Intro to Bus Admin Exam 2

OSCM

(operations and supply chain management) design, operation, and improvement of the systems that create and deliver the firm's primary products and services

5 steps of management control function

1-establish clear records,2- monitor and record performance, 3-compare results to/against records, communicate results, 5- (if needed) take corrective action

public company (open corporation)

A company that sells its stock to the general public.

Stockholder vs. Stakeholder

A stakeholder is anyone that has an interest or is affected by a corporation. In other words, the stockholder isn't the only party having a stake in the corporation. Other stakeholders in a corporation include the employees, the employees' families, suppliers, customers, community, and others

CAD/CAM

Computer Aided Drawing-Computer Aided Manufacturing. The instructions stored in a computer that will be translated to very precise operating instructions to a robot, for tasks such as assembling cars or laser-cutting signage.

form of business that represents largest % of total receipts by businesses in US

Corporations (they make up 81% of total receipts, and only 20% of total businesses)

other way to simplify inputs(conversion process) managers use:

HR, informational resources, financial resources, material resources

PERT diagram

Program, Evaluation, Review Technique: identifies parallel paths and the critical path

private company (closed corporation)

Stock is owned by relatively few people and not sold to public

Tall vs. Flat Structures

Tall: The span of control is narrow meaning there are many management levels (^think lanky: tall and narrow) Flat: The span of control is wide meaning one manager supervises many employees.

Herzburg's Two Factor Theory

Theory X & Theory Y; asked workers to rank job-related factors in order from importance to motivation

partnership

Two or more people legally agree to become co-owners of a business

sole proprietorship

a business owned and managed by one person

digital natives

a generation of people born after 1980 who have been raised in a digital age

benchmarking

a process by which a company compares its performance with that of high-performing organizations

management

a process used to accomplish organizational goals through planning, leading, controlling and organizing

conventional (C) corporation

a state-chartered legal entity with authority to act and have liability separate from its owners

staff role

a supporting role

production mgmt

activities that helps firms create goods

general partnership

all owners share in operating the business and in assuming liability for the business debts

functional team

all team members belong to the same functional department

the franchisee

an individual or business that is granted the right to sell another party's product

planning (mgmt function)

anticipating trends and determining best strategy or tactic to achieve goals

what are stockholders not liable for

arent liable for debts or other problems beyond the money they are investing in stock

decentralized decision-making

authority is concentrated at lower level of management or organization

centralized decision-making

authority is concentrated at upper level of management or organization

theory X

average person dislikes work and will avoid if possible, wishes to avoid responsibility, may have to be punished to achieve goals and put in effort

What are some advantages of S-Corps?

avoids double taxation, limited liability, raises money by stock

Family and Medical Leave Act of 1993

businesses with 50+ employees must provide up to 12 weeks of unpaid leave per year (with regulations)

ISO14001

collection of best practices for managing an organizations impact on enviornment

human relations skills

communication and motivation

quality

consistently producing what customer wants while reducing errors before and after delivery

first-line management roles

contribute to planning process, implement actions to achieve tactical and operational goals

roles for middle management

contribute to strategic plan, develop tactical and organizational plans, motivate, guide and monitor/control

leading (mgmt function)

creating a vision and communicating, guiding, training, coaching, and motivating others

production

creation of finished goods and services using factors of production

What is done to "flatten" an organizational structure?

delayering: opening up lines of communication and collaboration

organizing (mgmt function)

designing structure of organization and creating conditions and systems in which everyone/everything works together

tactical planning

develop detailed short-term statement

top management roles

develop mission, long-term goals and strategic plans

cross-functional team

different functional departments and reports to functional manager and project manager

foreign corporation

do business in one state but chartered in different- must register in state where operating

domestic corporation

do business in state they are chartered

alien corporations

do business in the US but are chartered in another country

line vs line staff charts

dotted line - has a staff role

What are some advantages of a sole proprietorship?

ease of starting/ending business, ability to be your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes

expectancy theory

employee expectations can affect motivation; amount of effort on specific task depends on expectations of outcome

self-managed team

employees who can manage themselves, monitored not managed, leadership is designated, shared or rotated

first-line management

empowers and trains employees

controlling (mgmt function)

establishes clear standards to determine whether an organization is progressing towards a goal

manager theory

explores how managers can motivate employees

internal analysis

factors in companys control

Inputs for production process

factors of production (land,labor,capital,knowledge,entrepreurship)

What is being converted in the conversion process?

factors of production(inputs) and goods/services are outputs

external analysis

factors that are out of companys control

flat organization structure

few layers of management, broad span of control

narrow span of control

fewer direct reports, more control from top mgmt, higher costs

Top 3 industries that add the most value to the US GDP

finance, business/professional services, and government

civil rights act of 1964

for firms with 15+ employees- outlawed discrimination

HR specialist vs HR generalist

generalist has a wider scope, and acquires knowledge in all core HR disciplines while as a specialist you can only focus in on one or two areas and develop in-depth skills in those

virtual team

geographically dispersed but communicate electronically

extrinsic reward

given by someone else for good work (pay raise, praise, promotions)

Customer Type Departmentalization

grouping activities on the basis of common customers or types of customers

geographic location departmentalization

grouping activities on the basis of territory

departmentalization by function

grouping jobs that relate to the same organizational activity

departmentalization by product

groups activities related to a particular good or service

What are some advantages of franchising?

has many currencies, a GLOBAL effort, newer and smaller franchises are going global as well, convenience, level of quality

top level management

highest level of mgmt, responsible for all top-level decisions, and usually consists of president, others like COO,CIO,CKO, and sometimes CKO

Equity theory

how employees perceptions of fairness affects their willingness to perform

departmentalization

how jobs are grouped together

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Envirnmental Scanning

identifying relevant actions or states of affairs in the business environment

What are some decision-making factors for choosing facility location

inexpensive resources(major reason), time-to-market: decision-making factor, locate near supplier facilities, study for quality of life, taxes

What are some disadvantages in corporations?

initial cost, extensive paperwork, double taxation, 2 tax returns, size, etc

corporation

legal entity with authority to act and have liability apart from it's owners

conceptual skills

let manager picture organization as a whole and see relationships in it's various parts

What are some advantages in corporations?

limited liability, ability to raise more money for investment, size, ease of ownership change, etc

What are some disadvantages of S-Corps?

limited to 100 shareholders, shareholders must be US citizens or residents

limited liability partnership

limits partners risk of losing personal assets to the outcomes of only their own acts and omissions and those of people under their supervision.

