Dynamics Midterm TEST - TERMS

Eron scandal

(Ken Lay) Changed the books to make their stock prices more favorable, everyone else is struggling and they look like they are killing it , Lay was convicted for what he "should have known", he hired young go getters and created a culture, pressured Aurther Andersen and started Sarbanes Oxley

Explain Employment Retirement (Good and Bad)

- Early retirement entices older workers to retire o Known as the golden handshake - However when qualified workers are done many companies offer older employees more benefits to keep them there longer - Can train next generation

Who are the stakeholders of a business?

- Stockholders - Employees - Suppliers - dealers - Bankers - community - union - government -competitors

Key Features of US Market

- Strong economic development since the 1800s - The agricultural industry is so effective that the work population went from 1/3 to 1% o Size of land increased - With every advance and job loss, new industries emerge - Service has increased about 85 % of workers in the US are service - More high-paying jobs in the service sector

Age Discrimination in Employment Act of 1967

. Outlawed employment practices that discriminate against people 40 and older. An amendment outlaws requiring retirement by a specific age

Types of Businesses sell to (two types)

1. Business to consumer (B2C) 2. Business to business (B2B)

Hurdles for Global Market

1. Financing is often difficult to find 2. Would-be exporters don't know how to get started and do not understand the cultural differences between markets 3. Bureaucratic paperwork can threaten to buy a small busi ness

Questions to ask in ethical dilemma

1. Is my proposed action legal? 2. Is it balanced/Am I acting fairly? 3. How will it make me feel about myself?

5 Factors of Production

1. Land: natural resources or space used to make products/homes/etc. 2. Labor: the workers -> many people now being replaced by technology 3. Capital: machines, tools, buildings, etc to produce good (MONEY IS NOT A FACTOR JUST CONTRIBUTES TO EACH) 4. Entrepreneurship: The risk of starting businesses to use those resources 5. Knowledge: understanding the market, etc -> information technology revolutionized it)

Why People Take the Entrepreneurial Challenge?

1. Opportunity 2. Profit 3. Independence 4. Challenge

HRM two key factors:

1. Organizations' recognition of employees as their ultimate resource 2. Changes in the law that rewrote many traditional practice Today the jobs of HRM increased role since qualified employees are much scarcer to find

Market and Social Issues/Trend in US

1. People People aged 75 and older are the richest group in the US - Social security, economic drain 2. Single Parent Families Growing - 7 % in 1950 now 1/3 3. Gen Z Economic Influence - 143 Billion in spending power 4. War and Terrorism -drained trillions of dollars a year from the US econom

4 Functions of Management

1. Planning: anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. 2. Organizing: designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objectives. 3. Leading: creating a vision for the organization and communicating guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner. 4. Controlling: establishes clear standards to determine whether an organization is progressing toward its goal and objectives, rewarding people for doing a good job

5 steps in the HR planning process

1. Preparing a human resource inventory of the organization's employees 2. Preparing a job analysis 3. Assessing future human resource demand 4. Assessing future labor supply 5. Establishing a strategic plan

3 Major Forms of Business Ownership

1. Sole proprietorships 2. Partnerships 3. Corporations

Business environment factors

1. The economic and legal environment (Freedom of ownership, contract laws, no corruption, tradable currency, minimum taxes and regulation) 2. The technological environment (Information tech, databases, bar codes, the internet) 3. Competitive environment (customer service, stakeholder recognition, employee service, concern for the environment) 4. Social Environment (Diversity, demographic changes, family changes) 5. Global business environment

Steps of PERT

1. analyzing and sequencing tasks that need to be done 2. estimating the time needed to complete each task 3. drawing a PERT network illustrating the information from steps 1 and 2, 4. identifying the critical path.

6 Steps of Performance appraisal

1. establishing performance standards 2. communicating those standards 3. evaluating performance 4. discussing results with employees 5. taking corrective action 6. using the results to make decisions

6 steps in selection process

1. obtaining complete application forms 2. conducting initial and follow-up interviews 3. giving employment tests 4. conducting background investigations 5. obtaining results from physical exams 6. establishing trial periods

Attributes of an entrepreneur

1. self-directed 2. self-nurturing 3. action-oriented 4. highly energetic 5. tolerant of uncertainty

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

Partnership

A business in which two or more persons combine their assets and skills

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

Corporate Social Responsibility (CSR)

A business's concern for the welfare of society.

