Chapter Insights and Key Concepts | Môn Business Administration - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 59078336
Introduction to Business Administration
Chapter 1: Taking risks and making profits within the dynamic business environment. -
(lỗ): occurs when a business’ expenses are more than its revenues.
* Business and Wealth Building: -
A business: is any activity that seeks Risk - is:
+ The chance (may rủi) an entrepreneur
(tìm) to provide goods and services to
takes of losing time and money on a business
others while operating at a profit.
that may not prove profitable. -
Goods: are tangible products (sản phẩm hữu hình)
+ The chance of loss, the degree (mức độ)
ex: computers, food, clothing, cars, and appliances … -
Services: are intangible products (i.e.,
products that can’t be held in your hand) ex: education, healthcare,
insurance, recreation and travel and tourism …
An entrepreneur - (nhà doanh nghi pệ ): is
a person who risks time and money to start and manage a business. -
Revenue (thu nh pậ ): is the total
amount of money a business takes in
during a given period by selling goods and services. -
Profit: is the amount of money a
business earns above and beyond what
it spends for salaries and other
expenses needed to run the operation.
A loss tandard of living lOMoAR cPSD| 59078336 -
S: refers to the amount of goods and
Ex: bankers, media, stockholders (cổ đông),
services people can buy with the money
customers (người mua hàng), surrounding they have. communities, environmentalis, dealer,
Quality of life - : refers to the general
employeees, government leaders, suppliers.
wellbeing of a society in terms of its -
Outsourcing: means contracting with
political freedom, natural environment,
other companies (often in other
education, healthcare, safety, amount
countries) to do some or all the
of leisure and rewards that add to the
functions of a firm, like its production or
satisfaction and joy that other goods accounting tasks. and services provide. -
Insourcing: means foreign companies
of probability (khả năng có thể xảy ra) of loss,
setting up facilities in our country.
and the amount of possible loss. -
nonprofit organization - A : is an
Stakeholders (người dữ cổ phần): are all the
organization whose goals do not include
people who stand to gain or lose by the
making a personal profit for its owners
policies and activities of a business and whose
or organizers. Often do strive (cố gắng)
concerns the businesses need to address
for financial gains, but they use them to (dùng).
meet their social or educational goals
rather than for personal profits.
* The Importance of Entrepreneurs to the Creation of Wealth:
- Two ways to succeed in business:
+ Work for others, such as large companies.
+ Become an entrepreneur: Own your own business and reap the profits from it.
- Five factors of the production that seemed to contribute to wealth: Land and other
+ Land (or natural resources):
natural resources are used to make homes, cars, and other products. People have always been
+ Labor (workers):
an important resource in producing goods and
services, but many people are now being replaced by technology. + Capital: lOMoAR cPSD| 59078336
includes machines, tools, buildings, or
are willing to take the risk of starting
whatever else is used in the production of
businesses to use those resources.
goods. It might not include money; money is
+ Knowledge: Information technology has
used to buy factors of production but is not
revolutionized business, making it possible to
always considered a factor by itself.
quickly determine (quyết định) wants and
+ Entrepreneurship: All the resources in the
needs and to respond with desired (mong
world have little value unless entrepreneurs muốn) goods and services. -
The business environment: consists of the surrounding factors that either help or hinder
(gây trở ngại) the development of businesses.
+ The Economic and Legal environment: The internet
• Freedom of ownership Databases
• Contract (hợp đồng) law + The
Competitive environment:
• Elimination of corruption (sự loại trừ Customer service
tham nhũng) Stackholder recognition (sự công nh nậ )
• Tradable currency (khả thương tiền tệ) Employee service
• Minimun taxes and regulation (quy
tắc) Concern for the environment
+ The social environment:
+ The Technological environment: Diversity
• Information technology Demographic (nhân khẩu học) changes • Bar codes Family changes -
Companies now have to offer both high-quality products and good value, outstanding (nổi
b t)ậ service at competitive prices.