S corporation

looks like a corporation but is taxed like a sole proprietorship and partnerships.

master limited partnership (mlp)

looks like a corporation, acts like one, is traded on stock changed like one, but is taxed as a partnership

autocratic leadership

making management decisions without consulting others; emergencies when needed

participative (democratic) leadership

management and employees work together to make decisions

free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish

middle management

managing and directing supervisory management

Equal Pay Act of 1963

men and women doing equal jobs paid same wage

broad span of control

more direct reports, reduced costs, more empowerment, loss of control, may yield a "flat" organizational structure with fewer levels

What are some advantages of partnerships?

more financial resources, shared mgmt and pooled skills and knowledge, longer survival, no special taxes

A vision is...

more than a goal; it is a broad explanation of why organization exists and where it's trying to go

ISO9001

most common name given to quality management and assurance records

theory y

most people like work, naturally works towards goals, most not only accept but also seek responsibility, motivated by a variety of rewards

Americans with Disabilities Act of 1990

no discrimination of individuals with disabilities

What do you need to qualify to be a S Corp.?

no more than 100 shareholders, have individual shareholders, one class of stock, derive no more than 25% of income

What characteristics do LLC's have?

not limited to 100 owners, no citizenship restriction, at least two members and avoids double taxation, fewer meetings, and less paperwork

limited partnership

one or more general partners and one or more limited partners

HR falls under which organizing function?

operations or finance; leading

span of control

optimal number of employees a manager supervises or should supervise

Age Discrimination in Employment Act of 1967

outlawed discrimination of anyone 40+ old and outlaws requiring retirement by certain age

a mission statement

outlines the organizations fundamental purposes

Hawthorne effect

peoples tendency to behave differently when they know they are being studied

technical skils

performing tasks in a specific discipline or department

intristic rewards

personal satisfaction you feel when you perform well and complete goals

process manufacturing

physically or chemically changes the materials

Most find ________ to be the most valuable tool of manager functions

planning

contingency planning

preparing alternative courses of action that may be used if original plan does not work out

HR Mgmt

process of determining HR needs, then recruiting, selecting, developing, motivating, etc employees to achieve goals

organizational management

process of planning, leading, and controlling use or application of organization resources to achieve goals of situation

lean manufacturing

production of goods using less of everything in mass production

matrix organization

project managers are in charge of teams made up of members of several departments

assembly process

puts together components to make a product

Example of form utility

putting services together for a vacation package

restructuring

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

Occupational Safety and Health Act of 1970

regulates safety and health regulations in private industries and some public sectors

Disadvantages of sole proprietorship?

risk of personal losses, limited financial resources, mgmt difficulties, limited growth, etc.

goal-setting theory

says setting ambitious but attainable goals can motivate workers and improve performance if goals are accepted by feedback and if conditions pave the way for achievement

Gantt chart

scheduling tool that displays tasks to be performed and time for each task

the franchiser

sells rights to use business name and sell products

six sigma quality

sets a benchmark of just 3.4 defects per million opportunities defects potential problems to prevent their occurance

operational planning

setting work standards and schedules

LLC

similar to s corporation but without special eligibility requirements

technical skills, human skills, conceptual skills

skills needed by leaders

form of business that represents largest % of business in the US

sole proprietorships

operations mgmt

specialized area in mgmt that converts or transforms resources (like innovation and technical skills) into goods/services

non-supervisors

start here! employee

Preferred stock

stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.

mass customization

tailoring products to meet the needs of a large number or individuals- now practiced widely

double taxation

taxation of dividends both as corporate profit and as personal income

skills needed for top, middle, and first-line mgmt

technical, HR, and conceptual skills

What are some disadvantages of partnerships?

tension is possible, unlimited liability, division of profits, disagreements, difficulty of termination

mission

terms of who organization is now and who it serves

limited liability

the limited partners liability for the debts of the business is limited to the amount they put in; not personal assets

chain of command

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

common stock

the most basic form of ownership, including voting rights on major issues, in a company

what is the most valuable resource in an organization? Why?

the people! Employees more specifically- they are the driving force behind it's success. Without them there is no organization

organizational, or corporate culture

the values, beliefs, and attitudes shared by organizational members

Reinforcement Theory

theory that positive and negative reinforcers motivate a person to behave in certain ways

Maslow believed...

to understand motivation at work, we must understand human motivation in general

strategic planning

top management determines major goals

True or False: motivation greatly depends on attitudes towards workers.

true

fixed-position layout

used in producing a product too large to move customizable production

product layout

used when all products undergo the same operations in the same sequence. inflexible, but reliable

process layout

used when small batches of different products are created or worked on in a different operating sequence customizable production

form utility

value producers add to materials in the creation of finished goods/services- can exist @ retail level

At top level management, you have a need for..

visionaries, planners, organizers, coordinators, communicators, morale builders and motivators