Chapter 1 Flashcards
Identify five management functions and provide a brief description of what each one is designed to accomplish.
i) Planning – This function establishes the desired results and develops ways to achieve them
ii) Organizing – This function determines the tasks involved and resources needed
iii) Human Resources – Identifying, selecting and maintaining the people needed to perform tasks
iv) Leading – Leading these people involved in fulfilling the plan
v) Monitoring – Evaluating progress and making needed changes
What affects the quality of management?
Quality of leadership is an overriding factor affecting quality of management
The contents and purpose of plans are based on their scope and the length of the time they encompasses. Identify two types of plans, the time period of each, and the extent of detail expected in each.
i) Strategic Plans are long term plans, usually three to five years long and encompassing the entire brokerage. They are not detailed, but general in nature
ii) Action Plans are short term, usually less than a year and apply to a specific business unit. They are more detailed than a strategic plan.
Describe two approaches used in planning efforts.
i) Top down planning occurs when management decides on its mission, strategies and objectives and establishes the business units to accomplish objectives. Top down planning keeps management in control but lacks employee acceptance of management’s plans
ii) Bottom up planning occurs when the management establishes its mission and strategies, but avoids designating the business units needed to further the goals and objectives established in the mission statement. Bottom up planning leaves management feeling powerless. Business units usually buy into their plan but are not accepting of changes made by management.
Planning should not be difficult. There are four main characteristics of an effective plan. Identify these and give a brief description of each.
i) Simplicity – Plans should be communicated simply and be implemented without intensive training.
ii) Practicality – Plans must be realistic.
iii) Severability – Plans are the sum of their parts. Each business unit must see how their work connects to the plan.
iv) Flexibility – Plans must be able to change as conditions change.
List seven major components/steps to developing strategic plans. Give the main purpose of each component.
i) Scanning the External Environment – Identifying threats and opportunities outside the brokerage is the main purpose
ii) Analyzing the Internal Environment and Assessing the Current Position – Identifying internal strengths and weaknesses is the main purpose.
iii) Matching Strengths and Weaknesses to the Opportunities and Threats – Exploiting strengths, correcting weaknesses, capitalizing on opportunities and avoiding threats is the main purpose
iv) Defining a Corporate Focus – This defines “who we are” and “What is our purpose” questions for business. Main purpose is to develop future vision, values of brokerage and purpose of existence.
v) Developing Strategies – This describes how the brokerage intends to achieve its mission
vi) Developing Objectives – These serve as the bridge between broad strategies and specific goals to meet brokerage’s mission
vii) Setting Goals – Goals express specifically what objectives state in general and which strategies state conceptually
What is accomplished by conducting an External Environmental Scan?
Identifying competitive threats and opportunities outside brokerage
Describe the differences between scanning a “distant” environment and a “near” environment.
Distant environmental scanning views critical survival factors over which the brokerage has no ability to influence
Near environmental scanning views factors over which brokerages may exert a degree of influence. Profiling competitors, market and clients is an important component of near environmental scanning
How is meaningful information developed when analyzing brokerage’s internal environment?
To ensure meaningful internal analysis brokerages should conduct these based on the customer’s point of view
What is accomplished with a S.W.O.T. analysis?
SWOT analysis begins to develop areas of future change to ensure survival of brokerages
What purposes are served by developing corporate focus statements?
Vision tells brokerages what targets they are aiming for, what their future holds and what is special in brokerage’s future. Value statements define brokerage’s long term values and beliefs. Mission statements express purpose of brokerage and provide long term direction of brokerage
Describe connections formed beginning with Mission Statements then progressing to Strategies, Objectives and Goals.
Mission statements express long term aspirations of brokerage. This is then broken down into several strategies. Each strategy is then broken down into several objectives which outline how strategy will be attained. Each objective is broken down into several goals which describe specific activities that must be completed to accomplish each objective.
The implementation phase encompasses three components. What are they?
i) Controlling Implementation
ii) Linking Budgets to Strategies, Objectives and Goals
iii) Motivating for Implementation
