WGU MBA First Half of Exams
Goods offered are exactly the same and buyers and sellers are so numerous that they have no influence on the market price
A Market must have what two characteristics to be perfectly competitive:
electronic data interchange
A computerized means of integrating order processing with production, inventory, accounting and transportation
Forward discount
A condition under which the forward rate of one currency relative to another currency is higher than the spot rate.
Forward premium
A condition under which the forward rate of one currency relative to another currency is lower than the spot rate.
Purchasing power parity (PPP)
A conversion that determines the equivalent amount of goods and services that different currencies can purchase.
Institution-based view
A core perspective. Success and failure of firms are constrained by institutions
Resource-based view
A core perspective. Success and failure of firms is determined by their environment
Balance of payments
A country's international transaction statement, which includes merchandise trade, service trade and capital movement.
Common denominator
A currency or commodity to which the value of all currencies are pegged.
State-owned enterprise
A firm owned and controlled by the state (government).
Multinational enterprise (MNE)
A firm that engages in foreign direct investment (FDI).
Price leader
A firm that has a dominant market share and sets "acceptable" prices and margins in the industry.
LLL advantages
A firm's quest for linkage (L) advantages, leverage (L) advantages, and learning (L) advantages. These advantages are typically associated with multinationals from emerging economies.
OLI advantages
A firms quest for ownership (O) advantages, location (L) advantages, and internalization (I) advantages via FDI.
Currency swap
A foreign exchange transaction between two firms in which one currency is converted into another at Time 1, with an agreement to revert it back to the original currency at a specified Time 2 in the future.
Forward transaction
A foreign exchange transaction in which participants buy and sell currencies now for future delivery.
Floating (flexible) exchange rate policy
A government policy to let supply-and-demand conditions determine exchange rates.
Fixed exchange rate policy
A government policy to set the exchange rate of a currency relative to other currencies
Institution-based view
A leading perspective in global business that suggests that the success and failure of firms are enabled and constrained by institutions.
Theocratic law
A legal system based on religious teachings.
Common law
A legal tradition that is shaped by precedents and traditions from previous judicial decisions
Civil Law
A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments.
Depreciation
A loss in the value of the currency.
the wealth effect
A lower price level raises the real value of households' money holdings
the interest rate effect
A lower price level reduces the amount of money people want to hold.
Expatriate manager
A manager who works abroad, or "expat" for short.
Equity mode
A mode of entry (JV and WOS) that indicates relatively larger, harder-to-reverse commitments to overseas markets.
Non-equity mode
A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets.
Currency board
A monetary authority that issues notes and coins convertible into a key foreign currency at a fixed exchange rate.
Joint venture (JV)
A new corporate entity created and jointly owned by two or more parent companies.
Build-operate-transfer (BOT) agreement
A non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
Semiglobalization
A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely.
Capital flight
A phenomenon in which a large number of individuals and companies exchange domestic currency for a foreign currency.
Democracy
A political system in which citizens elect representatives to govern the country on their behalf.
Totalitarianism (dictatorship)
A political system in which one person or party exercises absolute political control over the population.
Radical view on FDI
A political view that is hostile to FDI.
Pragmatic nationalism on FDI
A political view that only approves FDI when its benefits outweigh its costs.
Free market view on FDI
A political view that suggests that FDI unrestricted by government intervention is the best.
Turnkey project
A project in which clients pay contractors to design and construct new facilities and train personnel.
Clean (free) float
A pure market solution to determine exchange rates.
Local content requirement
A requirement stipulating that a certain proportion of the value of the goods made in one country must originate from that country.
Counterattack
A set of actions in response to attack.
International premium
A significant pay raise when working overseas.
Peg
A stabilizing policy of linking a developing country's currency to a key currency.
Sovereign wealth funds (SWFs)
A state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets.
Wholly owned subsidiary (WOS)
A subsidiary located in a foreign country that is entirely owned by the parent multinational.
Bretton Woods system
A system in which all currencies were pegged at a fixed rate to the US dollar.
Gold standard
A system in which the value of most major currencies was maintained by fixing their prices in terms of gold.
Post-Bretton Woods system
A system of flexible exchange rate regimes with no official common denominator.
Import tariff
A tax imposed on imports.
Scenario planning
A technique to prepare and plan for multiple scenarios (either high or low risk).
Emerging markets
A term that is often used interchangeably with "emerging economies."
Product life cycle theory
A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles.
Theory of comparative advantage
A theory that focuses on the relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.
Game theory
A theory that studies the interactions between two parties that compete and/or cooperate with each other.
Factor endowment theory
A theory that suggests that nations will develop comparative advantages based on their locally abundant factors.
Strategic trade theory
A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success.
Theory of national competitive advantage of industries (diamond theory)
A theory that suggests that the competitive advantage of certain industries in different nations depends on four aspects that form a "diamond."
Theory of mercantilism
A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer.
Theory of absolute advantage
A theory that suggests that under free trade, a nation gains by specializing in economic activities in which it has an absolute advantage.
Currency hedging
A transaction that protects traders and investors from exposure to the fluctuations of the spot rate.
Horizontal FDI
A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.
Vertical FDI
A type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country.
Downstream vertical FDI
A type of vertical FDI in which a firm engages in a downstream stage of the value chain in a host country.
Upstream vertical FDI
A type of vertical FDI in which a firm engages in an upstream stage of the value chain in a host country.
Beijing Consensus
A view that questions Washington Consensus' belief in the superiority of private ownership over state ownership in economic policy making, which is often associated with the position held by the Chinese government.
Sarbanes-Oxley Act
A wave of accounting scandals starting in 2001 resulted in this act, which increases U.S. federal government scrutiny of the production of financial statements.
Bargaining power
Ability to extract favorable outcome from negotiations due to one party's strengths.
When work has been done and collectability of cash can be reasonably assured
According to accounting rules, when should revenue be recognized?
Competitive dynamics
Actions and responses undertaken by competing firms.
First-mover advantage
Advantage that first movers enjoy and do not share with late entrants.
Location
Advantages enjoyed by firms operating in a certain location.
Price-earnings Ratio Market Value of Shares/ Net Income
Amount investors are willing to pay for each dollar of earnings; indication of growth potential
Ownership
An MNE's possession and leveraging of certain valuable, rare, hard-to-imitate, and organizationally embedded (VRIO) assets overseas in the context of FDI.
North American Free Trade Agreement
An alliance that merges Canada, Mexico and the United States into a single market
disclosure
An alternative way to report information, describing details in a narrative note
Predatory pricing
An attempt to monopolize a market by setting prices below cost and intending to raise prices to cover losses in the long run after eliminating rivals.
Trade surplus
An economic condition in which a nation exports more than it imports.
Trade deficit
An economic condition in which a nation imports more than it exports.
Mixed economy
An economy that has elements of both a market economy and a command economy.
Command economy
An economy that is characterized by government ownership and control of factors of production.
Market economy
An economy that is characterized by the "invisible hand" of market forces.
Dumping
An exporter selling goods below cost.
Attack
An initial set of actions to gain competitive advantage.
Reverse innovation
An innovation that is adopted first in emerging economies and is then diffused around the world.
Voluntary export restraint (VER)
An international agreement that shows that exporting countries voluntarily agree to restrict their exports.
International Monetary Fund (IMF)
An international organization that was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements.
Nongovernmental organization (NGO)
An organization that is not affiliated with governments.
Cartel (trust)
An output- and price-fixing entity involving multiple competitors.
Heckscher-Ohlin theory
Another name for factor endowment theory
Resource mobility
Assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry.
- Preference of individual employees - Size of the rewards for high performance - Method of motivating individual job performance - Objectivity of the evaluation process that determines the rewards
Before designing an incentive pay plan to motivate performance, it is important to consider the
First-mover advantages
Benefits that accrue to firms that enter the market first and that late entrants do not enjoy.
Late-mover advantages
Benefits that accrue to firms that enter the market later and that early entrants do not enjoy.
BRICA
Brazil, Russia, India, and China.
Greenfield operations
Building factories and offices from scratch (on a proverbial piece of "green field" formerly used for agricultural purposes).
Administrative policy
Bureaucratic rules that make it harder to import foreign goods.
Global Business
Business around the globe.
Import
Buying from abroad.
Set price levels to encourage rapid sales
Cash flow
Agglomeration
Clustering of economic activities in certain locations.
Collusion
Collective attempts between competing firms to reduce competition.
financial docs that allow comparison of financial statements across years and between companies and are prepared by dividing all financial statement numbers by sales for the year
Common-size financial statements
The bottom billion
Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development
Opportunity cost
Cost of pursuing one activity at the expense of another activity, given the alternatives (other opportunities).
Sunk cost
Cost that a firm has to endure even when its investment turns out to be unsatisfactory
United States, Canada, Australia, Japan & United Kingdom
Countries currencies under managed float since 1970s?
Brazil, Mexico & South Korea
Countries currencies under managed float since 1990s?
Current account = balance o trade + net factor income from abroad + net unilateral transfers from abroad
Current account balance equation
permissive
Definition of bargaining unit, retiree health insurance or pension, ground rules, settlement of grievances or charges, drug testing, labeling are ________ subjects.
Availability of close substitutes, necessities vs. luxuries, Definition of the market, time horizon
Determinants of price elasticity of demand?
- Human resources - Physical resources - Business continuity
Disaster plans should cover:
Negative
Do completmentary goods have positive or negative cross price elasticity?
External
Do gains/losses reported on the income statement arise from internal or external activities?
Positive
Do substitute goods have positive or negative cross-price elasticity?
Base of the pyramid (BOP)
Economies where people make less than $2,000 per capita per year.
Co-marketing
Efforts among a number of firms to jointly market their products and services.
Consumption + Investment + Govt. Purchases + Net Exports
Equation for GDP
[(Training Benefits - Training cost)/Training Cost] x 100
Equation for ROI%
Value to buyers - Amount paid by buyers
Equation for consumer surplus
Amount received by sellers - cost to sellers
Equation for producer surplus
Consumer surplus + Producer Surplus
Equation for total surplus
(revenues-expense= net income)
Equation to calculate net income
Copyright
Exclusive legal right of authors and publishers to publish and disseminate their work.
Trademark
Exclusive legal right of firms to use specific names, brands, and designs to differentiate their products from others.
Patent
Exclusive legal right of inventors of new products or processes to derive income from such inventions.
Multimarket competition
Firms engage the same rivals in multiple markets.
Tacit collusion
Firms indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels.
discovery learning, experiential learning, observational learning, structured learning, group learning
Five Key learning preferences
- Conduct a Needs Assessment - Develop Learning Objectives - Design the Training Program - Implement the Training - Evaluate the Training
Five Steps to Effective Training
collaborating, accommodating, competing, compromising, avoiding
Five conflict management strategies
Institutional framework
Formal and informal institutions governing individual and firm behavior.
Institutions
Formal and informal rules of the game.
skills, responsibilities, effort, working conditions
Four categories of compensable factors
visual, auditory, tactile, kinesthetic
Four different sensory modalities
brand name awareness, perceived brand equity, brand associations, brand loyalty
Four element of brand equity
- Separate people from the problem - Focus on interests, not positions - Create options for mutual gain - Insist on objective criteria
Four fundamental principles of integrative negotiation:
positive reinforcement, negative reinforcement, punishment, extincition
Four type of reinforcers
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Four types of market structures
Natural-resources, market, efficiency, innovation
Four types of strategic goals in finding a location to enter
Protecting and Maintaining form, offer convenience, communicate use and benefits, communicate quality or premium nature
Functions of packaging
Institutional transitions
Fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
Gross national product (GNP)
GDP plus income from non-resident sources abroad
Gross national income (GNI)
GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP.
More elastic demand
Good with close substitutes: more or less elastic demand
Internal Revenue Service (IRS)
Gov't agency that establishes rules to define exactly when income should be taxed. It has no role in setting financial accounting rules; and a company's financial statements are not used in determining how much tax the company must pay
Subsidy
Government payment to domestic firms.
Antitrust policy
Government policy designed to combat monopolies and cartels.
Competition policy
Government policy governing the rules of the game in competition.
Strategic trade policy
Government policy that provides companies a strategic advantage in international trade through subsidies and other supports.
Expropriation
Government's confiscation of foreign assets.
