MIE 201 Midterm #2 - Makanui

six sigma

- a comprehensive approach that encompasses a philosophy of striving toward perfection, a rigorous methodology for measuring and improving quality, and specific tools to track progress - a highly disciplined systematic approach to reducing the deviation from desired goals in virtually any business process whether its eliminating defects in the creation of a product or improving a copmanfys cash flow

foreign corporation

- a corporation that is incorporated in one state but that does business in several other states where it is registered - frequently happens in the state of Delaware where incorporation laws are more lenient

alien corporation

- a corporation that operates in the United States but is incorporated in another country

401k plan

- a defined-contribution retirement plan in which employers often match the amount employees invest -

organization chart

- a diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow

managing relationships

- SCM also coordinates the numerous relationships in the supply chain and help managers focus their attention on the most important company-to-company relationships

managing risks

- SCM can help companies manage the complex risks involved in a supply chain risks that include everything from cost and availability to health and safety issues

managing trade-offs

- SCM helps managers address the many trade-offs in the supply chain - these trade-offs can be a source of conflict within the company, and SCM helps balance the competing interests of the various functional areas

vision statement

- a brief and inspirational expression of what a company aspires to be

values statement

- a brief articulation of the principles that guide a company's decisions and behaviors

mission statement

- a brief statement of why an organization exists; in other words, what the organization aims to accomplish for customers, investors, and other stakeholders

franchise

- a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

bonus

- a cash payment, in addition to regular wage for salary, that serves as a reward for achievement

business incubator

- a center that provides "newborn" businesses with just about everything a company needs to get started, from office space to information technology to management coaching usually at sharply reduced costs

SWOT analysis

- a clear assessment of a company's strengths and weaknesses relative to the opportunities and threats it faces - SWOT = strengths, weaknesses, opportunities, threats

ISO 14000

- a collection of the best practices for managing an organization's impact on the environment - concerns environmental issues in management systems and process and policies that companies use to create their good and services

agile organization

- a company that allows employees to respond quickly to customer needs and changes in the business environment and to bring the best mix of talents and resources to every challenge

domestic corporation

- a company that is incorporated in one state that does business only in the state where it is chartered

small business

- a company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people (although this # varies by industry)

team charter

- a document that is developed in a group setting that clarifies team direction while establishing boundaries - developed early during the forming of the team - should be developed in a group session to encourage understanding and buy-in

limited liability

- a form of business ownership in which the owners are liable only up to the amount of their individual investments

job description

- a formal statement summarizing the tasks involved in the job and the conditions under which the employee will work - HR staff develops a description after the job analysis has been completed

organization structure

- a framework that enables managers to divide responsibilities, ensure employee accountability, and distribute the decision-making authority

International Organization for Standardization (ISO)

- a global network of performance standards bodies based in Switzerland - oversees a vast array of product standards but the 2 most generally concerning businesses are ISO 9000 and ISO 14000

value chains

- a helpful way to view all the elements and processes that ass value as input materials are transformed into the final products made available to the ultimate customer

a corporation is like what?

- a horcrux - they can be in so many types of business that even if you take out one component they will still survive and thrive in all their other components of business

partnership

- a legal association of two or more people as co-owners of a business for profit

skills inventory

- a list of the skills a company needs from its workforce, along with the specific skills that the individual employees currently possess

strategic alliance

- a long-term partnership between companies to jointly develop, produce, or sell products - can help expand market share, access technology, diversity offerings, share best practices ex: Cisco and Salesforce announce global strategic alliance

quality assurance

- a more comprehensive approach - a system of companywide policies, practices, and procedures to ensure that every product meets preset quality standards - often includes the use of SPC

business start up

- a newly formed business - usually start small, but some might grow to become much bigger

conglomerate merger

- a parent company buys companies in unrelated industries often to diversify its assets to protect against downturns in specific industries

chain of command

- a pathway for the flow of authority from one management level to the next

entrepreneurship characteristics

- a process - persistence - passion - value creation - creative

job analysis

- a process through which employers try to identify the nature and demands of each position within the firm as well as the optimal employee profile to fill each position

advantages of mergers and acquisitions

- increase their buying power as a result of their larger size - increase revenue by cross-selling products to each other's customers - increase market share by combining product lines - gain access to new expertise, systems, and teams of employees

job specification

- identifies the type of personnel a job requires, including the skills, education, experience, and personal attributes that candidates need to possess - in most cases also developed by the HR staff

business major risk factors

- identify all potentially negative factors and discuss them honestly

managing change

- identify everything that needs change - identify the forces acting for and against a change - choose the approach best suited to the situation - reinforce changed behavior and monitor continued progress

business design and development plans

- if your products require design or development, describe the nature and extent of what needs to be done including costs and possible problems

champion intrapreneurs think about these things on top of the regular entrepreneurship things

- in a company - bureaucracy - budget - culture - politics

business financial projections and requirements

- include a detailed budget of start-up and operating costs, as well as projections for income, expenses, and cash flow for the first three years of business - identify the company's financing needs and potential sources

unstructured organization advantages

- increased agility - lower fixed costs - more flexible capacity management - benefitting from competition - freedom and flexibility

divisional structure disadvantages

- increased costs - neglect overall goals - negative rivalries

voluntary termination and separation

- individuals quit or retire by their own choice - worker buyouts

disadvantages to working on teams

- inefficiency - groupthink - diminishes individual motivation - structural disruption - excessive workloads

evaluating a franchise

- initial franchise - periodic royalties - trademarks and names - advertising and promotion - business location - exclusive territory - right of first refusal - equipment and supplies - agreement termination - franchise agreement

IPO

- initial public offering - a corporation's first offering of shares to the public

leadership v. management

- inspire employees and make them want to listen and follow you - doing the right things

types of managerial roles

- interpersonal - informational - decisional

essential management skills

- interpersonal skills - technical skills - administrative skills - conceptual skills - decision-making skills

venture capitalists

- investment specialists who raise pools of capital from large private and institutional sources to fund ventures that have high growth potential and a need for large amounts of capital - extremely selective

social intelligence

- involves looking outward to understand the dynamics of social situations and the emotions of other people, in addition to your own

cognitive intelligence

- involves reasoning, problem solving, memorization, and other rational skills

statistical process control (SPC)

