Chapter Assessment - Principles of Management - ثالث ثانوي

عليم CHAPTER TWO Assessment CHAPTER CONCEPTS Managers who can effectively plan for a business's future will be more successful than those who focus on day-to-day operations. Planning sets the direction for the business and establishes specific goals. Plans are guides for making decisions Strategic plans explain where the busi- ness is going. Operational plans determine how work will be done. who will do it, and what resources will be needed to get the work done. ⚫ Goals keep a business focused on the direction it wants to go and the results to be accomplished. Tools that can help develop effective plans include budgets, schedules, standards, policies, procedures, and research ⚫ Companies must be organized to carry out plans and carry out work effectively. The process of organizing mvolves three elements. division of work, facilities and working conditions, and employees. Characters- tics of good organization Include responsibility and authority, account- ability, unity of command, and span of central. *The type of organizational structure identifies the relationships among departments and personnel as well as lines of communication and decision making Types of organizational structures are line, line-and- staff, matrix, and team organizations. Recently, traditional organiza- tions have become flatter and more decentralized. 116 Chapter 2 Planing and Organizing

DEVELOP YOUR BUSINESS LANGUAGE Match the terms listed with the definitions. Term 1. Accountability Your Choice Definition 2. Authority 3. Budget 4. Business plan 5. Centralized organization 6. Chain of command 7. Competitive advantage 8. Decentralized organization Departmentaliza 9. tion 10. Empowerment 11. Flattened organization 12. Goal 13. Line organization 14. Line-and-staff organization a. A written document that describes the nature of the business, its goals and objectives, and how they will be actieved. b. A specific measure by which something is judged. c. The hierarchy of the organization, from the highest level to the lowest level. d. A concept where senior managers make decisions on how to group employees that serve a similar need for the company. e. The obligation to accept responsibility for the outcomes of assigned tasks. f. The examination of an organization's internal strengths and weaknesses as well as external opportunities and threats. g. Long-term planning that provides broad goals and direc tions for the entire business h. A large business which is divided into smaller operating units, headed by managers who have almost total responsi bility and authority for operations, i. The special capabilities of a company that allow it to create a product or service that is measurably better than any competing company. J. A broad, long-term, and often inspirational view of a company's reason for existing. k. Guidelines used in making decisions regarding specific. recurring situations. I. Business structure in which all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level. m. A written financial plan for business operations developed for a specific period of time. n. Business structure in which a few top managers do all the major planning and decision making Chapter 2 Assessment 117

Term 15. Matnx. organization 16. Mission 17. Operational planning 18. Organization chart 19. Policies 20. Procedure 21. Responsibility 22. Schedule 23. Self-directed work teams 24. Span of control Span of management 25. Standard 26. Strategic planning 27. SWOT analysis 28. Team organization 29. Unity of command 30. Vision Your Choice Definition o. The right to make decisions about work assignments and to require other employees to perform assigned tasks. p. Business structure that divides employees into permanent work teams. q. An organization with fewer levels of management than traditional structures. r. A short, specific statement of the business's purpose and direction. 5. Business structure where managers have direct control over units and employees they supervise but have access to staff specialists for assistance. t. A time plan for reaching objectives. u. Principle which states that each employee reports to one- and only one supervisor at a time or for a particular task. v. An illustration of the structure of an organization, major job classifications, and the reporting relationships among the organization's personnel. w. A sequence of steps to be followed for performing specific task. x. An organization which combines employees into temporary work teams to carry out specific projects while working in the same functional area. y. The number of employees that any one manager supervises directly to effectively implement an organization's goals. z. Authionly given to individual employees to make decisions and solve problems they encounter on their jobs with the resources available to them. za. Short-term planning that identifies specific goals and activities for each part of the business. zb. A specific statement of a result the business expects to achieve. zc. The obligation to do an assigned task. zd. A team in which members together are responsible for the work assigned to the team. اسعليم 118 Chapter 2 Planning and Organizing

REVIEW BUSINESS MANAGEMENT CONCEPTS Determine the best answer. 31. Strategic planning in an organization is followed by a. operational planning b. organizational planning hiring and training employees d. management planning 32. Which of the following is not a characteristic of an effective goal? a. A goal must be specific and meaningful b. A goal must be achievable c. A goal must be clearly communicated d. A goal must focus on one company activity. 33 Businesses measure the quality of products and services by comparing them against a procedures b. standards c policies d. goals 34 The span of control at the top of an organization is usually a. larger than at the lower levels. b. about the same as smaller than d. There is no span of control at the top of an organization. 35. The most efficient organizational structure is a a. line organization b. line-and-staff organization c. team organization d. decentralized organization Chapter 2 Assessment 119