Know-how, problem solving, accountability, working conditions
Hay Group Method based on four main factors
"Four Tigers"
Hong Kong, Singapore, South Korea and Taiwan
2 years, Comparative side-by-side format
How many years worth of balance sheets does a company usually provide and how are they typically formatted?
sourcing
ID qual indv & labor markets to recruit from
50%
If at least ______ of workers sign a union authorization card, the NRLB requires the employer to recognize the union without a secret ballot election
Decrease
If demand is elastic, a price increase causes total revenue to _______
Increase
If demand is inelastic, a price increase causes total revenue to ______
perfectly inelastic
If the price elasticity of demand equals 0, the demand is _____
Unit Elastic
If the price elasticity of demand equals 1, the demand is _______
perfectly elastic
If the price elasticity of demand equals infinity, the demand is _______
Inelastic
If the price elasticity of demand is less than 1, the demand is ________
Elastic
If the price elasticity of demand is more than 1, the demand is ________
Unit Elastic
If the price elasticity of supply equals 1, the demand is _______
elastic
If the price elasticity of supply equals infinity, the demand is _______
Inelastic
If the price elasticity of supply equals zero, the demand is _______
inelastic
If the price elasticity of supply is less than 1, the demand is ________
elastic
If the price elasticity of supply is more than 1, the demand is ________
Prisoners' dilemma
In game theory, a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect.
Asset turnover is computed as sales divided by assets and is interpreted as the number of dollars in sales generated by each dollar of assets
In terms of ROE, define efficiency.
Assets-to-equity ratio is computed as assets divided by equity and is interpreted as the number of dollars of assets a company is able to acquire using each dollar invested by stockholders
In terms of ROE, define leverage.
Return on sales is computed as net income divided by sales
In terms of ROE, define profitability.
By order of liquidity
In what order are assets typically listed on the balance sheet?
FDI inflow
Inbound FDI moving into a country in a year.
Oligopoly
Industry dominated by a small number of players.
Negative income elasticity
Inferior goods have negative or positive income elasticity?
Accounting information
Info that is intended to be useful in making decisions about the future.
Informal institutions
Institutions represented by cultures, ethics, and norms
Formal institutions
Institutions represented by laws, regulations, and rules.
Intellectual property
Intangible property that is the result of intellectual activity.
Services
Intangible services being traded.
Intrafirm trade
International transactions between two subsidiaries in two countries controlled by the same MNE.
Foreign portfolio investment (FPI)
Investment in a portfolio of foreign securities such as stocks and bonds.
Foreign direct investment (FDI)
Investment in, controlling, and managing value-added activities in other countries.
Critical Incidents Technique
Job Analysis Method: Job experts describe episodes of good, average and poor performance. circumstances, action, consequences
Task Inventory Approach
Job Analysis Method: Job experts generate a list of 50-200 tasks that are then grouped in categories reflecting major work functions.
Structured Interview Technique
Job Analysis Method: Job experts supply information about the job and workers that distinguishes superior performance.
Structured Questionnaires
Job Analysis Method: Written questionnaires that assess information about worker inputs, work output, job context and job characteristics.
Job Elements Analysis Method
Job Analysis Method: a group of job experts list and rate the important worker characteristics that influence success in the job, including knowledge, skills, abilities and personal characterstics
horizontal
Job enlargement is _________ job expansion.
vertical
Job enrichment is _________ job expansion.
Knowledge, Skills, Abilities, Other Characterstics
KSAO. job related worker characteristics
theory of liquidity preference
Keynes's theory that the interest rate adjusts to bring money supply and money demand into balance
Reaction, Learning, Behavior, Results
Kirkpatrick's four levels of training and learning evaluation
Knowledge spillover
Knowledge diffused from one firm to others among closely located firms.
Antidumping law
Law that makes it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals.
Antitrust law
Law that outlaws cartels (trusts).
Cognitive Learning Objectives
Learning objectives that increase some type of knowledge
Current and Long-term
Liabilities are divided into which 2 categories on the balance sheet?
More elastic demand
Long time horizon: more or less elastic demand
Elastic Demand
Luxuries - inelastic or elastic demand?
- right to identify business objectives - right to determine the uses of material assets - right to take disciplinary action for cause
Management rights cover three areas:
Strategic risk, Operational risk, Financial risk and Compliance risk
Managing human resources strategically helps organizations manage four types of risk:
the profitability of each dollar in sales and turnover is the degree to which assets are used to generate sales
Margin NOTE: Companies with a low margin can still earn an acceptable level of return on assets if they have a high turnover.
Customers
Marketing focuses on the ________.
Current Ratio Current Assets/ Current Liabilities
Measure of liquidity; number of times current assets could cover current liabilities
Mode of entry
Method used to enter a foreign market.
- Company performance - Reduced merit increases - Reductions in head count - Reduced benefits - Pay freezes
Most common way employers fund variable pay programs
Kirkpatrick's training evaluation model
Most well known and frequently used model for assessing training effectiveness. reaction, learning, behavior, results
Mutual forbearance
Multimarket firms respect their rivals' spheres of influence in certain markets, and their rivals reciprocate, leading to tacit collusion.
more elastic demand
Narrowly defined market: more or less elastic demand?
Inelastic Demand
Necessities- inelastic or elastic demand?
Deadweight cost
Net losses that occur in an economy as a result of tariffs.
L-I-C-C-M-A-G-IO-R - Link goals to org mission & strategy - Identify subgoals for each unit/department/group/individual - Communication goals & expectations - Create work processes and assign resources - Measure progress - Assess individual, group, unit performance - Give feedback - Identify & Overcome obstacles - Reward Goal Achievement
Nine steps of the performance management process
Positive Income elasticity
Normal goods have positive or negative income elasticity?
Triad
North America, Western Europe, and Japan.
Asset Turnover Sales/ Total Assets
Number of dollars of sales during the year generated by each dollar of assets
Return on Equity Net Income/ Stockholder's Equity
Number of pennies earned during the year on each dollar invested
Return on Sales Ratio Net Income/ Sales
Number of pennies earned during the year on each dollar of sales
-Imminent danger situations -Fatalities & Catastrophes - Complaints - Referrals of hazard information from others -Follow-ups -Planned or programmed investigations
Order of Priority for OSHA Inspections
The International Accounting Standards Board (IASB)
Organization that was formed to develop a common set of worldwide accounting standards. Its standards are increasingly accepted worldwide, but FASB rules are still the standard in the United States.
FDI outflow
Outbound FDI moving out of a country in a year.
R&D contract
Outsourcing agreement in R&D between firms
Equation for computing price elasticity of demand
Percentage change in quantity demanded divided by the percentage change in price
Equation for computing cross-price elasticity of demand
Percentage change in quantity demanded of the first good divided by the percentage change in pice of the second good
Equation for computing the price elasticity of supply
Percentage change in quantity supplied divided by the percentage change in price
Debt Ratio Total Liabilities/ Total Assets
Percentage of funds needed to purchase assets that were obtained through borrowing
person needs
Performance appraisals/customer surveys/individual assessments/performance issues/skill inventories: sources for collecting _______ analysis information
- Organization as a whole - Organization subunits - Work teams or groups - Work Processes - Projects
Performance managers focus on these five things:
Trade embargo
Politically motivated trade sanctions against foreign countries to signal displeasure.
Collusive price setting
Price setting by monopolists or collusion parties at a level higher than the competitive level.
Private
Private Ownership or State ownership: Entry is determined by entrepreneurs, owners and investors
State
Private Ownership or State ownership: Exit is determined by government officials and bureaucrats. Firms deemed too big to fail may be supported by taxpayer dollars indefinitely
Private
Private Ownership or State ownership: Exit is forced by competition. A firm has to declare bankruptcy or be acquired if it becomes financially insolvent
Private
Private Ownership or State ownership: Financing is from private sources and public shareholders if the firm is publicly traded
State
Private Ownership or State ownership: Financing is from states sources such as direct subsidiaries or banks owned or controlled by governments
State
Private Ownership or State ownership: Management appointments are made by government officials and bureaucrats who may use non-economic criteria
Private
Private Ownership or State ownership: Management appointments are made by owners and investors larely based by merit
Private
Private Ownership or State ownership: Manager's compensation is determined by competitive market forces.
Private
Private Ownership or State ownership: Maximize profits for private owners who are capitalists and maximize shareholder value if the firm is publicly listed
State
Private Ownership or State ownership: Optimal balance for a fair deal for all stakeholders. Maximizing profit is not the sole objective. Protecting jobs and minimizing social unrest are legitimate goals.
State
Private Ownership or State ownership: entry is determined by government officials an bureaucrats
State
Private Ownership or State ownership: manager's compensation is determined politically with some consideration given to the sense of fairness and legitimacy in the eyes of the public.
Identify price and cost levels that allow the firm to maximize profit
Profit
by acquiring new customers, enhancing the profitability of existing customers and extending the duration of customer relationships
Profits can be obtained through relationships in the following ways:
Moral hazard
Recklessness when people and organizations (including firms and governments) do not have to face the full consequences of their actions.
Comparative advantage
Relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.
Balance Sheet
Reports a company's assets, liabilities, and owners' equity
Import quota
Restriction on the quantity of imports.
Cross-market retaliation
Retaliatory attacks on a competitor's other markets if this competitor attacks a firm's original market.
Identify price levels that enable the firm to yield targeted ROI
Return on investment
Intellectual property rights (IPR)
Rights associated with the ownership of intellectual property.
Political risk
Risk associated with political changes that may negatively impact domestic and foreign firms.
Economic system
Rules of the game on how a country is governed economically
Specific, Measurable, Achievable, Relevant, Time-Bound
SMART stands for:
Export
Selling abroad.
Trust, openness, honoring promises, respect, collaboration and recognizing the market as the raison d'etre
Six values required by organizations striving to become more market oriented:
Target exchange rate (crawling band)
Specified upper or lower bounds within which an exchange rate is allowed to fluctuate.
Strategic hedging
Spreading out activities in a number of countries in different currency zones to offset any currency losses in one region through gains in other regions.
Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, Postpurchase Evaluation
Stages of the Consumer Buying Process
Identify price levels that help stabilize demand and sales
Status Quo
organizational needs
Strategic Plans/Performance appraisals/customer surveys/employee surveys/restructuring plans/efficiency measures: sources for collecting ______________ analysis information
Contender
Strategy that centers on a firm engaging in rapid learning and then expanding overseas.
Dodger
Strategy that centers on cooperating through joint ventures with MNEs and sell-offs to MNEs.
Extender
Strategy that centers on leveraging homegrown competencies abroad.
Defender
Strategy that centers on local assets in areas in which MNEs are weak.
Blue ocean strategy
Strategy that focuses on developing new markets ("blue ocean") and avoids attacking core markets defended by rivals, which is likely to result in a bloody price war or a "red ocean."
Capacity to punish
Sufficient resources possessed by a price leader to deter and combat defection.
More
Supply is more or less elastic in the long run?
Adjust price levels so the firm can increase sales volume to match organizational expenses
Survival
Merchandise
Tangible products being traded.
antidumping duty
Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business).
R - R - V - O - C - Receiving - Responding - Valuing - Organization - Characterization by value
Taxonomy of Affective Learning Objectives
R - U - A - A- E - C - Remembering - Understanding - Applying - Analyzing - Evaluating - Creating
Taxonomy of Cognitive Learning Objectives
O - I - P - A - O - Observing - Imitating - Practicing - Adapting - Originating
Taxonomy of Psychomotor Learning Objectives
Technology spillover
Technology diffused from foreign firms to domestic firms.
Extraversion, conscientiousness, emotional stability, agreeableness, openness to experience
The Big Five Personality factors are:
idea generation, screening, concept testing, business analysis, product development, test marketing, commercialization ISCBPTC
The Seven Phases of the new-product development process
Opportunism
The act of seeking self-interest with guile.
Balance of Trade
The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.
FDI flow
The amount of FDI moving in a given period (usually a year) in a certain direction.
Scale of entry
The amount of resources committed to entering a foreign market.
Infant industry argument
The argument that if domestic firms are as young as "infants," in the absence of government intervention, they stand no chances of surviving and will be crushed by mature foreign rivals.
Location-specific advantages
The benefits a firm reaps from the features specific to a place.
Spot transaction
The classic single-shot exchange of one currency for another.
Globalization
The close integration of countries and peoples of the world.
Regulatory pillar
The coercive power of governments.
Obsolescing bargain
The deal struck by MNEs and host governments, which change their requirements after the initial FDI entry.
brand insistence
The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute
Spread
The difference between the offer price and the bid price.
