Management Chapter 5 – 9

Mission
The organization’s reason for existence (Chapter 5)
Mission Statement
A broadly stated definition of the organization’s basic business scope and operations that distinguish it from other business types
Strategic goals
“official goals”, broad statements describing where the organization wants to be in the future.
Strategic plans
The action steps by which organization intends to attain strategic goals
Tactical goals
Goals that define the outcomes that major divisions and departments must achieve for the organization to reach overall goals.
Operational goals
Specific, measurable results expected from departments, work groups and individuals within the organization. (ex. process 150 sales each week)
Operational plan
Plans developed at the organization’s lower levels that specify action steps toward achieving operational goals and that support tactical planning activities
Tactical plans
Plans designed to help execute major strategic plans and to accomplish a specific part of the company’s strategy (example cross-training employees to switch diff jobs in company)
Strategy Map
visual representation of the key drives of an organizations success and shoes how specific goals and plans in each area are linked
Single use plan
Plan that are developed to achieve a set of goals that are unlikely to be repeated in the future
Standing plans
Ongoing plans that are use to provide guidance for tasks performed repeatedly within the organization
Contingency plan
Plan that define company responses to specific situations such as emergencies, setbacks and unexpected conditions
Scenario building
looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed
strategic management
set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment to achieve organizational goals
Swot anaylsis
strengths, weakness, opportunities, and threats that affect organizational performance
Programmed decision
decision made in response to a previous situation in the past used for future
Non programmed decision
decision made in response to a unique or pooly defined situation that has important consequences for the organization
ambiguity
condition in which the goals to be achieved or the problem to be solved is unclear and alternatives are difficult to define.
uncertainty
situation when manager knows the goals but information is incomplete
normative
approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome
classical model
decision making model based on assumption that managers should make logical decisions that will be in the organizations best interest (complete, certain, optimizing)
administrative model
decision making model that describes how a managers actually make decision in situations characterized by nonprogrammed decisions ( incomplete, risk/uncetain, satificing)
Political model
decision making model for making nonprogrammed decisions when conditions are uncertain, information is limited and there are manager conficts about what goals to pursure (conflicting, abiquious, coalition)
bounded rationality
The concept that people have the time and cognititve ability to process only limited amount of information on which to base decisions
satisficing
To choose the first solution alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist.
Point counterpoint
a decision making technique in which people are assigned to express competing points of view
grouptthink
the tendency of people in groups to strive for agreement rather then best solution
escalating commitment
continuing to invest time in a failing decision
MIS
management information system is a comptuter based system that provides info and support effecting managerial decision making
ERP
networked information system that collects, processes and provides information about an organizations entire enterpirse from identification of customer needs and reciept of orders
Authority
Rights of manager to make decisions, issue orders and allocate resources
Divisional structure
organization structure in which departments are grouped based on similar organizational outputs
Functional structure
the grouping of positions based on similar skills, expertise and resource use
Matrix stucture
organization structure that uses functional and divisional chains of command in the same part of organization
team based structure
entire organization is made up of horizontal teams that coordinate and work direct with customers to achieve goals