Competing by Exceeding Customer Expectations.
Competing by Restructuring (sự tổ chức lại) and Empowerment. Diversity: lOMoAR cPSD| 59078336 -
Empowerment (trao quyền hành hợp
phápsize, density (m t đậ ộ), and other cho):
Giving frontline workers thecharacteristics such
as age, race, gender, and responsibility,
authority (quyền hành đ ngộincome.
trong m t mức đ cụ thể)ộ ộ , freedom, training,-
efforts now include genders, and equipment
they need to respond quicklyolder adults,
people with disabilities, people to customer
requests. with different sexual orientations,
religious, - Demography (nhân khẩu học): is
theextroverts, introverts, married people, and
statistical (thống kê) study of the humansingles,
… population with regard to (quan tâm đến) its -
Two important changes are: the growth of global competition and the increase of free
trade (thương mại) among nations. -
World trade, or globalization, has grown thanks to the development of efficient
distribution systems and communication advances such as the Internet.
* The Ecological Environment:
- Climate change: is the movement of the temperature of the planet up or down over time.
- Greening: saving energy and producing products that cause less harm to the environment, such as solar energy.
Chapter 2: UNDERSTANDING ECONOMICS AND HOW IT AFFECTS BUSINESS
* How Economic Conditions Affect Businesses:
- Economics: is the study of how society chooses to employ resources to produce goods and
services and distribute (phân phối) them for consumption among various competing groups and individuals.
- Business owners: provide jobs and economic growth for their employees and communities as well as for themselves.
- There are two major branches of economics: lOMoAR cPSD| 59078336
+ Macroeconomics: looks
The challenge for macroeconomists: is to determine at the operation of a what makes
some countries relatively wealthy and nation’s economy as a other countries relatively poor, and then to implement
policies and programs that lead to increased prosperity whole. Include gross for everyone in all countries. domestic product (GDP), the
unemployment rate, + Microeconomics: looks at the behaviour of people and and price
indexes (chỉ số). organizations in markets for particular products or services.
- Resource development: Is the study of how to increase resources (by getting energy from solar
and wind) and create conditions that will make better use of them (recycling and “bảo tồn” conservation).
- Invisible (vô hình) hand: Is used to describe the process that turns self-directed gain into social
and economic benefits for all.
* Understanding Free-Market Capitalism:
- Capitalism (chủ nghĩa tư bản): An economic-
State capitalism (chủ nghĩa tư bản nhà system
in which all or most of the factors of nước): A
combination of freer markets and production
and distribution are privately some
government control owned and operated for profit.
- Under free-market capitalism, people have four basic rights:
+ The right to own private property: Private
+ The right to freedom of competition:
ownership means that individuals can buy,
Within certain guidelines established by the
sell, and use land, buildings, machinery,
government, individuals are free to compete
inventions, and other forms of property. with
other individuals or businesses in selling
and promoting goods and services. + The right to own a
that business’s profits: b usiness and keep all
+ The right to freedom of choice: Profits act as People
important incentives (khích l ) ệ for business
are free to choose where they want to work
owners. and what career they want to follow. lOMoAR cPSD| 59078336
A free market: -
is one in which decisions about what and how much to produce are made by
the market - by buyers and sellers negotiating (thương lượng) prices for goods and services.
+ In a free market, prices are determined by buyers and sellers negotiating in the marketplace.
+ Supply: r efers to the quantities of refers to
+ Demand: t he quantity of
products manufacturers or owners are
willingproducts that people are willing to buy
at to sell at different prices at a specific
time.different prices at a specific time.
- The place where quantity demanded, and quantity supplied meet is called the equilibrium point.
- In the long run, that price will become the market price.
