Business Management 201 Terms/Notes
Business Management
Chapter 1 Pg. 2-36
Managers & Managing
Organizational Performance – A measure of how effectively a manager uses resources to satisfy customers and achieve organizational goals
Efficiency – A measure of how well or how productively resources are used to achieve a goal
Effectiveness – A measure of the appropriateness of the goals and organization is pursuing and the degree to which the organization achieves those goals
Four Essential Managerial Tasks:
1. Planning - Choose appropriate organizational goals and courses of action to best achieve those goals
2. Organizing – Establishing task and authority relationships that allow people to work together to achieve organization goals
3. Leading – Motivate, Coordinate, and energize individuals and groups to work together to achieve organization goals
4. Controlling – establish accurate measuring systems to evaluate how well the organization has achieved its goals
Planning – Identifying and selecting appropriate goals; one of the four principal tasks of management
Three steps involved in planning are:
1. Deciding which goals the organization will pursue
2. Deciding what strategies to adopt to attain those goals
3. Deciding how to allocate organizational resources to pursue the strategies that attain those goals
Strategy – A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
Low Cost Strategy – Way of obtaining customers by making decisions that allow an organization to produce goods or services more cheaply then its competitors so it can charge lower prices then they do
Organizing – Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals; one of the four principal tasks of management
Organizational Structure – A formal system of tasks and relationships that coordinates and motivates organizational members so they work
Chapter 1 Pg. 2-36
Managers & Managing
Organizational Performance – A measure of how effectively a manager uses resources to satisfy customers and achieve organizational goals
Efficiency – A measure of how well or how productively resources are used to achieve a goal
Effectiveness – A measure of the appropriateness of the goals and organization is pursuing and the degree to which the organization achieves those goals
Four Essential Managerial Tasks:
1. Planning - Choose appropriate organizational goals and courses of action to best achieve those goals
2. Organizing – Establishing task and authority relationships that allow people to work together to achieve organization goals
3. Leading – Motivate, Coordinate, and energize individuals and groups to work together to achieve organization goals
4. Controlling – establish accurate measuring systems to evaluate how well the organization has achieved its goals
Planning – Identifying and selecting appropriate goals; one of the four principal tasks of management
Three steps involved in planning are:
1. Deciding which goals the organization will pursue
2. Deciding what strategies to adopt to attain those goals
3. Deciding how to allocate organizational resources to pursue the strategies that attain those goals
Strategy – A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
Low Cost Strategy – Way of obtaining customers by making decisions that allow an organization to produce goods or services more cheaply then its competitors so it can charge lower prices then they do
Organizing – Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals; one of the four principal tasks of management
Organizational Structure – A formal system of tasks and relationships that coordinates and motivates organizational members so they work