- involves taking samples from the process periodically and plotting observations of the samples on a control chart - a large enough sample provides a reasonable estimate of the entire process - by observing random fluctuations graphed on the chart managers can identify whether such changes are normal or whether they indicate that some corrective action is required in the process

horizontal merger

- involves two similar companies at the same level - companies can merge to expand their product offerings or their geographic market coverage - 2 same companies

steps in evaluating job requirements

- job description - job specification

KPI's

- key performance indicators ex: on time, on budget, performance/customer acceptance

network structure disadvantages

- lacks hands-on control - vulnerable to suppliers - lack of competitive distinction (if your company outsourcing so many things you cannot be competitive in a market for those things)

job sharing

- lets two employees share a single full-time job and split the salary and benefits

2 focuses of capacity planning

- level of resources - customer demand

2 types of small businesses

- lifestyle - high-growth

advantages of corporations

- limited liability - ability to raise capital - increased liquidity - unlimited life span

factors to take into consideration when choosing a facilities location and design

- local taxes - construction - energy - land - living standards - transportation - raw materials - labor - minimize costs overall

critical path

- longest path through the network - represents the minimum amount of time needed to complete the project

qualities of successful entrepreneurs

- love what they do, passion to succeed - highly disciplined - self-confident and optimistic - like to control their own destiny - relate well with others - curious and eager - learn from mistakes and see failures as opportunities - balance risk and reward

network structure advantages

- lower costs - increased flexibility - increased competitiveness

S corporation

- made only for federal income tax purposes and otherwise is no different from any other corporation - owners receive the tax advantages of a partnership while they raise money through the sale of stock - income and tax deduction flow directly to the owners

customized production

- sometimes called "batch-of-one production" - the producer creates a unique good or service for each customer ex: if you order a piece of furniture from a local craftsperson you can customize everything from the shape and size to types of fabric and materials used

holding company

- special type of a parent company that owns other companies for investment reasons and usually exercises little operating control over those subsidaries

objectives

- specific, short-rangetarget designed to help reach the larger goals

establishing performance standards

- standards - benchmarking - balanced scoreboard - executive dashboards

small business ownership types

- start up - buy an existing business - franchise

the control cycle

- stats with setting strategic goals and then establishing performance standards that will tell managers and employers whether the company is on track to meet those goals

network structure outsourcing option

- stretches beyond the boundaries of the company to connect a variety of partners and suppliers that perform selected tasks for a headquarters organization - whatever a company is not the best at they outsource to other companies in order to get whatever it is they need helpwith

special types of corporations

- subchapter S corporation - limited liability corporation - subsidiary corporation - alien v. foreign corporation - benefit or B corporation - domestic corporation

business management

- summarize the background and qualifications of any key management personnel in your company

business summary

- summarizes your business concept - clearly articulates your business model and strategy for success

lean systems

- systems that maximize productivity by reducing waste and delay

develop action plans

- tactical plans - operations plans

cross-functional team

- task force & committees - members from different functional areas

team member roles

- task specialist role - dual role - non participator - socioemotional role

administrative skills

- technical skills in information gathering, data analysis, planning, organizing, and other aspects of managerial work

hostile takeover types

- tender offer - proxy fight

involuntary termination and separation

- termination - layoffs - mandatory retirement

layoffs

- termination of employees for economic or business reasons

formal organizational structure

- the 'theory' of how work gets done in an organization

where does the center of power lie within a corporation

- the CEO or chief executive officer - with the help of the other C-level officers

technical skills

- the ability and knowledge to perform the mechanics of a particular job

decision-making skills

- the ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and evaluate results

conceptual skills

- the ability to understand the relationship of parts to the whole

hostile takeovers

- the buyer tries to convince enough shareholders to go against management and vote to sell - acquisition of another company against the wishes of management ex: AOL and Time Warner

capacity planning

- the collection of long-term strategic decisions that establish the overall level of resources needed to meet customer demand

productivity

- the efficiency with which they convert inputs to outputs

Seed money

- the first infusion of capital used to get a business started

exclusive territory

- the geographical area in which an exclusive seller is allowed to operate as the sole vendor of certain brands of merchandise

inventory

- the goods and materials kept in stock for production or sale, costs money to purchase and store

work-life balance

- the idea that employees, managers, and entrepreneurs need to balance the competing demands of their professional and personal lives

compare candidates

- the interview team compare notes and assesses the remaining candidates - team members sometimes lobby for or against individual candidates based on what they've seen and heard during interviews

ISO 9000

- the name given to quality management and assurance standards - concerns quality and customer satisfaction in management systems and process and policies that companies use to create their good and services

span of management

- the number of people a manger directly supervises

turnover rate

- the percentage of the workforce that leaves every year

the entrepreneurial spirit

- the positive, forward-thinking desire to create profitable, sustainable business enterprises - vital to the health of the economy and to everyone's standard of living

organizing

- the process of arranging resources to carry out the organization's plans - to be effective managers have to think through all the activities that employees perform as well as all the facilities and equipment employees need in order to complete those activities

termination

- the process of getting rid of an employee by firing him/her

the leading function

- the process of guiding and motivating people to work toward organizational goals - INFLUENCE

management

- the process of planning, organizing, leading, and controlling to meet organizational goals

generations in the workplace

- the radio generation - baby boomers - generation x - generation y (millennial) - generation z

proxy fight

- the raider launches a public relations battle for shareholders votes hoping to enlist enough votes to oust the board and management

tender offer

- the raider offers to buy a certain number of shares of stock in the corporation at a specific price (generally more than the current stock price so shareholders are more motivated to sell) - the raider hopes to get enough shares to take control of the corporation and to replace the existing board of directors and management

informal social network

- the real-world practice of how work gets done in an organization

what is the most important asset of an organization?