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Limited Partnership (LP)

A partnership consisting of one or more general partners and one or more limited partners.

Entrepreneur

A person who risks time and money to start and manage a business

Affirmative Action

A policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities

Operations Management

A specialized area in management that converts or transforms resources (including human resources) into goods and services.

Social Audit

A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs

compressed workweek

A work schedule that fits the normal 40-hour workweek into less than five days.

Orientation

Activity that initiates new employees into the organization; to fellow employees; to their immediate supervisors, and to the polices, practices and objectives of the firm

Master Limited Partnership (MLP)

Acts like a corporation and is traded on a stock exchange but is taxed like a partnership (avoid corporate income tax)

Conventional (C) Corporation Advantages and Disadvantages

Advantage · Limited Liability · Ability to raise more money for investment: can sell stock · Size ( can be big company or small business) · Perpetual Life: death does not terminate corporation. · Ease of ownership change Ease of attracting talented employees (stock options) Disadvantages · Initial Cost: can cost thousands of dollars · Extensive paperwork · Double taxation: A corporation pays tax before it can distribute to stockholders. · Two tax returns: corporate and individual tax returns · Size: too inflexible and tied down in red tape · Difficulty of termination · Possible conflict with stockholders and board of directors

Training and Development

All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities.

Circular Economy

An economy model in which resources remain in use for as long as possible, from which maximum value is extracted while in use, and the products and materials are recovered and regenerated at the end of the product life cycle.

performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.

Gantt Chart

Bar graph that clearly shows what projects are being worked on and how much has been completed

Taxes

Businesses and their employees pay taxes - > build public infrastructure (schools, libraries, playgrounds, roads etc.).

Defenders of corporate social responsibility (CSR) frequently argue that __________.

Businesses owe their existence to the societies they serve and need society in order to succeed. · Makes more money in the long run - Ex. Whole Foods, Patagonia

ISO 14001

Collection of best practices for managing an organization's impact on the environment

Enterprise Resource Planning

Combines computerized functions of all divisions and subsidiaries of the firm

International Ethics and Social Responsibility

Companies also demand social responsibility from the suppliers they use · Ethical Cultural Clash of What Is Socially Acceptable

Market

Consumers with unsatisfied wants and needs who have both resources and willingness to buy

Outsourcing

Contracting with other companies (often in other countries) to do some or all of the functions of a firm

Cost of termination

Cost of terminating employees is high in terms of lost training cost and possible damages and legal costs

Business Plan Components

Cover Letter, Executive summary, Product/service plan, Management team plan, Industry/market analysis, Operational plan, Organizational plan, Marketing plan, Financial plan, Growth plan

Intrapreneur

Creative people who work as entrepreneurs within corporations. - Use existing company to start new initiatives/products

National Labor Relations Act of 1935

Established collective bargaining in labor-management relations and limited management interference in the right of employees to have a collective bargaining agent.

ISO

Established to promote the dev of world standards to facilitate the international exchange of goods and services.

Insourcing

Foreign companies setting up design and production facilities in the US

vision

Gives the organization a sense of purpose and a set of values that unite workers in a common destiny.

Empowerment

Giving workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer request

EEOC (Equal Employment Opportunity Commission)

INDEPENDENT agency created in 1964-works to eliminate employment discrimination based on race, color, religion, gender, disability, age or other criteria unrelated to job performance.

small business

Independently owned and operated, is not dominant in its field of operation - meets certain standards of size in term of employees or annual receipts

venture capitalist

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Services

Intangible products; can't be held (tourism, travel, health care)

Equal Pay Act of 1963

Legislation that requires employers to pay men and women equal pay for equal work

Job Sharing

Lets two or more part-time employees share one full-time job

autocratic leadership

Making managerial decisions without consulting others. a. Effective in emergencies and when absolute followership is needed for

objective vs goal

Objective: immediate intention or purpose Goal: overarching aim or aspiration

Interfirm Operation Management

Outsourcing engineering, design, manufacturing, and other tasks to companies, interfirm is this interaction between companies

Who is middle management?

Plant Managers, Division Managers, Department Managers

Who is in top management?

President and Vice President

Franchises

Privileges granted by a company or government to sell a product or service under specified conditions.