Cultural distance
The difference between two cultures along identifiable dimensions such as individualism.
working capital
The difference of current assets-current liabilities
Absolute advantage
The economic advantage one nation enjoys that is absolutely superior to other nations.
Bandwagon effect
The effect of investors moving in the same direction at the same time, like a herd.
Institutional distance
The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries.
Resource similarity
The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.
Factor endowment
The extent to which different countries possess various factors of production such as labor, land, and technology.
The greater the price elasticity of demand
The flatter the demand curve, __________
Group of 20 (G-20)
The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems.
Free trade
The idea that free market forces should determine how much to trade with little or no government intervention.
Protectionism
The idea that governments should actively protect domestic industries from imports and vigorously promote exports.
Risk management
The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events.
Market imperfection (market failure)
The imperfection of the market mechanisms that make transactions prohibitively costly and sometimes make transactions unable to take place.
Liability of foreignness
The inherent disadvantage that foreign firms experience in host countries because of their non-native status.
Cognitive pillar
The internalized (or taken-for-granted) values and beliefs that guide individual and firm behavior.
Property rights
The legal rights to use an economic property (resource) and to derive income and benefits from it.
Classical trade theories
The major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.
Modern trade theories
The major theories of international trade that were advanced in the 20th century, which consist of (1) product life cycle, (2) strategic trade, and (3) national competitive advantage of industries.
Foreign exchange market
The market where individuals, firms, governments, and banks buy and sell foreign currencies.
brand equity
The marketing and financial value associated with a brand's strength in a market
Normative pillar
The mechanism through which norms influence individual and firm behavior.
Bounded rationality
The necessity of making rational decisions in the absence of complete information.
Market commonality
The overlap between two rivals' markets.
Concentration ratio
The percentage of total industry sales accounted for by the top four, eight, or twenty firms.
Country-of-origin effect
The positive or negative perception of firms and products from a certain country.
Currency risk
The potential for loss associated with fluctuations in the foreign exchange market.
offshore outsourcing
The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold
offshoring
The practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company (e.g., in a wholly owned subsidiary) or a third party (e.g., subcontractor)
Foreign exchange rate
The price of one currency in terms of another.
Bid rate
The price to buy a currency.
Offer rate
The price to sell a currency.
Competitor analysis
The process of anticipating rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' response.
Investing activities
The purchase and sale of long-term assets such as land and equipment are known as _______________.
Demonstration (contagion or imitation) effect
The reaction of local firms to rise to the challenge demonstrated by MNEs through learning and imitation.
Internalization
The replacement of cross-border markets (such as exporting and importing) with one firm (the MNE) locating and operating in two or more countries.
Management control rights
The rights to appoint key managers and establish control mechanisms.
Dissemination risk
The risk associated with unauthorized diffusion of firm-specific know-how.
Political system
The rules of the game on how a country is governed politically.
Legal system
The rules of the game on how a country's laws are enacted and enforced.
Gross domestic product (GDP)
The sum of value added by resident firms, households, and governments operating in an economy.
Quota
The weight a member country carries within the IMF, which determines the amount of its financial contribution (technically known as its "subscription"), its capacity to borrow from the IMF, and its voting power.
- Aligns organizational goals with individual goals and organizational processes - Gives employees clear goals and feedback - Generates useful data
Three Main Benefits of Performance Management
recognition, preference, insistence
Three degrees of brand loyalty
Organizational analysis, task analysis and person analysis
Three levels of needs assessments
single rate system, pay grades and broadbanding
Three most common job pricing systems
Not communicating a performance plan, a lack of accountability and human biases and errors
Three most common obstacles to effective performance management
Anticipatory, Encounter, Settling In
Three phases of Socialization
compliance strategy, collaboration strategy, avoidance strategy
Three primary labor relations strategies
culture, geography and institutions
Three reasons that a country is either developed or underdeveloped
patents, copyrights and trademarks
Three types of intellectual property
Cognitive, Affective, Pschomotor
Three types of learning objectives
superior value for their money
To have a competitive advantage, a company must ultimately be able to give customers ____________.
- Recognize and reward high performers - Increase the likelihood of achieving corporate goals - Improve productivity - Move away from an entitlement culture
Top four reasons organizations give for tying pay to performance ar
FDI stock
Total accumulation of inbound FDI in a country or outbound FDI from a country across a given period (usually several years).
Nontariff barrier (NTB)
Trade barrier that relies on nontariff means to discourage imports.
Tariff barrier
Trade barrier that relies on tariffs to discourage imports.
participant reactions, learning assessments, training transfer back to job
Training evaluation includes:
Piracy
Unauthorized use of intellectual property.
Dirty (managed) float
Using selective government intervention to determine exchange rates.
Norms
Values, beliefs, and actions of relevant players that influence the focal individuals and firms.
Washington Consensus
View centered on unquestioned belief in the superiority of private ownership over state ownership in economic policy making spearheaded by the International Monetary Fund and the World Bank
Strong
Weak or strong dollar: Foreign tourists find it more expensive when visiting the US
Weak
Weak or strong dollar: Governments, firms and the individuals outside the US holding dollar=denominated assets suffer from value loss on their assets
Weak
Weak or strong dollar: Higher prices on imports contribute to higher price level and inflation level in the US
Strong
Weak or strong dollar: Lower prices on foreign good help keep US level high and inflation level low
Weak
Weak or strong dollar: The US can print more dollars to export its problems to the rest of the world
Strong
Weak or strong dollar: US consumers benefit from low prices on imports
Weak
Weak or strong dollar: US exporters find it easier to compete on price abroad
Strong
Weak or strong dollar: US exporters have a hard time competing on price abroad
Weak
Weak or strong dollar: US face higher prices on imports
Weak
Weak or strong dollar: US firms faces less competitive pressure to keep prices low
Strong
Weak or strong dollar: US firms find it easier to acquire foreign targets
Strong
Weak or strong dollar: US firms in import-competing industries have a hard time competing with low-cost imports
Strong
Weak or strong dollar: US tourists enjoy lower prices abroad
Weak
Weak or strong dollar: US tourists find it more expensive when traveling abroad
Weak
Weak or strong dollar: foreign firms find it easier to acquire US targets
Weak
Weak or strong dollar: foreign tourists enjoy lower prices in the US
65%
What % of the world's foreign exchange transactions are in USD$?
80%
What % of the world's foreign exchange transactions are in dollars?
long-term bank loans, mortgages, and bonds
What are 3 common sources of long-term debt?
valuable, rare, hard to imitate and organizationally embedded
What are VRIO assets?
selling goods, providing services, Earning interest by providing loans
What are some common business activities that generate revenue?
1. Summary of accounting policy 2. Additional info about summary totals 3. Disclosure of info not included in summary 4. Supplemental disclosure required by FASB or SEC
What are the 4 general types of accounting notes?
Gains, Losses, Revenues, and Expenses
What are the 4 primary item categories listed on the income statement?
Relative price differences & PPP, Interest rates & money supply, productivity & balance of payments, exchange rate policies, investor psychology
What are the five determinants of foreign exchange rates?
cost of goods sold; selling, general, and administrative expense, depreciation expense, income tax expense, and interest expense
What are the key expense items commonly found on the income statement?
cash, accounts receivable, and inventory
What are the most common current assets?
Property, plant, and equipment (PPE)
What are the primary long-term assets?
Regulatory, normative and cognitive
What are the three 'pillars' of institutions?
Mercantilism, Absolute Advantage & Comparative Advantage
What are the three classical trade theories?
Common law, civil law & theocratic law
What are the three legal traditions?
Product Life Cycles, Strategic Trade, Diamond
What are the three modern trade theories?
The balance sheet, the income statement, and the statement of cashflows
What are the three primary financial statements?
spot transactions, forward transactions and swaps
What are the three primary types of foreign exchange transactions?
The wealth effect, the interest- rate effect and the exchange rate effect
What are the three reasons that the aggregate demand curve slopes downward?
New force in recent times, a long-running historical evolution, a pendulum swinging between extremes
What are the three views of globalization?
1) to predict a company's future profitability and cash flows 2) to identify and improve potential problem areas
What are the two main purposes of financial statement analysis?
China
What country doesn't fix their currency?
information on the accounting assumptions used in preparing the statements and supplemental information not included in the statements themselves
What information do the notes to accounting statements provide?
Assets = Liabilities + Owners' Equity
What is the accounting equation?
Income from Continuing Operations
What is the best measure of sustainable profitability?
Common stockholders are the true owners of a business; Preferred stockholders give up some of the rights of ownership enjoyed by common stockholders in exchange for some of the safety promised to creditors
What is the difference between a common stockholder and a preferred stockholder?
states that the financial results of an economic entity should be reported separately from the financial results of other entities, even though all those entities may be controlled by the same person
What is the entity concept?
Product Life Cycle Theory
What is the first dynamic trade theory?
Cash
What is the first item that is usually listed on a U.S. balance sheet?
Long-term assets
What is the first item that is usually listed on a non-U.S. balance sheet?
Mercantilism
What theory has strengths: Forerunner of modern-day protectionism?
Absolute Advantage
What theory has the strengths: Birth of modern economics, forerunner of the free trade movement, defeats mercantilism intellectually?
Product Life Cycle
What theory has the strengths: First theory to incorporate dynamic changes in patterns of trade, more realistic with trade in industrial products in the 20th Century?
Strategic Trade
What theory has the strengths: more realistic and positively incorporates the role of governments in trade, provides direct policy advice?
Comparative Advantage
What theory has the strengths: more realistic guidance to nations interested in trade but having no absolute advantage, explains patterns of trade based on factor endowments?
National Competitive Advantage of Industries (Diamond)
What theory has the strengths: most recent most complex and most realistic among the various theories, it directly connects research on firms, industries and nations?
Strategic Trade
What theory has the weaknesses: Ideological resistance from many "free trade" scholars and policy makers, invites all kinds of industries to claim they are strategic?
Mercantilism
What theory has the weaknesses: Inefficient allocation of resources, reduces the wealth of the nation in the long run?
Product Life Cycle
What theory has the weaknesses: The United States may not always be the lead innovation nation, many new products are now launched simultaneously around the world?
National Competitive Advantage of Industries (Diamond)
What theory has the weaknesses: has not been comprehensively tested, overseas demand may stimulate the competitiveness of certain industries?
Comparative Advantage
What theory has the weaknesses: relatively static assuming that comparative advantage and factor endowments do not change over time?
Absolute Advantage
What theory has the weaknesses: when one nation is absolutely inferior there is no advice, when there are many nations it may be difficult to find an absolute advantage?
explicit cost and implicit cost
What two types of costs make up total cost?
the exchange rate effect
When a lower price level reduces the interest rate, investors move some of their funds overseas in search of higher returns - this movement of funds causes the real value of the domestic currency to fall in the market for foreign-currency exchange.
When value has been delivered to customers (typically only after the required work has been performed and after the collection of cash is reasonably assured)
When should revenue be recognized on an income statement?
1. Rapid Advancements in the IT field 2. the international integration of worldwide business 3. Increased scrutiny associated with large corporate accounting scandals
Which 3 factors have combined to make right now a time of significant change in accounting?
virtue
Which ethical standard: A company valuing honesty that quickly recalls products that might be defective or dangerous
Common Good
Which ethical standard: Ensuring that suppliers do not employ child labor or provide unsafe working conditions
rights
Which ethical standard: If a supervisor tells an employee to handle a toxic substance without appropriate protective gear
utilitarian
Which ethical standard: Southwest Airlines cuts all employees' pay rather than laying anyone off
fairness
Which ethical standard: debate over the appropriateness of CEO salaries and bonuses that are hundreds of times larger than the pay of the average employee.
companies report the intangibles that they have purchased from other companies but not the intangibles that they have developed themselves
Which intangible assets are reported on the balance sheet?
Income from discontinued operations and extraordinary items
Which items are considered "below-the-line" items?
FASB
Which private body establishes accounting rules in the U.S.?
External Users
Who is financial accounting information primarily prepared for and used by?
Reduces Dissemination risks, provides tight control over foreign operations, facilitates the transfer of tacit knowledge through "learning by doing"
Why do firms prefer FDI to Licensing (3 reasons)?
Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees
Why study global business?
