Management and Business Operations Review

Comprehensive vocabulary flashcards covering organizational management, production, economics, and business structures from the lecture notes.

Consequences of Employee Turnover

Loss of $6-9$ month salary in training, increased stress and gossip, decreased customer service, poor reputation, loss of intellectual capital, interrupted product development, and decreased morale among remaining workers.

Motivators (Herzberg)

Job factors that cause employees to be productive and give them satisfaction, including the work itself, achievements, recognition, responsibility, and autonomy.

Hygiene (maintenance) factors

Job factors that can cause dissatisfaction if missing but do not necessarily motivate if increased, such as salary, status, interpersonal relationships with coworkers, job security, and working conditions.

Disengagement

Identified as the most important reason people leave a firm.

Five characteristics of work for motivation

Skill variety, task identity, task significance, feedback, and autonomy.

Frederick Taylor

Known as the Father of scientific management; he used time-motion studies to find the most efficient way to perform tasks.

Scientific Management

The process of learning the amount of time it takes to do something, finding the most efficient method, and teaching it to others.

Hawthorn Effect

A concept derived from the Hawthorn Studies related to how being observed affects worker productivity.

Abraham Maslow

Creator of the Hierarchy of Needs, believing motivation comes from unmet needs; once a need is met, it no longer motivates.

Two-factor theory

Also known as hygiene-motivation theory, developed by Frederick Herzberg to distinguish between factors that cause satisfaction and those that prevent dissatisfaction.

Douglas McGregor

Managerial theorist who observed managers' attitudes and developed Theory X and Theory Y.

Management by Objectives (MBO)

A system developed by Peter Drucker to engage everyone in goal setting and implementation, based on the central idea that employees must motivate themselves.

Three basic requirements of production

Proposed by Andrew S. Grove: 1. Build & deliver products in response to customer demand at a scheduled time, 2. Provide acceptable quality, 3. Provide everything at the lowest possible cost.

Deming Cycle

A continuous improvement model consisting of four stages: Plan, Do, Check, Act (PDCA).

Narrow span of control

An organizational structure providing more control by top management, more advancement chances, greater specialization, and more supervision.

Departmentalization

An organizational method that saves costs, improves efficiency, allows workers to develop in-depth skills, and achieves economies of scale.

Decentralized authority disadvantages

Includes being less efficient, complex distribution systems, less top management control, and a weakened corporate image.

Operational Planning

The process of setting work standards and schedules necessary to implement tactical objectives, focusing on daily operations and specific supervisors.

Rational Decision Making Model

A six-step process: 1. Define situation, 2. Collect info, 3. Develop alternatives, 4. Decide best alternative, 5. Begin implementation, 6. Follow up/evaluate.

Planning Functions

Setting goals, developing strategies, determining resources, and setting precise standards to please customers.

Controlling

The process of establishing clear standards, measuring results, monitoring performance, and taking corrective action to ensure goal progression.

Strategic Planning

Planning done by top management to determine major goals, policies, and strategies for obtaining and using resources.

Supervisory Management

Managers, usually first-line, responsible for supervising workers and evaluating daily performance.

Four basic rights as consumers

Proposed by John F. Kennedy: Right to choose, Right to be heard, Right to be informed, and Right to safety.

Revenue

The total amount of money a business takes in during a given period.

Profit

The amount of money a business earns above and beyond what is spent for salaries and other expenses needed for operations.

Standard of Living

The amount of goods and services people can buy with the money they have.

Circular Economy

The practice of reusing, redistributing, refurbishing, and recycling products to keep them in the value circle instead of landfills.

Factors of Production

Land, labor, capital, entrepreneurship, and knowledge.

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business.

Outsourcing

Contracting with other companies to perform functions like production or accounting.

Insourcing

Foreign companies setting up design and production facilities in the US.

E-commerce

The buying and selling of goods, categorized into Business-to-consumer (B2C) and Business-to-business (B2B).

Gross Output

A measure of total sales volume at all stages of production, considered a better indicator than GDP and often twice its size.

Structural Unemployment

Unemployment caused by firm restructuring or a mismatch between seeker skills/location and job requirements.

Cyclical Unemployment

Unemployment due to a recession or a downturn in the business cycle.

Stagflation

Occurs when the economy is slowing while prices continue to rise.

Core Inflation

The Consumer Price Index (CPI) minus food and energy costs.

