SEVI Exam 2
Six sigma
A discipled approach that relies on statistical data and improved methods to eliminate defects for a firms products and services.
Employee ownership
A situation in which employees own the company they work for by virtue of being stockholders
STRATEGIC PLAN Tactical plan
A smaller scale plan developed to implement a strategy
Continuous Improvement (Kaizen)
Business philosophy that focuses on gradually improving productivity and making a work environment more efficient
Site selection
In determining where to locate facilities, management must consider a number of variables, including the following: - Locations of customers and suppliers - Quality of life for employees and management in the proposed location - The cost of land and building costs - Local and state taxes, environmental regulations, and zoning laws; - The amount of financial support and subsidies if any, offered by local and state govs, and - Special requirements, such as great amounts of energy or water used in the production process.
Employee ownership Stock Options
An option is simply the right to buy shares of the firm within a prescribed time at a set price.
decentralized organization
An organization in which management consciously attempts to spread authority widely across various organization levels
Centralized organization
An organization that systematically works to concentrate authority at the upper levels of the organization.
matrix structure
An organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization.
stratgey
An outline of actions by which an organization intends to accomplish its goals and objectives.
Compensation decisions wage survey
A collection of data on prevailing wage rates within an industry or geography
Task force
A committee established to investigate a major problem or pending decision. EX: A task force for assessing the pros and cons of a merger with another company
Lean manufacturing
A concept built on the idea of eliminating waste from all of the activities required to produce a product or service.
Organization chart
A diagram that represents the positions and relationship within an organization.
Replacement chart
A list of personnel and their possible replacements (successors) within a firm
Job description
A list of the elements that make up a particular job (duty, working conditions, responsibilities)
job specificaton
A list of the qualifications required to perform a particular job (knowledge, skills, and experiences)
First line manager
A manager who coordinates and supervises the activities of operating employees. Works with and motivates employees, answers questions, and solves day to day problems. office manager, supervisor, foreman
Expectancy theory
A model of motivation based on the assumption that motivation depends on how likely we thin we are to get reward and on how much we can get - people are motivated to wrk when they believe they can get what they want from their job.
MBO (management by objectives)
A motivation technique in which managers and employees collaborate in setting goals.
Job enrichment
A motivation technique that provides employees with more variety and responsibility in their jobs
SHRM (Strategic Human Resource Management
A process of managing human resources that links the workforce with the core strategies, objectives, and goals of an organization
Standing committee
A relatively permanent committee charged with performing some recurring task. EX: A budget review committee for reviewing departmental budget requests on an ongoing basis
Flextime
A schedule that allows workers to choose work hours that fit their particular needs.
Maslow's hierarchy of needs
A sequence of human needs in the order of their importance. -THINK TRIANGLE - people have a sequence of motivation -must satisfy lower level needs before higher levels become important - basic needs, then psychological needs, then self fulfillment
Which of the following statements is true? A) the way employees are managed has less impact on an organization than marketing, financial decisions, production, or technology. B) Management is the process of coordinating resources to achieve the goals of an organization. C) External environmental conditions - the economy, consumer markets, technology, politics, and cultural forces change slowly. D) The four types of resources managers coordinate are very specific categories. E) Highlighting human resources and trying to ensure that employees are happy has little impact on productivity.
B
Hawthorne Studies
A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior. - RESEARCH CONCLUDED HUMAN FACTORS ARE IMPORTANT. - sense of involvement : workers for the first time felt as though they were an important part of the organization. - Elton Mayo studied the effects of the lighting levels on employee productivity - Productivity increase regardless of lighting levels (even the level of moonlight )
Performance appraisal Evaluation
Common evaluation techniques -objective methods(use some measurable quantity) -judgemental methods(the supervisor judge) -Avoiding Appraisal errors (supervisors should avoid overemphasizing or underemphasizing issues)
Operational planning
Deciding how much products or services each facility will produce during a specific time period.
Profit sharing
Distribution of a percentage of an organization profit among its employees
ESOP (employee stock ownership plan)
Employee benefit plan that give workers shares of stocks of the company.
organization height flat organization
Few levels of management and wide span faster decision making, improved employee morale and engagement , lack of structure and organization, limited opportunities for career growth.
departmentalization by product
Grouping activities related to a particular product or service. Effective when products are so different. Baby feminine and family care, Beauty, Health care, Grooming Advantages : Easier decision making, integration of all activities associated with a product Disadvantages: some duplication of specialized activities between departments, emphasis on product over the organization as a whole
What was Fredricks Taylors reasoning in developing the piece rate system? A) he believed that human factors motivate employees B) He believed that employees have needs that need to be satisfied in a particular order. C) He believed that satisfaction and dissatisfaction are two distinct dimensions of motivation. D) He believed that people do not naturally dislike work E) He believed that most people work only to earn money
He believed that most people work only to earn money.