Effectiveness
______ is the degree to which long-term customer relationships help achiee an organization's objectives.
Efficiency
______ refers to minimizing the resources an organization use to achieve a specific level of desired customer relationships
Permissive
______ subjects may be negotiated but don not have to be.
Mandatory
_______ subjects are those required by The National Labor Relations Board.
Illegal
_______ subjects may not be negotiated.
fractional reserve banking
a banking system in which banks hold only a fraction of deposits as reserves
workplace tort
a civil wrong in which an employer violates a duty owed to its customers or employees
acceptance
a clear expression of the accepting party's agreement to the terms of the offer
negligent hiring
a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm
professional employer organization
a company that leases employees to companies that need them
trading company
a company that links buyers and sellers in different countries
external reference price
a comparison price provided by others
idea
a concept, philosophy, image or issue
allowance
a concession in price to achieve a desired goal
sunk cost
a cost that has already been committed and cannot be recovered
indifference curve
a curve that shows consumption bundles that give the consumer the same level of satisfaction
brand loyalty
a customer's favorable attitude toward a specific brand
value
a customer's subjective assessment of benefits relative to costs in determining the worth of a product
code of ethics
a decision making guide that describes the highest values to which an organization aspires
strategic business unit (SBU)
a division, product line or other profit center within the parent company
import tariff
a duty levied by a nation on goods bought outside its borders and brought into the country
commission errors
a failure to follow sound, established operational and ethical practices
Employee Retirement Income Security Act of 1974
a federal law that protects employees' retirement benefits from mismanagemen
Fair Labor Standards Act of 1938
a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs
multinational enterprise
a firm that has operations or subsidiaries in many countries
monopoly
a firm that is the sole seller of a product without close substitutes
equal employment opportunity
a firm's employment practices,must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics such as sex and race
Lifelong learning
a formal commitment to ensuring that employees have and develop the skills they need to be effective in their jobs today and in the future
vendor analysis
a formal, systematic evaluation of current an potential vendors
improshare
a gainsharing plan based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time
normal good
a good for which an increase in income raises the quantity demanded
inferior good
a good for which an increase in income reduces the quantity demanded
Giffen good
a good for which an increase in the price raises the quantity demanded
inferior good
a good for which other things being equal an increase in income leads to a decrease in demand
normal good
a good for which, other things being equal, an increase in income leads to an increase in demand
capital requirement
a government regulation specifying a minimum amount of bank capital
embargo
a government's suspension of trade in a particular product or with a given country
demand curve
a graph of quantity of products expected to be sold at various prices if other factors remain constant
demand curve
a graph of the relationship between the price of a good and the quantity demanded
supply curve
a graph of the relationship between the price of a good and the quantity supplied
labor union
a group of at least two employees who band together as a single entity to address pay, hours, and working conditions with their employer
market
a group of buyers and sellers of a particular good or service
product line
a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations
cartel
a group of firms acting in unison
marketing channel
a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
market growth/market share matrix
a helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy
job enrichment
a job design approach that increases a job's complexity to give workers greater responsibility and opportunities to feel a sense of achievement
contingent assessment methods
a job offer is made contingent on passing the assessment. ie ref checks, med & drug tests, background checks
customer lifetime value
a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts
omission errors
a lack of written rules
discovery learning
a learning preference for exploration during learning. Prefer subjective assessments, interactional activities, informational methods and active-reflective activities
observational learning
a learning preference for external stimuli such as demonstrations and diagrams to help facilitate learning. tend to prefer information and active-reflective activities
structured learning
a learning preference for processing strategies such as taking notes, writing down task steps and so forth. related to preferences for subjective assessments.
group learning
a learning preference to work with others while learning. Related to preferences for action and interactional learning.
experiential learning
a learning preference with a desire for hands-on approach to instruction. tend to prefer active learning activities
trademark
a legal designation of exclusive use of a brand
collective bargaining agreement
a legal written contract between organized labor and an employer that is enforceable through the negotiated grievance and arbitration procedure
quota
a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time
test marketing
a limited introduction of a product in geographic areas chosen to represent the intended market
socialization
a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors and knowledge needed to successfully participate as an organizational member
mission statement
a long-term view, or vision, of what the organization wants to become
marketing concept
a managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
competitive market
a market in which there are many buyers and many sellers so that each has a negligible impact on the market price
monopolistic competition
a market structure in which many firms sell products that are similar but not identical
oligopoly
a market structure in which only a few sellers offer similar or identical products
competitive market
a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
vertical marketing system
a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
cross-price elasticity of demand
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
price elasticity of supply
a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
GDP deflator
a measure of the price level calculated as the ratio of nominal GDP to real GDP times
elasticity
a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants
price elasticity of demand
a measure of the sensitivity of demand to changes in price
cut score
a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer
Other characteristics
a miscellaneous category for worker characteristics that are not knowledge, skills or abilities including personality traits, values and work styles
natural monopoly
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
business process reengineering
a more radical rethinking and redesign of business processes to achieve large improvements in speed, service, cost or quality
brand
a name, term, design, symbol or other feature that identifies one seller's product as distinct from those of other sellers
modified rebuy purchase
a new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified.
prisoners' dilemma
a particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
joint venture
a partnership between a domestic firm and foreign firm or government
strategic alliance
a partnership that is formed to create a competitive advantage on a worldwide basis
balanced scorecard
a performance measurement system that translates the organization's strategy into financial, business process, learning and growth and customer outcomes. sequential.
downsizing
a permanent reduction of multiple employees intended to improve the efficiency or effectiveness of the firm
job fairs
a place where multiple employers and recruits meet to discuss employment opportunities
Hay Group Guide Chart - Profile Method
a point-factor system is used to produce both a profile and a point score for each position. know how problem solving accountability working conditions
affective commitment
a positive emotional attachment to the organization and strong identification with its values and goals
internal reference price
a price developed in the buyer's mind through experience with the product
F.O.B. destination
a price indicating the producer is absorbing shipping costs
cash discount
a price reduction given to buyers for prompt payment or cash payment
seasonal discount
a price reduction given to buyers for purchasing goods or services out of season
Financial Accounting Standards Board (FASB)
a private body established and supported by the joint efforts of the U.S. business community, financial analysts, and practicing accountants
negotiation
a process in which two or more parties make offers, counteroffers and concessions in order to reach an agreement
gainsharing
a program in which the firm shares the value of productivity gains with employees
trade (functional) discount
a reduction off the list price a producer gives to an intermediary for performing certain functions
workplace bullying
a repeated mistreatment of another employee through verbal abuse; conduct that is threatening, humiliating or intimidating; or sabotage that interferes with the other person's work
straight rebuy purchase
a routine purchase of the same products under approximately the same terms of sale by a business buyer
supply-chain management
a set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed in the right quantities to the right locations and at the right time
global mindset
a set of individual attributes that enable you to influence individuals, groups and organizations from diverse socio/cultural/institutional systems
direct ownership
a situation in which a company owns subsidiaries or other facilities overseas
exclusive dealing
a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers
Nash equilibrium
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
shortage
a situation in which quantity demanded is greater than the quantity supplied
surplus
a situation in which quantity supplied is greater than quantity demanded
equilibrium
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
target market
a specific group of customers on who an organization focuses its marketing efforts
product item
a specific version of a product that can be designated as a distinct offering among a firm's products
ability
a stable and enduring capability to perform a variety of tasks (verbal or mechanical ability)
action plans
a strategy for proactively addressing an expected talent shortage or surplus
corporate strategies
a strategy that determines the means for utilizing resources in the various functional areas to reach the organizations goals
dominant strategy
a strategy that is best for a player in a game regardless of the strategies chosen by the other players
Position Analysis Questionnaire
a structured job evaluation questionnaire that is statistically analyzed to calculate pay rates based on how the labor market is valuing worker characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering 187 job elements.
talent philosophy
a system of beliefs about how an organization's employees should be treated
sensory modality
a system that interacts with the environment through one of the basic senses. visual, auditory, tactile, kinetic.
job evaluation
a systematic process that uses expert judgement to assess differences in value between jobs
job analysis
a systematic process used to identify and describe the important aspects of a job and the characteristics a worker needs to perform the job well. need to be reliable and valid.
demand schedule
a table that shows the relationship between the price of a good and the quantity demanded
supply schedule
a table that shows the relationship between the price of a good and the quantity supplied
good
a tangible physical entity
performance improvement plan
a tool to monitor and measure an employee's deficient work products, processes and/or behaviors to improve performance or modify behavior. F acts to define prob O bj to help emp resolve S olutions to help emp reach obj A ctions to take if not corrected + overall efforts to help emp succeed
workers' compensation
a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee's right to sue the employer for negligence
simulation
a type of work sample that gives candidates an actual job task to perform or simulates critical events that might occur to assess how well a candidate handles them
integrative negotiation
a win-win negotiation in which the agreement involves no loss to either party
explicit employment contract
a written or verbal employment contract
full competence
ability to analyze problems associated with the job
partial proficiency
ability to apply more advanced principles on the job
limited ability
ability to perform simple tasks without direction
freight absorption pricing
absorption of all or part of actual freight costs by the seller
serial socialization
accessible and supportive organizational members serve as role models and mentors
assessment goals
accuracy, fit, ethics, legal compliance
Railway Labor Act
act that governs employment relations for airlines and railroads
Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act)
act that outlined a Bill of Rights for union members and sets up procedures for union elections, discipline and financial reporting
supply chain
activities associated with the flow and transformation of products from raw materials through to the end customer
physical distribution
activities used to move products from producers to consumers and other end users
cost-based pricing
adding a dollar amount or percentage to the cost of the product
cost-plus pricing
adding a specified dollar amount or percentage to the seller's cost
job enlargement
adding more tasks at the same level of responsibility and skill related to an employee's current position
markup pricing
adding to the cost of the product a predetermined percentage of that cost
Purchasing power parity (PPP)
adjustment made to the GDP to reflect differences in the cost of living
special-event pricing
advertised sales or price cutting linked to a holiday, a season or an event
human resource planning
aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals
leniency error
all employees are given high ratings regardless of performance
labor market
all of the potential employees located within a geographic area from which the organization might be able to hire
indirect financial compensation
all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health insurance
indirect financial compensation
all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time and health insurance
union shops
all workers in a unionized workplace are forced to join the union and pay dues
recency effect
allowing recent events and performance to have a disproportionately large influence on the rating
telecommuting
allows employees to work from home and link to the company's offices via computer.
National Labor Relations Act of 1947 (Taft-Hartley Act)
amended the Wagner Act to clarify what are considered unfair labor practices by unions and employees
collusion
an agreement among firms in a market about quantities to produce or prices to charge
General Agreement on Tariffs and Trade
an agreement among nations to reduce worldwide tariffs and increase international trade
tying agreement
an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well
strategic channel alliance
an agreement whereby the products of one organization are distributed through the marketing channels of another
Asia-Pacific Economic Cooperation
an alliance that promotes open trade and economic and technical cooperation among member nations throughout the world
Southern Common Market
an alliance that promotes the free circulation of goods, services and production factors, and has a common external tariff and commercial policy among member nations in South America
European Union
an alliance that promotes trade among its member countries in Europe
Association of Southeast Asian Nations
an alliance that promotes trade and economic integration among member nations in Southeast Asia
licensing
an alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing
reciprocity
an arrangement unique to business marketing in which two organizations agree to buy from each other
critical incident appraisal method
an assessor discusses specific examples of the target employee's positive and negative behaviors with the employee
current asset
an asset that is expected to be used within one year of the balance sheet date
decertification election
an election to determine if a majority of employees want to no longer be represented by a union
presenteeism
an employee physically comes to work but does not function at his or her full potential
errors of commission
an employee receives an undeserved reward
errors of omission
an employee who deserves a reward doesn't receive one
reasonable accommodation
an employer is required to take reasonable steps to accomodate a disability unless it would cause the employer undue hardship
flexible spending account
an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis
adverse impact
an employment practice has a disproportionate effect on a protected group regardless of its intent
employment at will
an employment relationship which either party can legally terminate at any time for just cause, no cause, or evan a cause that is morally wrong as long as it is not illegal
World Trade Organization
an entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies and governments about trade rules around the world
value analysis
an evaluation of each component of a potential purchase
arbitration
an impartial third party acts as both judge and jury in imposing a binding decision on both negotiating parties
appreciation
an increase of the value of currency
industrial distributor
an independent business organization that takes title to industrial products and carries inventories
search firms
an independent company that specializes in the recruitment of particular types of talent
accountability
an individual is expected to provide a regular accounting to a superior about the results of what she or he is doing and will be held responsible for the outcome
independent contractor
an individual or business that provides services to another individual or business that controls or directs only the result of the work
central bank
an institution designed to oversee the banking system and regulate the quantity of money in the economy
service
an intangible result of the application of human and mechanical efforts to people or objects
Online job boards
an internet site that helps job seekers and employers find one another
just-in-time
an inventory management approach in which supplies arrive just when needed for production or resale
medium of exchange
an item that buyers give to sellers when they want to purchase goods and services
store of value
an item that people can use to transfer purchasing power from the present to the future
job task
an observable unit of work with a beginning and an end
continuous performance appraisal
an ongoing performance appraisal process that involves the employee in evaluating his or her performance and setting performance goals and provides continuous coaching and feedback
succession management
an ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance
corporate identity
an organizaion's unique symbols, personalities and philosophies
pay follower
an organization that pays its front-line employees as little as possible
employer image
an organization's reputation as an employer
sole sourcing
an organizations decision to use only one supplier
multiple sourcing
an organizations decision to use several suppliers
new-task purchase
an organizations initial purchase of an item to be used to perform a new job or solve a new problem
market orientation
an organizationwide commitment to researching and responding to customer needs
dysfunctional stress
an overload of stress resulting from a situation of under- or over-arousal continuing for too long
implicit employment contract
an understanding that is not part of a written or verbal contract
workplace violence
any act of threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the workplace
compensable factor
any characteristic used to provide a basis for judging a job's value
Employee Wellness Programs
any initiative designed to increase company performance or employee performance or morale through improved employee health
reinforcers
anything that makes a behavior more likely to happen again
exit inteviews
asking separated employees why they left to acquire information that can be used to improve conditions for current employees
situational interviews
asks how the candidate might react to hypothetical situations
integrity tests
assess attitudes and experiences related to reliability, trustworthiness, honesty and moral character
background checks
assess factors including personal and credit characteristics, character, lifestyle, criminal history and reputation. contingent method.