* Competition within Free Markets:
- Economists generally agree there are 4 different degrees of competition: + Perfect competition : There are many A
+ Monopoly (độc quyền): degree of
sellers in a market and none is large
competition in which only one seller enough to
dictate (tuyên bố) the price of controls the total supply of a product or
a product.service and sets the price. (xăng, ga, điện,
nước) + Monopolistic (độc quyền)
competition: A large number of sellers produce
very similar products that buyers
nevertheless perceive (nắm được) as different.
+ Oligopoly (thị trường trong đó có một
vài hàng hóa có ảnh hưởng nhưng đều A
không làm chủ được thị trường): degree
of competition in which just a few sellers
dominate (tr i hơn) ộ a market.
* Understanding Socialism & Communism: lOMoAR cPSD| 59078336
- Socialism (chủ nghĩa xã hội):- Communism
(chủ nghĩa cộng sản):
An economic system based on the premise An
economic and political system in which (tiền
đề) that some, if not most, basic the
government makes almost all economic
businesses (e.g., steel mills, coal mines, and
decisions and owns almost all the major
utilities) should be owned by the
governmentfactors of production.
so that profits can be more evenly distributed among the people.
* The Trend Toward Mixed Economies:
market largely determines what goods and
services get produced, who gets them, and
- Free-market economies: exist when the
how the economy grows. Capitalism is the
- Command (chỉ huy) economies: exist when
them, and how the economy will grow.
the government largely decides what goods
Socialism and communism are variations on
and services will be produced, who gets this economic system.
- Mixed economies: exist where some allocation (cấp phát) of resources is made by the market and some by the government.
+ Most countries don’t have a name for such a system.
+ If free-market mechanisms (máy móc) allocate most resources, the leaders call their system
capitalism. If the government allocates most resources, the leaders call it socialism.
* Key Economic Indicators (chỉ số):
- Gross domestic product (GDP): is the total -
The unemployment rate: refers to the value
of final goods and services produced in
percentage of civilians at least 16 years old
a country in a given year. who are unemployed
and tried to find a job
within the prior four weeks.
- Gross output (GO): is a measure of total
sales volume at all stages of production. -
Inflation: A general rise in the prices of goods and services over time. * The Business Cycle:
- Economist Joseph Schumpeter identified the four phases of long-term business cycles as lOMoAR cPSD| 59078336
popular term for this economic system.
• Ease of starting and ending the
boom–recession–depression–recovery:
business: All you have to do to start
a sole proprietorship is buy or lease
+ An economic boom: is just what it
(thuê) the needed equipment and
sounds like—business is booming.
put up some announcements (thông
+ Recession (sự suy thoái): is two or
báo) saying you are in business. more
• Being your own boss: You may
consecutive (liên tục) quarters of decline in
make mistakes and so are the many
the GDP. In recession prices fall, people small victories each day.
purchase fewer products, and businesses
• Pride of ownership (quyền sỡ hữu):
fail. A recession brings high unemployment,
People who own and manage their
increased business failures, and an overall
own businesses deserve all the drop in living standards.
credit for taking the risks and
+ A depression (sự suy thoái): is a severe
providing needed goods or services.
recession, usually accompanied (đi cùng
• Leaving a legacy (tài sản kế thừa):
với) by deflation (giảm phát tiền t ). ệ Owners can leave an ongoing
Business cycles rarely go through a
business for future generations.
depression phase. In fact, while there were
• Retention (sự giữ lại) of company
many business cycles during the 20th
profits: Owners not only keep the
century, there was only one severe
profits earned but also benefit from depression (1930s). occurs + A recovery:
the increasing value as the business
when the economy stabilizes (làm ổn định)
Chapter 5: HOW TO FORM (tạo thành) A BUSINESS:
* Basic Forms of Business Ownership:
- Sole proprietorship (sở hữu duy nhất): A business that is owned, and usually managed, by one and starts to grow. person. grows.
• No special taxes: All the profits of a
+ Advantages of sole proprietorship:
sole proprietorship are taxed as the
personal income of the owner, and
the owner pays the normal income tax on that money.
