A desired future outcome that a firm hopes to achieve is called a goal.
The planning, organizing, leading, and controlling of resources in order to achieve organizational goals
both effectively and efficiently is known as management.
An organization's people are not considered one of its resources as they are not permanent.
Management is the process of planning, organizing, leading and controlling resources in order to make a
profit. Therefore, an administrator of a not-for-profit organization is not truly a manager.
Increase in a firm's effectiveness will increase its performance, but increase in efficiency will have no
predictable effect on performance.
McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and reduced the
amount of time to cook fries. This is an example of increased efficiency.
Effectiveness is a measure of how productively a firm uses its resources to achieve a goal.
In general, jobs become more interesting the more complex or responsible they are.
Effective managers are those who choose the right organizational goals to pursue and have the skills to
utilize resources efficiently.
10. A measure of the appropriateness of goals selected by managers for the organization and the degree to
which the organization achieves these goals is known as the effectiveness of the organization.
11. The process that managers use to select the goals for the organization is known as organizing.
12. An organization's strategy is an outcome of its planning process.
13. Grouping people into various departments of a firm is known as organizing.
14. An organization's structure determines how the organization's resources can be used to create goods and
15. The outcome of the controlling function should be the ability to measure the organization's performance
16. Considering the management hierarchy, first-line managers typically report to top managers.
17. To perform managerial tasks efficiently and effectively, organizations group their managers by level in
hierarchy and by type of skill.
18. Managers who supervise first-line managers are typically called middle managers.
19. The relative importance of planning, organizing, leading, and controlling differ depending on the level of
management that a manager occupies.
20. The lower the manager's position in the organization's hierarchy, the less time the manager will spend
leading and controlling subordinates.
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