ADMS 1010 Final Exam

Intermediary

is an entity or person that acts as a middleman between two parties to facilitate a transaction, exchange, or communication. Intermediaries are commonly found in various industries, including finance, business, and trade.

Accounting

The measurement, processing, and communication of financial information about economic entities such as businesses and corporations

Finance

Is a field that deals with the study of investments; the science of money management

Three sub-categories of finance

1. Public finance

2. Corporate finance

3. Personal finance

Balanced Scorecard

Measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning

What you measure is what you get

Money

Anything that serves as a medium of exchange, a unit of account, and a store of value

Value Chain

The sequence of activities required to deliver products/services = creating value.

A process by which a valuable product or service is created.

Input -> Transformation Process -> Output

Inputs: Land, labour, capital

TP: Production/Operations Management

Outputs: Goods & Services

by Michael Porter (1985)

Scientific Management (Taylorism)

The application of scientific principles to increase efficiency in the workplace

Taylor used "scientific" methods to improve management

utilized time motion studies: systematic analyses of work processes aimed at improving efficiency and productivity. These studies, developed in the early 20th century, involved breaking down tasks into their smallest components, timing each motion, and finding the most efficient way to perform a job.

Three Major Principles of Scientific Management

1. Division of Labour

2. Standardization

3. Strict supervision of manual labourers

Fordism

System of standardized mass production attributed to Henry Ford.

It was the industrial process developed by Henry Ford to produce the Model T automobile. Greatly facilitated by the technological revolution at the turn of the century.

Three major principles of Fordism

1. Standardization

2. Moving Assembling line

3. Higher wages

Management Science

The use of analytical methods to make better management decisions (Operations resesearch)

Supply Chain Management

Managing the flow of goods both within and outside the firm from point of origin to point of consumption (raw materials to finished goods)

Integrates procurement, logistics, operations, and information technology

International Business (IB)

Management of business activities that cross national boundaries

Economic Globalization

The increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.

Financial Reporting

Prepared by GAAP

Balance Sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date

Financial Accounting

Summary, analysis and reporting of financial transactions

Management Accounting

Use of accounting information to make better management decisions

Auditing

Independent examination of an organization's accounts

Rival Causes

A difference between groups, correlation

Claim

An assertion, usually supported by evidence

Public Finance

Addresses the role of government in the economy

Corporate Finance

Funding of corporations and investment banking

Personal Finance

Financial management for individuals and families

Investment Banks

Helps client raise financial capital

Closed-Systems

Fully self-contained and self-sufficient

Open-Systems

Interact with and rely on the environment around them (e.g all living things)

Business as an open system can be represented as a "value chain" (e.g the supply chain).

Operations Management

A design and management of a firms system, to produce goods and services

Organization Behaviour

- The behaviour of people within organizations

- The behaviour of organizations within their environments

HRM

Concerned with how people are managed, maximizing employee performance

Peformance Appraisal

Industrial Psychology Focus

Is primarily concerned with issues that are more molecular in nature

Six branches:

1. Recruitment

2. Selection

3. Classifications

4. Compensation

5. Performance appraisal

6. Training

Organizational Psychology Focus

Takes a more molar approach

Six branches:

1. Socialization

2. Motivation

3. Occupational stress

4. Leadership

5. Group performance

6. Organizational development

Extrinsic motivation

External, comes from outside KITA

Intrinsic motivation

Comes from within A "generator"

Marketing

Activities, institutions, process communicating, delivering, and exchanging

A value for customers, clients, and society

Incongruities (within)

A mismatch in the process

Process needs (within)

Solves a problem in the process or system

Industry and Market Changes (within)

Structural changes or rapid shifts

External company innovation opportunities

Demographics, changes in perception, and new knowledge

social entrepreneurship

Application of entrepreneurial skills to create a business whose purpose is to solve social and environmental problems

Three statements of financial reporting

- Cashflow statement

- Balance sheet

- Income statement

Organizations are rooted in the core domain of

Psychology

Which is not an HRM Functional concern?

Organization diversity

According to Mckenna the three things leading to obsolescence of advertising is

1. Public concern

2. Overkill

3. Customers are fed up

The latest step in the evolution of marketing is

Experience base

In the video on advertising to children, marketer Lucy Hughes says advertising is

1. You can multipulate consumers

2. It is a game

3. Essentially manipulating children

4. Don't know if it is ethical

What a customer considers as "value" determines

1. What a business is

2. What it produces

3. Whether it will prosper

According to Naomi Klein corporations are choosing to focus on marketing rather than on

The production of functions

The key to going from manipulation of the customer to customer involvement is

Relationships

Spiral of Knowledge - Four Patterns

1. Socialization

2. Articulation

3. Combination

4. Internalization

Ownership equity

Residual value after liabilities are paid

Income statement

Statement of income, expenses, and profits over a given period

Cashflow statement

Reports on cash flow activities, particularly operating, investing, and financing activities

Accounting Fields

1. Financial accounting

2. Management accounting

3. Auditing

4. Tax

Before October 1st, 2014 Accounting in Canada was separated into three professional bodies:

1. CA

2. CGA

3. CMA

Causal Claim

A claim is the major conclusion the author is trying to persuade you of (cause and effect)

Correlation can be explained through one of the three causal links:

1. Direct Causation

2. Reverse Causation

3. Third Factor

Post hoc ergo propter hoc fallacy

Post hoc (After this) ergo (Therefore) propter hoc (Because of this)

One event following another does NOT mean the first caused the second - Based on many superstitious beliefs

Experimental Research

Used to determine causes. The aim is to control all variables except the presumed cause and effect.