+ Disadvantages of sole proprietorship: lOMoAR cPSD| 59078336
• Unlimited liability—the risk of limited to what the one owner
personal losses: Any debts or can gather.
damages incurred (gánh chịu) by the
• More financial resources: A
business are your debts and you must
limited partnership is specially
pay them, even if it means selling designed to help raise money.
your home, your car, or whatever else
• Shared management and
Management difficulties. there is no one
with whom to share Overwhelming time commitment the burden.
(cam kết): It’s hard to own a business,
Few fringe (phụ cấp lương) benefits. manage
it, train people, and have Limited
growth. time for anything else in life when
Limited life span (tuổi thọ).
- Partnership (quan h đối tácệ ): A legal form of business with two or more owners.
+ General partnership: A partnership in An
+ Limited partner: owner who invests
which all owners share in operating the money
in the business but does not have any business
and in assuming (cho rằng) liability
management responsibility or liability for for
the business’s debts. losses beyond the investment.
+ Limited partnership: A partnership with +
Limited liability: means that the limited
one or more general partners and one or
partners’ liability for the debts of the
more limited partners. business is limited to the amount they put into the
company; their personal assets are
+ General partner (công sự): An owner not at risk.
(partner) who has unlimited liability and is
active in managing the firm. Limited partners
and shareholders (cố đông)
(stockholders) have limited liability.
+ Advantages of partnership: you own.
pooled/complementary skills and
• Limited financial resources: Funds
knowledge: Partners give each
(quỹ) available to the business are
other free time from the business lOMoAR cPSD| 59078336
and provide different skills and
• Unlimited liability: Each general perspectives.
partner is liable for the debts of
• Longer survival: Partnerships are the firm, no matter who was
more likely to succeed than sole
responsible for causing them. Like proprietorships because being
sole proprietors, general partners
watched by a partner can help a
can lose their homes, cars, and businessperson become more
everything else they own if the
disciplined (có kỷ lu t). ậ business goes bankrupt.
• No special taxes: As with sole
• Division of profits: Sharing risk
proprietorships, all profits of
means sharing profits, and that partnerships are taxed as the can cause conflicts.
personal income of the owners, who
• Disagreements among partners
pay the normal income tax on that money.
*All terms of the partnership should be
spelled out in writing to protect all
parties and minimize misunderstandings.
• Difficulty of termination (sự kết
+ Disadvantages of partnership:
thúc): You can quit. However, questions about who gets what
and what happens next are often difficult to resolve when the partnership ends.
Another type of partnership was created to limit the disadvantage of unlimited liability. +
• Limited liability partnership (LLP): A partnership that limits partners’ risk of losing their
personal assets to only their own acts and omissions (chỗ trống) and to the acts and
omissions of people under their supervision (sự giám sát).
- Corporation (tổng công ty):
A legal entity (thực thể) with authority (quyền) to act and have
liability apart from its owners. (It is like an artificial being & exists only in the eyes of the law). lOMoAR cPSD| 59078336
+ A conventional (quy ước) (C) corporation: is a state-chartered (điều l nhà nưệ ớc) legal entity
with authority (quyền) to act and have liability separate from its owners—its stockholders (cổ đông).
A corporation not only limits the liability of owners but often enables many people to share in the
ownership (and profits) of a business without working there or having other commitments to it.
*Corporations may choose whether to offer ownership to outside investors or remain privately held.
• Perpetual (vĩnh cửu) life
• Ease of ownership (quyền sở hữu) change.
• Ease of attracting talented employees.
+ Advantages of corporations:
• Separation of ownership from
• Limited liability: It means that the management. The
owners of a business are responsible for
owners/stockholders (cổ đông) have
its losses only up to the amount they
some say in who runs the corporation invest in it.
but have no real control over the daily
• Ability to raise more money for operations.
investment: To raise money, a
corporation can sell shares (cổ phần) of
its stock to anyone who is interested.
