lesson 3-5 Flashcards
1
Q
is the process of deciding which objectives to pursue during a future time and how to achieve those objectives. It is the primary management function and is inherent in everything a manager does.
A
PLANNING
2
Q
No plans
A
- It is futile for a manager to attempt to perform any other management functions without having a plan
- Managers who attempt to organize without a plan finds themselves reorganizing on a regular basis
- Manager who attempts to staff without a plan will constantly hiring and firing employees
- Motivation is almost impossible in an organization undergoing continuous reorganization and high employee turnover.
3
Q
With plans
A
- Actively affect rather than passively affect the future
- By setting objectives and charting a course of action, the organization commits itself to “making it happen.”
- Planning provides a means for actively involving
personnel from all areas of the organization in the management of the organization.
4
Q
BENEFITS OF INVOLVEMENT OF PERSONNEL
A
- Input from throughout the organization improves the quality of good plans; good suggestions can come from any level in the organization.
- Enhances the overall understanding of the organization’s direction. Knowing the big picture can minimize friction among departments, sections, and individuals.
- Fosters a greater personnel commitment to the plan; the plan becomes “our” plan rather than “their” plan.
- Positive attitudes created in involvement improve overall organizational morale and loyalty.
- Planning has a positive impact on the quality if work produced.
5
Q
Precise statement of results sought, quantified in time and magnitude, where possible
A
Goal
6
Q
PLANNING AT VARIOUS LEVEL OF MANAGEMENT
A
- Top management level – strategic planning
- Middle management level – intermediate planning
- Lower management level – operational planning
7
Q
process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.
A
- Top management level – strategic planning
8
Q
the process of determining the contribution that subunits can make with allocated resources. The goal of subunit is determined and a plan is prepared to provide a guide to the realization of goals. It is design to support the strategic plan.
A
- Middle management level – intermediate planning
9
Q
- the process of determining how specific task can best be accomplished on time with available resources. It is design to support the strategic plan and intermediate plan.
A
- Lower management level – operational planning
10
Q
THE PLANNING PROCESS
A
- Setting organizational, divisional or unit goals – provide a sense of direction. The setting of goals provide an answer. If everybody is aware of the goals, there is big chance that everybody contribute his share in the realization of such goals.
- Developing strategies or tactics to reach those goals
- Determining resources needed and
- Setting standards
11
Q
STRATEGY VS. TACTICS
A
strategy
* Defined as a course of action aimed at ensuring that the organization will achieve its objectives.
tactics
* A short-term action taken by management to adjust to negative internal or external influences.
* Formulated and implement in support of the firm strategies. The decision about short term goals and the course of action are indicated in the tactical plan.
12
Q
- This process involves determining the human and non human resource required by such strategies or tactics. Even if the resource requirements are currently available, they must be specified.
- The quality and quantity of resources needed resources will suffice. The specific requirements will be determined by the different units of the company.
A
DETERMINING RESOURCES NEEDED
13
Q
- A quantitative or qualitative measuring device designed to help monitor the performance of people, capital goods or processes.
- An example of standard is the minimum number of units that must be produced by a worker per day in each work situation.
A
SETTING STANDARDS
14
Q
- Written, documented plan developed through an identifiable process. The appropriate degree of sophistication depends on the needs of individual managers and organization itself. the environment, size and type of business are factors that typically affect the planning needs of an organization.
A
FORMAL PLANNING
15
Q
Originate from the functional areas of an organization such as production, marketing, finance and personnel.
A
FUNCTIONAL PLANS
16
Q
4 FUNCTIONAL PLANS
A
- Marketing plan
- Production plan
- Financial plan
- Human resource management plan
17
Q
for implementing and controlling an organizations marketing activities related to a particular marketing strategy
A
- Marketing plan
18
Q
states the quantity of output a company must produce in broad terms and by product family.
A
- Production plan
19
Q
summarizes the current financial situation of the firm, analyzes financial needs and recommends a direction for financial activities.
A
- Financial plan
20
Q
it indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company’s strategic plan.
A
- Human resource management plan
21
Q
PLAN WITH TIME HORIZON
A
Short-range plans
Long-range plans
22
Q
these are plans intended to cover a period less than one year. First-line supervisors are mostly concerned with these plans
A
Short-range plans
23
Q
these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management
A
Long-range plans
24
Q
should be clear, concise and quantified when possible. Affected personnel should clearly understand what is expected.