Selection

Process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interest of the individual and the organization

Civil Rights Act of 1964 (Title VII)

Prohibits discrimination in privileges of employment based on race, color, religion, sex, or national origin - Amended 97 times - Title VII brought government directly into the operations of HMR - Applies to age and gender - EEOC was added to Title VII -Issue guidelines for acceptable employer conduct in administering equal employment opportunities. - Enforced affirmative action: intended to "right past wrongs" by increases opportunities for minorities and women

American with Disabilities Act of 1990

Prohibits employers from discriminating against qualified individuals with disabilities in hiring, advancement, or compensations and requires them to adapt the workplace if necessary.

Comprehensive Employment and Training Act of 1973

Provided funds for training unemployed workers

Occupational Safety and Health Act of 1970

Regulates safety and health conditions in most private industries and some public-sector organizations.

rational decision making model

Series of steps managers often follow to make logical, intelligent, and well-founded decisions.

operational planning

Setting work standards and schedules necessary to implement the company's tactical objective. focuses onspecificc supervisors, department managers, and individual employees.

Community Development Financial Institutions

Source of funding for businesses in lower-income communities help in economic recovery

Who is Supervisory Management

Supervisors, Department heads, Section Leaders

Standard of Living

The amount of goods and services people can buy with the money they have.

Loss

The business's expenses are more than its revenues (results in closure)

Mergers

The joining together of two or more companies or organizations to form one larger one.

Management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

Management Development

The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

Statistical quality control (SQC)

The process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning.

Offboarding

The process surrounding employee exist, insurance, benefits, collecting documents etc

Lean Manufacturing

The production of goods using less of everything than in mass production: less human effort, less manufacture space, investment in tools, etc

Micropreneurs

Those who start company that are happy even if the company is not on the top of business world - good work life balance

On-the-job training (OJT)

Training provided to employees at the work site utilizing demonstration and performance of job tasks.

Foreign Corrupt Practices Act

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

S corporation

Unique government creation that looks like a corporation but is taxed like sole proprietorship and partnerships. Have shareholders, directors, and employees + limited liability AND avoid double taxation of C corporations

flextime plan

Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks

Sole Proprietorship

a business owned, and usually managed, by one person

Federal Trade Commission (FTC)

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

Limited Liability Company (LLC)

a form of business ownership that offers both limited liability to its owners and flexible tax treatment

business plan

a formal written document that describes the nature of a business and how it will operate

continuous process

a production process in which long production runs turn out finished goods over time

Conventional (C) Corporation

a state-chartered legal entity with authority to act and have liability separate from stockholders.

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment - The organization's self-concept - Its philosophy - Its long-term survival needs - Its customer needs - Its social responsibility - The nature of its product (s) or service (s)

3D Printing

additive manufacturing, a product is created one layer at a time by a nozzle similar to those found in inkjet printers.

General Partnerships

all owners share in operating and liability for business

Databases

allows stores to carry only the merchandise their local customers want

Business

any activity that seeks to provide goods and services to others while operating at a profit

A Leveraged Buyout (LBO)

attempt by employees, management, or a group of private investors to buy out the stockholders in a company, primarily by borrowing the necessary funds

Goals

broad, long-term accomplishments an organization wishes to attain -> workers and management need to agree on them, setting goals is often a team process.

Computer-Aided Design

businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products.

Materials Requirement planning (MRP)

computer-based operations management system that uses sale forecasts to make sure needed parts and materials are available at the right time and place.

integrity-based ethics codes

create an environment that supports ethically sound behavior by stating an organization's guiding values, shared responsibilities, and accountability.

Just-in Time inventory Control

cut such costs, min inventory just in time to go on the assembly line

Flexible Manufacturing

designing machines to do multiple tasks so they can produce a variety of products.

Nonsupervisory

employees

contingent workers

employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students

corporate social initiatives

enhanced forms of corporate philanthropy directly related to the company's competencies

Fair Labor Standards Act of 1938

established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage

compliance-based ethics codes

ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers (penalizing wrongdoers, increasing control)

knowledge management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm

tech environment

forces that create new technologies, creating new product and market opportunities

Economic and Legal Environment

freedom of ownership, contract laws, elimination of corruption, tradable currency, minimum taxes and regulation

Quality of Life

general well-being of a society in terms of its political freedom, natural environment, education, etc

ISO 9001

given to quality management and assurance standards.