Producer Price Index (PPI)

Measures price changes at the wholesale level across nearly all industry goods-producing sectors.

Fiscal Policy

Government efforts to stabilize the economy by increasing or decreasing taxes or government spending.

Monetary Policy

Management of the money supply and interest rates by the Federal Reserve Bank.

Federal Reserve Bank (the Fed)

A semiprivate organization that controls the money supply to manage economic ups and downs.

National Debt

The sum of government deficits over time.

Socialism

An economic system where basic businesses are government-owned to distribute profits more evenly.

Command Economy

An economy where the government makes economic decisions; associated with socialism and communism.

General Agreement on Tariffs & Trade (GATT)

A global forum of $23$ nations created to reduce trade restrictions.

Revenue Tariffs

Tariffs specifically designed to raise money for the government.

Trade Protectionism

The use of government regulations like tariffs and quotas to limit imports.

Floating Exchange Rates

A system where currency values vary based on global supply and demand as determined by traders.

Sovereign Wealth Funds (SWFs)

Government-controlled investment funds holding stakes in foreign companies and real estate.

Foreign Direct Investment (FDI)

The purchase of permanent property and businesses in foreign nations.

Contract Manufacturing

Foreign production of private-label goods for a domestic company to brand; a form of outsourcing.

Balance of Payments

The difference between money entering a country (exports, tourism, aid) and money leaving (imports, investment).

Compliance-based ethics codes

Codes emphasizing the prevention of unlawful behavior through control and penalties.

Integrity-based ethics codes

Codes defining guiding values and shared accountability to support ethically sound behavior.

Sarbanes-Oxley Act

A law protecting whistleblowers by allowing confidential submission of accounting and auditing concerns.

Corporate Social Responsibility (CSR)

A business concern for the welfare of society based on commitment to integrity, fairness, and respect.

Master Limited Partnership (MLP)

A partnership traded on stock exchanges but taxed like a partnership; limited to oil, gas, and real estate.

Limited Liability Partnership (LLP)

A partnership limiting partners' personal asset risk to their own acts or those of people they supervise.

Conventional (C) Corporation

A state-chartered legal entity with authority and liability separate from its owners.

Quasi-public corporations

Government-chartered monopolies that perform services for the general public.

S Corporation

A government creation that looks like a corporation but is taxed like a sole proprietorship to avoid double taxation.

Vertical Merger

The joining of two firms operating in different stages of related businesses.

Horizontal Merger

The joining of two firms in the same industry to diversify or expand.

Conglomerate Merger

The joining of firms in completely unrelated industries.

Acquisition

One company's purchase of the property and obligations of another company.

Cooperative (co-op)

A business owned and controlled by the people who use it, pooling resources for mutual gain.

Tactical Planning

Detailed, short-term statements regarding what is to be done and by whom, usually by lower-level managers.

Contingency Planning

The process of preparing alternative courses of action if primary plans fail.

PMI

A problem-solving tool listing the pluses, minuses, and implications of a solution.

Middle Management

Managers like branch or department heads responsible for tactical planning and controlling.

Chief Operating Officer (COO)

The officer responsible for putting CEO changes into effect and managing daily operations.

Chief Financial Officer (CFO)

The officer responsible for obtaining funds, planning budgets, and collecting funds.

Chief Information Officer (CIP) / Chief Knowledge Officer (CKO)

Responsible for getting the right information to managers for correct decision-making.

Economies of Scale

Reduction of production costs by purchasing bulk raw materials, where average cost decreases as production increases.

Bureaucracy

An organization with many layers of managers setting regulations and overseeing decisions.

Core Competencies

The functions an organization performs as well as or better than any other organization globally.

Grapevine

The informal organization system through which unofficial information flows.

Process Layout

A layout where similar equipment and functions are grouped together.

Materials Requirement Planning (MRP)

A computer-based system using sales forecasts to ensure parts and materials are available when needed.

Enterprise Resource Planning (ERP)

Software integrating core processes like HR and supply chain into a single centralized database.

Malcolm Baldrige National Quality Awards

Awards setting standards for overall quality in manufacturing, service, nonprofit, and healthcare sectors.

Principle of Motion Economy

The theory by Frank and Lillian Gilbreth that jobs can be broken down into elementary motions called therbligs.

Expectancy Theory

Victor Vroom's theory that effort depends on expectations of outcome involving ability, reward, and worth.

HR Signal

A tool using pattern recognition to analyze employee work and interactions with colleagues.