Business Study Guide
Chapter 6:
Management: a process designed to achieve an organizations objectives by using its resources effectively and efficiently in a changing environment
Managers: those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing and controlling the organizations activities to reach its objectives
Planning: the process of determining the organizations objectives and deciding how to accomplish them; the first function of management
Mission: the statement of an organizations fundamental purpose and basic philosophy
Strategic plans: those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission
Tactical plans: short-range plans designed to implement the activities and objectives specified in the strategic plan
Operational plans: very short- term plans that specify what actions, individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plans
Crisis management or contingency planning: an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or airplane crash
Organizing: the structuring of resources and activities to accomplish objectives in an efficient and effective manner
Staffing: the hiring of people to carry out the work of the organization
Downsizing: the elimination of a significant number of employees from an organization
Directing: motivating and leading employees to achieve organizational objectives
Controlling: the process of evaluating and correcting activities to keep the organization on course
Levels of Management:
Top manager: the president and other top executives of business, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the
Management: a process designed to achieve an organizations objectives by using its resources effectively and efficiently in a changing environment
Managers: those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing and controlling the organizations activities to reach its objectives
Planning: the process of determining the organizations objectives and deciding how to accomplish them; the first function of management
Mission: the statement of an organizations fundamental purpose and basic philosophy
Strategic plans: those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission
Tactical plans: short-range plans designed to implement the activities and objectives specified in the strategic plan
Operational plans: very short- term plans that specify what actions, individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plans
Crisis management or contingency planning: an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or airplane crash
Organizing: the structuring of resources and activities to accomplish objectives in an efficient and effective manner
Staffing: the hiring of people to carry out the work of the organization
Downsizing: the elimination of a significant number of employees from an organization
Directing: motivating and leading employees to achieve organizational objectives
Controlling: the process of evaluating and correcting activities to keep the organization on course
Levels of Management:
Top manager: the president and other top executives of business, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the