cognitive ability test
assess general mental abilities including reasoning, logic and perceptual abilities. evaluative method.
psychomotor tests
assess strength, physical dexterity and coordination
sensory tests
assess visual, auditory and speech perception
collaborating
attempting to work with the other person to find some solution which fully satisfies the concerns of both parties
spot awards
awards given immediately when a desired behavior is seen
demand deposits
balances in bank accounts that depositors can access on demand by writing a check
consideration
bargained-for exchange between the contract parties - something of value must pass from one party to the other
variable pay
bases some or all of an employee's compensation on employee, team, or organizational
raw materials
basic natural materials that become part of a physical product
stereotype
believeing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
stereotype
believing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
scientific management
breaks work down into its simplest elements and then systematically improves the worker's performance of each element
Competencies
broad worker characteristics that underlie successful job performance
investiture socialization
builds newcomers' self-confidence and reflects senior employees' valuing of newcomers' knowledge and personal characteristics
corporate social responsibility
businesses showing concern for common good and valuing human dignity
multiple hurdles
candidates must receive a passing score on an assessment before being allowed to continue in the selection process
shared service center
centralizes routine, transaction-based HRM activities
functional modifications
changes affecting a product's versatility, effectiveness, convenience, or safety
automatic stabilizers
changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action
product modification
changes in one or more characteristics of a product
quality modifications
changes relating to a product's dependability and durability
aesthetic modifications
changes relating to the sensory appeal of a product
bona fide occupational qualification
characteristic that is essential to the successful performance of a relevant job function
uniform geographic pricing
charging all customers the same price, regardless of geographic location
differential pricing
charging different prices to different buyers for the same quality and quantity of product
price skimming
charging the highest possible price that buyers who most desire the product will pay
cost of living allowances
clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living index
union models
closed shop agency shop open shop
horizontal channel integration
combining organizations at the same level of operation under one management
vertical channel integration
combining two or more stages of the marketing channel under one management
Customary benefits
commonly provided benefits that are viewed as an entitlement by employees insurance, retirement plans
internal job posting systems
communicate information about internal job openings to employees
total compensation statement
communicating total compensation in detail through a written summary of employee direct and indirect compensation
private warehouses
company-operated facilities for storing and shipping products
performance rating methods
compares employee performance to a set of standards to identify a number or letter rating that represents the employee's performance level. essay appr, critical incident, graphic, behavior anchored, behavior obs scale, forced choice, checklist, work standards, mgmt by obj
performance ranking methods
compares employees to each other in some way. forced ranking, paired comparison, forced distribution.
race norming
comparing an applicant's scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup
work standards
comparing an employee's performance to output targets that reflect different levels of performance
gap analysis
comparing labor supply and demand forecasts to identify future talent needs
what emp will do
compensation perf mgmt
Direct financial compensation
compensation received in the form of salary, wages, commissions, stock options or bonuses
direct financial compensation
compensation received in the form of salary, wages, commissions, stock options or bonuses
labor relations strategies
compliance collaboration avoidance
centralized
concentrate power and decision making authority at higher levels of the organization
value conscious
concerned about price and quality of a product
dysfunctional
conflict that focuses on emotions and differences between both parties
high potential error
confusing potential with performance
stakeholder perspective
considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organizations actions
offer
contains the terms and conditions of employment as proposed by the employ and usually specific requirements for accepting the offer such as a signature and a deadline
fixed costs
costs that do not vary with changes in the number of units produced or sold
fixed costs
costs that do not vary with the quantity of output produced
variable costs
costs that vary directly with changes in the number of units produced or sold
variable costs
costs that vary with the quantity of output produced
works councils
council of elected workers that participate in shared workplace governance
rights arbitration
covers disputes over the interpretation of an existing contract and is often used in settling grievances
Occupational Safety and Health Administration
created by the Occupational Safety and health Act to set and enforce protective workplace safety and health standards
learning objectives
created to identify desired learning outcomes. types: cognitive, affective, and psychomotor
Informal rules
cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe
talent inventories
databases summarizing each employee's competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute
problem-focused coping strategies
deal directly with the cause of stress
quantity discounts
deductions from the list price for purchasing in large quantities
business strategy
defines how a firm will compete in its marketplace
derived demand
demand for business products that stems from demand for consumer products
inelastic demand
demand for business products that stems from demand for consumer products
joint demand
demand involving the use of two or more items in combination to produce a product
reserves
deposits that banks have received but have not loaned out
intrinsic motivation
derived from an interest in or enjoyment from doing a task
performance plan
describes desired goals and results, how results will be measured and weighted and standards will be used to evaluate results
affirmative action plan
describes in detail the actions to be taken, procedures to be followed and standards to be met when establishing an affirmative action program
ergonomics
designing the work environment to reduce the physical and psychological demands placed on employees
product development
determining if producing a product is technically feasible and cost effective
inventory management
developing and maintaining adequate assortments of products to meet customers' needs
international marketing
developing and performing marketing activities across national boundaries
line extension
development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs
organizational chart
diagram illustrating the chain of command and reporting relationships in a company
wage differentials
differences in wage between various workers, groups of workers, or workers within a career field
reward differnentiation
differentiating rewards based on performance rather than giving all employees the same reward
performance management
directs and motivates employees, work groups and business units to accomplish organizational goals by linking past performance with future needs, setting specific goals for future behavior and performance, providing feedback and identifying and removing performance obstacles
organizational citizenship behaviors
discretionary behaviors that benefit the organization but that are not formally rewarded or required
competitive advantage
doing something differently from the competition that leads to outperformance and success
prestige sensitive
drawn to products that signify prominence and status
procedure
drive actions
contest socialization
each socialization stage is a contest in which one builds a performance record
tournament socialization
each stage of socialization is an elimination round and a new hire is out of the organization if he or she fails to pass
Training transfer
effectively using what is learned in training back on the job
nonprice competition
emphasizing factors other than price to distinguish a product from competing brands
price competition
emphasizing price as an issue and matching or beating competitors' prices
forced ranking method
employees are ranked in order of best to worst performance
variable socialization
employees do not know when to expect to pass to a different status level and the timeline may be different across employees
multi-crafting
employees gain proficiency in two or more trades
card check
employees sign a card of support if they are in favor of unionization.
non-exempt employees
employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay and hours worked
exempt employees
employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime pay
worker adjustment and retraining notification act of 1988
employers with at least 100 employees must give at least 60 days notice of closings or mass layoffs of 50 or more preople
immigration reform and control act of 1986
employers with at least 4 employees must verify the employment eligibility of everyone hired
COBRA of 1986
employers with group health plans and 20 or more employees in the prior year must offer continued health and dental coverage to terminated employees for a period of time
price disrimination
employing price differentials that injure competition by giving one or more buyers a competitive advantage
preferential treatment
employment preference given to a member of a protected group
odd-even pricing
ending the price with certain numbers to influence buyers' perceptions of the price or product
uniformed services employment and reemployment rights act of 1994
ensures that members of the uniformed services are entitled to return to their civilian employment after their service. to protect the civilian employment of non-full-time military personnel in the United States called to active duty.
accessory equipment
equipment that does not become part of the final physical product but is used in production or office activities
Executive Order 11246
established requirements for non-discriminatory practices in hiring and employment on the part of U.S. government contractors. It "prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin."
fair labor standards act of 1938
establishes both a national minimum wage and overtime rules
negotiated pricing
establishing a final price through bargaining between seller and customer
product-line pricing
establishing and adjusting prices of multiple products within a product line
relationship marketing
establishing long-term, mutually satisfying buyer-seller relationships
evaluative assessment methods
evaluate job candidates to identify whom to hire. ie psychomotor tests, cognitive ability test, non-cog ability test, personality assessment, integrity tests, job knowledge test, structured interview, unstructured interview, work samples, simulations, assessment center
work samples
evaluate the performance of actual or simulated work tasks
person needs analysis
evaluates how individual employees are doing in the training area and determines who needs what type of training
business analysis
evaluating the potential impact of a product idea on the firm's sales, costs, and profits
paired comparison method
every employee in a work group is compared to the other group members
inclusion
everyone feels respected and listened to, and everyone contributes to his or her fullest potential
burnout
exhaustion of physical or emotional strength or motivation usually as a result of prolonged stress or frustration
installations
facilities and nonportable major equipment
mobility barriers
factors that make it harder to leave an organization
government markets
federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies
normative commitment
feeling obliged to stay with an organization for moral or ethical reasons
professional pricing
fees set by people with great skill or experience in a particular field
Explicit collusion
firms directly negotiate output and pricing and divide markets.
innovators
first adopters of new products
person-organization fit
fit between an individual's values, attitudes, and personality and the organization's values, norms and culture.