- the right PEOPLE, doing the RIGHT things at the RIGHT time

a company's ranks resembles what??

- the roman army -> there are so many broken down sections with different types of management and organizational structures for each different one

human resources (HR) management

- the specialized function of planning how to obtain employees, oversee their training, evaluate them, and compensate them as well as maintaining a safe working environment that meets legal requirements and ethical expectations

quality control

- the traditional means of maintaining quality - measuring quality against established standards after the good or service has been produced and weeding out any defects

capacity

- the volume of manufacturing or service capability that an organization can handle

corporate governance

- the way in which a corporation is structured and the effect that structure has on the corporation's behavior - shareholders elect the board of directors who hire corporate officers who hire employees

national security concerns (off shoring)

- the weapons and systems used in national defense requires lots of steel, semiconductors, and other manufactured materials

corporations change from private to public ownership and vice versa when??

- their financial needs and strategic interests change

entrepreneurs do not what???

- they DO NOT start with a business plan

the curse of being a big company?

- things are accomplished very SLOW because there are so many hoops to jump through

poison pill

- this plan triggered by a takeover attempt makes the company less valuable in some way to the potential raider - the idea is to discourage the takeover from actually happening

shark repellent

- this tactic is more direct; it is simply a requirement that stockholders representing a large majority of shares approve of any takeover attempt (only viable if the management team has the support of the shareholder majority)

a managers job is what???

- to make sure the people working under them are successful!!! - this means helping to foster them and empower them into growing into a confident and self sufficient worker not doing their work for them

off shoring

- transferring a part or all of a business function to a facility (a different part of the company or another company entirely) in another country

inventory control

- tries to determine the right quantities of supplies and products to have on hand and then tracks where those items are

consolidation

- two companies create a new third entity that then purchases the two original companies

matrix structure disadvantages

- two or more bosses - unhealthy competition - more communication required

sole proprietorship disadvantages

- unlimited liability - finite life span - resource limitations - limited managerial experience - demands on owner - no employee benefits for the owner

disadvantages of a partnership

- unlimited liability debts & lawsuits - interpersonal problems managing partner & unproductive partners

sexual harassment

- unwelcome sexual advances, request for sexual favors, or other verbal or physical conduct of a sexual nature within the workplace

what do entrepreneurs typically start with?

- value proposition - business model - business case (written business model) - business plan

work content rewards

- variety - challenge - autonomy - meaningfulness - feedback

pros of franchising

- viable business - name recognition - network of support

organizational inputs

- vision, mission, and values - core strategies & goals

executive dashboards

- visually display graphs, charts, and scorecards of key performance indicators and information on a real-time basis - made to help managers avoid information overload with carefully presented and filtered highlights of key performance parameters

concerns regarding offshoring

- what jobs will be left? - hidden costs and risks (stability and culture) - responsiveness - knowledge transfer and theft - national security concerns - health and safety issues (regulations)

responsiveness (off shoring)

- when companies rely on operations halfway around the world, they can become less responsive to marketplace trends and customer service matters

make an offer

- with all this information in hand the hiring manager selects the most suitable person for the job and makes a job offer

why are the mission/vision/values so important?

- without these the organization does not know if improvement has happened - this is why measuring key performance indicators is so important

banks and micro-lenders

- one of the most important sources of financing for a small business - banks won't lend money to a start-up that hasn't established a successful track record - micro-lenders offer up loans up to $35,000 or so (they promote entrepreneurship through micro loans and support services)

the Toyota production system

- one of the most influential proaction strategies in modern business history - based on 2 fundamental principles of the JIT inventory management and jidoka (automation with a human touch)

leveraged buyout

- one or more individuals purchase a company's publicly traded stock by using borrowed funds - usually with the intent of using some of the acquired assets to pay back the loans used to acquire the company ex: Blackstone Group buys Hilton Hotels

U.S. competitiveness (off shoring)

- proponents say that offshoring is crucial to the survival of many U.S. companies and that it saves other U.S. jobs by making U.S. companies more competitive in the global marketplace

business target market

- provide data that will persuade an investor that you understand your target market - be sure to identify the strengths and weaknesses of your competitors

managers have to do what to succeed in their roles?

- provide feedback to your workers and stakeholders - be proactive and ready to provide info on how well workers are doing - be ready with solutions / don't just point out problems

business operations plan

- provide information on the facilities, equipment, and labor needed

economic roles of small business

- provide new jobs - introduce new products - service large corporations - half the US payroll - risk takers - specialized goods and services

types of corporations

- public corporations - private corporations

setting expectations

- purpose statements - core responsibilities - individual goals & measures

business transformation systems

representative inputs -> transformation components -> transformation functions -> representative outputs

global quality standards

- ISO 9000 - ISO 14000

is being a leader and a manager the same thing?

- NO - these terms are not synonymous

during the production design phase what do operations managers do?

- facilities location and design - forecasting and capacity planning

double taxation

- feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and as personal income

supporting performance

- feedback, coaching, and counseling

work culture

- "how we do things around here" - is key to supporting contemporary human resource practices for a dynamic, ever changing business environment

mergers

- 2 companies join together to form a single entity - companies can merge by either pooling their resources or through a purchase of the assets of one company by the other - an action taken by two companies to combine and perform as a single entity ex: Disney-Pixar ex: SiriusXM

corporate officers

- CEO - CFO - CIO - CTO - COO

factors contributing to an increase in small business

- E-commerce - technology - social media - growing diversity in entrepreneurship - corporate downsizing and outsourcing

employee stock ownership plan (ESOP)

- a program that enables employees to become partial owners of a company - a company can place some or all of its stock in a trust with each eligible employee entitled to a certain portion - most ESOP's are in closely held corporations whose stock isn't available for sale to the public - help boost employee productivity because workers perceive a direct correlation between their efforts and the value of the company stock price

flextime

- a scheduling system that allows employees to choose their own hours, within certain limits

the HR cycle

- a series of human resource practices and activities - aligned and integrated with strategy to ensure effective human resource planning and management

system line view

- a series of related tasks are complete in succession step 1 -> step 2 -> step 3 -> step 4

system circular view

- a series of related tasks are completed in succession, the results of the effort are analyzed, and the insights from that analysis are used to improve quality and efficiency of the next cycle of the process step 1 -> step 2 -> step 3 -> step 4 -> measure and analyze the results -> apply insights to improve the process

supply chain

- a set of connected systems that coordinates the flow of goods and materials from suppliers all the way through to final customers

organizational culture

- a set of shared values and norms that support the management system and that guide management and employee behavior - influences company values and people, which influence community, communication, and employee performance

joint ventures

- a special type of strategic alliance in which two or more firms jointly create a new business entity that is legally separate and distinct from its parents - attain specific goals, share strengths, spread costs, minimize risks ex: Toyota and Mazda forming their own new car company

what is a system?