120 APPLY WHAT YOU KNOW Answer the following questions. 36. Based on the Reality Check scenario at the beginning of Section 2:1, identify one example of strategic planning and one example of opera- tional planning that you believe Ibrahim should perform 37 It is recommended that a new business develops a business plan Do you believe large, well-established businesses need a business plan as well? Why or why not? 38.What is the difference between a business strength and a business opportunity? For a business in your community, provide an example of a strength of the business and an opportunity for the business. 39. Write a list of procedures that another person can follow to copy a computer file from a server or doud to a removable storage device.. The procedures should be complete and in the order they need to be performed 40. What is the difference between responsibility and authority? Provide examples of each from your role as a family member and your role as a student. Chapter 2 Planning and Organizung

41. Do you believe employees prefer to work in organizations where they have very specialized work that they perform over and over, of in organizations where they have a broader set of responsibilities and work changes regularly? Justify your answer 42. Compare the line organization with the matnx organization in terms of how it affects the work, relationships, and communication of man- agers and employees, MAKE ACADEMIC CONNECTIONS Complete the following activities. 43. Communication Review the information from the beginning of Section 2.1 about Ibrahim's idea to expand his catering business using the Internet. Write two goals that Ibrahim could set for the busi- ness-one that should be achieved within three months and one that should be achieved by the end of the first year. White the goals to mclude the four characteristics of an effective goal. Chapter 2 Ant 121

لسم 44. Visual Arts Your class decides to hold a student recognition and par- ent appreciation event at the end of the school year All students will participate in planning and managing the event. A matrix organization structure will be used. Identify the major divisions of work that need to be carried out for a successful event. Using a computer graphics program, design an organization chart you believe will be most effec- tive for getting the work done Assign each student in your class to a particular role in the organization chart. Be prepared to discuss your decisions with other students. 45. Technology Use the Internet to locate an example of a business use of each of the planning tools identified in the chapter: budget, schedule, standard, policy, procedure, and research. Construct a 3 x 6 table. In the first column, Identify the planning tool In the second column, briefly describe its use. In the third column, explain how the use of the tool supports business planning. 122 Chapter 2 Planning and Organizing

46. Research Use a library or the Internet to find three articles from business magazines or websites on the effects of flattering (reducing the levels of management) on businesses and their employees. Make notes on the articles as you read. Then prepare a one-page analysis of your research, presenting the advantages and disadvantages of the use of flattening by organizations. 47 Math Research is an important tool businesses use for strategic plan- ning. On average, businesses spend about 3.8% of sales on research activities each year. Imagine that the three top businesses world- wide in terms of research expenditures were a car manufacturer, a healthcare company, and a software and technology developer. The car manufacturer invested SAR 9.9 billion on research with sales of SAR 226 | billion. The healthcare company's investment was SAR 9/6 billion on research with SAR 58 6 billion in sales. The software developer's research budget was SAR 9 billion and sales were SAR 69.9 billion. Calculate the percentage of annual sales each company invested in research. Determine the percentage of sales invested in re- search by all three companies combined Compare it with the average of all businesses Chapter 2 Assunt 123

عليم 124 CASE IN POINT Solving Planning Conflicts A large company based in Jeddah makes and sells a line of popular chil- dren's toys. Over the next few months, retail stores will begin buying the company's products in large quantities in preparation for the Eid Al-Fitr shopping season. Every year, the company Introduces one or two new toys designed to attract the attention and interest of children and their parents and get them into the stores at Eid Al-Fitr Then they design in-store dis- plays and promotions for the company's new toys as well as those that have been popular for many years, bringing in a high volume of sales of both new and traditional toys. Farah, the marketing manager, has recently reviewed the results of re- search on this year's newest toy. The toy received the most positive cus- tomer response of any toy the company has introduced in the past five years. Based on that research, Farah and her staff have projected that sales will be 10% higher this year than last. As a result of these estimates, she has committed funds for a big advertising campaign to introduce the new toy Several additional salespeople have been hired to begin early work with retailers to make sure all stores are prepared with enough stock of the toy for the upcoming holiday sales period. While Farah has been working on the expanded marketing efforts, Ya- sir, the production manager, has been running into problems. He has had difficulty getting an adequate supply of one of the key raw materials from the firm's only supplier Production levels for the new toy have been 10% below plans during the last two months Yasir could have devoted add- tional production time to increase the stock of the company's traditional products. However, he was not aware of the recent marketing research or marketing plans. The production plans, developed three months ago, were to keep stock levels of those toys just slightly above last year's level. In discussions with the raw-materials supplier, it appears that the supply problem may be solved in two weeks. If so, he might be able to meet the production goals for the new toys but labor costs will have to increase and product deliveries will be delayed to retallers. He knows that retailers like to have the new toys early, but there is little he can do about it right now. Chapter 2 Planning and Organizing

السارية السليم Think Critically 1. What management problems are apparent in the toy company? Why have these problems occurred? Are the reasons related more to plan- ning issues or to organizing issues in the company? 2. What is likely to happen to the company this year and in future years if the problem is not resolved quickly? 3. Using the management tools discussed in the chapter, give examples of how each could be used to help solve the company's problems. 4. What would you recommend right now that can help resolve the problems being faced by the toy company? What should the company do to avoid the same type of problem in the future? Chapter 2 Assessment 125