utilitarian, rights, fairness, common good, virtue
five types of ethical standards
average fixed cost
fixed cost divided by the quantity of output
emotion-focused coping strategies
focus on the emotions brought on by the stressor
development
focuses on developing competencies that an employee or workgroup is expected to need in the future
performance culture
focuses on hiring, retaining, developing, motivating and making work assignments based on performance data and results
task needs analysis
focuses on identifying which jobs, competencies, abilities, behaviors, etc. the training effort should focus on
forced-choice rating method
forces the assessor to choose the statement that best fits the target employee from a provided set of statements that are scored and weighted in advance
training
formal and informal activities to improve competencies relevant to an employee's or workgroup's current job
marketing mix
four marketing activities - product, pricing, distribution and promotion - that a firm can control to meet the needs of customers within its target market
entrepreneurial (creative), bureaucratic (formal), consensual (loyalty), competitive (advantage)
four types of organizational culture
megacarriers
freight transportation firms that provide several modes of shipment
scanlon plans
gainsharing programs based on implementing employee suggestions for lowering the cost per unit produced
base-point pricing
geographic pricing that combines factory price and freight charges from the base point nearest the buyer
flexible benefits plans
give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer
severance pay
give to employees upon termination of their employment
similar-to-me effect
giving high ratings to someone because she or he is perceived as being similar to the rater
pricing objectives
goals that describe what a firm wants to achieve though pricing
surface bargaining
going through the motions of negotiations with no intent of reaching an agreement
exchange controls
government restrictions on the amount of a particular currency that can be bought or sold
replacement charts
graphically shows current jobholders, possible successors and each successor's readiness to assume the job
Operating Income
gross profit minus all other expenses except for interest and taxes; measures the performance of the fundamental business operations conducted by a company
protected classes
groups underrepresented in employment
National Labor Relations Act of 1935 (Wagner Act)
guarantees the right of nonmanagerial employees of firms engaged in interstate commerce to join unions and bargain collectively
policy
guide decision making
health insurance
health care coverage for employees and their dependents
high performance work systems (HPWS)
high involvement or high commitment organizations
compensatory approach
high scores on some assessments can compensate for low scores on other assessments
outsourcing
hiring an external vendor to do work rathe than doing it internally
business strategy
how an organization will compete in a particular market
learning style
how people differ in how we process information when problem solving or learning
workflow
how work is organized to meet the organization's goals
labor relations strategic plan
identifies the labor relations goals desired individually or jointly by labor and management, determines the best strategy to reach those goals, and develops and executes the actions needed to implement that strategy
Competency Modeling
identifies the worker competencies characteristic to high performance
Organizational needs analysis
identifies where in the organization development or improvement opportunities exist
task statements
identify in specific behavioral terms the regular duties and responsibilities of a position
replacement planning
identifying specific back-up candidates for specific senior management positions
succession planning
identifying, developing and tracking employees to enable them to eventually assume higher level positions
defined contribution retirement plans
ie 401(k), 403(b) profit sharing, emp stock ownership
comparable worth
if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them
opportunity bias
ignoring factors beyond the employee's control that influence his/her performance
supply management
in its broadest form refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition
long-term incentives
incentives that motivate behaviors and performance that support company value and long-term organizational health. ie stock options
Net Income
income from continuing operations plus or minus the results of discontinued operations and extraordinary items, net of their respective income tax effects
hardship premiums
increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments
increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing power
staffing ratios
indexing headcount with a business metric. ie manager to emp, rev to emp, cust to emp, store size to emp
producer markets
individuals and business organizations that purchase products to make profits by using them to produce other products or using them in operations
early majority
individuals who adopt a new product just prior to the average person
3 types of unions
industrial, trade, and employee associations
first impression bias
initial judgements influence later assessments
implicit costs
input costs that do not require an outlay of money by the firm
implicit costs
input costs that do not require an outlay of money by the firm (ignored by accountants)
explicit costs
input costs that require an outlay of money by the firm
business services
intangible products that many organizations use in their operations
motivation to transfer
intention and willingness to transfer any knowledge acquired in a training or development activity back to the work context
disparate treatment
intentional discrimination based on a person's protected characteristic
reseller markets
intermediaries that buy finished goods and resell them for a profit
workflow analysis
investigates how work moves through an organization to identify changes to increase efficiency and better meet customers' needs
Transaction Analysis
is the process of determining how an economic event impacts financial statements
shopping products
items for which buyers are willing to expend considerable effort in planning and making purchases
component parts
items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly
specialty products
items with unique characteristics that buyers are willing to expend considerable effort to obtain
job rewards analysis
job analysis technique that identifies the intrinsic and extrinsic rewards of a job
essential criteria
job holder characteristics that are vital to job performance
desirable criteria
job holder characteristics that may enhance job success but are not essential to adequate job performance
task needs
job or competency analysis/observation/performance appraisals/quality control analysis: sources for collecting _________ analysis information
benchmark jobs
jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for compensation comparisons
5 of 7 reasons emp leave org
lack of career dev poor work climate lack of challenging work direction of org lack of recognition
distribution centers
large, centralized warehouses that focus on moving rather than storing goods
inflation adjustments
larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation
Psychomotor
learning objectives that build a physical skill
Affective Learning Objectives
learning objectives that change an attitude, relationship or appreciation
horns effect
letting one negative factor influence assessments of other areas of behavior or performance
halo effect
letting one positive factor influence assessments of other areas of behavior or performance
human resource strategy
links the entire human resource function with the firm's business strategy
internal recruiting source
locates talent currently working for the company that would be a good fit with another position
vision
long-term goals regarding what the organization wants to become and accomplish, describing its image of an ideal future
golden parachute
lucrative benefits given to executives in the event the company is taken over
MRO supplies
maintenance, repair, and operating items that facilitate production and operations bud do not become part of the finished product
functional stress
manageable levels of stress that generate positive emotions including satisfaction, excitement and enjoyment
lockout
management keeps employees away from the workplace and uses management staff or replacements to run the business
talent inventory
manual or computerized records of employee's relevant characteristics, experiences and competencies
Adjust price levels so the firm can maintain or increase sales relative to competitors' sales
market share
person-group fit
match between an individual and his or her workgroup and supervisor
process materials
materials that are used directly in the production of other products but are not readily identifiable
behavioral observation scales
measure the frequency of desired behaviors
job knowledge tests
measure the knowledge (often tehnical) required by a job
marketing intermediaries
middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products
fraudulent recruitment
misrepresenting the job or organization to a recruit
commodity money
money that takes the form of a commodity with intrinsic value
fiat money
money without intrinsic value that is used as money because of government decree
forecast external job market
monitor own experience bureau of labor stats
extrinsic motivation
motivation that comes from outside the individual, including performance bonuses
accommodating
neglecting one's own concerns to satisfy the concerns of the other person
Comprehensive Income
net income plus or minus adjustments for changes in company wealth stemming from changes in certain exchange rates, interest rates, or financial instruments' values
fixed socialization
new hires are informed in advance when their probationary status will end
disjunctive socialization
newcomers are left alone to develop their own interpretations of the organization and situations they observe
individual socialization
newcomers are socialized individually as in an apprenticeship
collective socialization
newcomers go through a common set of experiences as a group
intrinsic reward
non-monetary reward derived from the work itself
employee benefits
nonwage compensation or rewards given to employees (indirect compensation)
avoiding
not immediately pursuing one's own concerns or those of the other person and not addressing the conflict
span of control
number of people who report directly to him or her.
Job characteristics model
objective job characteristics including skill variety, task identity, task significance, autonomy and task feedback, lead to job satisfaction from people with a high growth need strength.
Kaplan & Norton balanced scorecard
objectives measures targets initiatives
distributive negotiation
occurs under zero-sum conditions, where any gain to one party is offset by an equivalent loss to the other party
noncumulative discounts
one-time price reductions based on the number of units purchased, the dollar value of the order or the product mix purchased
short-term incentives
one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity
offshoring
opening a location in another country or outsourcing work to an existing company abroad
Income from Continuing Operations
operating income minus interest expense, minus income tax expense, and plus or minus other miscellaneous revenue and expense items, and gains and losses from peripheral transactions and events
pay leader
organization with a compensation policy of giving employees greater rewards than competitors
freight forwarders
organizations that consolidate shipments from several firms into efficient lot sizes
institutional markets
organizations with charitable, educational, community, or other non business goals
Knowledge
organized factual or procedural information that can be applied to perform a task
contrast effect
over-or under-rating someone base on a comparison with someone else
multiple-unit pricing
packaging together or more identical products and selling them at a single price
bundle pricing
packaging together two or more complementary products and selling them at a single price
variable pay plans
pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional pay if performance meets or exceeds a standard
Cost-of-living adjustments
pay increases to account for a higher cost of living in one country versus another
cost-of-living adjustments
pay tied to inflation indicators rather than merit
Housing allowance
payments to subsidize or cover housing and related costs
Life Insurance
pays a beneficiary or beneficiaries a sum of money after the death of an insured individual
fixed pay
pays employees a set amount regardless of performance
workers' compensation insurance
pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee's death in exchange for relinquishing the employee's right to sue the employer for negligence
early adopters
people who adopt new products early, choose new products carefully and are viewed as "the people to check with" by later adopters
Organizational image
people's general impression of an organization based on both feelings and facts
Equation for computing the income elasticity of demand
percentage change in quantity demanded divided by the percentage change in income
HRM areas
perf mgmt staffing health & safety training & development reward & benefits emp mgmt relations
multi-source assessments
performance feedback from the employee's supervisor as well as other sources who are familiar with an employee's job performance
self-management strategies
person's effort to control his or her motivation, emotions and decision making to enhance the application of learned capabilities to the job
materials handling
physical handling of tangible goods, supplies and resources
What emp should do
planning laws & regulations
logistics management
planning, implementing and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants
mobility policies
policies that specify the rules by which people move between jobs within an organization
fixed rewards
predetermined compensation (salary and benefits)
4 common biases
prejudice, stereotyping, perception of possibilities, ignorance
Realistic job previews
presenting both positive and potentially negative information about a job in an objective way. 3 funcs served: self selection, vaccination (coping mechanism), commitment to the choice
remission errors
pressure to make unethical choices
transfer pricing
prices charged in sales between an organization's units
reference pricing
pricing a product at a moderate level and displaying it next to a more expensive model or brand
bait pricing
pricing an item in a product line low with the intention of selling a higher priced item in the line
demand-based pricing
pricing based on the level of demand for the product
zone pricing
pricing based on transportation costs within major geographic zones
competition-based pricing
pricing influenced primarily by competitors' prices
customary pricing
pricing on the basis of tradition
everyday low prices
pricing products low on a consistent basis
psychological pricing
pricing that attempts to influence a customers a customer's perception of price to make a product's price more attractive
captive pricing
pricing the basic product in a product line low, while pricing related items higher
premium pricing
pricing the highest-quality or most versatile products higher that other models in the product line
Employee Handbooks
print of online materials that document the organization's HRM policies and procedures
affirmative action
proactive efforts to eliminate discrimination and its past effects
internet data mining
proactively search the internet to locate semi-passive and passive job seekers with the characteristics and qualifications needed fore a position
Assets
probable future economic benefits obtained or controlled by a company as a result of past transactions or events
Liabilities
probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services in the future as a result of past transactions or events
strategic planning
process for making decisions about an organization's long-term goals and how they are to be achieved
Self Regulation
processes enabling an individual to guide his/her goal-directed activities over time
set prices to recover research and development expenditures and establish a high-quality image
product quality
business products
products bought to use in a firm's operations, to resell, or to make other products
price leaders
products priced near or even below cost
consumer products
products purchased to satisfy personal and family needs
unsought products
products purchased to solve a sudden problem, products of which customers are unaware, and products that people do no necessarily think of buying
vietnam era veterans readjustment assistance act of 1974
prohibits discrimination against and requires affirmative action for disabled veterans
rehabilitation act of 1973
prohibits discrimination against qualified individuals with a disability. EEOC
pregnancy discrimination act of 1978
prohibits discrimination for all employment related purposes on the basis of pregnancy, childbirth, or related medical conditions
americans with disabilities act of 1990
prohibits discrimination of a qualified individual with or perceieved as having a disability. EEOC
genetic information nondiscrimination act of 2008
prohibits employers from discriminating against individuals based on the results of genetic testing when hiring, firing, job placement or promotion decisions
title VII of the Civil Rights Act of 1964
prohibits employment discrimination based on race, color, religion, sex, or national origin. EEOC
national labor relations act of 1935
prohibits retaliation against employees seeking to unionize
equal pay act of 1963
prohibits wage discrimination on the basis of sex. EEOC
defined benefit retirement plans
promise participants a monthly benefit at retirement
illegal
proposals to discriminate, union shop clauses in right to work states, closed shop clauses, handing goods produced by nonunion companies are ________ subjects.
resource dependence theory
proposition that organizational decisions are influenced by both internal and external agents who control critical resources
age discrimination in employment act of 1967
protects people age 40 and older. EEOC
Consolidated Omnibus Budget Reconciliation Act
provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event
Social Security
provides retirement income to qualified workers and their spouses after working a certain number of hours
unemployment insurance
provides temporary income during periods of involuntary unemployment
competing
pursuing one's own concerns at the the other person's expense
assessment center
puts candidates through a variety of simulations and assessments to evaluate their potential fit with and ability to do the job. ie inbasket exercises, grp disc, simulations, dec-make probs, oral presentation, written comm
Inelastic demand
quantity demanded responds only slightly to changes in price
Elastic demand
quantity demanded responds substantially to changes in price
cumulative discounts
quantity discounts aggregated over a stated time period
central tendency
rating all employees in the middle of the scale regardless of performance
strategic recruiting metrics
recruiting metrics that track recruiting processes and outcomes that influence the organization's performance, competitive advantage or strategic execution
screening assessment methods
reduce the pool of job applicants to a group of job candidates. ie resumes, job applications, phone screens.
geographic pricing
reductions for transportation and other costs related to the physical distance between buyer and seller
commercialization
refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product
base pay
reflects the size and scope of an employee's responsibilities
reserve requirements
regulations on the minimum amount of reserves that banks must hold against deposits
punishment
reinforcer: creating negative outcomes to decrease the likelihood of a behavior
extinction
reinforcer: removal of any positive or negative reinforcement following the occurrence of the behavior to be extinguished decreases the likelihood of that behavior
negative reinforcement
reinforcer: removing current or future unpleasant consequences to increase the likelihood that someone will repeat a behavior.
positive reinforcement
reinforcer: using rewards to increase the likelihood that a behavior will be repeated
financial ratios
relationships between two financial statement numbers and are often used in analyzing and describing a company's performance
convenience products
relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort
judgmental forecasting
relies on managers' expertise to predict a firm's future employment needs
top-down judgmental forecasting
relies on the organization's leaders and experience and knowledge of their industry and company to make predictions about the firm's future talent needs.