- a system is an interconnected set of elements that is coherently organized in a way that achieves something (some function or purpose)

team

- a unit of two or more people who share a mission and collective responsibility as they work together to achieve a goal

white knight

- a white knight is a third company invited to acquire a company that is in danger of being swallowed up in a hostile takeover - usually agree to leave current management ream in place and let the company continue to operate in an independent fashion.

the partnership agreement

- a written document that states all the terms of operating the partnership by spelling out the partner's right sand responsibilities - not required by law - spells out details as the division of profits, decision-making authority, expected contributions, and dispute resolution - defines the steps a partner must take to sell his or her partnership interest or what will happen if one of the patterns dies

core competencies

- activities at which a company excels and that give it the potential to create competitive advantages

downstream process

- adding value in the eyes of customers

career rewards

- advancement - personal growth - training - employment security

the rewards of work model

- affiliation - direct financial - indirect financial - career - work content

contemporary staffing challenges

- aligning the workforce - fostering employee loyalty - monitoring workloads and avoiding employee burnout - managing work-life balance

diversity

- all the characteristics and experiences that define each of us as individuals - includes race, age, military experience, parental status, marital status, and thinking style

MLP (master limited partnership)

- allowed to raise money by selling units of ownership to the general public in the same way that corporations sell shares of stock to the public - gives MLPs the fundraising capabilities of corporations without the double-taxation disadvantage - mainly oil and gas companies

buy an existing business

- already have a proven product, current customers, active suppliers, a known location, and trained employees

procurement

- also known as purchasing - the acquisition of raw materials, parts, components, supplies, and finished products required to produce goods and services

what do you need to start a small business?

- an entrepreneru - an idea - a drive to succeed

business system

- an interconnected and coordinated set of elements and processes that converts inputs into desired outputs

glass ceiling

- an invisible barrier that can be attributed to subtle discrimination keeping women and minorities out of the top positions in business - implies that one can see the top but can't get there

unstructured organization

- an organization that doesn't;t have a conventional structure but instead assembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme

management pyramid

- an organizational structure divided into top, middle, and first-line management - top = CEO, CTO, CFO, CIO, VP - middle = controller, manager, director - first-line = supervisor, department head

quality of work life (QWL)

- an overall environment that results from job and work conditions - may be improved by on site daycare facilities, flexible schedules, or other benefits for employees

shareholders commitments in a corporation

- annual meetings where they discuss the years results and plans for the next year - those who cannot attend send a proxy in their place to vote for them - shareholder activism is when they pressure management on matters ranging a wide variety relating to the overall company performance

production and operations management

- factories, machines, and assembly lines staffed with employees making automobiles, computers, furniture, motorcycles, or other tangible goods

scalability challenges and opportunities

- any business that wants to grow must consider the issue of scalability (the potential to increase production by expanding or replicating its initial production capacity) - scaling up always creates some challenges but service businesses that depend on the skills of specific professionals can be particularly difficult to scale

entrepreneur

- anyone who starts a new business

promoting sustainability

- as the part of business that moves raw materials and finished goods around the world, supply chains have an enormous effect on resource usage, waste, and environmental impact

matrix structure advantages

- attention to projects temporarily - deploy limited resources - teams-mix of skills

management styles

- autocratic - democratic - lassez-faire

direct financial rewards

- base salary - incentives and bonuses - ownership - cash recognition - commission - pay process

individuals quit or retire by their own choice

- be sure to say thank you and celebrate - don't burn bridges if you don't have to (on either side)

managerial roles

- behavioral patterns and activities involved in carrying out the functions of management; includes interpersonal, informational, and decisional making roles

constructive conflict

- beings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem

indirect financial rewards

- benefits - retirement - non cash recognition - other perks

centralization

- benefits a company by utilizing top managements rich experience and broad view of organizational goals - both line org. and line-and-staff org. tend to be centralized

education

- board members are expected to understand everything from government regulation t financial management to executive compensation strategies in addition to the inner working of the corporation itself

establish goals and objectives

- boosts motivation - sets standards - guides activity - clarifies expectations

work specialization disadvantages

- boredom - alienation

goals

- broad, long-range accomplishment that an organization wishes to attain in typically five or more years

what is HR?

- building and sustaining effective talents and relationships with the public, other companies, and your organizations employees - such that the right knowledge, skills and abilities (SKAs) are available and committed - to fulfill the organizations mission, vision, values & goals

sole proprietorships

- businesses owned by one individual - the most common form of business organization in the United States - easiest and least expensive form of business to start - ex: tutoring/bookkeeping/landscaping etc...

corporations

- businesses that are owned by many investors who buy shares of stock - a legal entity with the power to own property and conduct business - can receive, own, and transfer property; make contracts; sue; and be sued - faces limited liability because it is its own legal entity

knowledge and transfer theft (off shoring)

