BUS 100 Exam 2 (Chapters 7, 8, 9, 10, 11, 12)

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Organizing

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organizations goals and objectives.

Leading

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organizations' goals and objectives.

Controlling

A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.

Vision

An encompassing explanation of why the organization exists and where its trying to head.

Mission statement

An outline of the fundamental purposes of an organization.

Goals

The broad, long-term accomplishments an organization wishes to attain.

Objectives

Specific, short-term statements detailing how to achieve the organizations goals.

SWOT analysis

A planning tool used to analyze an organizations' strengths, weaknesses, opportunities, and threats.

Strategic planning

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

Tactical planning

The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.

Operational planning

The process of setting work standards and schedules necessary to implement the company's tactical objectives.

Contingency planning

The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.

Decision making

Choosing among two or more alternatives.

Problem solving

The process of solving everyday problems that occur.

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

PMI

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

Organizational chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

Top management

Highest level of management, consisting of the president and other key company executives who develop strategic plans.

Middle management

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

Supervisory management

Managers who are directly responsible for supervising workers and evaluating their daily performance.

Technical skills

Skills that involve the ability to perform tasks in a specific discipline of department.

Human relations skills

Skills that involve communication and motivation; they enable managers to work through and with people.

Conceptual skills

Skills that involve the ability to picture the organization as a whole and the relationship among the various parts.

Staffing

A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives.

Transparency

The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.

Autocratic leadership

Leadership style that involves making managerial decisions without consulting others.

Participative (democratic) leadership

Leadership style that consists of managers and employees working together to make decisions.

Free rein-leadership

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

Enabling

Giving workers the education and tools they need to make decisions.

Knowledge management

Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.

External customers

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

Internal customers

Individuals and units within the firm that receive services for other individual units.

Economies of Scale

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

Hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Chain of Command

The line of authority that moves from the top of a hierarchy to the lowest level.

Bureaucracy

An organization with many layers of managers who set rules and regulations and oversee all decisions.

Centralized Authority

An organization structure in which decision making authority is maintained at the top level of management.

Decentralized Authority

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

Span of Control

The optimal number of subordinates a manager supervises or should supervise.

Tall Organization Structure

An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management.

Flat Organization Structure

An organization structure that has few layers of management and a broad span of control.

Departmentalization

The dividing of organizational functions into separate units.

Line Organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

Line Personnel

Employees who are part of the chain of command that is responsible for achieving organizational goals.

Staff Personnel

Employees who advise and assist line personnel in meeting their goals.

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure.

Cross Functional Self-Managed Teams

Groups of employees from different departments who work together on a long term basis.

Networking

Using communications technology and other means to link organizations and allow them to work together on common objectives.

Real Time

The present moment or the actual time in which something takes place.

Virtual Corporation

A temporary networked organization made up of replaceable firms that join and leave as needed.

Benchmarking

Comparing an organization's practices, processes, and products against the world's best.

Core Competencies

Those functions that the organization can do as well as or better than any other organization in the world.

Digital Natives

Young people who have grown up using the Internet and social networking.

Restructuring

Redesigning an organization so that it can more effectively and efficiently serve its customers.

Inverted Organization

An organization that has contact people at the top and the chief executive officer at the bottom of the organizational chart.

Organizational (or corporate) Culture

Widely shared values within an organization that provide unity and cooperation to achieve common goals.

Formal Organization

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.

Informal Organization

The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization.

Production

The creation of finished goods and services using the factors or production (land, labor, capital, entrepreneurship, and knowledge)

Production management

The management activities that helps firms create goods.

Operations management

A specialized area in management that converts or transforms resources, including resources, into goods and services.

Form utility

The value producers add to materials in the creation of finished goods and services.

Process manufacturing

Physically or chemically changing materials.

Assembly process

Puts together components (eggs, toast, coffee) to make a product (breakfast).

Continuous process

When long production runs turn out finished goods over time.

Intermittent process

When the production run is short (one or two eggs) and the producer adjusts machines frequently to make different products (like the oven in a bakery or the toaster in the diner).

Computer aided design (CAD)

The use of computers in the design of products.

Computer aided manufacturing (CAM)

The use of computers in the manufacturing of products.

Computer integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

Flexible manufacturing

Designing machines to do multiple tasks so they can produce a variety of products.

Lean manufacturing

The production of goods using less of everything than in mass production (less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product).

Mass customization

Tailoring products to meet the needs of a large group of individual customers.

Facility location

The process of selecting a geographic location for a company's operations.

Telecommuting

Working from home via computer and modem.

Facility layout

The physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers.

Materials requirement planning (MRP)

A computer based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place.

Enterprise resource planning (ERP)

A newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm into a single integrated software program that uses a single database

Purchasing

The function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.

Just in time (JIT) inventory control

Systems that keep a minimum of inventory on the premises and deliver needs just in time to go on the assembly line.

Maintaining quality

Consistently producing what the customer wants while reducing errors before and after delivery to the customer.

Six Sigma quality

Sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence.

Statistical quality control (SQC)

The process some managers use to continually monitor all phases of the production process and assure quality is being built into the product from the beginning.

Statistical process control (SPC)

The process of testing statistical samples of product components at each stage of production and plotting the test results on a graph.

ISO 9000

The common name given to quality management and assurance standards.

ISO 14000

A collection of the best practices for managing an organization's impact on the environment.

Program evaluation and review technique (PERT)

A popular technique for monitoring the progress of production which was developed for constructing nuclear submarines.

Critical path

The sequence of tasks that takes the longest time to complete.

Gantt chart

A bar graph that clearly shows what projects are being worked on and how much has been completed at any given time

Equity Theory

The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions.

Expectancy Theory

Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome.

Extrinsic Reward

Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases; praise, and promotions.

Goal Setting Theory

The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

Hawthrone Effect

The tendency for people to behave differently when they know they are being studied.

Hygiene factors

In Herzberg's theory of motivating factors, job factors that cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

Intrinsic Rewards

The personal satisfaction you feel when you perform well and complete goals.

Job Enlargement

A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

Job Enrichment

A motivational strategy that emphasizes motivating the worker through the job itself.

Job Rotation

A job enrichment strategy that involves moving employees from one job to another.