1st Partial Cheat Sheet

Management: the organization and coordination of the activities of a business in

order to achieve defined objectives.

Elements of Management: Planning, organizing, leading and controlling.

Top Management: These are responsible for making organization-wide decisions

and establishing the plans and goals that affect the entire organization.
Examples: Executive Vice President, President, Chief Executive Officer (CEO),
Chairman of the Board.

Middle Management: Include all levels of management between the first line level
and the top level of the organization. These managers manage the work of first line
managers.
Examples: Department Head, Project Leader, Division Manager

First Line Management: Lowest level of management and manage the work of
nonmanagerial individuals who are directly involved with the production or
creation of the organization's products.
Examples: Supervisors, Line Managers, Office Managers, Foreman

Types of power:
 Legitimate. - A person has been given formal authority to make demands of
and expert obedience from others.
 Reward. - A person is able to compensate another for complying with his or
her demands.
 Expert. - A person has the knowledge and skills to outperform others; her
good judgments is respected and relied upon.
 Referent. - A person is strongly liked and admired by others and often
exerts a charming influence.
  Coercive. - A person achieves compliance from other through the threat of
punishment
Job Enrichment: the creation of jobs with more meaningful content, under the
assumption that challenging, creative work will motivate employees.

Theory X: managers tend to take a pessimistic view of their people, and assume
that they are naturally unmotivated and dislike work. As a result, they think that
team members need to be prompted, rewarded or punished constantly to make
sure that they complete their tasks.
This style of management assumes that workers:
 Dislike their work.
 Avoid responsibility and need constant direction.
 Have to be controlled, forced and threatened to deliver work.
 Need to be supervised at every step.
 Have no incentive to work or ambition, and therefore need to be enticed by
rewards to achieve goals.

Theory Y: managers have an optimistic, positive opinion of their people, and they
use a decentralized, participative management style. This encourages a
more collaborative, trust-based  relationship between managers and their team
members.
People have greater responsibility, and managers encourage them to develop their
skills and suggest improvements.
This style of management assumes that workers are:
 Happy to work on their own initiative.
 More involved in decision making.
 Self-motivated to complete their tasks.
 Enjoy taking ownership  of their work.
 Seek and accept responsibility, and need little direction.
 View work as fulfilling and challenging.
  Solve problems creatively and imaginatively.

Equity theory: calls for a fair balance to be struck between an employee's inputs
(hard work, skill level, acceptance, enthusiasm, and so on) and an employee's
outputs (salary, benefits, intangibles such as recognition, and so on).

Maslow's Pyramid of Needs: human needs fall into a hierarchy and that as each
need is met, people become motivated to meet the next-highest need in the
pyramid.
Levels of the pyramid:
 1. Physiological Needs (basic issues of survival such as salary and stable
employment)
 2. Security Needs (stable physical and emotional environment issues such
as benefits, pension, safe work environment, and fair work practices)
 3. "Belongingness" Needs (social acceptance issues such as friendship or
cooperation on the job)
 4. Esteem Needs (positive self-image and respect and recognition issues
such as job titles, nice work spaces, and prestigious job assignments.)
 5. Self-Actualization Needs (achievement issues such as workplace
autonomy, challenging work, and subject matter expert status on the job)

Types of planning:
 Strategic: designed with the entire organization in mind and begin with an
organization's mission. Top-level managers, such as CEOs or presidents, will
design and execute strategic plans to paint a picture of the desired future
and long-term goals of the organization.
 Tactical: support strategic plans by translating them into specific plans
relevant to a distinct area of the organization. Tactical plans are concerned
with the responsibility and functionality of lower-level departments to
fulfill their parts of the strategic plan.
  Operational: they are the plans that are made by frontline, or low-level,
managers. All operational plans are focused on the specific procedures and
processes that occur within the lowest levels of the organization.
 Contingency: Sometimes referred to as "Plan B" because it can be also used
as an alternative for action if expected results fail to materialize. It is a
component of business continuity, disaster recovery and risk management.

SWOT: technique for assessing the performance, competition, risk and potential of
a business, as well as part of a business such as a product line or division, an
industry, or other entity. Framework used to evaluate a company's competitive
position and to develop strategic planning.
 Strengths describe what an organization excels at and what separates it
from the competition: a strong brand, loyal customer base, a strong balance
sheet, unique technology and so on. For example, a hedge fund may have
developed a proprietary trading strategy that returns market-beating
results. It must then decide how to use those results to attract new
investors.
 Weaknesses stop an organization from performing at its optimum level.
They are areas where the business needs to improve to remain competitive:
a weak brand, higher-than-average turnover, high levels of debt, an
inadequate supply chain or lack of capital.
 Opportunities refer to favorable external factors that could give an
organization a competitive advantage. For example, if a country cuts tariffs,
a car manufacturer can export its cars into a new market, increasing sales
and market share.
 Threats refer to factors that have the potential to harm an organization. For
example, a drought is a threat to a wheat-producing company, as it may
destroy or reduce the crop yield. Other common threats include things like
rising costs for materials, increasing competition, tight labor supply and so
on.
Organization Chart: Visual representation of how a firm intends authority,
responsibility, and information to flow within its formal organizational structure. It
usually depicts different management functions (accounting, finance, human
resources, marketing, production, R&D, etc.) and their subdivisions as boxes linked
with lines along which decision making power travels downwards and
answerability travels upwards. Also called organizational chart.

Centralization: process where the concentration of decision-making is in a few

hands at the top of an organization's hierarchy. All the important decision and
actions at the lower level, all subjects and actions at the lower level are subject to
the approval of top management.

Degree of Centralization: the extent to which decision making power is held by a

small number of people at the top of an organization

Line Organization: oldest and simplest form of organization. In these

organizations, a supervisor exercises direct supervision over a subordinate. Also,
authority flows from the top-most person in the organization to the person in the
lowest rung. This type of an organization is also called a military organization or a
scalar-type organization.

Departmentalization: involves dividing an organization into different

departments, which perform tasks according to the departments' specializations in
the organization. Departmentalization as a means of structuring an organization
can be found in both public and private organizations. An organization can
structure itself into departments in the following ways.

Autocratic leader: issue orders without consulting their followers

Democratic leader: Distributing responsibility among the membership,

empowering group members, and aiding the group’s decision-making process. Still
leader has final say.
Free-reign leader: set objectives but give freedom to choose how to accomplish.

Empowerment: A management practice of sharing information, rewards, and

power with employees so that they can take initiative and make decisions to solve
problems and improve service and performance.
Empowerment is based on the idea that giving employees skills, resources,
authority, opportunity, motivation, as well holding them responsible and
accountable for outcomes of their actions, will contribute to their competence and
satisfaction.