- by hiring or paying other companies to perform technical and professional services, U.S. companies transfer important knowledge to these other countries making them more competitive and potentially depleting the pools of expertise in this country

define the chain of command

- can be defined as the lines of authority that connect the various groups and levels within the organization - helps the organization function smoothly by making who is responsible for each task and who has the authority to make decisions clear - line organization / line and staff organization

interview candidates

- candidates who make it through screening are invited to visit the company for another round of interviews - this stage usually involves several interviews with a mix of colleagues, HR specialists, and managers

decision-making authority

- centralized - decentralized

CEO

- chief executive officer

CFO

- chief financial officer

CIO

- chief information officer

COO

- chief operating officer

CTO

- chief technology officer

characteristics of effective teams

- clear sense of purpose - open and honest communication - creative thinking - manage conflict constructively - accountability - focus - decision by consensus

types of intelligence

- cognitive - emotional - social

benchmarking

- collecting and comparing processes and performance data from other companies

upstream process

- collecting necessary materials and supplies with an emphasis on reducing waste and inefficiency

supply chain management

- combines business procedures and policies with information systems that integrate the various elements of the supply chain into a cohesive system - manage risks - manage relationships - manage trade-offs

responsibility to shareholder interests (off shoring)

- companies that engage in offshoring say they have a duty to manage shareholder investments for maximum gain, so it would be irresponsible not to explore cost-saving opportunities such as offshoring

retirement plans

- company sponsored programs for providing retirees with income - can be categorized as either defined-benefit plans or defined-contribution plans

divisional structure advantages

- faster reactions - increased flexibility - better customer service

employee benefits

- compensation other than wages, salaries, and incentive programs - health insurance - these benefits may be offered as either a preset package (that is the employee gets whatever insurance paid holidays, pension plan, and other benefits the company sets up) or as flexible plans sometimes known as cafeteria plans

unstructured organization disadvantages

- complexity and control issues - uncertainty - diminished loyalty - management succession - accountability and liability - loss of meaning and connection - career development

board issues

- composition - education - liability - independent board chairs - recruiting challenges

nonparticipator

- contributes little to either task or people needs of the team - a distraction at best and counterproductive "dead weight" as worst

disadvantages of corporations

- cost and complexity - reporting requirements - possible loss of control - managerial demands - double taxation - short term orientation - stock market

standards

- criteria against which performance is measured

the DMAIC process in six sigma quality management

- define the problem - measure current performance - analyze root causes of deviation from standards - improve the process by fixing the root causes - control the process long term to ensure performance

are people the most important asset of an organization?

- definitely not

functional structure disadvantages

- departmental barriers - slow response time - ineffective planning - over specialization

line and staff organization

- develops to address the needs combine specialization with management control - managers in the chain of command are supplemented by functional groups of people known as staff who provide advice and specialized service but who are not in the line organization's overall chain of command

liability

- directors have to held legally and financially liable for misdeeds of the companies they oversee

sexism

- discrimination on the basis of gender

worker buyouts

- distributions of financial incentives to employees who voluntarily depart - usually undertaken in order to reduce the payroll

destructive conflict

- diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team

effective organizational structure

- divide responsibilities - distribute authority - promote accountability - coordinate and control work

work specialization

- division of labor - the degree to which organizational tasks are broken down into separate jobs - can improve organizational efficiency by enabling each worker to perform tasks they can perfect their skills and perform those tasks quickly - can become boring for employees however

business plan

- document that summarizes a proposed business venture, goals, and plans, for achieving those goals - summary, mission and objectives, company overview, management, target market, marketing strategy, design and development plans, operations plan, start-up schedule, major risk factors, financial projections and requirements, exit strategy

leadership

- doing the right things

matrix structure

- each employee is assigned to both a function (with a defined set of basic functions such as product management) and a project team (which consists of members of various functional groups working together on a project such as bringing out a new consumer product) - employees have multiple managers and managers share employees with other projects and departments

work specialization advantages

- efficiency - productivity

employee retention

- efforts to keep current employees

commissions

- employee compensation based on a percentage of sales made

profit sharing

- employees may be rewarded for staying with a company and encouraged to work harder through profit sharing, a system in which employees employees receive a portion of the company's profits

employee life cycle

- engagement - recruitment - onboarding - development - retention - separation

intrapreneurship

- entrepreneurial activity that takes place within the context of a large corporation - freedom to define and initiate new projects, much as they were independent entrepreneurs

management v. leadership

- establish order and set down rules - control workplace - doing things right

planning

- establishing objectives and goals for an organization and determining the best ways to accomplish them

disadvantages of mergers and acquisitions

- executives have to agree on how the merger will be financed - managers need to decide who will be in charge after they join forces - marketing departments need to figure out how to blend product lines, branding strategies, and advertising and sales efforts - companies must often deal with layoffs

material resource planning (MRP II)

- expands MRP with links to the company's financial systems and other processes

business exit strategy

- explain how investors will be able to cash out or sell their investment, such as through public stock offering, sale of the company, or a buyback of the investors interest

business marketing strategy

- explain how you can profitably meet the needs of your target market; identify the goos or services you will provide including their unique and compelling attributes; explain pricing, distribution, and promotion strategies

business mission and objectives

- explain the purpose of your business and what you hope to accomplish

private corporations

- few shareholders - stock not publicly traded - stock is held only by a few individuals or companies and is not publicly traded - owners retain complete control over their operations and ownership by withholding their stock from public sale - finance their operating costs and growth from either company earnings or bank loans

salary

- fixed cash compensation for work, usually by a yearly amount; independent of the number of hours worked

cafeteria plans

- flexible benefit programs that let employees personalize their benefits packages - so called because of the similarity to choosing items in a cafeteria - the benefits most commonly provided by employers are insurance, retirement benefits, employee stock ownership plans, stock options, and family benefits

limited liability corporation

- flexible business entities combine the tax advantages of a partnership with the personal liability protection of a corporation - not restricted in the number of shareholders they can have and members participation in management is not restricted as it is in limited partnerships

alternative work arrangements

- flextime - job sharing - telecommunicating

dual role

- focuses on both task accomplishment and people needs - often important but not essential if team is balanced with task and socioemotional roles

socioemotional role

- focuses on peoples needs rather than getting things done - important contribution, but if adopted by too many members team won't get its work done

task specialist role

- focuses on task accomplishment over human needs - important role but if adopted by everyone teams social needs won't be met

performance variability and perceptions of quality

- for many types of services the quality of the service performance can vary from one instance to the next and that quality is in the eye of the beholder and often can't be judged until after the service has been performed

business start-up schedule

- forecast development of the company in terms of completion dates for major aspects of the business plan

in order to forecast demand for the numbers and types of employees who will be needed at various times by the company, HR managers weigh ...?

