Learn: Management Exam #2

Established Market

An existing market where customers already buy similar products or services

First-Mover Advantage

The competitive advantage gained by being the first business to introduce a product or service to a market

Types of Departmentalization

The ways an organization groups jobs and employees: functional (by skill or activity), product (by product), geographic (by location), customer (by customer type), and process (by workflow)

Chain of Command

The formal line of authority showing who reports to whom within an organization

Span of Management

The number of employees who report directly to one manager

Types of Interdependence

pooled, sequential, reciprocal

pooled interdependence

separate contributions to a shared result

sequential interdependence

work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job

reciprocal interdependence

work completed by different jobs or groups working together in a back-and-forth manner

Job Specialization

Dividing work into specific tasks so employees can focus on particular duties

Job Rotation

Moving employees between different jobs or tasks to develop skills and reduce boredom

Job Characteristics Model

A model explaining how job design affects motivation through skill variety, task identity, task significance, autonomy, and feedback

Who created the Job Characteristics Model?

Hackman and Oldham (1980)

Small-Batch Technology

A production method that makes products in small quantities or customized batches, often requiring skilled workers and flexible processes

Mechanistic Organization

A rigid and highly structured organization with centralized authority, formal rules, specialized jobs, and a clear chain of command

Recruiting

The process of attracting qualified candidates to apply for job openings

Training

The process of teaching employees the knowledge and skills needed to perform their jobs

On-The-Job Training (OJT)

Training employees while they perform actual job duties

Organic Organization

A flexible organization with decentralized decision-making, fewer rigid rules, adaptable roles, and open communication

Entrepreneur

A person who identifies a business opportunity, organizes resources, and accepts the risks of starting and operating a business

Small Business

An independently owned and operated business limited in size and revenue according to its industry and applicable standards

Business Plan

A written document outlining a business's goals, products or services, target market, competition, operations, management, and financial projections

Existing Business

A business that is already operating and may have an established customer base and financial history

Retail Business

A business that sells goods or services directly to final consumers for personal use

Change

The process of altering an organization's structure, technology, people, strategy, or work processes

Forces of Change

Internal or external factors that create pressure for change, such as new technology, competition, economic conditions, laws, and customer preferences

Types of Change

Common categories include technological change (tools and processes), structural change (roles and reporting relationships), and people-oriented change (skills, attitudes, and behaviors)

Lewin Model of Change

A three-stage model: unfreeze (prepare for change), change (implement it), and refreeze (reinforce the new approach)

Compensation

The total pay and rewards employees receive for their work, including wages, salaries, bonuses, and other rewards

Incentive

A reward offered to motivate employees to achieve specific goals, such as bonuses or commissions

Benefits

Forms of employee compensation beyond direct wages or salary, such as health insurance, retirement plans, and paid leave

Resistance to Change

Reluctance or opposition to organizational change because of fear, uncertainty, habit, perceived loss, or lack of trust

Organizational Development (OD)

A planned effort to improve organizational effectiveness and functioning through behavioral science and managed change

Human Resource Management (HRM)

The function responsible for managing employees, including recruiting, hiring, training, compensation, performance evaluation, and employee relations

Title VII of Civil Rights Act of 1964

A U.S. federal law prohibiting covered employers from discriminating based on race, color, religion, sex, or national origin

Labor Management Relations Act (Taft-Hartley Act)

A 1947 federal law that amended the National Labor Relations Act and regulates certain union activities and employer-union relationships

Lenders

Individuals or institutions that provide borrowed money to a business that generally must be repaid with interest

Venture Capital

Financing provided by investors to businesses with high growth potential, usually in exchange for an ownership stake

Franchise

A business arrangement in which a franchisee pays for the right to operate using a franchisor's brand, business model, and systems

Job Description

A written statement explaining a job's duties, responsibilities, tasks, reporting relationships, and working conditions

Job Specification

A statement of the qualifications needed to perform a job, including education, experience, skills, knowledge, and abilities

Performance Appraisal

A formal evaluation of an employee's job performance against established expectations or goals

360 Degree Feedback

A performance evaluation method that gathers feedback from multiple sources, such as supervisors, peers, direct reports, and sometimes customers or the employee themselves.