Business Foundations: Study Guide Vocab, Unit 3

Management

working with people and resources to accomplish the goals of an organization

Planning

Process of establishing goals and objectives and determining the best ways to get there

Organizing

process of structuring the capital, personnel, raw materials and resources etc. that best fits the organizational structure.

Leading

Process of influencing, mentoring and enabling others to contribute to the success of the organization

Controlling

process of monitoring performance and ensuring strategies are being carried out

Departmentalization

decision made to structure the company into smaller groups

Line Organization

organization where one position has direct control of departments under it

Matrix Organization

people are pooled into groups by skills and assigned projects as needed

Mission Statement

Description of business' current purpose, goals and philosophies (statement for customers)

Network Organization

many independent firms coming together to produce a product; instead of one for all responsibility

Organizational Chart

shows how groups of employees fit in layer organizational structure

Span of Control

number of employees supervised by someone

vision statement

what business wants to be in the future and the fruit of its work (for employees)

Arbitration

occurs when a third party settles the dispute after hearing all the issues

Bargaining Unit

Groups of employees that negotiate with an employer for better work culture/pay

Collective bargaining

negotiations between bargaining unit and employer

Compensation

payment for work performed, consists of financial and non financial payments

bonus

compensation based on total corporate profits

Commission Pay

compensation based directly on an employee's performance

Consultant

Contingent workers, self employed; hired by companies for specific tasks

Diversity Training

helps employees and managers improve their understanding of each others differences

Employee Benefits

Indirect Financial and non financial payments which suppliant cash compensation

Employment at will

legal doctrine that states employer can fire employee at any time for any reason

External Recruiting

process of searching outside a firm to fill job vacancies

Flextime

core number of hours for workday; flexible starting and end times

Human Resource Managament

managing, hiring, training, motivating, evaluating and compensating

Independent Contractor

Contingent workers hired for hard-to-fill jobs: contruction, financing services etc.

Gig Worker

Independent project based workers, not full time

Contingent Worker

hired as need basis; not full time

job description

formal statement; summarizes what employee will do in role

labor union

legally recognized groups dedicated to protecting interests of workers

lockout

occurs when the management refuses to allow union members to enter business premesis

Mediation

neutral third party; assists both parties (publicly and privately) to find resolution to issues

Mentor

experienced individual who can offer cousneling and explanations for tasks; creates opportunities

On-the-job training

used to teach employee skills for a job the employee is working

Pension Plan (defined benefit plan)

programs that provide income to individuals in their retirement

Performance Appraisal

The evaluation of employees' job performance and contributions to their organization;

Performance Management

combines goal setting, performance appraisal, training and development to unified process

Picket

Protest during strike; have signs that convey grievances

Profit-sharing plan

range of employee and executive compensation plans that depend on company hitting profit targets

retirement

point where person stops full time career

Salary vs Wage

salary= same payment per period despite the number of hours work; wage= payment of period based on number of hours worked

Strike

action of no work while workers wait for demands to be met

Termination

permanently laying off workers; either for performance or lack of need

Worker Buyout

financial incentives given to older employees to entice them to retire early

Work/Life Balance

Equilibrium between work responsibilities and personal life.

Alternative Work Arrangement

methods of staffing other than the traditional hiring of full-time employees; could include virtual work

Industry Analysis Forces

5 forces that build the power construct within an industry: interior/rivalry power among current businesses, threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products or services

Barriers to Entry

Things that could prevent new businesses from entering a market: high regulation, capital requirements, price strangling;

Supplier and Buyer Power

the power of the suppliers or buyers over the business in an industry analysis

Substitutes

Goods that could replace your product; one of the five forces

Rivalry

existing power within an industry (five forces) that makes it difficult to compete

Switching Costs

costs that make customers reluctant to switch to another product or service; low=buyer power, high=supplier power

Capital Requirement

amount of money needed to enter a business/industry; can strengthen or weaken threat of new entries

Economies of Scale

a proportionate saving in costs gained by an increased level of production.

Team Composition

who is on your team: size, membership, diversity, roles

Team Dynamics

governance, stages/evaluation, coordination, collaboration, communication

Team Governance

Norms, roles, ground rules; decision making authority; governance

Self-managed teams

teams that supervise themselves without much managerial oversight

Workforce Sustainability

Advancement of human dignity through work with policies, practices and programs that foster worker's economic security and holistic well-being; most competitive workforce.

High-Performance Work system

Work system that combines a bundle of HR Policies and Programs made for a specific outcome with AMO justification