Staff managers
Managers who provide support, information and assistance to line managers
Middle manager
Middle Level a manager who implements the strategy and major policies developed by top management Develops tactical and operational plans and coordinates and supervises first line managers. division manager, plant manager, operations manager
General Electric has separate divisions for Aviation, Healthcare, Lighting, Power, and Transportation. This is an example of departmentalization by A) Function B) Location C) product D) model
Product
Penny works for General Dynamics, a defense contractor. She is assigned to a group of employees who work together to solve quality issues the company is facing. Penny participates in an A) employee group B) total quality management program C) inspection control group D) quality circle E) uality review committee
Quality circle
Incentive payment
Rewards for outstanding job performance. - like a bonus or gainsharing(which is for team members)
The head of the marketing department at Michael Scott Paper Company supervises twelve people in the department. This represents his/her A) chain of command B) degree of specialization C) level of authority D) Span of Control E) nature and degree of departmentalization
Span of control
Resource - based View (RBV)
Suggests that resources that are valuable, rare, inimitable, and non substitutable lead to long term success (source of competitive advantage)
TQM (Total Quality Management)
TQM aims to hold all parties involved in the production process accountable for the overall quality of the final product or service. (organization wide effort)
Top manager
The Very Top An upper level executive who guides and controls the overall fortunes of an organization. Generally responsible for developing the organizations mission and determining strategy. Common titles are president, vice president, chief executive officer (CEO).
Scientific management (Taylorism)
The application of scientific principles to analyze and synthesize workflows. - Frederick Taylor sought to maximize efficiencies - observed that workers "soldiered" or worked slowly because they feared that they would run out of work and lose their jobs. - DEVELOPED THE IDEA THAT MOST PEOPLE WORK TO EARN MONEY - the piece rate system - employees paid a certain amount for each unit of output they produce
HR Planning
The development of strategies to meet a firms future human resources needs
Performance appraisal
The evaluation of employees performance to allow managers to make objective human resources decisions. - used to let workers know how well they are doing and how they can improve. - selection training and development
Herzberg's Motivation-Hygiene Theory motivation factors hygiene factors
The idea that satisfaction and dissatisfaction are separate and distinct dimensions. - ALL ABOUT JOB SATISFACTION AND DISSATISFACTION - Motivation factors: job factors that increase motivation, although their absence does not necessarily result in dissatisfaction. - hygiene factors : job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation
Chain of command
The line of authority that extends from the highest to the lowest levels of an organization. can be short or long, depending on the organizations size.
Capacity
The number of products or services that an organization can produce in a given time.
Recruiting
The process of attracting qualified job applicants
Management
The process of coordinating resources to achieve the goals of an organization
Product design
The process of creating a set of specifications from which a product can be produced. (package, Ingredients)
compensation decisions job evaluation
The process of determining the relative worth (pay grade) of the various jobs within a firm
Scheduling
The process of ensuring that materials and other resources are used at the right place at the right time.
Selection
The process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant. - The idea is to hire the applicant who is the most capable for the job at hand - and also who fits into its overall company and job
Human relations
The study of people and groups and what motivates them to achieve organizational goals
job rotation
The systematic shifting of employees from one job to another. workers are less likely to become bored and dissatisfied
Which of the following is a disadvantage of departmentalization by function ?
This method tends to emphasize the department rather than the organization as a whole.
Which of the following statements best explains the essence of the resource based view (RBI) ?
Unique resources that are valuable, rare, inimitable, and nonsubstituable are the source of competitive advantage.
Goal
What an organization hopes to achieve in the medium to long term future. Reflect how the mission will be operationalized.
Turnover (voluntary)
When employees leave their jobs. - a small % of turnover is healthy
Ad hoc committee
a committee created for a specific short-term purpose EX: a committee for reviewing the employee benefits plan
Laissez-faire leadership
a hands-off leadership style that provides direction, tools, and resources to employees while delegating responsibility and decision-making authority to them
Capital intensive technology
a process in which machines and equipment do most of the work
Labor intensive technology
a process in which people must do most of the work. They need to hire a lot of employees.
research and development (R&D)
a set of activities intended to identify new ideas that have the potential to result in new goods and services
Mission
a statement of the basic purpose that makes an organization different from others. Usually specifies the customer served, the needs satisfied, or the values received by the customer.
