Business Management Final Exam

Types of Uncertainty
State: Environment is unpredictable
Effect: impacts of environmental changes are unpredictable.
Responses: Consequences of decisions are unpredictable.
Planning
Coping with uncertainty by formulating courses of action to achieve specified results
Organizational Responses:
Defenders: Can be successful as long as their primary technology and narrow product line remain competitive.
Prospectors: Have a reputation for aggressively making things happen rather than waiting for them to happen.
Analyzers: Comparatively conservative strategy of following the leader.
Reactor: Exact opposite of prospector. Waits for things to happen rather than making them happen.
Plan
An objective plus an action statement.
Mission
An assignment carried out for the same purpose
Types of planning
Strategic: Determining how to pursue long-term goals with available resources.
Intermediate: Determining what contributions subunits can make with allocated resources.
Operational: Determining how to accomplish specific tasks with available resources.
Planning Horizon
Time that elapses between planning and execution.
Objective
Commitment to achieve a measurable result within a specified period.
Priorities
Goals, objectives, or activities ranked in order of importance.
A) Must do. Is Critical.
B) Should do. Necessary.
C) Nice to do. Desirable.
Management by Objective (MBO)
Comprehensive management system based on measurable and participatively set objectives. – Drucker
Steps in MBO:
1. Setting objectives
2. Developing action plans
3. Periodic review
4.Performance appraisal
Project
A temporary endeavor undertaken to achieve a particular aim
Project Life Cycle
-Conceptualization
-Planning
-Execution
-Termination
Program Evaluation and Review Technique (PERT)
Graphical sequencing and scheduling tool for complex projects.
Critical Path
Most time-consuming route through a PERT network
Ganntt Charts
Graphical scheduling technique
Break Even Analysis
Analysis to find the breakeven point which is the level of sales at which there is no loss
Strategy
Integrated, externally oriented perception of how to achieve the organization’s mission
Strategic Management
Seeking a competitively superior organization-environment fit.
Synergy
The concept that the whole is greater than the sum of its parts
Type of Synergy
-Market
-Cost
-Technological
-Management
Cost Focus
Compete on price alone
Cost Focus Differentiation
Buyer perceives unique and superior value in a product
SWOT
-Strength,
-Weaknesses,
-Opportunities,
-Threats
Strategic Management Process
-Formation of grand strategy
-Formation of strategic plans
-Implementation of strategic plans
-Strategic control
-Corrective action based on evaluation and feedback
Types of Forecasts
-Event outcome:Predictions of the outcome of highly probable events.
-Event timing: Predictions of when a given event will occur
-Time series: Estimates of future values in a statistical sequence
Event outcome
Predictions of the outcome of highly probable events
Decision Making
Identify and choosing among alternative courses of action
Challenges for decision makers
-Multiple Criteria
-Intangibles
-Risk and uncertainty
-Long-term implications
-Interdisciplinary input
-Value judgements
-Unintended consequences
Certainty
Solid factual basis allows accurate prediction of decision’s outcome
Uncertainty
Not Reliable factual information available
Risk
Decision made on basis of incomplete but reliable information
Thinking style-intuitive style
Subjective Probabilities
Odds based on judgment
Objective Probabilities
Odds derived mathematically from reliable data
Types of Decision Traps
Framing Error: How information is presented influences one’s interpretation of it.
Escalation of Commitment: People get locked into losing courses of action to avoid the embarrassment of quitting or admitting error.
Overconfidence: excessively confident
Programmed Decisions
Repetitive and routine decisions
Nonprogrammed Decisions
Decisions made in complex and non routine situations
Tacit Knowledge
Personal, intuitive, and undocumented information
Explicit Knowledge
Documented and sharable information.
Creativity
The reorganization of experience into new configurations.
Problem
The difference between an actual and desired state of affairs
Problem Solving
Conscious process of closing the gap between actual and desired situations
Problem Solving Process
1. Identifying the problem
2. Generating alternative solutions
3. Selecting a solution
4. Implementing and evaluating the solution
Types of Departments
-Functional
-Product-service
-Geographic
-Customer Classification
-Work Flow Process
Span of Control
Number of people who report directly to given manager.
Types of Span of Control
-Wide: Have many people reporting to just one manager
-Narrow: Have very few people reporting to just one manager
Centralization
The retention of decision-making authority by top management
Decentralization
Management’s sharing of decision-making authority with low-level employees
Delegation
Assigning various degrees of decision-making authority to lower-level employees
Structural Interview
Set of job-related questions with standardized answers
Performance Appraisal
Evaluating job performance as a basis for personnel decisions
Sexual Harassment
unwanted sexual attention that creates an offensive or intimidating work environment
Crisis Management
Anticipation and preparing for evens that could damage the organization
Steps in Crisis Management
-Anticipate
-Plan
-Staff
-Practice
Americans with disabilities Act
Anyone with physical or physiological impairments causing their life style to change
Equal Pay Act(1963)
Difference in gender pay
Reasons for diff. Pay
1. Seniority
2. Productivity
3. Merit (PHD)
4. Any factor other than sex or gender
Title VII
Discrimination, racism
Types of performance appraisals
Developmental: to make the person a better employee
Administrative: in case we get sued, can we protect ourselves