Page 361 - Business Principles and Management

C HAPTER 13 A SSESSMENT

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CHAPTER CONCEPTS

• Managers who plan for a business’s future are likely to be more suc-
cessful than those who work on day-to-day operations. Planning sets
the direction for the business and establishes specific goals. Plans are
guides for making decisions. Strategic plans tell where the business 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 where 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 complete work
effectively. The process of organizing involves three elements: division of
work, facilities and working conditions, and employees. Characteristics
of good organizations include responsibility and authority, accountabil-
ity, unity of command, and span of control.
• The type of organizational structure identifies the relationships among
departments and personnel as well as lines of communication and deci-
sion making. Types of organizational structures are line, line-and-staff,
matrix, and team organizations. Recently, traditional organizations
have been decentralized and flattened.

REVIEW TERMS AND CONCEPTS

Write the letter of the term that matches each definition. Some terms will
not be used.
1. Organization with fewer levels of management than traditional
structures
a. accountability
b. centralized 2. Organization in which employees are organized into temporary
organization work teams to complete specific projects
c. flattened 3. List of steps to be followed for performing certain work
organization 4. Specific statement of a result the business expects to achieve
d. goal 5. Specific statement of a business’s purpose and direction
e. line organization 6. Specific measure against which something is judged
f. matrix organization 7. Organization in which team members together are responsible for
g. mission statement the work assigned to the team
h. organization chart 8. Obligation to accept responsibility for the outcomes of assigned tasks
i. policies 9. Drawing showing the structure of an organization, major job classi-
j. procedure fications, and reporting relationships
k. self-directed work 10. Number of employees that any one manager supervises directly
teams
l. span of control 11. Guidelines used in making decisions regarding specific, recurring
m. standard situations
n. team organization 12. Company’s reason for existing
o. vision 13. Organization in which all authority and responsibility can be
traced in a direct line from the top executive down to the lowest
employee level

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