Corporations can also borrow money …
• Size: A large corporation with numerous
resources can take advantage of
opportunities anywhere in the world.
+ Disadvantages of corporations: lOMoAR cPSD| 59078336
• Initial cost: Incorporation (sự hợp nhất)
financial records, the minutes of
may cost thousands of dollars and meetings, and more. require expensive lawyers and
• Double taxation: Corporate income accountants. is taxed twice.
• Extensive paperwork: A corporation, in • Two tax returns. contrast, must keep detailed
• Size: Large corporations sometimes
become too inflexible and tied down
in red tape to respond quickly to
Possible conflict with stockholders market
changes, and their and board of directors:
Conflict may profitability can suffer. brew if the
stockholders elect a board Difficulty of
termination. of directors who disagree with management.
- Corporate (tổ chức pháp nhân) Expansion: Mergers and Acquisitions (mua lại) (M&A):
+ A merger: is the result of two firms (công +
A leveraged (tác dụng đòn bẩy) buyout ty)
joining to form one company.(LBO): is an
attempt (nỗ lực) by employees,
management, or a group of private investors
+ An acquisition: is one company’s purchase
to buy out the stockholders in a company,
of the property and obligations (nghĩa vụ) of
primarily by borrowing the necessary funds. another company.
- Franchise agreement (thỏa thu n nhượng quyền thương mạiậ ): An arrangement (sắp đ t) ặ
whereby someone with a good idea for a business (the franchisor) sells the rights to use the
business name and sell a product or service (the franchise) to others (the franchisees) in a given territory (lãnh thổ).
+ Advantages of franchises: lOMoAR cPSD| 59078336
• Management and marketing Personal ownership. A franchise
assistance: A franchisee usually has a
operation is still your business, and much
greater chance of succeeding you enjoy
as much of the incentives because he or she
has an established and profit as any
sole proprietor (thiết l p) ậ product to sell, help would.
choosing a location, and assistance in
Nationally recognized name. With an all
phases of promotion and established franchise, you get instant
operation. recognition and support from a
product group with established
advice from people with expertise in customers around the world. these areas.
• Financial advice and assistance.
• Lower failure rate.
Franchisees often get valuable
assistance and periodic (định kỳ)
+ Disadvantages of franchises: of becoming managerial (thu c
ngườiộ quản lý) orders, directives,
• Large start-up costs: Most franchises
and limitations. Franchisees feeling
demand a fee for the rights to the
burdened by the company’s rules franchise.
and regulations may lose the drive to
• Shared profit: The franchisor often run their own business.
demands either a large share of the
• Coattail effects.
profits in addition to the start-up fees or
• Restrictions on selling.
a percentage commission (tiền hoa hồng)
• Fraudulent (không trung thực)
based on sales, not profit. This share is franchisors. called a royalty.
• Management regulation (quy tắc):
Management “assistance” has a way
- Cooperatives (co-op) (Hợp tác xã): A business owned and controlled by the people who use it -
producers, consumers, or workers with similar needs who pool their resources for mutual (lẫn nhau) gain.
Chapter 7: MANAGEMENT AND LEADERSHIP
* The Four Functions of Management: lOMoAR cPSD| 59078336
- Management: is the process used to accomplish (hoàn thành) organizational goals through
planning, organizing, leading, and controlling people and other organizational resources.
+ Planning: includes anticipating (thấy trước) trends and determining the best strategies and
tactics to achieve organizational goals and objectives.
• Setting organizational goals Determining resources needed
• Developing stategies to reach those
Setting precise (rõ ràng) standards goals. + Organizing: in
cludes designing the structure of the organization and creating conditions and
systems in which everyone and everything work together to achieve the organization’s goals and objectives.
• Allocating (phân phối) resources,
Recruiting (tuyển), selecting, traning, assigning
tasks, and establishing (thiếtand developing employees.
lập) procedures (thủ tục) for Placing
employees where they’ll be accomplishing
(hoàn thành) goals.most effective.
