BUSINESS CH 14-17
CHAPTER 14 – MANAGEMENT, MOTIVATION, AND LEADERSHIP
Management – achieving the goals of an organization through planning, organizing, leading, and controlling organizational resources including people, money, and time
Planning – determining organizational goals and action plans for how to achieve those goals
Organizing – Determining a structure for both individual jobs and the overall organization
Leading – directing and motivating people to achieve organizational goals
Controlling – monitoring performance and making adjustments as needed
Top management – managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources
Middle management – managers who supervise lower-level managers and report to a higher-level manager
First- line (supervisory) management – managers who directly supervise nonmanagement employees
Technical skills – expertise in a specific functional area or department
Human skills – the ability to work effectively with and through other people in a range of different relationships
Conceptual skills – the ability to grasp a big picture view of the overall organization, the relationships among its various parts, and its fir in the broader competitive environment
Maslow’s Hierarchy of needs theory – theory that suggests that humans needs fall into a hierarchy and that as each need is met, people become motivated to meet the next highest need in the pyramid
Theory x and theory y – theory that suggests that the management attitudes towards workers fall into two opposing categories based on management assumptions about worker capabilities and values
Job enrichment – the creation of jobs with more meaningful content, under the assumption that challenging, creative work will motivate employees
Expectancy theory – a motivation theory that concerns the relationship among individual effort, performance, and reward
Equity theory – a motivation theory that proposes that perceptions of fairness DIRECTLY affect worker motivation
Strategic planning – high-level long-term planning that establishes a vision for the company, defines long term objections, and determines action steps
Tactical planning – more specific, shorter-term planning that applies strategic plans to specific functional areas
Operational planning – VERY specific, short-term planning that applies tactical plans to daily, weekly, and monthly operations
Contingency planning – planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans
Mission – the definition of an organization’s purpose, values, and core goals, which provides the framework for all other plans
SWOT analysis – a strategic planning tool that helps management evaluate an organization in terms of internal strengths and weaknessees, and external opportunities and threats
Strategic goals – concrete benchmarks that managers can use to measure performance in each key area of the organization
Strategies – action plans that help the organization achieve its goals by forging the best fit between the firm and the environment
Organization chart – a visual representation of the company’s formal structure
Degree of centralization – the extent to which decision making power is held by a small number of people at the top of the organization
Span of control – span of management; refers to the number of people a manager supervises
Departmentalization – the division of workers into logical groups
Line organizations – organizations with a clear, simple, chain of command from top to bottom
Line and staff organizations – organizations with line managers forming the primary chain of authority in the company, and staff departments working alongside line departments
Line managers – managers who supervise the functions that contribute directly to profitability: production and marketing
Staff managers – managers who’s supervise the functions that provide advice and assistance to the line departments
Matrix organization – organization’s with flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis
Autocratic leaders – leaders who hoard decision making power for themselves and typically issue orders without consulting their followers
Democratic leaders – leaders who share power with their followers. While they ultimately make final decisions they leave room for input
Free-reign leaders – leaders who set objectives for their followers but give them freedom to choose how they will accomplish those goals
CHAPTER 15 – HUMAN RESOURCE MANAGEMENT
Human resource management – the management function focused on maximizing the effectiveness of the workforce by recruiting world class talent, promoting career development, and determining workforce strategies to boost organizational effectiveness
Job analysis – the examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time
Job description – an explanation of the responsibilities for a specific position
Job specifications – the specific qualifications necessary to hold a particular position
Internal recruitment – the process of seeking employees who are currently within the firm to fill open positions
External recruitment – the process of seeking new employees from outside the firm
Structured interviews – an interviewing approach that involves developing a list of questions beforehand and asking the same questions in the same order for each candidate
Probationary period – a specific time frame (3-6 months) during which a new hire can prove his or her worth on the job before they can become permanent
Contingent workers – employees who do not expect regular, full time jobs, including temporary full time workers, independent contractors or agency workers
Orientation – the first step in the training and development process, designed to introduce employees to the company culture and provide key administrative information
On the job training – a training approach that requires employees to simply begin their jobs – sometimes guided by more experienced employees and to learn as they go
Apprenticeships – structured training programs that mandate that beginner serve as an assistant to a fully trained worker before gaining full credentials to work in the field
Management development – programs to help current and potential executives develop the skills they need to move into leadership positions
Performance appraisal – a formal feedback process that requires managers to give their subordinates feedback on a one to one basis, typically by comparing actual results to expected results
Compensation – the combination of pay and benefits that employees recieve in exchange for their work
Wages – the pay that employees recieve in exchange for the number of hours or days that they work
Salaries – the pay that employees recieve over a fixed period, most often weekly or monthly
Benefits – noncash compensation, including programs such as health insurance, vacation, and childcare
Cafeteria-style benefits – an approach to employee benefits that gives all employees a set dollar amount that they must spend on company benefits, allocated however they wish within broad limitations
Flextime – scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours
Compressed workweek – a version of flextime scheduling that allows employees to work a full time number of hours in less than the standard work week
Telecommuting – working remotely most often from home and connecting online
Civil rights act of 1964 – federal legislation that prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex or national origin
Title VII – a portion of the civil rights act of 1964 that prohibits discrimination of firing, hiring, etc with 15 or more workers
Equal employment opportunity commission – a federal agency designed to regulate and enforce the provisions of the title VII
Affirmative action – policies meant to increase employment and educational opportunities for minority groups-especially groups defined by race, ethnicity, or gender
Sexual harassment – workplace discrimination against a person based on his or her gender
CHAPTER 16 – MANAGING INFO AND TECHNOLOGY
Hardware – the physical tools and equipment used to collect, input, store, organize and process data and to distribute information
Software – programs that provide instructions to a computer so that it can perform a desired task
