State Uncertainty

environment is unpredictable

Planning

Is the process of coping with uncertainty by formulating future courses of actions to achieve specified results.

Effect uncertainty

– A manager’s attempts to predict the effects of a specific environmental changes or events on his or her organization

Response Uncertainty

– Is the inability to predict the consequences of a particular decision or organizational response.

Strategic planning

– Is the process of determining how to pursue the organization’s long term goals with the sources expected to be available.

Intermediate planning -

Is the process of determining the contributions that subunits can make with allocated resources.

Operational planning

– is the process of determining how specific tasks can best be accomplished on time with available resources.

MBO (Management By Objectives)

– is a comprehensive management system based on measurable and particpatively set objectives.

Flow chart –

Are charts that force people to consider all relevant links in a particular endeavor, as well as their proper sequence. They do not indicate a time dimension and are not practical for complex endeavors in which several activities take place at once.

Gantt chart

– Is a graphical scheduling technique historically used in production operations. It is easy specify the amount of time spent on a particular project, but it is a cumbersome method to chart complex projects.

PERT (Program Evaluation and Review Technique) –

is a graphical sequencing and scheduling tool for large, complex, and non-routine projects. Developed by the U.S. Navy in 1958.

Break-even analysis

– Is a study that measures the point where the level of sales at which the firm neither suffers nor realizes a profit.

Fixed costs –

Are contractual costs that must be paid regardless of the level of output or sales. Typical examples include rent, utilities, insurance premiums, staff salaries, and so on.

Variable cost

– Are costs that vary directly with production and sales. Some costs remain the same, but as production increases, these costs accumulate. Some costs are a function of time and _____ costs are a function of volume.

Contribution margin –

is the selling price per unit minus the variable costs per unit. Above the break-even point, _______ contributes to profits.

Strategic management –

Is the ongoing process of ensuring a competitively superior fit between an organization and its changing environment. In a manner of speaking, ______ is management on a grand scale, management of the “ big picture.”

Strategy

- Has been defined as an integrated and externally oriented perception of how the organization will achieve its mission.

Synergy

– the concept that the whole is greater than the sum of its parts. That is, That is the “1+1=3” effect.

Differentiation

– Is the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale services.

Grand strategy

– Is how the organization’s mission will be accomplished. They are derived from careful situational analysis of the organization and its environment.

Situational strategy –

Is a technique for matching organizational strengths and weaknesses using a SWOT analysis. (SWOT, Strength, Weaknesses, Opportunities, Trends).

Trend analysis –

Is a hypothetical extension of a past pattern into the future. This is the based that past events will continue into the present future.

Condition of certainty –

Exists when there is no doubt about the factual basis of a particular decision, and its outcome can be predicted accurately.

Condition of risk

– Is said to exists when a decision must be made on the basis of incomplete but reliable factual information.

Framing effect –

is the tendency to evaluate positively presented information favorably and negatively presented information unfavorably.

Escalation of commitment

– is when people get locked into losing courses of action to avoid the embarrassment of quitting or admitting error.

Programmed decisions

– Are decisions that are repetitive and routine. Examples include hiring decisions in a hospital, supply reorder decisions, and so on.

Nonprogrammed decisions –

Are decisions made in complex, important, and nonroutine situations, often under new and largely unfamiliar circumstances. Examples include with whether to merge with an existing company and so on.

Satisfice –

This is the decision to settle for a solution that is good enough.

Organization

– Is the cooperative and coordinated social system of two or more people with a common purpose.

Bureaucracy

– It was Max Weber and was intended as a good program and ended up being a bad program because of its lack of flexibility. As it becomes larger it becomes less flexible.

Acceptance theory

– Is the idea that for someone to be a leader they have to be accepted as a leader by their subordinates. This replaces the olds ways of placing people above folks with having the organization’s leader being elected by its peers.

Organizational effectiveness

– can be defined as being effective, effeicient, and satisfying today, while adapting and developing in the intermediate future; and surviving in the long term.

Organizational culture

– is the collection of shared (stated or implied) beliefs, values, rituals, stories, myths, and specialized language that foster a feeling of community among organization members.

Organizational socialization –

is the process through which outsiders are transformed into accepted insiders. It helps newcomers to integrate into the organizational culture.