• Preparing a structure (organization
chart) showing lines of authority
(quyền) and responsibilities + Leading: mea
ns creating a vision for the organization and communicating, guiding, training,
coaching, and motivating others to achieve goals and objectives in a timely manner (phương pháp đúng lúc).
+ The trend is to empower (trao quyền) employees, giving them as much freedom as possible to
become self-directed and self-motivated. • Giving assignments • Explaning routines
• Guilding and motivating employees to
• Clarifying (lọc) policies
work effectively to accomplish (hoàn • Proving feedback on
thành) organizational goals and performance objectives.
+ Controlling: es
tablishes (thiết lập) clear standards to determine (quyết định) whether an lOMoAR cPSD| 59078336
organization is progressing (tiến tới) toward its goals and objectives, rewarding people for doing a
good job, and taking corrective action if they are not.
• Measuring results against coporate
Rewarding outstanding performance
objectives Taking corrective action when
• Monitoring (kiểm tra) performance
necessary relative to standards
* Planning and Decision Making: -
Planning: is setting the organization’s vision, goals, and objectives. Executives (giám đốc)
find planning to be their most valuable tool. -
A vision: is a broad explanation of why the organization exists and where it’s trying to go. It
gives the organization a sense of purpose and a set of values that unite (hợp nhất) workers in a common destiny.
- A mission (nhiệm vụ) statement: outlines (phác thảo) the organization’s fundamental (cơ bản) purposes. It should address:
• The organization’s self-concept. Customer needs.
• Its philosophy (triết lý). Social responsibility.
• Long-term survival needs. Nature of the product or service. - Goals: ar
e the broad, long-term accomplishments (sự hoàn thành) an organization wishes to attain (đạt được). - Objectives: ar
e specific, short-term statements detailing how to achieve the organization’s goals.
- Planning: includes anticipating (thấy trước) trends and determining the best strategies and
tactics to achieve organizational goals and objectives.
* Planning is a continuous process:
- SWOT analysis: A planning tool used to analyze an organization’s strengths, weaknesses, lOMoAR cPSD| 59078336 opportunities, and threats. + STRENGTHS:
• Core competencies (năng lực cốt lõi) in keys areas
• An acknowledgmed market leader
• Well-conceived functional area strategies • Proven Management • Cost advantages
• Better advertising campaigns + WEAKNESSES:
• No clear strategic direction
• Obsolete (quá hạn) facilities
• Subpar (gần như song song) profitability
• Lack of managerial depth and talent • Weak market image
• Too narrow a product line.
• Ability to grow due to increases in market demand. + OPPORTUNITIES: + THEARTS:
• Ability to serve additional customer groups.
• Entry (ghi chép) of lower-cost foreign • Expand products lines. competitors
• Ability to transfer skills/ technology
• Rising sales of subtitute (thay thế) to new products. products
• Falling trade barriers in attractive • Slower market growth foreign markets
• Costly regulatory requirements • •
Complacency (thỏa mãn) among rival
Vulnerability (tính dễ bị tổn thương) (đối thủ) firms
to recession (sự suy thoái) and business cycles lOMoAR cPSD| 59078336 - 4 forms of planning: • Changing buyers need and tates.
+ Strategic planning: determines (quyết định) the major goals of the organization and the
policies, procedures (thủ tục), strategies, and resources it will need to achieve them.
• Strategic planning is done by top management.
• Policies are broad guidelines for action.
• Strategies determine the best way to use resources.
+ Tactical (chiến thuật) planning: is the process of developing detailed, short-term statements
about what is to be done, who is to do it, and how.
• Managers or teams of managers at lower levels of the organization normally make tactical plans.
+ Operational planning: is the process of setting work standards and schedules necessary to
implement (thi hành) the company’s tactical objectives.
• The operational plan is the department manager’s tool for daily and weekly operations.