System software – software that performs the critical functions necessary to operate the computer at the most basic level
Applications software – software that helps a user perform a desired task
Internet – the world’s largest computer network; essentially a network of computer networks all operating under a common set of rules that allow them to communicate with each other
Broadband internet connection – an internet connection that is capable of transmitting large amounts of information very quickly
Internet 2 – high tech internet with access limited to a consortium of member organization. Speed and capacity
Intranet – a private network that has the look and feel of the internet and is navigated using a browser, but which limits access to a single firm’s employees
Extranet – an intranet that allows limited access to a selected group of stakeholders, such as suppliers or customers
Cloud computing – the use of internet based storage capacity, processing power, and computer applications to supplement or replace internally owned information technology resources
Data – raw, unprocessed facts and figures
Information – data that have been processed in a way that makes them meaningful to their user
Database – a file consisting of related data organized according to a logical system and stored on a hard drive or some other computer accessible media
Decision support system – system that gives managers access to large amounts of data and the processing power to convert these data into high quality information, thus improving the decision making process
Business intelligence system – a sophisticated form of decision support system that helps decision makers discover information that was previously hidden
Data warehouse – a large, organization-wide database that stores data in a centralized location
Data mining – the use of sophisticated statistical and mathematical techniques to analyze vast amounts of data to discover hidden patterns and relationships, this creating valuable information
Expert system – a decision support system that helps make better decisions in an area where they lack experience
e-commerce – the marketing, buying, selling, and servicing of products over a network
Business to consumer (b2c) e-commerce – e commerce in markets where business and final consumers interact
Business to business (b2b) e-commerce – e commerce in markets where businesses buy from and sell to other businesses
Web 2.0 - websites that incorporate interactive and collaborative features to create a richer, more interesting and more useful experience for their users
Viral marketing – an internet marketing strategy that tries to involve customers and others not employed by the seller in activities that help promote the product
Cyberdiary – an internet-based firm that specializes in the secure electronic transfer of funds
Electronic bill presentment and payment – a method of bill payment that makes it easy for the customer to make a payment, often by simply clicking on a payment option contained in an email
e-marketplace –a specialized internet site where buyers and sellers engaged in business to business e-commerce can communicate and conduct business
Radio frequency identification (RFID) - a technology that stores information on small microchips that can transmit the information when they are within a range of a special reader
Malware – term for malicious software, such as spyware, computer viruses and worms
Spyware – software that is installed on a computer without the user’s knowledge or permission to track the user’s behavior
Computer virus – computer software that can be spread from one computer to another without the knowledge or permission of the computer users by attaching itself to emails or other files
Worm – malicious computer software that unlike viruses, can spread on its own WITHOUT being attached to other files
Spam – unsolicited email advertisements usually sent to very large numbers of recipients, many of whom have no interest in the message
Phishing – a scam in which official looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, username, account numbers
Pharming – a scam that seels to steal identities by routing internet traffic to fake websites
Hacker – a skilled computer user who uses their experience to gain unauthorized access to the computer or system of others with malicious intent
Firewall – software/hardware designed to prevent unwanted access to a computer or system
Intellectual property – property that is the result of creative or intellectual effort, such as books, musical workers, inventions, and computer software
CHAPTER 17 – OPERATIONS MANAGEMENT
Operations management – managing all of the activities involved in creating value by producing goods and services and distributing them to customers
Efficiency – producing output or achieving a goal at the lowest cost
Effectiveness – using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits
Goods – tangible products
Services – intangible products
Process – a set of related activities that transform inputs into outputs, thus adding value
Inventory – stocks of goods or other items held by organizations
Critical path method (CPM) - a project management tool that illustrates the relationships, among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete
Immediate predecessors – activities in a project that must be completed before some other specified activity can begin
Critical path – the sequence of activities in a project that is expected to take the longest to complete
Value chain – the network of relationships that channels the flow of inputs, information, and financial resources through all of the process directly or indirectly involved in producing goods and services and distributing them to consumers
Vertical integration – performance of processes internally that were previously performed by other organizations in a supply chain
Outsourcing – arranging for other organizations to perform supply chain functions that were previously performed internally
Offshoring – moving production or support processes to foreign countries
Enterprise resource planning (ERP) - software based approach to integrate an organizations information flows
Servicescape – the environment in which a customer and service provider interact
Automation – replacing human operation and control of machinery and equipment with some form of programmed control
Robot – a reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices in order to perform various tasks
Computer – aided design (CAD) - drawing and drafting software that enables users to create and edit blueprints and design drawings quickly and easily
Computer aided engineering (CAE) - software that enables users to test, analyze, and optimize their designs
Computer aided manufacturing (CAM) - software that takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible
Computer aided design/manufacturing CAD/CAM - a combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output
Computer integrated manufacturing (CIM) - a combination of CAD/CAM software with flexible manufacturing systems to automate almost all steps involved in designing, testing, and producing a product
Total quality management (TQM) - an approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long-term commitment to continuous improvement
Poka yokes – simple methods incorporated into a production process designed to eliminate or greatly reduce errors
Six sigma – an approach to quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long term commitment to working on quality – related issues
Baldridge national quality program – a national program to encourage American firms to focus on quality improvement
ISO 9000 – a family of generic standards for quality management systems established by the International Organization for Standardization
Lean production – an approach to production that emphasizes the elimination of waste in all apsects of production processes
Just in Time production – a production system that emphasizes the production of goods to meet actual current demand, minimizing the need to hold inventories of finished goods and work in process at each stage of the supply chain
ISO 14000 – a family of generic standards for environmental management established by the International Organization for standardization