- Random assignment and control variables.

International financial institutions

- International monetary fund

- World Bank

International Monetary Fund

It came out of the Bretton Woods following WWII, a global organization that helps countries with money problems by giving loans and advice to stabilize their economies.

World Bank

An international financial institution of the UN and provides loans to developing countries

Governments

- Regulatory agencies

- Central banks

Regulatory agencies

Set the rules for the "players" in the financial system

In the USA it is SEC and in Canada it is OSFI

Central Banks

Manage a states currency, money supply, and interest rates

Operates at arms length from the government

Input

Land, Labour and Capital

Transformation Process

Production/ Operations Management

Free Trade

Countries do not restrict imports or exports

Opposite of "Protectionism": Government regulations that favour (or protect) local businesses.

Multinational Corporations

Corporations with operations that cross national boundries

Efficiency Gains

Create an enduring advantage for some players resulting in a Pareto (80/20) distrubution

Monocultures

Highly efficient and highly precarious.

Powerful and self-interested players can game the system more value (Mazzucuto)

Resilience

The ability to recover

1. Limit scale

2. Friction (trade barriers)

3. Patient capital (long-term)

4. Good jobs - and view labour as a productive resource rather than just a cost to be minimized like Costco not Walmart

4. Teach resilience not short-term efficiency

What is central to every aspect of a firm's operations?

People, all functions must consider the human factor

Organization Behaviour and HRM focus on

People

HRM translate OB theory into specific firm policies and practices related to:

1. Recruitment and selection

2. Training and development

3. Performance Appraisal

4. Pay and Benefits

5. M&As; "talent" management; succession planning; labour relations; diversity, etc.

I/O Psychology is comprised of two branches:

1. Industrial

2. Organizational

Economic View

Money leads to better performance

- Money is primary motivator animating employee behaviour

- Employment is an economic transaction: Wage labour

- People are self-interested and rational

- Labour is a factor of production

What money can't buy

Michael Sandel, moral for everything in a society is for sale, creates greater inequality and more possibility for corruption, prices and altering attitudes towards certain types of goods

Why we should care about what money can't buy?

1. Marketizing a good changes it's meaning; Markets value only in dollars

2. Market norms/values crowd out or corrupt other norms/values

3. Bribes are manipulative: Substitute an external reason for an intrinsic one

Three types of Kita

1. Negative physical

2. Negative psychological

3. Positive

Hygiene vs Motivators

Hygiene factors produce job dissatisfaction if not sufficient

Motivators produce job satisfaction

Motivation through job enrichment

1. Removing controls

2. Increase accountability for own work

3. Complete unit of work

4. Job freedom

5. Performance feedback

6. Challenge and novel tasks

Drucker, on marketing and the purpose of business

A businesses purpose must lie outside of the business itself and must lie in society since a business enterprise is an organ of society

Business Purpose: To create a customer

Evolution of Marketing

1. Sales driven

2. Customer driven

3. Market driven

New Marketing

1. Knowledge-based

2. Experience-based

3. Relationship

Knowledge-based

Knowledge of technology, competition, customers, organizational capabilities

Experience-based

Spend time with customers, monitor competitions, feedback analysis

History of Marketing Orientation

1. Production - producing as much as possible

2. Product - quality of the product

3. Selling - focuses on selling a particular product

4. Marketing - "Customer orientation", basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes

5. Holistic Marketing - looks at marketing as a complex activity and acknowledges that everything matters in marketing

Modern example of a brand

Coca-Cola

New Branded World

Corporations are choosing to focus primarily on the marketing function rather than the production function

Innovation Operations inside a company

1. Unexpected outcomes

2. Incongruities

3. Process needs

4. Industry and Market changes

Innovation Operations outside a company

5. Demographic changes

6. Changes in perception

7. New knowledge

Knowledge-creation

The one sure source of lasting competitive is knowledge

The "knowledge-creating" company whose sole business is continuous innovation

Tacit Knowledge is composed of

1. Technical dimension: Master

2. Cognitive dimension: Mental Models

Knowledge-creation patterns

1. Tacit to Tacit: Apprenticeships

2. Explicit to Explicit: Combine discrete pieces of explicit knowledge into new whole

3. Tacit to Explicit: Articulate/formalize tacit knowledge and allows for wider knowledge transfer

4. Explicit to Tacit: New explicit knowledge shared, internalized by by other employees and becomes part of their own tacit knowledge

Which types of knowledge-creation patterns do Japanese companies use?

Tacit to Explicit and Explicit to Tacit

Traditional Organizational Types

1. Business/for-profit/private sector

2. Government/public sector

3. Non-profit/ngo/civil society

Alternative/Innovative Organizational Types

1. Social entrepreneurship/enterprise

2. Cooperatives

3. Community contribution companies (C3)

Cooperatives

- Long standing internationally recognized business form

- Democratically controlled: One member = one vote