Business Exam #3

A group of two or more people working together to achieve a common set of goals.

Organization

A group of two or more people working together to achieve a common set of goals.

Organization Chart

A diagram that represents the positions and relationships within an organization.

Director of legal services and Director of public affairs does what?

Advises the president

Chain of Command

Part of a group working to produce a product.

Accounting

Follow gap standards and procedures.

Finance

Follows the numbers and decides what needs to happen

Job Specialization

The separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.

Job Rotation

The systematic shifting of employees from job to another.

Job Enlargement

You have a job and they ask you to do more (adding tasks to your daily tasks).

Job Enrichment

When you're given advancements to make your job easier and better.

Departmentization by location

Grouping activities according to the defined geographic area in which they are performed.

Departmentization by customer

Grouping activities according to the needs of various customer populations.

Steps in the delegation process

1. Delegation

2. Responsibility

3. Authority

4. Accountability

Delegation

Assigning part of a manager’s work and power to ther workers.

Responsibility

The duty to do a job or perform a task.

Authority

The power within an organization to accomplish an assigned job or task.

Accountability

The obligation of a worker to accomplish an assigned job or task.

Decentralized Organization

An organization in which management consciously attempts to spread authority across various organization levels.

Centralized Organization

An organization that systematically works to concentrate authority of the upper levels of the organization.

Factors that influence the extent of decentralization:

• The external environment in which the firm operates

• The nature of the decision itself

• The abilities of lower-level managers

• Traditional practice

Span of management (or span of control)

 The number of workers who report directly to one manager.

Wide Span

• High level of competence in managers and workers

• Standard operating procedures

• Few new problems

Narrow Span

• Physical dispersion subordinates

• Manager has additional tasks

• High level of interaction required

• High level of interaction required between manager and workers

• High frequency of new problems

Organizational Height

The number of layers, or levels, of management in a firm.

A Matric Structure

[Ceo]

Vice President Engineering. Vice President Production. Vice President Finance.

Vice President Marketing

All teams go through four phases:

1. Forming

2. Conforming

3. Storming

4. Performing

Ad hoc committee

A committee created for a specific short term purpose

Standing committee

A permanent committee charged with performing some recurring task

Task force

A committee established to investigate a major problem or pending decision

The Conversion Process

Production Inputs- Idea for new good or service

Conversion- Plan production, execute

Outputs- Complete good or service

Research and Development

Identify ideas for new goods or services

Product Extension and Refinement

To stay in business, a firm must, at the very least, find ways to refine or extend the want-satisfying capability of its product or service.

Planning for Production

research and development → design planning → facilities → operational planning

Plant layout

The arrangement of machinery, equipment, and personnel within a production facility

Purchasing

All the activities involved in obtaining required materials, supplies, components, and parts from other firms. The objective is to ensure required materials are available when they are needed, in the proper amounts, and at minimum cost.

Inventory Control

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

Material requirements planning (MRP)

A computerized system that integrates production planning and inventory control

Just-in-time inventory (JIT) system\

A system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized

Quality Control

The process of ensuring that goods and services are produced in accordance with design specifications

Malcolm Baldrige National Quality Award

An award given by the President of the United States to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services

Total quality management (TQM)

The coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement

Six Sigma

A disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm’s products and services

International Organization for Standardization (ISO)

A network of national standards institutes and similar organizations from over 165 different countries that is charged with developing standards for quality products and services and environmental standards for global manufacturers and producer

Fishbone Diagram

best way to get to root cause of problem

4 Ways to Attract people to the job

1. Pay

2.  Benefit

3.  Working Conditions

4. Reputation/Culture

Employee Turnover Rate

The percentage of workers who leave a company over a specific time period

Turnover Calculation

# of departed employees/# of active employees

Reason for turnover:

• Hiring 

• On Boarding

• Communication

• Lack of Appreciation

• Policy Enforcement

FTE(Full Time Equivalent) - week

1 FTE= 4 hours

2 FTEs= 8 hours

1 FTE = 40 hours:

• 1= 40/week

• 2= 20/week

• 40= 1 hour

Civil Rights Act - 1964:

• Areas of Protection:

-Age (starts at 40 years old)

-Gender

-Religion

Back Pay

the money an employer owes an employee for past work that was unpaid or underpaid

Front Pay

financial compensation awarded to an employee in a wrongful termination or discrimination lawsuit to cover future lost wages and benefits

FMLA (Family and Medical Leave Act)

Requires an organization with 50 or more employees to provide up to 12 weeks of leave without pay on the birth (or adoption) of an employee’s child or if an employee or an employee’s spouse, child, or parent is seriously ill

ADA (Americans with Disabilities Act)

Prohibits discrimination against qualified individuals with disabilities in all employment practices, including job-application procedures, hiring, firing, advancement, compensation, training, and other terms, conditions, and privileges of employment

FLSA (Fair Labor Standards Act)

protects worker rights and sets basic employment rules.

Covers:

• Child labor

• Minimum wage

• Work week

• Exempt:

1. Professional

2. Supervisory/Executive

3. Administrative