Balance Sheet
reports a company's financial position at a specified point in time and lists the company's resources (assets), obligations (liabilities), and net ownership interest (owners' equity).
statement of cash flows
reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing
Income Statement
reports the amount of net income earned by a company during a period
Formal rules
requirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants
family and medical leave act of 1993
requires leave and job return for personal or family medical reasons and for the care of newborn or newly adopted children
Family and Medical Leave Act of 1993
requires most employers to provide employees up to 12 weeks of unpaid leave to care for family members
interest arbitration
resolves disputes over the terms of a collective bargaining agreement currently being negotiated
extrinsic reward
reward with monetary value
nonfinancial compensation
rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment
nonfinancial compensation
rewards and incentives given to employees that aren't financial in nature
pay for performance programs
rewards employees based on some specific measure of their performance
skill-based pay
rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisor limited ability, partial proficiency, full competence
wellness incentives
rewards for engaging in healthy behavior or participating in wellness programs
recognition awards
rewards for specific achievements like tenure with the organization, helping a coworker or attendence
Weingarten rights
rights that guarantee employees the right to union representation during investigatory interviews by the employer
OSHA standards
rules describing the methods employers must legally follow to protect their workers from hazards
job offer elements
salary, sign-on bonus, relocation exp, benefits, job specific elements
flextime
scheduling option that lets employees decide when to work within parameters
resume databases
searchable database of prescreened resumes
concept testing
seeking a sample of potential buyers' responses to a product idea
idea generation
seeking product ideas to achieve organizational objectives
organizational design
selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment
screening
selecting the ideas with the greatest potential for further review
dumping
selling products at unfairly low prices
Kinesthetic:
sensory modality: learning by doing
Auditory
sensory modality: learning by hearing
Visual
sensory modality: learning by seeing
Tactile
sensory modality: learning by touching
open skills
sets of principles that can be applied in many different ways
price lining
setting a limited numbers of prices for selected groups or lines of merchandise
comparison discounting
setting a price at a specific level and comparing it with a higher price.
secondary-market pricing
setting one price for the primary target market and a different price for another market
prestige pricing
setting prices at an artificially high level to convey prestige or a quality image
penetration pricing
setting prices below those of competing brands to penetrate a market and gain a significant market share quickly
open shop
shop that does not discriminate based on union membership in employing or keeping workers.
closed shop
shop that exclusively employs people who are already union members. Taft-Hartley Act made this illegal.
agency shop
shop that requires nonunion workers to pay a fee to the union for its services in negotiating their contracts
written standards of ethical conduct, ethics training, providing a way for seeking ethics related advice or info, providing a way to report misconduct anonymously, disciplining employees, evaluating ethical behavior
six elements of a complete ethics program
cumulative trauma disorders
skeletal and muscle injuries that occu when the same muscles are used to preform tasks repetitively
late majority
skeptics who adopt new products when they feel it is necessary
hackman & oldman 5 chars on which jobs differ
skill variety task identity task significance autonomy task feedback
competency-based pay
skill-based pay for professional jobs
closed skills
skills performed similarly or exactly like they are taught in training
applicant tracking system
software that helps manage the recruiting process
active job seeker
someone actively looking for information about job opportunities
semi-passive job seeker
someone at least somewhat interested in finding a new job but inconsistently looks for one
passive job seeker
someone not actively looking for a new job but who could be tempted by the right opportunity
codes of conduct
specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior
aggregate demand
specifies the amounts of goods and services that will be purchased at all possible price levels.
Standards
specifies the level of results considered acceptable
consumption
spending by households on goods and services, with the exception of purchases of new housing
investment
spending on capital equipment, inventories, and structures, including household purchases of new housing
net exports
spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)
government purchases
spending on goods and services by local, state, and federal governments
what emp can do
staffing training
wage rate compression
starting salaries for new hires exceed the salaries paid to experienced employees
bottom-up judgmental forecasting
starts with lower-level managers' estimates of the firm's future talent needs.
right to work laws
state laws that prohibit union shops in which all workers in a unionized workplace must join the union and pay dues
continuance commitment
staying with an organization because of perceived high economic and/or social costs involved with leaving
public warehouses
storage space and related physical distribution facilities that can be leased by companies
avoidance strategy
strategy in which management engages in lawful or unlawful efforts to prevent a union from forming or seeks the decertification of an existing union
collaboration strategy
strategy that relies heavily on labor relations to pursue an interest-based approach to problem solving
compliance strategy
strategy that relies heavily on the application of labor law to enforce the rights and obligations created by statute and by contract
economic strikes
strike over disputes regarding wages or benefits
unfair labor practice strikes
strike protesting illegal employer activities
jurisdictional strikes
strikes affirming members' right to certain job assignments and protest the work assignments to another union or to unorganized employees
recognition strikes
strikes intended to force employers to recognize unions
price conscious
striving to pay low prices
formal socialization
structured socialization using specifically designed activities and materials awayfrom the work setting
job classification method
subjectively classifies jobs into an exiting hierarchy of grades and categories
ranking methos
subjectively compares jobs to each other based on their overall worth to the organization
person specification
summarizes the characteristics of someone able to perform the job
employer brands
summary of what an employer offers to employees
Disability insurance
supplements workers' compensation insurance to provide continued income in the event of an employee becoming disabled
Compensation surveys
surveys of other organizations conducted to learn what they are paying for specific jobs or job classes
brand
symbolic picture of all the information connected to a company or a product including its image
training evaluation
systematically collecting the information necessary to make effective decisions about adopting, improving, valuing, and continuing an instructional activity or set of activities
hard bargaining
taking a strong position on an issue
external recruiting source
targets people outside the organization
employee stock ownership plans
tax-exempt, employer-established employee trusts that hold company stock for employees
periodic discounting
temporary reduction of prices on a patterned or systematic basis
random discounting
temporary reduction of prices on an unsystematic basis
Emerging economies
term that has gradually replaced the term "developing countries" since the 1990s.
channel power
the ability of one channel member to influence another member's goal achievement
learning agility
the ability to learn from experiences and to apply that knowledge to new and different situations
Skill
the ability to use some sort of knowledge in performing a physical task; often refers to psychomotor activities
multiplier effect
the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending
consumer surplus
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
total revenue
the amount a firm receives for the sale of its output
producer surplus
the amount a seller is paid for a good minus the seller's cost of providing it
task aquaintance
the amount and type of work contact an evaluator has with the person being assessed
quantity demanded
the amount of a good that buyers are willing and able to purchase
quantity supplied
the amount of a good that sellers are wiling and able to sell
money multiplier
the amount of money the banking system generates with each dollar of reserves
Earnings per Share (EPS)
the amount of net income associated with each share of stock
total revenue
the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold
treasury stock
the amount the corporation has spent to buy back its own shares from stockholders
careers site
the area of an organization's website devoted to jobs and careers with the company
pay structure
the array of pay rates for different work or skills within a single organization
checklist method
the assessor uses a checklist of pre-scaled descriptions of behavior to evaluate the employee
essay appraisal method
the assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the target employee
depth of product mix
the average number of different products offered in each product line
common law
the body of case by case court decisions that determine what is legal and what remedies are appropriate
price discrimination
the business practice of selling the same good at different prices to different customers
case interview
the candidate is given a business situation, challenge or problem and asked to present a well thought out solution
Federal Reserve (Fed)
the central bank of the United States
substitution effect
the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
income effect
the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
marginal revenue
the change in total revenue from an additional unit sold
marginal revenue
the change in total revenue resulting from the sale of an additional unit of a product
law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
law of supply
the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
total rewards
the combined intrinsic and extrinsic rewards of a job
marketing environment
the competitive, economic, political, legal and regulatory, technological and sociocultural forces that surround the customer and affect the marketing mix
product mix
the composite, or total, group of products that an organization makes available to customers
cultural relativism
the concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures
aptitude-treatment interactino
the concept that some training strategies are more of less effective depending on a learner's particular abilities, personality traits and other characteristics
matching
the concept that states that an expense should be recognized in the same period in which the revenue it was used to generate is recognized
Materiality
the concept that weighs whether a certain dollar amount is large enough to make a difference to anyone
Retained Earnings
the cumulative amount of corporate profits that have been retained within the business rather than being paid out to stockholders as dividends
distribution
the decisions and activities that make products available to customers when and where they want to purchase them
brand recognition
the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable
brand preference
the degree of brand loyalty in which a customer prefers one brand over competitive offerings
interactional fairness
the degree of respect and the quality of the interpersonal treatment received during the decision-making process
task feedback
the degree to which carrying out the job's required activities results in the individual's obtaining direct and clear information about the effectiveness for his or her performance
division of labor
the degree to which employees specialize
task significance
the degree to which job performance is important and affect the lives and work of others
formalization
the degree to which organizational rules, procedures and communications are documented
sequential socialization
the degree to which socialization follows a specific sequence of steps
hierarchy
the degree to which some employees have formal authority over others
autonomy
the degree to which the job gives the worker freedom, discretion and independence is scheduling the work and determining how to do the work
Skill variety
the degree to which the job requires a variety of activities enabling the worker to use different skills and talents
task identity
the degree to which the job requires the worker to complete a whole and identifiable piece of work
dysfunctional turnover
the departure of effective performers the company would have like to retain
functional turnover
the departure of poor performers
warehousing
the design and operation of facilities for storing and moving goods
globalization
the development of marketing strategies that treat the entire world (or its major regions) as a single entity
Gross Profit
the difference between the selling price of a product and the cost of the product
balance of trade
the difference in value between a nation's exports and its imports
profit sharing
the distribution of organizational profits to all employees
channel captain
the dominant leader of a marketing channel or a supply channel
liquidity
the ease with which an asset can be converted into the economy's medium of exchange
core values
the enduring beliefs and principles that guide an organization's decisions and goals
utilitarian standard
the ethical action best balances good over harm
virtue standard
the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc.