Should be dynamic; that is, they should be reevaluated as the environment and opportunities change.
A
Objective
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Objective should be
Profit oriented
Service to customers
Employee needs and well being
Social responsibility
26
AREAS FOR ESTABLISHING OBJECTIVES IN MOST ORGANIZATION
* Profitability. Measures the degree to which the firm is attaining an acceptable level of profits; usually expressed in terms of profits before or later taxes, return of investments, earnings per share or profit- to-sales ratios.
* Markets. Reflects the firms position in its marketplace, expressed in terms of share of the market, dollar or unit volume in sales, or niche in the industry.
* Productivity. Measures the efficiency of internal operations expressed as ratio of inputs to outputs, such as number of items or services produced per unit of time.
* Product. Describes the introduction or elimination of products or services; expressed in terms of when a product or service will be introduced or dropped.
* Financial resources. Reflects goals relating to the fundings needs of the firm; expressed in terms of capital structure, new issues of common stock, cash flow, working capital, dividend payments and collection periods.
* Physical facilities. Describe the physical facilities of the firm; expressed in terms of capital structure, new issues of common stock, cash flow, working capital, dividend payments and collection periods.
* Research and innovation. Reflects the research development, or innovation aspirations of the firm; usually expressed in terms of dollars to be expended.
* Organization structure. Describes objectives relating to changes in the organizational structure and related activities; expressed in terms of a desired future structure or network of relationship.
* Human resources. Describes the human resource assets of the organization; expressed in terms of absenteeism, tardiness, number of grievances and training.
* Social responsibility. Refers to the commitments of the firms regarding society and the environment; expressed in terms of types of activities, number of days of service, or financial contributions.
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PLANS ACCORDING TO FREQUENCY OF USE
1. Standing plans
2. Single-use plans
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plans that used again and again and they focus on managerial situations that recur repeatedly.
Standing plans
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specifically develop to implement courses of action that are relatively unique and are unlikely to be repeated.
Single-use plans
30
Standing plans 3 sub
1. Policies – broad guidelines to aid managers at every level in making decisions about recurring situations or functions.
2. Procedures – describe the exact series of action to be taken in a given situation.
3. Rules – statements that either require or forbid a certain action.
31
Single-use plans 3 subs
1. Budget – projected expenditure for a certain activity and explains where the required funds will come from.
2. Programs – designed to coordinate a large set of activities
3. Project – more limited in scope and is sometimes prepared to support a program.
32
CONTENTS OF MARKETING PLAN
1. The executive summary – presents an overall view of the marketing project and its potential
2. Table of contents
3. Situational analysis and target markets
4. Marketing goals and objectives
5. Marketing strategies
6. Marketing tactics
7. Schedules and budgets
8. Financial data and control
33
CONTENTS OF THE PRODUCTION PLAN
The amount of capacity and company must have
How many employee are required
How much material must be purchased
34
FINANCIAL PLAN
1. An analysis of the firms current financial condition as indicated by an analysis of the most recent statement
2. Sales forecast
3. Capital budget
4. Cash budget
5. A set of proforma (or projected) financial statements
6. The external financing plans
35
CONTENTS OF HUMAN RESOURCE PLANS
1. Personnel requirements of the company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
36
PARTS OF STRATEGIC PLAN
1. Company or corporate mission
2. Objectives or goals
3. Strategies
37
* Is the application of basic planning process at the highest levels of organization. Top management determines the long run direction and performance of the organization by ensuring the careful formulation, proper implementation and continuous evaluation of plans and strategies.
* Strategic management includes setting the organization’s mission; defining what business or businesses the organization will be in; setting objectives; developing, implementing, and evaluating strategies and adjusting these components as necessary.
STRATEGIC MANAGEMENT
38
3 MAJOR PHASE of Strategic management
Formulation phase – initial strategic plan is developed
Implementation phase – strategic plan is put into
action
Evaluation phase – implemented plan is monitored, evaluated and updated.
39
is a management function which refers to the structuring of resources and activities to accomplish objectives in an efficient and effective manner.
* The arrangement or relationship of positions within an organization is called structure. The result of the organizing process is the structure.
ORGANIZING
40
THE PURPOSE OF THE STRUCTURE
* It defines the relationship between tasks and authority for individuals and departments.