- forecasted sales revenues - the expected turnover rate - the current workforce's skill level relative to the company's future needs - impending strategic decisions - changes in tech or other business factors that could affect the number and type of workers needed - the company's current and projected financial status

LLP (limited liability partnership)

- form of business was created to help protect individual partners in certain professions from major mistakes (such as errors that trigger malpractice lawsuits) by other partners in the firm - each partner has unlimited liability only for his or her own actions and at least some degree of limited liability for the partnership as a whole

types of departmentalization

- function - division - network - matrix - hybrid

types of partnerships

- general partnerships - limited partnerships - MLP - LLP

business company overview

- give full background information on the origins and structure of your venture

recruiting challenges

- good corporate and government leaders have no choice but to solve these challenges as they come up in a company

JIT (just-in-time) inventory management

- goods and materials are delivered throughout the production process right before they are needed rather than being stockpiled in inventories

sources of small business assistance

- government agencies Small Business Administration Minority Business Development Agency SCORE - nonprofit organizations - business partners - mentors SCORE Social networks - advisory boards - media (print and online) - business incubators and accelerators

divisional structure

- grouping departments according to similarities in product, process, customers, or geography

departmentalization

- grouping people within an organization according to function, division, matrix, or network - involves both vertical and horizontal structures

functional structure

- grouping workers according to the similarity in their skills, resource use, and expertise

blueprint for an effective business plan

- guide operations - attract lenders and investors - provide a reality check

managing systems for peak performance

- help everyone see the big picture - understand how individual systems really work and how they interact - understand problems before you try to fix them - understand the potential impact of solutions before you implement them - don't just move problems around; solve them - understand how feedback works in the system - use mistakes as opportunities to learn and improve

Material requirements planning (MRP)

- helps a manufacturer get the correct materials where they are needed, when they are needed, without unnecessary stockpiling

balanced scoreboard

- helps companies monitor performance from multiple perspectives (finance, operations, customer service, etc.)

advantages to working on teams

- higher quality decisions - increased diversity of views - increased commitment to solutions and changes - lower levels of stress and destructive internal competition - improved flexibility and responsiveness

vertical structure

- how many layers the chain of command is divided into from the top of the company to the bottom

horizontal structure

- how the various business functions and work specialties are divided across the company

mass production

- identical goods or services are created usually in large quantities such as when Apple churns out a million identical iPhones

why small businesses fail?

- management incompetence - over reliance on a single customer - lack of strategic planning - inadequate financing - lack of relevant experience - poor cash management - inability to make transition: corp to entrepreneur - too much overhead - ineffective marketing - poor location - uncontrolled growth - poor inventory control

lassez-faire management

- manager acts as advisor and supporter, offering input when asked but generally letting subordinates chart and adjust their own course toward meeting agreed-upon goals and objectives

interpersonal managerial role

- manager is largely a question of getting work accomplished through the efforts of other people - must play a number of interpersonal roles including providing leadership to employees, building relationships, and acting as a liaison between groups and individuals both inside and outside the company - excel at networking and fostering new relationships with many people

autocratic management

- manager makes the decisions and issues directives down the chain of command - subordinates have little or no freedom to make decisions, deviate from plans, or provide contrary input

democratic management

- manager shares decision-making authority, seeking input and inviting subordinates to participate in a coordinated planning process - group can encourage a change of course if needed

decisional managerial role

- managers face an endless stream of decisions - choosing which of several job candidates to hire or setting prices of new products - this approach accelerates and improves work flow and customer service but also fires up higher-level managers to work on more strategic matters

informational managerial role

- managers spend a fair amount of time gathering information from sources both inside and outside the organization - also distribute that information to employees, other managers, and other stakeholders

public corporations

- many shareholders - stock is publicly traded - stock available for sale to the general public

3 ways to manufacture goods depending on the nature of the product and the desires of the target customers

- mass production - customized production - mass customization

supply chain systems and techniques

- materials requirement planning - manufacturing resource planning - enterprise resource planning

unlimited liability

- means that the owner is personally and fully responsible for all losses and debts of the business - major drawback to a sole proprietorship or a partnership - from a legal standpoint the owner and business are one and the same

emotional intelligence

- measure of a person's awareness of and ability to manage his or her own emotions

problem-solving team

- meets to find ways of improving quality, efficiency y, and the work environment

self-managed team

- members are responsible for an entire process or operation

functional team

- members come from a single functional department which is based on the organization's vertical structure

virtual team

- members who are geographically dispersed

business combinations

- mergers - acquisitions - leveraged buyouts - hostile takeovers - consolidation

defining the mission, vision, and values

- mission statement - vision statement - values statement

compensation

- money, benefits, and services paid to employees for their work

the controlling function

- monitoring progress - resetting the course - correcting deviations

why people start their own companies

- more control over their futures - tired of working for someone else - passion for new products - pursue business goals that are important to them on a personal level - inability to find attractive employment anywhere else

health and safety issues (off shoring)

