselves and typically issue orders without consulting their followers
autocratic leaders
leaders who share power with their followers
democratic leaders
leaders who set objectives for their followers but give them freedom to choose how they will accomplish those goals
free rein leaders