common good standard
the ethical action shows respect and compassion for all others, especially the most vulnerable
fairness standard
the ethical action treats all people equally, or at least fairly, based on some defensible standard
Net income
the excess of a company's revenues over its expenses
organizational commitment
the extent to which an employee identifies with the organization and its goals and wants to stay with the organization affective, normative, continuance
marginal cost
the extra cost incurred by producing one more unit of a product
person-job fit
the fit between a person's abilities and the job's demands and the fit between a person's desires and motivations and the job's attributes and rewards
product adoption process
the five-stage process of buyer acceptance of a product: awareness, interest, evaluation, trial and adoption
average fixed cost
the fixed cost per unit produced
reserve ratio
the fraction of deposits that banks hold as reserves
trade name
the full legal name of an organization
job pricing
the generation of salary structures and pay levels for each job based on the job evaluation data
Articulation
the idea that the three primary financial statements are interrelated
marginal product
the increase in output that arises from an additional unit of input
marginal cost
the increase in total cost that arises from an extra unit of production
introduction stage
the initial stage of a product's life cycle; its first appearance in the marketplace when sales start at zero and profits are negative
federal funds rate
the interest rate at which banks make overnight loans to one another
discount rate
the interest rate on the loans that the Fed makes to banks
laggards
the last adopters who distrust new products
budget constraint
the limit on the consumption bundles that a consumer can afford
gross domestic product
the market value of a nation's total output of goods and services for a given period; an overall measure of economic standing
gross domestic product (GDP)
the market value of all final goods and services produced within a country in a given period of time
total cost
the market value of the inputs a firm uses in production
willingness to pay
the maximum amount that a buyer will pay for a good
workforce redeployment
the movement of employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs
transportation
the movement of products from where they are made to intermediaries and end users
Managerial Accounting
the name given to accounting systems designed for internal users
organizational culture
the norms, values, and assumptions of organizational members that guide members' attitudes and behaviors
width of product mix
the number of product lines a ompany offers
crowding-out effect
the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending
succession management
the ongoing process of preparing employees to assume other positions in the organization
Public Company Accounting Oversight Board (PCAOB)
the organization that inspects the audit practices of registered audit firms and has statutory authority to investigate questionable audit practices and to impose sanctions such as barring an audit firm from auditing SEC-registered companies
The Securities and Exchange Commission (SEC)
the organization that regulates U.S. stock exchanges and seeks to create a fair information environment in which investors can buy and sell stocks without fear that companies are hiding or manipulating financial data
mission
the organization's basic purpose and the scope of its operations
organizational structure
the organization's formal system of task, power and reporting relationships. chars of: formalization, centralization, division of labor, span of control, hierarchy
human resource management
the organizational function responsible for attracting, hiring, developing, rewarding and retaining talent
currency
the paper bills and coins in the hands of the public
brand name
the part of a brand that can be spoken, including letters, words and numbers
brand mark
the part of a brand that is not mad up of words, such as a symbol or design
buying center
the people within an organization who make business purchase decisions
distributive fairness
the perceived fairness of the outcomes received
procedural fairness
the perceived fairness of the policies and procedures used to determine the outcome
employee equity
the perceived fairness of the relative pay between employees performing similar jobs for the same organization
market share
the percentage of a market that actually buys a specific product from a particular company
vesting
the point at which employees can sell or transfer the stock option
break-even point
the point at which the costs of producing a product equal the revenue made from selling the product
recruitment spillover effects
the positive or negative unintended consequences of recruiting activities
outsourcing
the practice of contracting noncore operations with an organization that specializes in that operation
contract manufacturing
the practice of hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification; the final product carries the domestic firm's name
Conservatism
the practice of recognizing all losses but not recognizing gains until they are certain
Bookkeeping
the preservation of a systematic, quantitative record of an activity
F.O.B. factory
the price of merchandise at the factory before shipment
equilibrium price
the price that balances quantity supplied and quantity demanded
Recognition (In terms of accounting)
the process of condensing all estimates and judgments into one number and reporting that one number in the formal financial statements
marketing
the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers to develop and maintain favorable relationships with stakeholders in a dynamic environment
strategic planning
the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy
selection
the process of gathering and evaluating the information used for deciding which applicants will be hired
Needs assessment
the process of identifying any gaps between what exists and what is needed in the future in terms of employee performance, competencies and behaviors. org, task, person analysis
staffing
the process of planning, acquiring, deploying and retaining employees that enables an organization to meet its talent needs and to execute its business strategy
strategic marketing management
the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
growth stage
the product life cycle stage when sales rise rapidly, profits reach a peak, and they start to decline
real GDP
the production of goods and services valued at constant prices
nominal GDP
the production of goods and services valued at current prices
American Institute of Certified Public Accountants (AICPA)
the professional organization of certified public accountants (CPAs) in the United States
product life cycle
the progression of a product through four stages: introduction, growth, maturity, and decline
efficiency
the property of a resource allocation of maximizing the total surplus received by all members of society
equality
the property of distributing economic prosperity uniformly among the members of society
economies of scale
the property whereby long-run average total cost falls as the quantity of output increases
diseconomies of scale
the property whereby long-run average total cost rises as the quantity of output increases
constant returns to scale
the property whereby long-run average total cost stays the same as the quantity of output charges
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
Asset Mix
the proportion of total assets in each asset category that is largely determined by the industry in which the company operates
exchange
the provision or transfer of goods, services or ideas in return for something of value
open-market operations
the purchase and sale of US government bonds by the Fed
business (organizational) buying behavior
the purchase behavior of producers, government units, institutions and resellers
importing
the purchase of products from a foreign source
customers
the purchasers of organizatons' products, the focal point of all marketing activities
money supply
the quantity of money available in the economy
efficient scale
the quantity of output that minimizes average total cost
equilibrium quantity
the quantity supplied and the quantity demanded at the equilibrium price
pay grade (pay scale)
the range of possible pay for a group of jobs
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
forced distribution method
the rater distributes performance ratings into a pre-specified performance distribution
management by objectives
the rater evaluates the target employee against mutually set goals
leverage ratio
the ratio of assets to bank capital
order processing
the receipt and transmission of sales order information
Accounting
the recording of the day-to-day financial activities of a company and the organization of that information into summary reports used to evaluate the company's financial status
production function
the relationship between quantity of inputs used to make a good and the quantity of output of that good
pay mix
the relative emphasis give to different compensation components
Owners' equity
the residual interest in the assets of a company that remains after deducting its liabilities
bank capital
the resources a bank's owners have put into the institution
stock options
the right of an employee to buy shares of the company's stock at a certain price (the exercise price) during some future period of time
exporting
the sale of products to foreign markets
voluntary turnover
the separation is due to the employee's choice
involuntary turnover
the separation is due to the organization asking the employee to leave
money
the set of assets in an economy that people regularly use to buy goods and services from other people
recruiting
the set of practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers
fiscal policy
the setting of the level of government spending and taxation by government policymakers
monetary policy
the setting of the money supply by policymakers in the central bank
safety culture
the shared safety attitudes, beliefs and practices that shape employees' safety behavior
maturity stage
the stage of a product's life cycle when a sales curve peaks and starts to decline, and profits continue to fall
decline stage
the stage of a product's life cycle when sales fall rapidly
ethics
the standards of moral behavior that define socially accepted behaviors that right as opposed to wrong
macroeconomics
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
microeconomics
the study of how households and firms make decisions and how they interact in markets
game theory
the study of how people behave in strategic situations
Welfare economics
the study of how the allocation of resources affects economic well-being
total rewards
the sum of all of the rewards employees receive in exchange for their time, efforts and performance
total cost
the sum of average fixed and average variable costs times the quantity produced
average total cost
the sum of the average fixed cost and the average variable cost
Upward reviews
the target employee is reviewed by one or more subordinates
cycle time
the time needed to complete a process
aggregate demand
the total demand for final goods and services in the economy at a given time and price level.
operations management
the total set of managerial activities used by an organization to transform resource inputs into products, services or both
barter
the trading of products
optimal turnover
the turnover level producing the highest long-term levels of productivity and business improvement
leverage
the use of borrowed money to supplement existing funds for purposes of investment
dual distribution
the use of two or more marketing channels to distribute the same products to the same target market
cost
the value of everything a seller must give up to produce a good
price
the value paid for a product in a marketing exchange
average variable cost
the variable cost per unit produced
unit of account
the yardstick people use to post prices and record debts
rights standard
this ethical action is the one that best respects and protects the moral rights of everyone affected by the action
Operating activities
those activities that comprise the day-to-day operations of a business.
Financing activities
those activities through which cash is obtained from, or repaid to, creditors and investors
current liability
those obligations that are expected to be paid or otherwise satisfied within one year
omission, remission, commission
three types of systematic errors that orgs make that undermine ethics efforts
average total cost
total cost divided by the quantity of output
average revenue
total revenue divided by the quantity sold
profit
total revenue minus total cost
economic profit
total revenue minus total cost including opportunity costs and explicit costs
economic profit
total revenue minus total cost, including both explicit and implicit costs
accounting profit
total revenue minus total explicit cost
efficiency oriented recruiting metrics
track how efficiently a firm is hiring
skill inventories
tracks employees' competencies and work experiences in a searchable database
Orientation
training activities to help new hires fit in as organizational members
cross-training
training employees in more than one job or in multiple skills to enable them to do different jobs
divestiture socialization
tries to deny and strip away certain personal characteristics
compromising
trying to find some expedient, mutually acceptable middle ground solution which partially satisfies both parties
avoidable turnover
turnover that the employer could have prevented
unavoidable turnover
turnover that the employer could not have prevented
complements
two goods for which an increase in the price of one leads to a decrease in the demand for the other
substitutes
two goods for which an increase in the price of one leads to an increase in the demand for the other
perfect complements
two goods with right-angle indifference curves
perfect substitutes
two goods with the straight-line indifference curves
job sharing
two or more people split a single job
intermodal transportation
two or more transportation modes used in combination
domestic partners
two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage
types of strikes
unfair labor practices economic recognition jurisdictional
UGESP
uniform guidelines on emp selection. selecting procs advises employee in legal compliance
boycott
union members refuse to use or buy the firm's products to exert economic pressure on management
strikes
union members refuse to work, halting production or services
Employee associations
union of professional employees
Industrial Unions
unions composed primarily of semi-skilled employees in manufacturing industries
Trade Unions
unions composed primarily of skilled employees in a single trade
informal socialization
unstructured, on-the-job socialization done by coworkers
hostile environment harassment
unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating or otherwise offensive working environment
quid pro quo harassment
unwanted verbal or physical conduct of a sexual nature mad as a term or condition of employment or as a basis for employment and/or advancement decisions
sexual harassment
unwelcome sexual advances, requests for favors and other verbal or physical conduct of a sexual nature
Behaviorally anchored rating scales
use a set of behavioral statements relating to qualities important for performance
ratio analysis
use past relationships to forecast how many emp needed for diff levels of bus activity
accounting system
used by a business to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate the performance and financial status of the business
point factor method
uses a set of compensable factors to determine a job's value. skill, resp, effort, working cond.
structured interview
uses consistent, job-related questions with predetermined scoring keys. behavioral or situational.
market pricing
uses external sources of information about how others are compensating a certain position to assign value to a company's similar job
behavioral interview
uses information about what the applicant has done in the past to predict future behavior
graphic rating scale
uses ratings of unsatisfactory, average, above average and outstanding to evaluation either work quality or personal traits
mediation
using a neutral third party to attempt to resolve the dispute through facilitation
exclusive distribution
using a single outlet in a fairly large geographic area to distribute a product
intensive distribution
using all available outlets to distribute a product
progressive discipline
using increasingly severe measures when an employee fails to correct a deficiency after being given a reasonable opportunity to do so verbal, written, suspension w/o pay, discharge
customer relationship management
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
selective distribution
using only some available outlets in an area to distribute a product
trend analysis
using past employment patterns to predict a firm's future labor needs
family packaging
using similar packaging for all of a firm's products or packaging that has one common design element
broadbanding
using very wide pay grades to increase pay flexibility
average variable cost
variable cost divided by the quantity of output
Unstructured interviews
varying questions are asked across interviews and there are usually no standards for evaluating answers
unlawful employment practices
violations of federal, state or local employment laws
mandatory
wages, overtime, seniority, grievance procedures, safety and work practices, procedures for layoff, recall, discharge and discipline are _________ subjects.
observation
watching people working in similar jobs for other companies to evaluate their ptoential fit with your organization
HRM influences performance thru
what emp should do what emp can do what emp will do
secondary boycott
when a union encourages third parties such as customers and suppliers to stop doing business with a company. Taft-Hartley Act makes these illegal.
external equity
when an organization's employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs
employee engagement
when employees are committed to, involved with, enthusiastic and passionate about their work
internal equity
when employees perceive their pay to be fair relative to the pay of other jobs in the organization
unfair discrimination
when employment decisions and actions are not job related, objective or merit-based
fair discrimination
when only objective, merit based and job related characteristics are used to determine employment related decisions
collective bargaining
when the employer and union negotiate in good faith on wages, benefits, work hours and other employment terms and conditions
optional benefits
work life balance, domestic partner benefits
codetermination
worker representation on the company's board of directors
job rotation
workers are moved through a variety of jobs to increase their interest and motivation
job description
written descriptions of the duties and responsibilities of the job itself
job applications
written information about skills and education, job experiences and other job relevant information. screening method.
succession management plans
written policies that guide the succession management process
variable rewards (incentives)
"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence and contribution
International business (IB)
(1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the action of doing business abroad.
Four principles of Scientific Management - Taylor
- Use methods based on scientifcally studying the tasks using time an motion studies. - Select, train and develop each worker rather than leaving them to passively train themselves - Provide detailed instructions and supervision to workers to ensure that they are following the developed methods. - Divide work equally between workers and managers.
influence tactics
1. legitmating 2. personal appeals 3. assertiveness 4. ingratiation 5. inspirational appeals 6. rational persuasion 7. upward appeals 8. coalition 9. exchange
5 components to drug free workplace
1. written policy 2. supervisor training 3. employee education 4. EAP 5. drug testing
Trend analysis, ratio analysis, judgmental forecasting
3 Techniques used to forecast labor demand
compressed workweek
40 hour work week in less than five days
Social Security, Unemployment Insurance, Workers' Compensation, Family Medical Leave Act, COBRA
5 Mandatory Benefits
Leading Economic Index, Consumer Confidence Index, Exchange Rate Trends, Interest Rate Forecasts, Additional sources such as GPD and business inventories
5 sources for evaluating general economic trends to forecast labor demand:
