buisness key terms

Management

The process of coordinating people and other resources to achieve the goals of an organization.

Planning

Establishing organizational goals and deciding how to accomplish them.

Mission

A statement of the basic purpose that makes an organization different from others.

Goal

An end result that an organization is expected to achieve over a one- to ten-year period.

Objective

A specific statement detailing what an organization intends to accomplish over a shorter period of time.

SWOT analysis

The identification and evaluation of a firm’s strengths, weaknesses, opportunities, and threats.

Strategic plan

An organization’s broadest plan, developed as a guide for major policy setting and decision making.

Tactical plan

A smaller-scale plan developed to implement a strategy.

Operational plan

A type of plan designed to implement tactical plans.

Contingency plan

A plan that outlines alternative courses of action that may be used if the original plan does not work.

Organizing

The grouping of resources and activities to accomplish some end result in an efficient and effective manner.

Leading

The process of influencing people to work toward a common goal.

Motivating

The process of providing reasons for people to work in the best interests of an organization.

Directing

The combined processes of leading and motivating.

Middle manager

A manager who implements the strategy and major policies developed by top management.

First-line manager

A manager who coordinates and supervises the activities of operating employees.

Financial manager

A manager who is primarily responsible for an organization’s financial resources.

Operations manager

A manager who manages the systems that convert resources into goods and services.

Marketing manager

A manager who is responsible for facilitating the exchange of products between an organization and its customers or clients.

Human resources manager

A person charged with managing an organization’s human resources programs.

Administrative manager

A manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership.

Conceptual skills

The ability to think in abstract terms; allows a manager to see the 'big picture' and understand how the various parts of an organization can fit together.

Analytic skills

The ability to identify problems correctly, generate reasonable alternatives, and select the 'best' alternatives to solve problems.

Interpersonal skills

The ability to deal effectively with other people.

Technical skills

Specific skills needed to accomplish a specialized activity.

Autocratic leadership

Task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process.

Participative leadership

Leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals.

Laissez-faire leadership

A hands-off leadership style that provides direction, tools, and resources to employees while delegating responsibility and decision-making authority to them.

Transformational leadership

Leadership style that focuses on transforming organizations and industries.

Transactional leadership

Leadership style that emphasizes structure, performance and productivity, and reward systems.

Decision making

The act of choosing one alternative from a set of alternatives.

Problem

The discrepancy between an actual condition and a desired condition.

Organization

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

Chain of command

The line of authority that extends from the highest to the lowest levels of an organization.

Job design

Structuring the tasks and activities required to accomplish a firm’s objectives into specific jobs to foster productivity and employee satisfaction.

Delegation

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

Span of management

The number of workers who report directly to one manager.

Organizational height

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

Line structure

An organizational structure in which the chain of command goes directly from person to person throughout the organization.

Line managers

Managers who make decisions and give orders to subordinates to achieve the organization’s goals.

Matrix structure

An organizational structure that combines vertical and horizontal lines of authority.

Cross-functional team

A team of individuals with varying specialties, expertise, and skills who are brought together to achieve a common task.

Virtual structure

An organizational structure in which administration is the primary function, and most other functions are contracted out to other firms.

Task force

A committee established to investigate a major problem or pending decision.

Quality control

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

Six Sigma

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

Automation

The total or near-total use of machines to do work.

Computer-aided design (CAD)

The use of computers to aid in the development of products.

Just-in-time inventory (JIT) system

A system designed to ensure that materials or supplies arrive at a facility just when they are needed.

Flexible manufacturing system (FMS)

A production system that combines electronic machines and computer-integrated manufacturing that can easily adapt to changes in the type of product being produced.