* It defines formal reporting relationships, the number of levels in the hierarchy of the organization and span of control.
* It defines the grouping of individuals into departments and departments into organization.
* It defines the systems to effect coordination of effort in both vertical (authority) and horizontal (tasks) directions.
41
ENGINEERING MANAGER MUST BE CONCERNED WITH THE FF:
1. Division of labor
2. Delegation of Authority
3. Departmentation
4. Span of control
5. Coordination
42
determining the scope of work and how it is combined in a job.
1. Division of labor
43
- the process of assigning various degrees of decision- making authority to subordinate
2. Delegation of Authority
44
- the grouping of related jobs, activities, or processes into major organizational subunits
Departmentation
45
- the number of people who report directly to a given manager
4. Span of control
46
the linking of activities in the organization that serves to achieve a common goal or objective.
Coordination
47
* Is the structure that details lines or responsibilities, authority and position.
* It is the planned structure and it represents the deliberate attempt to establish patterned relationship among components that will meet the objectives effectively.
THE FORMAL ORGANIZATION
48
THE FORMAL ORGANIZATION is described by management through
⁃ Organizational chart
⁃ Organizational manual
⁃ Policy manuals
49
is a diagram of the organization s official positions and formal lines of authorities
* Organizational chart
50
provides written descriptions of authority relationships, details and functions of major organizational units, and describes job procedures.
Organizational manual
51
describes personnel activities and company policies.
policy manual
52
* When members of an organization spontaneously form a group with friendship as a principal reason for belonging.
* Oftentimes useful in the accomplishment of major task, especially if these tasks conform with the expectations of the members of the informal group.
* Vulnerable to expediency, manipulation and opportunism. Difficult for management to detect these perversions, and considerable harm can be done to the company.
INFORMAL GROUPS
53
TYPES OF ORGANIZATIONAL STRUCTURES
Functional organization
Product or market organization
Matrix organization
54
this is a form of departmentalization in which everyone is engaged in one functional activity, such as engineering or marketing, is group into one unit. RELATIVELY SMALL IN THE INDUSTRY OR FOCUSES ON ONE PRODUCT
Functional organization
55
this refers to the organization of a company by divisions that brings together all those involved with a certain type of product or customer. LARGE INDUSTRY, DIFFERENT PRODUCT LINES OR VENTURES
Product or market organization
56
an organization structure in which each employee reports to both a functional or divisional manager and to a project or group manager. SHARED RESOURCES, MAY MGA TAO NA LIMITED LANG OR PER PROJECT DEPENDE SA MAAASSIGN
Matrix organization
57
ADVANTAGES OF FUNCTIONAL ORGANIZATION
1. The grouping of employees who perform a common task permit economies of scales and efficient resource use.
2. Since the chain of command converges at the top of the organization, decision-making is centralized, providing a unified direction from the top.
3. Communication and coordination among employees within each department are excellent
4. The structure promotes high-quality technical problem-solving.
5. The organization is provided with in dept skill specialization and development
6. Employees are provided with career progress within functional departments.
58
DISADVANTAGES OF FUNCTIONAL ORGANIZATION
1. Communication and coordination between the department are often poor.
2. Decisions involving more than one department pile up at the top management level and are often delayed.
3. Work specialization and division of labor, which are stressed in a functional organization, produce routine, nonmotivating employees tasks.
4. It is difficult to identify which section or group is responsible for certain problems.
5. There is limited view of organizational goals by employees.
6. There is limited general management training for employees.
59
with its feature of operation by division is “appropriate for a large corporation with many product lines in several related industries.
PRODUCT OR MARKET ORGANIZATION
60
ADVANTAGES OF PRODUCT/MARKET ORGANIZATION
1. The organization is flexible and responsive to change
2. The organization provides a high concern for customers needs.
3. The organization provides excellent coordination across functional departments.
4. There is easy pinpointing of responsibility for product problems
5. There is emphasis on overall product and division goals.
6. The opportunity for the development of general management skills is provided.
61
DISADVANTAGES OF PRODUCT/MARKET ORGANIZATION
1. There is a high possibility of duplication of resource across
division
2. There is less technical depth and specialization in divisions
3. There is poor coordination across divisions
4. There is less top management control
5. There is competitions for corporate resources.
62
Is a structure with two or more channels of command, two lines of budget authority and two sources of performance and reward.
is designed to keep employees in a central pool and to allocate them to various projects in the firm according to the length of time they are needed.