- moving operations beyond U.S. borders raises concerns about the ability of regulators to oversee vital health and safety issues

value webs

- multidimensional networks of suppliers and outsourcing partners

cons of franchising

- must follow format - little decision making - few options for changes

threats

- negative forces that could inhibit a firm's ability to achieve its objectives

weaknesses

- negative or harmful internal factors that inhibit the company's success

contingent employees

- non-permanent employees, including temporary workers, independent contractors, and full-time employees hired on a probationary basis

vertical merger

- occurs when a company purchases a complementary company at a different stage or level in an industry - 2 diff. companies

acquisition

- one company simply buys a controlling interest in the voting stock of another company ex: Amazon buys Whole Foods ex: Micheal Kors buys Jimmy Choo

stock options

- one method for trying employee compensation to company performance is the stock option plan - stock options grant employees the right to purchase a set number of shares of the employer's stock at a specific price, called the grant or exercise price, during a certain time period - options typically vest over a number of years, meaning that employees can purchase a prorated portion of the shares every year until the vesting period is over (at which time they can purchase all the shares they are entitled to)

customer involvement and provider interaction

- one of the biggest differences between goods and services production is the fact that customers are often involved in and thereby can affect the quality of the service delivery - when customers and service providers interact the quality of the interpersonal experience also affects customer perceptions of quality - service delivery is something of a performance that needs to instill confidence in the client

limited partnerships

- one or more persons act as general partners who run the business while the remaining partners are passive investors (not involved in managing the business) - called limited partners because their liability (amount of money they can lose) is limited to the amount of the capital they invested at the beginning of their partnership - passive investors and have limited liability

what jobs will be left? (off shoring)

- opponents of offshoring say that companies are selling out the U.S. middle class in pursuit of profits and starting a trend that can only harm the country

affiliation rewards

- organization commitment - organization support - work environment - organization citizenship - title

developing and evaluating employees

- organizational inputs - setting expectation - supporting performance - reviewing performance

the organizing function

- organizing - management pyramid

board chair

- oversees the board of directors who are supposed to oversee the corporate officers who make up the top management team while the CEO oversees the management team

shareholders

- owners of a corporation who are issued shares of stock in return for their investments

extra employee benefits

- paid vacations and sick leave - family and medical leave - child-care assistance - elder-care assistance - tuition loans and reimbursements - employee assistance programs

mass customization

- part of the product is mass produced and the remaining features are customized for each buyer ex: customers at Nike can personalize shoes, clothes, and gear with their own choice of colors

subsidiary corporations

- partially or wholly owned by another corporation known as a parent company which supervises the operations of the subsidary

general partnerships

- partners are considered equal by law and all are liable for the business's debts - partners share ownership and both have unlimited liability

pay for performance

- pay tied to an employees acquisition of knowledge or skills; also called competency-based pay or skill-based pay

performance management

- periodic evaluations of employees' work according to specific criteria - a multidimensional review n which a person is given feedback from subordinates, peers, supervisors, and possibly outside stakeholders such as customers and business partners

the unique challenges of service delivery

- perishability - location constraints - scalability challenges - performance variability and perceptions of quality - customer involvement - service provider interaction

location constraints

- perishability also means that for many service, customers and providers need to be in the same place at the same time - one of the most significant commercial advantages of the internet is the way it has enabled many service businesses to get around this constraint of needing to have a physical location to meet customers at

managerial functions

- planning - organizing - leading - controlling

the planning function

- planning - strategic plans - develop strategies of success - set goals and objectives - develop action plans

defined benefit plans

- plans in which companies specify how much they will pay employees upon retirement

defined contribution plans

- plans in which companies specify how much they will put into the retirement fund (by matching employee contributions for example) without guaranteeing specific payout levels during retirement

tactical plans

- plans that define the actions and the resource allocation necessary to achieve tactical objectives (specific and short-term) and to support strategic plans (the company's broader strategic plan) - typically focus on departmental goals and cover a period of one to three years - can be changed more easily because of their limited scope

strategic plans

- plans that establish the actions and the resource allocation required to accomplish strategic goals - usually defined for periods of two to five years and developed by top managers

operational plans

- plans that lay out the actions and the resource allocation needed to achieve operational objectives and to support tactical plans - usually define actions for less than one year and focus on accomplishing specific objectives

techniques to prevent hostile takeovers

- poison pill - shark repellent - white knight

strengths

- positive or helpful internal factors that contribute to a company's success

opportunities

- positive situations that represent the possibility of generating new revenue

how does a manager empower workers?

- potency - meaningfulness - autonomy - impact

angel investors

- private individuals who put their own money into start-ups with the goal of eventually selling their interest for a large profit - willing to invest smaller amounts than VC's and to stay involved with the company for a longer period of time

solutions to team conflict

- proactive attention - communication - openness - research - flexibility - fair play - alliance

types of teams

- problem-solving teams - self-managed teams - functional teams - cross-functional teams (task force & committee) - virtual teams

the franchising alternative

- product franchise - manufacturing franchise - business-format franchise

benefit coropration

- profit seeking corporation whose charter also requires it to pursue a stated social or environmental goal

diversity initiatives

- programs and policies that help companies support diverse workforces and markets - helps companies capitalize on more business opportunities offered by both diverse marketplaces and diverse workforces

decentralization

- pushes decision-making authority down to lower organizational levels (such as departmental heads) while control over essential company wide matter remains with top management - lower level managers tend to be more responsive because they communicate with the consumers and can get decisions made faster - is the trend in businesses today

develop forecasts

- qualitative forecasting - quantitative forecasting

4 aspects to product and process quality

- quality control - quality assurance - statistical process control (SPC) - six sigma

electronic performance monitoring (EPM)

