Chapter 7

Question 1

Vision

Answer 1

a broad explanation of why the organization exists and where it is trying to go

Question 2

Transparency

Answer 2

the presentation of company’s facts and figures in a way that is clear and apparent to all stakeholders

Question 3

autocratic leadership

Answer 3

Leadership style that involves making managerial decisions without consulting others.

Question 4

participative (democratic) leadership

Answer 4

Leadership style that consists of managers and employees working together to make decisions.

Question 5

free-rein leadership

Answer 5

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

Question 6

enabling

Answer 6

Giving workers the education and tools they need to make decisions.

Question 7

knowledge management

Answer 7

Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.

Question 8

directing

Answer 8

Many leaders in the past gave explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization

Question 9

external customer

Answer 9

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

Question 10

internal customer

Answer 10

Individuals and units within the firm that receive services from other individuals or units.

Question 11

What are the primary functions of management?

Answer 11

The four primary functions are (1) planning, (2) organizing, (3) leading, and (4) controlling.

Question 12

How do you define each of these functions?

Answer 12

Planning includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Organizing includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization’s goals and objectives.

Leading means creating a vision for the organization, and communicating, guiding, training, coaching, and moti- vating others to achieve goals and objectives.

Controlling means measuring whether what actually occurs meets the organization’s goals.

Question 13

What’s the difference between goals and objectives?

Answer 13

Goals are broad, long-term achievements that organizations aim to accom- plish, whereas objectives are specific, short-term plans made to help reach the goals.

Question 14

What is a SWOT analysis?

Answer 14

Managers look at the strengths and weaknesses of the firm and the oppor- tunities and threats facing it.

Question 15

What are the four types of planning, and how are they related to the organi- zation’s goals and objectives?

Answer 15

Strategic planning is broad, long-range planning that outlines the goals of the organization.

Tactical planning is specific, short-term planning that lists organizational objectives.

Operational planning is part of tactical planning and sets specific timetables and standards.

Contingency planning is developing an alternative set of plans in case the first set doesn’t work out.

Question 16

qWhat are the steps involved in decision making?

Answer 16

The six Ds of decision making are (1) define the situation; (2) describe and collect needed information; (3) develop alternatives; (4) decide which alternative is best; (5) do what is indicated (begin implementa- tion); and (6) determine whether the decision was a good one, and fol- low up.

Question 17

a mission statement ? What it should address? Becomes?

Answer 17

mission statement outlines the organization’s fundamental purposes. It should address:
• The organization’s self-concept.
• Its philosophy.
• Long-term survival needs.
• Customer needs.
• Social responsibility.
• Nature of the product or service.
The mission statement becomes the foundation for setting specific goals and objectives.

Question 18

brainstorming

PMI

Answer 18

brainstorming
Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

Question 19

top managers

Answer 19

top management
The highest level of management, consisting of the president and other key company executives who develop strategic plans.

Question 20

middle management

Answer 20

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

Question 21

supervisory management

Answer 21

supervisory management
Managers who are directly responsible for supervising workers and evaluating their daily performance.

Question 22

CEO,COO,CFO,CIO,CKO

Answer 22

CEOs are responsible for introducing change into an organization. The COO is responsible for putting those changes into effect.CFO is responsible for obtaining funds, planning budgets, collecting funds, and so on. The CIO or CKO is responsible for getting the right information to other managers so they can make correct decisions

Question 23

staffing

Answer 23

staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives.

Question 24

Controlling consists of five steps

Answer 24

:
1. Establishing clear performance standards. This ties the planning function to the control function. Without clear standards, control is impossible.
2. Monitoring and recording actual performance or results.
3. Comparing results against plans and standards.
4. Communicating results and deviations to the appropriate employees.
5. Taking corrective action when needed and providing positive feedback for work well done.

Question 25

How does enabling help achieve empowerment?

Answer 25

Enabling means giving workers the education and tools they need to make decisions. Clearly, it’s the key to the success of empowerment. Without the right education, training, coaching, and tools, workers cannot assume the responsibilities and decision-making roles that make empowerment work.27

Question 26

What skills do managers need?

Answer 26

Managers must have three categories of skills: (1) technical skills (ability to perform specific tasks such as selling products or developing software), (2) human relations skills (ability to communicate and motivate), and (3) conceptual skills (ability to see organizations as a whole and how all the parts fit together).

Question 27

What qualities must standards possess to measure performance results?

Answer 27

Traditional measures of success are usually financial; that is, they define suc- cess in terms of profits or return on investment. Certainly these measures are still important, but they’re not the whole purpose of the firm. Other purposes may include pleasing employees, stakeholders, and customers—including both external and internal customers.