MATRIX ORGANIZATION
63
ADVANTAGES OF MATRIX ORGANIZATION
*There is more efficient use of resources than the divisional structure.
*There is flexibility and adaptability to changing environment
* The development of both general and functional management skills are present
*There is interdisciplinary cooperation and any expertise is available to
all division
* There are enlarged tasks for employees which motivate them better.
64
DISADVANTAGES OF MATRIX ORGANIZATON
1. There is frustration and confusion from dual chain of command
2. There is high conflict between divisional and functional interest
3. There are many meetings and more discussion than action
4. There is a need for human relations training for key employees and
managers.
5. There is a tendency for power dominance by one side of the matrix.
65
TYPES OF AUTHORITY
1. Line authority
2. Staff authority
3. Functional authority
66
a manager's right to tell subordinates what to do and then see that they do it. (line departments perform tasks that reflect the organization's primary goal and mission)
Line Authority
67
a staff specialist's right to give advice to a superior. (staff departments include all those that provide specialized skills in support of line departments)
Staff Authority
68
a specialist's right to oversee lower level personnel involved in that specialty, regardless of where the personnel are in the organization. (it is given to a person or a work group to make decisions related to their expertise even if these decisions concern other departments. other officers. This authority id given to most budget officers of organization as well as
Functional Authority
69
STAFF OFFICERS MAY BE CLASSIFIED INTO THE FOLLOWING:
1. Personal staff
2. Specialized staff
70
those individuals assigned to a specific manager to provide needed staff services.
1. Personal staff
71
those individuals providing needed staff services for the whole organization.
Specialized staff
72
THE PURPOSE OF COMMITTEES
* When certain formal groups are deemed inappropriate to meet expectations, committees are oftentimes harnessed to achieve organizational goals.
* A committee is a formal group of persons formed for a specific purpose. For instance, the product planning committee is often staffed by top executives from marketing, production, research, engineering, and finance, who work part-time to evaluate and approve product ideas.
*Committees are very useful most especially to engineering and manufacturing firms. When a certain concern, like product development, is under consideration, a committee is usually formed to provide the necessary line-up of expertise needed to achieve certain objectives.
73
is a formal group of persons formed for a specific purpose. For instance, the product planning committee is often staffed by top executives from marketing, production, research, engineering, and finance, who work part-time to evaluate and approve product ideas.
are very useful most especially to engineering and manufacturing firms. When a certain concern, like product development, is under consideration, a committee is usually formed to provide the necessary line-up of expertise needed to achieve certain objectives.
committee
74
CLASSIFICATION OF COMMITTEE
1. Ad hoc committee
2. Standing committee
75
one created for a short-term purpose and have a limited life. An example is the committee created to manage the anniversary festivities of a certain firm.
1. Ad hoc committee
76
it is a relatively permanent committee that deals with issues on an on going basis. An example is the grievance committee set-up to handle initially complaints from employees of the organization.
2. Standing committee
77
* Defined as the management function that determines human resources needs, recruits, selects, trains, and develops human resources for jobs created by the organization.
* It is undertaken to match people with jobs so that the realization of the organization’s objectives will be facilitated.
STAFFING
78
Staffing Procedure
1. Human resource planning
2. Recruitment
3. Selection
4. Induction and orientation
5. Training and development
6. Performance appraisal
7. Employment decisions (rewards, transfers,promotion and demotion)
8. Separations
79
Human resource planning activities
1. Forecasting — an assessment of future human resource needs in relation to the current capabilities of the organization
2. Programming — translating forecasted human resources needs to personnel objectives and goals.
3. Evaluation and control — monitoring human resource action plans and evaluating their success.
80
Refers to attracting qualified persons to apply for vacant positions in the company so that those who are best suited to serve the company may be selected.
* Source of Applicants
– Organization’s current employees
– Newspaper advertising
– Schools
– Referral from employees
– Recruitment firms
– Competitors
Recruitment
81
* Refers to the act of choosing from those that are available individuals most likely to succeed on the job.
* The purpose of __________ is to evaluate each candidate and to pick the most suited for the position available.
* _________ procedures may be simple or complex depending on the costs of a wrong decision.
* When the position under consideration involves special skills, a more elaborate _________ process is undertaken.
