Management Chapter 14

management
achieving the goals of an organization through planning, organizing, leading, and controlling organizational resources, including people, money, and time
planning
determining organizational goals and action plans for ways to achieve those goals
organizing
determining a structure for both individual jobs and the overall organization
leading
directing and motivating people to achieve organizational goals
controlling
checking performance and making adjustments as needed
top management
managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources
middle management
managers who supervise lower-level managers and who report to a higher-level manager
first-line management
managers who directly supervise nonmanagement employees
technical skills
expertise in a specific functional area or department
human skills
the ability to work effectively and through other people in a range of different relationships
conceptual skills
the ability to grasp a big picture view of the overall organization, the relationships among its various parts, and its fit in the broader competitive environment
Maslow’s hierarchy of needs theory
a motivation theory that suggests that human needs fall into a hierarchy and that as each need is met, people become motivated to meet the next highest need in the pyramid
theory x and theory y
a motivation theory that suggests that management attitudes toward workers fall into two opposing categories based on management assumptions about workers capabilities and values
job enrichment
the creation of jobs with more meaningful content, under the assumption that challenging, creative work will motivate employees
expectancy theory
a motivation theory that concerns the relationship among individual effort, individual performance, and individual reward
equity theory
a motivation theory that proposes that perceptions of fairness directly affect worker motivation
strategic planning
high-level, long-term planning that establishes a vision for the company, defines long-term objectives and priorities, determines broad action steps, and allocates resources
tactical planning
more specific, shorter-term planning that applies strategic plans to specific functional areas
operational planning
very specific, short-term planning that applies tactical plans to daily, weekly, and monthly operations
contingency planning
planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans
mission
the definition of an organization’s purpose, values, and core goals, which provides the framework for all other plans
SWOT analysis
a strategic planning tool that helps management evaluate an organization in terms of internal strengths and weakness, and external opportunities and threats
strategic goals
concrete benchmarks that managers can use to measure performance in each key area of the organization
strategies
action plans that help the organization achieve its goals by forging the best fit between the firm and the environment
organizational chart
a visual representation of the company’s formal structure
degree of centralization
the extent to which decision-making power is held by a small number of people at the top of the organization
span of control
span of management; refers to the number of people a manager supervises
departmentalization
the division of workers into logical groups
line organizations
organizations with a clear, simple chain of command from top to bottom
line-and-staff organizations
organizations with line managers forming the primary chain of authority in the company, and staff departments working alongside line departments
line managers
managers who supervise the functions that contribute directly to profitability: production and marketing
staff managers
managers who supervise the functions that provide advice and assistance to the line departments
matrix organizations
organizations with a flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis
autocratic leaders
leaders who hoard decision-making power for themselves and typically issue orders without consulting their followers
democratic leaders
leaders who share power with their followers. While they still make final decisions, they typically solicit and incorporate input from their followers
free-rein leaders
leaders who set objectives for their followers but give them freedom to choose how they accomplish those goals