JIT (just in time inventory system)
a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized
Quality circle
a team of employees who meet on company time to solve problems of product quality
Purchasing
all the activities involved in obtaining required materials, supplies, components, and parts from other firms
Operations management
all the activities required to produce goods and services
Strategic Plan
an organization's broadest plan, developed as a guide for major policy setting and decision making
Line structure
an organizational structure in which the chain of command goes directly from person to person throughout the organization
line-and-staff structure
an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers
compensation decisions merit increase (pay)
annual base pay increase are linked to performance appraisal ratings
SWOT analysis core competencies
capabilities that serve as a source of competitive advantage
Taco bell prides itself on its efficiency and value in delivering a product in a very short time. These characteristics can be defined as tacos bells A) objectives B) Mission C) resources) D) opportunities E) core competencies
core competencies
because JC Penny operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores. This indicates that JCPenny A) centralize decision making B) deemphasize lower level management training C) control their managers tightly D) deemphasize lower level management accountability E) decentralize authority
decentralize authority
Lams has a new product idea to create dog food that will give dogs more energy and help them to live longer. Management appoints a team to convert this idea into an actual dog food product. This process is called..... A) Process engineering B) operational planning C) design planning D) product marketing E) Product refining
design planning
Remote work
doing work via virtual devices from any remote location
departmentalization by location
grouping activities according to the defined geographic area in which they are performed. U.S region, European Region, Asian Region, Africa Regions Advantages: allows a ready response to unique demands or requirements of a location. Disadvantages: requires a large administrative staff and elaborate control system for coordination across many locations
departmentalization by customer
grouping activities according to the needs of various customer populations EX: bank corporate banking, retail banking, private banking Advantages: allows the firm to deal efficiently with unique customer or customer groups Disadvantages: requires a larger than usual administrative staff
departmentalization by function
grouping jobs that relate to the same organizational activity (function). Advantage: high degree of work specialization, help organizations compete on cost Disadvantage: emphasis on department over the organization as a whole (= organizational silo)
Scientific Management
identify the "one best way" to structure work that maximizes efficiency. Focuses on designing jobs around the concepts of task specialization, skill simplification, and repetition. proposed by Fredrick Taylor.
Participative leadership
leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals. Leader consult workers before making decisions and make final decisions based on their support. Workers opinions are needed and wanted.
Line managers
managers who make decisions and gives orders to subordinates to achieve the organizations goals.
Charismatic Leadership
personality dependent leadership style. Due to their own innate charm and personality, leaders influence, inspire, and motivate employees to perform. Tend to be idealistic and forward thinking
Southwest airlines announced that it would distribute $667 million of its income to its employees - an amount that worked out to about six extra weeks of pay for every employee. Southwest payments to its employees represent A) commissions B) Lump sum salary increases C) gainsharing D) profit sharing E) merit pay
profit sharing
Establishing an organizations major goals and objectives and allocating resources to achieve them best defines A) managing B) control process C) strategic planning D) directing E) leading
strategic planning
Job Design
structuring the tasks and activities required to accomplish a firm's objectives into specific jobs so as to foster productivity and employee satisfaction
Autocratic leadership
task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process. Leaders make most decisions. Similar as micromanagement.
Plant layout
the arrangement of machinery, equipment, and personnel within a production facility
Design planning
the development of a plan for converting an idea into an actual product or service
Strategic Planning Process
the establishment of an organization's major goals and objectives and the allocation of resources to achieve them
SWOT analysis
the identification and evaluation of a firm's strengths, weaknesses, opportunities, and threats.
span of control
the number of subordinates who report directly to a manager
Human resources
the people who work within an organization, are one of the most important and valuable resources for a business
Compensation system
the policies and strategies that determine employee compensation- determine the employees pay
Quality control
the process of ensuring that goods and services are produced in accordance with design specifications
Onboarding
the process of integrating new employees into an organization. - A process that can take up to weeks or months and involves welcoming the new employee and helping them build relationships
Inventory control
the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Job Specialization
the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people
Product layout
used when all products undergo the same operations in the same sequence ( sometimes referred to as an assembly line)
flexible scheduling
A system in which employees set their own work hours within employer determined limits
Job analysis
A systematic procedure for studying jobs to determine their various elements and requirements.
cross functional team
A team of individuals with varying specialties, expertise, and skills who are brought together to achieve a common task.
Reinforcement theory
A theory of motivation based on the premise that people will repeat behavior that is rewarded and will cease behavior that is punished.
Goal Setting Theory
A theory of motivation suggesting that individuals who set specific, difficult goals performed better than those set general, easy goals
Equity theory
A theory of motivation that focuses on an individuals feelings of how fairly s/he is treated in comparison with others. - outputs and indputs
STRATEGIC PLAN Operational plan
A type of plan designed to implement tactical plans
HRM (Human Resource Management)
All the activities involved in acquiring, maintaining, and developing an organizations human resources.
A performance appraisal serves all of the following purposes except A) letting workers know how well they are doing B) Allowing employees to see where they rank against all the other employees in the company. C) providing an effective basis for distributing rewards D) Letting workers know how well they can do better in the future. E) helping the organization monitor its employees selection, training and development activities.
Allowing employees to see where they rank against all the other employees in the company.
Compressed workweek
Allows employees to work a 40 hour week in four days instead of five. Four Day workweek
Delegation
Assigning part of a managers work and power to other workers.
Theory Y
Assumes that employees are self motivated and enjoy the challenge of work. - Consistent with the human relations movement (Hawthorne study)
Theory X
Assumes that people dislike work and will function only in a highly controlled work environment. - consistent with Taylors scientific management
Transformational leadership
Leadership style that focuses on transforming organizations and industries by challenging the status quo with new ideas.
Transactional leadership
Leadership style that use rewards and punishments to motivate subordinates. Leaders tend to focus on the chain of command, productivity, and efficiency. carrot and stick.
intrinsic motivation
Motivated to perform for its own sake.
extrinsic motivation
Motivated to perform to earn a reward or avoid punishment
organization height tall organization
Multiple levels of management and a narrow span. Slower decision making. Clear structure and organization.