Selection
82
Types of Tests
Psychological tests
Aptitude test
Performance test
Personality test
Interest test
Physical Examination
83
an objective, standard measure of a sample behavior. It is classified into:
* Psychological tests
84
is used to measure a person’s capacity or potential ability to learn
Aptitude test
85
used to measure a person’s current knowledge of a subject
Performance test
86
87
used to measure personality traits such as dominance, sociability, and conformity.
Personality test
88
used to measure a person’s interest in various fields of work.
Interest test
89
a test given to assess the physical health of an applicant. It is given to assure that the health of the applicant is adequate to meet the job requirements.
Physical examination
90
a new employee is provided with the necessary information about the company. The company’s history, its products and services, and the organizational structure are explained to the new employee. His duties and responsibilities and benefits are relayed to him. Personnel and health forms are filled up, and passes are issued.
induction
91
the new employee is introduced to the immediate work environment and co-workers. Location, rules, equipment procedures, training plans and performance expectations are discussed. The new employee also undergoes the socialization process by pairing with an experienced employee.
orientation
92
necessary if the newly-hired employee is assessed to be lacking the necessary skills required for the job.
refers to the learning that is provided in order to improve performance on the present job.
Training
93
Training Program for Non-Managers
On-the-job training
Vestibule school
Apprenticeship program
Special courses
94
the trainee is placed in an actual work situation under the direction of his immediate supervisor, who acts as a trainer.
On-the-job training
95
the trainee is placed in a situation almost exactly the same as the workplace where machines, materials and time constraints are present.
Vestibule school
96
a combination of on-the-job training and experiences with classroom instruction in particular subjects are provided to trainees.
Apprenticeship program
97
provide more emphasis on education rather than training.
Special courses
98
Training Program for Managers
Training methods that enhance decision-making skills:
In-basket
Management games
Case studies
99
The trainee is provided with a set of notes, messages, telephone calls, letters, and reports, all pertaining to a certain company situation. He is expected to handle the situation within a given period of 1 to 2 hours.
In-basket
100
The trainees are faced with a simulated situation and are required to make an ongoing series of decisions about that situation.
Management games
101
Actual situations in organizations are presented and will enable one to examine successful and unsuccessful operations.
Case studies
102
Training methods that enhance interpersonal competence
Role playing
Behavior modeling
Sensitivity training
Transactional analysis
103
Training methods that enhance job knowledge
On-the-job experience
Coaching
Understudy
104
provides valuable opportunities for the trainee to learn various skills while actually engaged in the performance of a job.
On-the-job experience
105
this method requires a senior manager to assist a lower-level manager by teaching him the needed skills and generally providing directions, advice, and helpful criticism.
Coaching
106
under this method, a manager works as an assistant to a higher-level manager and participates in planning and other managerial functions until he is ready to assume such position himself. Sometimes, the assistant is allowed to take over.
Understudy
107
Training methods that enhance knowledge of the organization
Position rotation
Multiple management
108
under this method, the manager is given assignments in a variety of departments. The purpose is to expose him to the different functions of the organization.
Position rotation
109
junior executives are provided with means to prepare them for higher management positions. They are encouraged to take a broad business outlook rather than concentrating on their specialized lines of work.
Multiple management
110
Is the measurement of employee performance.
Performance Appraisal
111
Ways of appraising performance
1. Rating scale method
2. Essay method
3. Management by objectives method
4. Assessment center method
5. Checklist method
6. Work standards method
7. Ranking method
8. Critical
112
Employment decisions
* Monetary rewards
* Promotion
* Transfer
* Demotion
113
given to employees whose performance is at par or above standard requirements
* Monetary rewards
114
a movement by a person into a position of higher pay and greater responsibilities and which is given as a reward for competence and ambition
Promotion
115
movement of a person to a different job at the same similar level of responsibility in the organization
Transfer
116
a movement from one position to another which has less pay or responsibility attached to it. It is used as a form of punishment or as a temporary measure to keep an employee until he is offered a higher position.
Demotion
117
* A voluntary or involuntary termination of an employee.
Separation
118
* A voluntary or involuntary termination of an employee.
* When made voluntary, the organization’s management must find out the real reason. If the presence of a defect in the organization is determined, corrective action is necessary.
* Involuntary separation or termination is the last option when an employee’s performance is poor or when he/she committed an act violating company rules and regulations. This is usually made after training efforts fail to produce positive results
Separation
119
