mgt exam 2 review
hero
a person whose accomplishments embody the values of the organization
PDCA cycle
a plan-do-check-act cycle using observed data for continuous improvement of operations
Six Sigma
a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes
Statistical Process Control
a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability
organizational chart
a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication
incremental budgeting
allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed
fixed budget
allocates resources on the basis of a single estimate of costs
variable budget
allows the allocation of resources to vary in proportion with various levels of activity
resistance to change
an emotional/behavioral response to real or imagined threats to an established work routine
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal
centralized authority
an organization structure in which decision-making authority is maintained at the top level of management
virtual structure
an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections
intervention
attempt to correct a problem
readiness for change
beliefs, attitudes, and intentions regarding the extent to which changes are needed and the capacity available to successfully implement those changes
hierachy of authority
chain of command; a control mechanism for making sure the right people do the right things at the right time
concurrent control
entails collecting performance information in real time
espoused values
explicitly stated values and norms preferred by an organization
boundaryless organization
fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers, and customers
feedforward control
focuses on preventing future problems
Balanced Scorecard
gives top managers a fast but comprehensive view of the organization via four indicators: (1) customer satisfaction, (2) internal processes, (3) innovation and improvement activities, and (4) financial measures
innovation strategy
growing market share or profits by innovating improvements in products or services
market culture
has a strong external focus and values stability and control
adhocracy culture
has an external focus and values flexibility
clan culture
has an internal focus and values flexibility rather than stability and control
hierachy culture
has an internal focus and values stability and control over flexibility
decentralized authority
important decisions are made by middle-level and supervisory-level managers
radically innovative change
involves introducing a practice that is new to the industry
reactive change
making changes in response to problems or opportunities as they arise
Accountability
managers must report and justify work results to the managers above them
Controlling
monitoring performance, comparing it with goals, and taking corrective action as needed
story
narrative based on true events, which is repeated - and sometimes embellished upon - to emphasize a particular value
flat organization
one with an organizational structure with few or no levels of middle management between top managers and those reporting to them
continuous improvement
ongoing small, incremental improvements in all parts of an organization
proactive change
planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities
reduced cycle time
reduction in steps in a work process
adaptive change
reintroduction of a familiar practice
organizational development
set of techniques for implementing planned change to make people and organizations more effective
organizational culture
sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members
horizontal structure
team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
innovative change
the introduction of a practice that is new to the organization
span of control
the number of subordinates who report directly to a manager
customer retention
the practice of keeping customers by building long-term relationships
organizational socialization
the process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization
delegation
the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
authority
the rights inherent in a managerial position to make decisions, give orders, and utilize resources
supply chain
the sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers
common purpose
unifies employees or members and gives everyone an understanding of the organization's reason for being
outsourcing
using suppliers outside the company to provide goods and services
enacted values
values and norms actually exhibited in the organization
Control Chart
visual statistical tool used for quality control purposes
simple structure
whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization
division of labor
whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions
coordinated effort
working together for a common purpose
two core principles of TQM
1) People orientation—everyone involved with the organization should focus on delivering value to customers—and (2) improvement orientation—everyone should work on continuously improving the work processes
control process steps
1. establish standards 2. measure performance 3. compare performance to standards 4. take corrective action, if necessary
Total Quality Management (TQM)
A comprehensive approach—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
organization
A group of people who work together to achieve some specific purpose. A system of consciously coordinated activities of two or more people
Quality Assurance
A means of ensuring quality that focuses on the performance of workers, urging employees to strive for "zero defects,"
quality control
A means of ensuring quality whereby errors are minimized by managing each stage of production
customer satisfaction
A measure of how much products meet customers' expectations.
change agent
A person inside or outside the organization who can be a catalyst in helping deal with old problems in new ways
budget
A plan for making and spending money
Best Pratices
A set of guidelines, ethics or ideas that have been shown to produce optimal results
innovation system
A set of mutually reinforcing structures, processes, and practices that drive an organization's choices around innovation and its ability to innovate successfully
Force Field Analysis
A technique for determining which forces drive a proposed change and which forces restrain it.
Stategy Map
A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization
B Corporation
Also know as a benefit corporation, in which the company is legally required to adhere to socially beneficial practices, such as helping consumers, employees, or the environment
symbol
An object, act, quality, or event that conveys meaning to others
functional structure
An organizational structure composed of all the departments that an organization requires to produce its goods or services.
feedback control
Collecting performance information after a task or project is done
human resource practices
Consist of all of the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation
Managment by exception
Control principle that states that managers should be informed of a situation only if data show a significant deviation from standards
organizational design
Creating the optimal structures of accountability and responsibility that an organization uses to execute its strategies
customer divisions
Divisional structures in which activities are grouped around common customers or clients
geographic divisions
Divisional structures in which activities are grouped around defined regional locations
product divisions
Divisional structures in which activities are grouped around similar products or services
Financial Statements
Financial reports that summarize the financial condition and operations of a business
Deming management
Ideas proposed by W. Edwards Deming for making organizations more responsive, more democratic, and less wasteful
Financial Ratios
Indicators determined from a company's financial information and used for comparison purposes
hollow structure
Often called network structure, structure in which the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
unity of command
Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands
Lean Six Sigma
Quality-control approach that focuses on problem solving and performance improvement—speed with excellence—of a well-defined project
ISO 9000 series
Quality-control procedures companies must install—from purchasing to manufacturing to inventory to shipping—that can be audited by independent quality-control experts, or "registrars,"
Statement of Cash Flows
Reports the cash generated and used over a specific period of time
ISO 14000 series
Set of quality-control procedure that extends the concept of the ISO 9000 series, identifying standards for environmental performance
Income Statement
Summary of an organization's financial results—revenues and expenses—over a specified period of time
rites and rituals
The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in an organization's life
person-organization fit
The degree to which a person's values, personality, goals, and other characteristics match those of the organization.
control standard
The first step in the control process; the performance standard (or just standard) is the desired performance level for a given goal
Crowdsourcing
The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community, such as Facebook and Twitter users
product innovation
a change in the appearance or the performance of a product or a service or the creation of a new one
process innovation
a change in the way a product or service is conceived, manufactured, or disseminated
modular structure
a firm assembles product chunks, or modules, provided by outside contractors
organizational structure
a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals