ORG AND MGT REVIEWER
buyers face when they change suppliers.
POLC
Planning – the management function of
systematically making decisions about
the goals and activities that and
individual, a group, a work unit, or the
overall organization will pursue.
Organizing – the management function
of assembling and coordinating human,
financial, physical, informational, and
other resources needed to achieve goals.
Leading – the management function that
involves the manager’s efforts to
stimulate high performance by
employees.
Controlling – the management function
of monitoring performance and making
needed changes.
EXTERNAL AND COMPETITIVE
ENVIRONMENT
Open Systems – organizations that are
affected by, and that affect, their
environment.
Inputs – goods and services that
organizations take in and use to create
products or services.
Outputs – the products and services
External Environment – all relevant
forces outside a firm’s boundaries, such
as competitors, customers, the
government, and the economy.
Competitive Environment – the
immediate environment surrounding a
firm; includes suppliers, customers,
rivals, and the like…
Macroenvironment – the general
environment; includes governments,
economic conditions, and other
fundamental factors that generally affect
all organizations.
Demographics – measures of various
characteristics of the people who make
up groups or other social units.
Barriers to entry – conditions that
prevent new companies from entering an
industry.
Switching Costs – fixed costs that
Supply Chain Management – the
managing of network facilities and people
that obtain materials from outside the
organization, transform them into
products, and distribute them to
customers.
Final Consumer – a customer who
purchases products in their finished form.
Intermediate Consumer – a consumer
who purchases raw materials or
wholesale products before selling them
to final customers.
PROGRAMMED VS NON
PROGRAMMED DECISIONS
Program Decisions – decisions
encountered before, having objectively
correct answers and solvable by using
simple rules, policies, or numerical
computations.
Nonprogrammed Decisions – new,
novel, complex decisions having no
proven answers.
STRATEGIC, TACTICAL, AND
OPERATIONAL PLAN
Strategic Planning – a set of
procedures for making decisions about
the organization’s long-term goals and
strategies.
Strategic Goals – major targets or end
results relating to the organization’s long-
term survival, value, and growth.
Strategy – a pattern of actions and
resource allocations designed to achieve
the organization’s goals.
Tactical Planning – a set of procedure
for translating broad strategic goals and
plans into specific goals and plans that
are relevant to distinct portion of the
organizations.
Operational Planning – the process of
identifying the specific procedure and
processes required at lower levels of the
organization.
Strategic Management – a process that
involves managers from all parts of the
organizations in the formulations and
implementations of strategic goals and
strategies.
Strategic Vision – the long-term vision
and strategic intent of a company.
Product Divisions - all functions that
contribute to a given product are
organized under one manager
Customer and Geographical Divisions
- build divisions around customer or
geographical distinctions. Can focus on
customer needs.

SWOT ANALYSIS HIERARCHY OF NEEDS

SWOT Analysis – a comparison of
strengths, weaknesses, opportunities,
and threats that helps executives
formulate strategy.
Strengths – what the company has.
More on competitive advantage and
resources. Positive attributes.
Weaknesses – what the company is
lacking. More on deficiency and negative
attributes.
Opportunities – what is available
externally that can be beneficial to the
company. Something to exploit.
Threats – something that may adversely
DIFFERENT POWERS
affect or harm the company.
Power - ability to influence
Legitimate Power - leader has
FLAT AND TALL ORGANIZATIONS
organizational authority
Flat Organization – wide span of control
Reward Power - leader has control over
Tall Organization – narrow span of valued rewards
control
Coercive Power - leader has control
over punishments
FUNCTIONAL, PRODUCT, AND Referent Power - leader has personal
GEOGRAPHIC DEPARTMENTS characteristics that appeal to others and
make them desirous of the leader’s
Functional Organization - Jobs (and approval
departments) are specialized and
grouped according to business functions Expert power - leader has knowledge
and the skills they require (e.g., that others feel will be of benefit to them
production, marketing, R&D, human
resources, and finance)
CONTEMPORARY PERSPECTIVES
Value Chain - sequence of activities that
ON LEADERSHIP
flow from raw materials to the delivery of
a product or service Charismatic Leadership
Divisional Organizations - units - traditional management through
grouped around products, customers, or business transactions
geographic regions
- leaders who manage through using
their legitimate, reward, and coercive
powers to give commands and
exchange rewards for services rendered
- dispassionate leadership that does not
inspire people to focus on the
interests of the organization
Transactional Leadership
- traditional management through
business transactions
- leaders who manage through using
their legitimate, reward, and coercive
powers to give commands and
exchange rewards for services rendered
- dispassionate leadership that does not
inspire people to focus on the
interests of the organization
Risk Propensity – degree to which an
entity is willing to take risk (of loss)
risk takers vs risk averse
Bureaucracy - refers to an organization
that is complex with multi-layered
systems and processes which are
designed to maintain uniformity and
controls; methods are more important
than efficiency
Red Tape Problem – excessive
bureaucracy or adherence to rules and
formalities

Transformational Leadership
- moves beyond transactional leadership
- transforms a vision into reality and
motivates people to transcend their
personal interests for the good of the
group
- generating excitement - three ways
- they are charismatic
- provide individualized attention -
do not treat everyone alike
- assign challenging work to
deserving people
- provide one-on-one mentoring
to develop their people
- they are intellectually stimulating
- arouse an awareness of problems
and potential solutions
- articulate the organization’s
opportunities, threats,
strengths, and weaknesses
stir the imagination and generate
insights
PAHABOL TERMS:
Machiavellianism – refers to a
personality trait which sees a person so
focused on their interest that they will
manipulate, deceive, and exploit others
to achieve their goals.