- real-time computer-based evaluation of employee performance

steps in the decision making process

- recognize and define the situation - identify your options - analyze the options - select the best option - implement the decision - monitor and evaluate the results - apply what you've learned to future decisions

assemble candidate pool

- recruiters select a small number of qualified candidates from all the internal and external applicants - many organization now use computer based applicant tracking systems to manage the hiring process

investigate candidates

- recruiters talk to references, conduct background checks, scan social media postings, and in many cases subject applicants to preemployment tests - given the financial and legal risks associated with bad hiring decisions, smart employers research candidates carefully and thoroughly

screen candidates

- recruiters then screen candidates typically through phone interviews, online tests, or encamps interviews - interviews at this stage are usually fairly structured, with applicants asked the same questions so that recruiters can easily compare responses

operations management

- refers to overseeing all the activities involved in producing goods and services

board of directors

- represent the shareholders and are responsible for declaring dividends, guiding corporate affairs, reviewing long-term strategic plans, selecting corporate officer, and overseeing financial performance

stock certificate

- represents shares of stock owned by shareholders of a company - may be sold or given to upon the death of the owner to someone else

mandatory retirement

- required dismissal of an employee who reaches a certain age - Age Discrimination in Employment Act now outlaws mandatory retirement based on age alone unless an employer can demonstrate that age is a valid qualification for "normal operation of the particular business"

functional structure advantages

- resource allocation - unified direction - improved coordination - better communication

support of offshoring

- responsibility to shareholder interests - U.S. competitiveness - support for local customers around the world

reviewing performance

- reward, recognition, and compensation

right of first refusal

- right of a party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement

lifestyle small businesses

- run by individuals - limited products and/or services - limited resources - limited marketplace - aren't designed to grow into large corporations - built around personal and financial needs of an individual or a family ex: mom and pop surf shop

high-growth small businesses

- run by teams - multiple products and/or services - investment capital - large marketplace - expand rapidly by obtaining a sizable supply of investment capital ex: Tesla growing into a large corporation

private financing options for small businesses

- seed money - banks and micro-lenders - venture capitalists - IPO - angel investors - personal credit cards - small business administration

perishability

- services are perishable meaning they are consumed at the time they are produced and cannot exist before or after that time - this perishability can have a profound impact on the way service businesses are managed from staffing to pricing

orientation programs

- sessions or procedures for acclimating new employees to the organization

ownership of corporations

- shareholders - stock certificates

business accelerator

- similar to an incubator - focus more on providing advice and financing (in some cases) and less on providing office space and other infrastructure

line organization

- simplest and most common chain of command - it establishes a clear line of authority flowing from the top down - everyone knows who is accountable for who as well as which tasks people are responsible for

advantages of a partnership

- simplicity - single layer of taxation - more resources than a sole proprietorship - cost sharing between partners - broader skills and experience - longevity

sole proprietorship advantages

- simplicity - single layer of taxation - privacy - flexibility and control - personal satisfaction - fewer limitations on personal income

composition

- simply identifying the type of people who should be on the board - needs to be a balanced group of people

interpersonal skills

- skills required to understand other people and to interact effectively with them

3 types of business ownership

- sole propreitorship - partnership - corporation

support for local customers around the world (off shoring)

- some companies say that as they expand into other countries, they have no choice but to hire overseas in order to support local customers

hidden costs and risks (off shoring)

- some company insiders and independent analysts say the real savings from offshoring are often not as significant as proponents have been claiming or not as great as they were in previous years

succession planning

- workforce planning efforts that identify possible replacements for specific employees - usually senior executives or members of the company who are so critical to ongoing operations that HR managers work with top executives to identify potential replacements in the event of the loss of any of these people

telecommunicating

- working from home or another location using electronic communications to stay in touch with colleagues, suppliers, and customers

outsourcing

-contracting out certain business functions or operations to other companies

enterprise resource planning (ERP)

-extends the scope of research planning even further to encompass the entire organization

the strategic planning process

1. Define mission, vision, and values 2. Perform SWOT analysis 3. Develop forecasts 4. Analyze the competition 5. Establish goals and objectives 6. Develop action plans

the recruiting process

1. assemble candidate pool 2. screen candidates 3. interview candidates 4. compare candidates 5. investigate candidates 6. make an offer

5 stages of team development

1. forming - period of orientation and icebreaking 2. storming - members show more of their personalities and become more assertive in establishing their roles 3. norming - conflicts are resolved and team harmony develops 4. performing - members are really committed to the team's goals 5. adjourning - if a team has a specific task to perform it goes through the adjourning stage after the task has been completed

Kotter's 8 step change model

1. institute change 2. create a sense of urgency 3. build a guiding coalition 4. form a strategic vision and initiatives 5. enlist a volunteer army 6. enable action by removing barriers 7. generate short-term wins 8. sustain acceleration

the radio generation

1925-1945 - people in this group are beyond what was once considered the traditional retirement age of 65, but many want or need to continue working

baby boomers

1946-1964 - this large segment of the workforce, which now occupies many mid- and upper- level managerial positions, got its name from the population boom in the years following WWII - the older members of this generation are just now reaching retirement age, but many will continue to work beyond age 65 meaning that younger workers waiting for some of these management spots to open up might have to wait a while longer

generation x

1965-1980 - this relatively small "MTV generation" is responsible for many of the innovations that have shaped communication habits today but sometimes feels caught between the large mass of baby boomers ahead of them and the younger generation Y employees entering the workforce - when generation X does finally get the chance to take over starting in 2015 or 2020 it will be managing in a vastly different business landscape, one in which virtual and networked organizations replace much of the hierarchy inherited from the baby boomers

generation y (millennial)

1981-1995 - also known as millennials, this youngest generation currently in the workforce is noted for its entrepreneurial instincts and technological savvy - this generations comfort level with social networks and other Web 2.0 tools is helping to change business communication practices but is also a source of concern for managers worried about information leaks and employee productivity

qualitative forecasting

EX: making predictions about sales of a new product based on - consumer research - intuitive judgments

quantitative forecasting

EX: statistically analyzing the cycles of economic growth and recession over several decades to predict when the economy will spiral downward - historical data - statistical computations

generation z (generation I) (net generation)

after 1996 - also known as generation I for internet or the net generation - the first full generation to be born after the world wide web was invented will be entering the workforce soon

leadership tasks

coaching - meeting w/ employees - discussing problems - offering suggestions - encouraging solutions mentoring - guiding employees - explaining office politics - serving as role models - providing valuable advice

steps in human resource planning

from business plan - perform job analysis - write job descriptions - write job specifications (all above is evaluating job requirements) - estimate demand for employees - estimate supply of employees (all above is forecasting) to hiring process

supply chain v. value chain

supply chain - part of overall value chain - focuses on "upstream" process value chain - everyone is part of the value chain - focuses on the "downstream process"