ACP Business Administration Test #2

administrative managers

Those who manage an entire business or a major segment of a business; they are not specialists but coordinate the activities of specialized managers.

agenda

A calendar, containing both specific and vague items, that covers short-term goals and long-term objectives.

analytical skills

The ability to identify relevant issues, recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation.

conceptual skills

The ability to think in abstract terms and to see how parts fit together to form a whole.

controlling

The process of evaluating and correcting activities to keep the organization on course.

crisis management or contingency planning

An element in planning that deals with how to respond to potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or reputation crisis.

directing

Motivating and leading employees to achieve organizational objectives.

downsizing

The elimination of a significant number of employees from an organization.

financial managers

Managers who focus on obtaining the funds needed for the successful operation of an organization and using those funds to further organizational goals.

first-line managers

Managers who supervise both workers and the daily operations of an organization.

human relations skills

The ability to deal with people, both inside and outside the organization.

human resources managers

Managers who handle the staffing function and deal with employees in a formalized manner.

information technology (IT) managers

Managers who are responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks.

leadership

The ability to influence employees to work toward organizational goals.

management

A process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.

managers

Those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, leading, and controlling the organization’s activities to reach its objectives.

marketing managers

Managers who are responsible for planning, pricing, and promoting products and making them available to customers through distribution.

middle managers

Managers who are responsible for the tactical planning that implements the general guidelines established by top management.

mission

The statement of an organization’s fundamental purpose and basic philosophy.

networking

The building of relationships and sharing of information with colleagues who can help managers achieve the items on their agendas.

operational plans

Very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan.

organizing

The structuring of resources and activities to accomplish objectives in an efficient and effective manner.

planning

The process of determining the organization’s objectives and deciding how to accomplish them; the first function of management.

production and operations managers

Managers who develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace.

staffing

The hiring of people to carry out the work of the organization.

strategic plans

Those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission.

tactical plans

Short-range plans designed to implement the activities and objectives specified in the strategic plan.

technical expertise

The specialized knowledge and training needed to perform jobs that are related to particular areas of management.

top managers

The president and other top executives of a business—e.g., the chief executive officer, chief financial officer, chief operating officer, chief privacy officer—who have overall responsibility for the organization.

accountability

The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.

centralized organization

A structure in which authority is concentrated at the top and very little decision-making authority is delegated to lower levels.

committee

A permanent, formal group that performs a specific task.

customer departmentalization

The arrangement of jobs around the needs of various types of customers.

decentralized organization

A structure in which decision-making authority is delegated as far down the chain of command as possible.

delegation of authority

Giving employees not only tasks but also empowering them to make commitments, use resources, and take whatever actions are necessary to carry out those tasks.

departmentalization

The grouping of jobs into working units usually called departments, units, groups, or divisions.

functional departmentalization

The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.

geographical departmentalization

The grouping of jobs according to geographic location, such as state, region, country, or continent.

grapevine

An informal channel of communication, separate from management’s formal, official communication channels.

group

Two or more individuals who communicate with one another, share a common identity, and have a common goal.

line-and-staff structure

A structure that has a traditional line relationship between superiors and subordinates and also specialized managers—called staff managers—who are available to assist line managers.

line structure

The simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.

matrix structure

A structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project-management structure.

multidivisional structure

A structure that organizes departments into larger groups called divisions.

organizational chart

A visual display of the organizational structure, chain of command, and other relationships.

organizational culture

A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

organizational layers

The levels of management in an organization.

product departmentalization

The organization of jobs in relation to the products of the firm.

product-development teams

A specific type of project team formed to devise, design, and implement a new product.

project teams

Groups that are similar to task forces, but normally run their operation and have total control over a specific work project.

quality-assurance teams (or quality circles

Small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems.

responsibility

The obligation placed on employees to perform assigned tasks satisfactorily and be held accountable for the proper execution of work.

self-directed work team (SDWT)

A group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.

span of management

The number of subordinates who report to a particular manager.

specialization

The division of labor into small, specific tasks and the assignment of employees to do a single task.

structure

The arrangement or relationship of positions within an organization.

task force

A temporary group of employees responsible for bringing about a particular change.

team

A small group whose members have complementary skills; a common purpose, goals, and approach; and hold themselves mutually accountable.

capacity

The maximum load that an organizational unit can carry or operate.

computer-assisted design (CAD)

The design of components, products, and processes on computers instead of on paper.

computer-assisted manufacturing (CAM)

Manufacturing that employs specialized computer systems to actually guide and control the transformation processes.

computer-integrated manufacturing (CIM)

A complete system that designs products, manages machines and materials, and controls the operations function.

continuous manufacturing organizations

Companies that use continuously running assembly lines, creating products with many similar characteristics.

customization

Making products to meet a particular customer’s needs or wants.

economic order quantity (EOQ) model

A model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) inventory.

fixed-position layout

A layout that brings all resources required to create a product to a central location.

flexible manufacturing

The use of computers to direct machinery to adapt to different versions of similar operations.

inputs

The resources—such as labor, money, materials, and energy—that are converted into outputs.

intermittent organizations

Organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences.

inventory

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses.

inventory control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

ISO 9000

A series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions.

ISO 14000

A comprehensive set of environmental standards that encourage companies to conduct business in a cleaner, safer, and less wasteful way.It provides a uniform set of standards globally

just-in-time (JIT) inventory management

A technique using smaller quantities of materials that arrive “just in time” for use in the transformation process and therefore require less storage space and other inventory management expense.

manufacturing

The activities and processes used in making tangible products; also called production.

material-requirements planning (MRP)

A planning system that schedules the precise quantity of materials needed to make the product.

modular design

The creation of an item in self-contained units, or modules, which can be combined or interchanged to create different products.

operations

The processes used in making both tangible and intangible products.

operations management (OM)

The development and administration of the activities involved in transforming resources into goods and services.

outputs

The goods, services, and ideas that result from the conversion of inputs.

process layout

A layout that organizes the transformation process into departments that group related processes.

product layout

A layout requiring that production be broken down into relatively simple tasks assigned to workers who are usually positioned along an assembly line.

production

The activities and processes used in making tangible products; also called manufacturing.

project organization

A company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration.

purchasing

The buying of all materials needed by the organization; also called procurement.

quality control

The processes an organization uses to maintain its established quality standards.

routing

The sequence of operations through which the product must pass.

scheduling

The assignment of required tasks to departments or even specific machines, workers, or teams.

standardization

The making of identical, interchangeable components or products.

statistical process control

A system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system.

supply chain management

Connecting and integrating all parties or members of the distribution system in order to satisfy customers.

total quality management (TQM)

A philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers’ perceptions of quality.

behavior modification

Changing behavior and encouraging appropriate actions by relating the consequences of behavior to behavior itself.

classical theory of motivation

A theory that suggests that money is the sole motivator for workers.

compressed workweek

A four-day (or shorter) period in which an employee works 40 hours.

equity theory

An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange.

esteem needs

The need for respect—both self-respect and respect from others.

expectancy theory

An assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it.

extrinsic rewards

Benefits and/or recognition received from someone else

flextime

A program that allows employees to choose their starting and ending times provided that they are at work during a specified core period.