+ Contingency (phí đột xuất) planning
is the process of preparing alternative courses of action
the firm can use if its primary plans don’t work out.
- Decision Making: Finding the Best Alternative
+ Decision making: is choosing among two or more alternatives.
+ The rational decision-making model: is a series of steps managers often follow to make logical,
intelligent, and well-founded decisions.
+ Think of the steps as the six Ds of decision making: 1. Define the situation.2. Describe and collect needed information. lOMoAR cPSD| 59078336 3. Develop alternatives.5. Do what is indicated (begin implementation).
4. Decide which alternative is best. 6.
Determine whether the decision was a good one and follow up.
+ Problem solving: is less formal than decision making and usually calls for quicker action to resolve everyday issues.
+ Problem-solving techniques include:
+ Brainstorming: coming up with as many +
PMI: listing all the pluses for a solution in
solutions as possible in a short period of
timeone column, all the minuses in another,
and with no censoring of ideas. the
implications in a third. The idea is to
make sure the pluses exceed the minuses.
- Organizing: Creating a Unified System
+ A managerial pyramid shows the levels of management.
+ Top management: (conceptual nhìu nhất
branch and plant managers who are ts
human, ts technical) responsible for tactical planning and controlling.
Highest level of management, consisting of
the president and other key company +
Supervisory management: (First line),
executives who develop strategic plans.(ngược
lại so vs top management)
+ Middle management: (3 skills ở dưới
phânManagers who are directly responsible for
bố bằng nhau)supervising workers and evaluating their daily performance.
The level of management that includes general
managers, division managers, and
- Tasks and Skills at Different Levels of Management : lOMoAR cPSD| 59078336
+ Technical skills: + Human relations skills:
Skills that involve the ability to perform tasks in
a specific discipline or department.
Skills that involve communication and Skills
that involve the ability to picture the
motivation; they enable managers to work
organization as a whole and the relationship
through and with people. among its various parts. + Conceptual skills:
- Leading: Providing Continuous Vision and Values
+ Leadership: is creating a vision for others to follow, establishing corporate values and ethics, and
transforming the way the organization does business in order to improve its effectiveness and efficiency.
Good leaders motivate workers and create the environment for them to motivate themselves. + Leaders must:
1. Communicate a vision and rally others4. Embrace change. around that vision.5. Stress accountability and
2. Establish corporate values. responsibility. 3. Promote corporate ethics. - Leadership Styles:
1. Autocratic leadership: means making
3. Free-rein leadership: involves managers
managerial decisions without consulting setting
objectives and employees being
others. relatively free to do whatever it takes to accomplish those objectives.
2. Participative (democratic) leadership:
involves managers and employees working together to make decisions. lOMoAR cPSD| 59078336 - Empowering workers:
+ In traditional organizations, directing includes giving assignments, explaining routines, clarifying
policies, and providing feedback on performance.
+ Empowerment means giving employees the authority to make a decision without consulting the
manager and the responsibility to respond quickly to customer requests.
+ Enabling means giving workers the education and tools they need to make decisions.
- Controlling: Making Sure it Works : The control function +
measures performance relative to the planned objectives and standards,
rewards people for work well done, and takes corrective action when necessary. The control process +
provides the feedback that lets managers and workers adjust to deviations
from plans and to changes in the environment that have affected performance.
+ Controlling consists of five steps:
1. Establishing clear performance 3.
Comparing results against plans and
standards. This ties the planning
standards. function to the control function. 4.
Communicating results and deviations
Without clear standards, control is to the appropriate employees. impossible. 5.
Taking corrective action when needed
2. Monitoring and recording actual and
providing positive feedback for performance or results. work well done.
Chapter 8: STRUCTURING ORGANIZATIONS FOR TODAY’S CHALLENGES.
- Organizing for Success:
+ Organizing, or structuring
: determining what work needs to be done.
+ Division of labor: dividing up the tasks among the owners.