MGMT 471 Vocab part 2

Independent Contractors

Self-employed individuals hired on a contract basis for specialized services.

Information Management

Use of technology to collect, process, and condense information, for the purpose of managing the information efficiently as an organizational resource; also called IM.

Key Risk Indicators

Metrics that provide an early signal of increasing risk exposures for an enterprise; also known as KRIs.

Lagging Indicator

Type of metric describing an activity or change in performance that has already occurred.

Leading Indicator

Type of metric describing an activity that can change future performance and predict success in the achievement of strategic goals.

Local Responsiveness Strategy

Globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems; also called LR strategy.

Matrix Structure

Organizational structure that combines departmentalization by division and function to gain the benefits of both; results in some employees reporting to two managers rather than one, with neither manager assuming a superior role.

Mission Statement

Concise outline of an organization’s strategy, specifying the activities it intends to pursue and the course its management has charted for the future.

Moral Hazard

Situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.

Multi-criteria Decision Analysis

Decision-making tool in which a team determines critical characteristics of a successful decision; a matrix is used to score each alternative and compare results; also known as MCDA.

Multinational Enterprise

Organization that owns or controls production or services facilities in one or more countries other than the home country; also called MNE.

Near-shoring

Practice of contracting a part of business processes or production to an external company in a country that is relative close (e.g., within the same own region).

Offshoring

Method by which an organization relocates its processes or production to an international location through subsidiaries or third-party affiliates.

Onshoring

Relocation of business processes or production to a lower-cost location inside the same country as the business.

Organizational Development

Process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions.

Organizational Values

Beliefs and principles defined by an organization to direct and govern its employees’ behavior.

Outsourcing

Process by which an organization contracts with third-party vendors to provide selected services/activities, instead of hiring new employees.

Principal-agent Problem

Situation in which an agent (e.g., an employee) makes decisions for a principal (e.g., an employer) potentially on the basis of personal incentives that may not be aligned with he principal’s incentives.

Process Alignment

Extent to which underlying operations such as IT, finance, or HR integrate across locations.

Product Structure

Organizational structure in which functional departments are grouped under major product divisions.

Regression Analysis

Statistical method used to predict a variable from one or more predictor variables.

Residual Risk

Amount of uncertainty that remains after all risk management efforts have been exhausted.

Reverse Innovation

Innovations created for or by emerging-economy markets and then imported to developed-country markets.

Risk

Uncertainty that has an effect on an objective, where effect outcomes may include opportunities, losses, and threats.

Risk Appetite

Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.

Risk Control

An action taken to manage a risk.

Risk Management

System for identifying, evaluating, and controlling actual and potential risks to an organization, and which typically incorporate mitigation and/or response strategies, including the use of insurance.

Risk Position

An organization’s desired gain or acceptable loss in value.

Risk Scorecard

Tool used to gather individual assessments of various characteristics of risk (e.g., frequency of occurrence; degree of impact, loss, or gain for the organization; degree of efficacy of current controls).

Risk Tolerance

Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.

Service-level Agreement

Part of a service contract where the service expectations are formally defined; abbreviated as SLA.

Shared Services HR Model

HR structural alternative in which centers with specific areas of expertise develop HR policies in those areas; each unit can then select what it needs from a menu of these services.

Single Loss Expectancy

Expected monetary loss every time a risk occurs; calculated by multiplying asset value by exposure factor; also known as SLE.

Software as a Service

Software that is owned, delivered, and managed remotely and delivered over the Internet to contracted customers on a pay-for-use basis or as a subscription based on use metrics; abbreviated as SaaS.

Span of Control

Refers to the number of individuals who report to a supervisor.

Staffing

HR function that acts on the organizational human capital needs identified through workforce planning and attempts to provide an adequate supply of qualified individuals to complete the body of work necessary for the organization’s financial success.

Strategic Fit

A state in which an organization’s strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities.

Strategic Management

System of actions that leaders take to drive an organization toward its goals and objectives.

Strategic Planning

Process of setting goals and designing a path toward organizational success.

Strategy

Plan of action for accomplishing an organization’s overall and long-range goals.

Sustainability

Practice of purchasing and using resources wisely by balancing economic, social, and environmental concerns, with the goal of security the interests of present and future generations.

SWOT Analysis

Method for assessment of an organization’s strategic capabilities through use of the environmental scanning process, by which internal and external factors affecting achievement of organizational goals are identified and considered.

Systems Thinking

Process for understanding how seemingly independent units within a larger entity interact with and influence one another.

Triple Bottom Line

Economic, social, and environmental impact metrics used to determine an organization’s success.

Value Drivers

Actions, processes, or results that are needed to deliver a desired value.

Vision Statement

Description of what an organization hopes to attain and accomplish in the future, which guides it toward that defined direction.

Workforce Planning

Strategic process by which an organization analyzes its current workforce and determine the steps required to prepare for its future needs.