Nonprofit organizations

goal NOT to make personal profit for its owners or organizers (want to make money but only to fund social programs)

Entrepreneurial Team

group of experienced people from different areas of business who join to develop, make, and market a new product. -- Combined creative skills with production -> helps later down the road.

Stakeholders

have a vested interest in the company (gain or lost by policies and activities of a business)

Operations Management Planning

helps solve many of the problems in the service and manufacturing sectors

SWOT analysis

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

Staffing

is recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives.

Vertical Merger

joins two firms operation in different stages of related business (helps with supply flow)

Free-rein Leadership

leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

Limited liability partnership (LLP)

limits partner's risk of losing their personal assets to the outcomes of only their own acts and omissions

PMI

listing all the pluses for solutions in one column, all the minuses in another, and implications.

Participative (democratic) Leadership

managers and employees work together to make decisions.

Freddie Mac Scandal

mortgage-lending giant intentionally misstated and understated 5 billion in earnings

Managers

must practice the art of getting things done through organizational resources (workers, financial resources, information, and equipment)

incubator

offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice and secretarial help - 87% of incubators remain businesses

Acquisition

one company buys the property and obligations of another company

Exit Interview

outsider can provide confidential and anonymity that earns more honest feedback on the company.

Cooperatives

owned and controlled by the people who use it-producers, consumers or workers with similar needs who pool their resources for mutual gain

Types of Capital/Funding

personal savings, family, business associates, banks and finance institutions, angels, crowdfunding, venture capitalist and government agencies

Process Manufacturing

physically or chemically changes materials

production management

planning and control of industrial processes to ensure that they move smoothly at the required level.

Assembly Process

puts together components to make a product. - cars are made through an assembly process that puts together the frame, engine, and other parts

The Baldridge Awards

recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence.

Human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

technical skills

skills that involve the ability to perform tasks in a specific discipline or department

Ethics

society's accepted standards of moral behavior (what society believes is right or wrong) - New laws help with ethical integrity - People often only care if what they are doing is legal (not ethical)

Objectives

specific, short-term statements detailing how to achieve the organization's goals. One of your goals for reaching this chapter, many be to learn basic concepts of management.

TypCo Scandal

stole 150 million via unapproved loans -> sentenced to 8-15 years had to pay 2.9 billion to investors

Forms of Planning

strategic, tactical, operational, contingency

Goods

tangible products (computers, food, clothing, cars, and appliances)

Critics of corporate social responsibility (CSR) frequently argue that __________.

that managers' sole job is to compete and win in the marketplace. - Friedman "the only CSR is to make money for stockholders"

Conceptual skills

the ability to analyze and diagnose a situation and to distinguish between cause and effect

Profit

the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation (AFTER EXPENSES)

e-commerce

the buying and selling of goods over the internet

Risk

the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

Intellectual Capital

the collective brainpower or shared knowledge of a workforce

Horizontal Merger

the combination of two or more firms competing in the same market with the same good or service

WorldCom Scandal

the company had manipulated earnings by using fraudulent accounting methods, thereby presenting a false image of economic growth and prosperity. As a result, the company's stock price continued to climb, when it should have been falling.

Production

the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship and knowledge

corporate philanthropy

the dimension of social responsibility that includes charitable donations

corporate policy

the dimension of social responsibility that refers to the position a firm takes on social and political issues

Conglomerate Merger

the joining of firms in completely unrelated industries

Facility Layout

the physical arrangement of resources, people to most efficiently produce goods and provide services for customers

Human Resource Management (HRM)

the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Tactical Planning

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how. (lower management)

Networking

the process of establishing and maintaining contact with key managers in your own and other organizations, and using those connects to serve as informal development system

contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

recruitment

the process through which the organization seeks applicants for potential employment

Intermittent Process

the production run is short and the producer adjust machines frequently to make different products. - Manufactures of custom designed furniture use this

Revenue

the total amount of money a business takes in during a given period by selling goods and services. (TOTAL MONEY)

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

Form Utility

the value producers add to materials in the creation of finished goods and services - such as by transforming silicon into computer chips or creating a vacation package

vestibule training

training done in schools where employees are taught on equipment similar to that used on the job

Manufacturing and Services In US

· 1953 American reached postwar peak with factories employing 30% of the workforce · 1979 20 million people in manufacturing · Steadily dropped now to down to 12.82 in 2019 · 70% of GDP is consumer spending and 80% of jobs are in the service sector

Green Movement

· Market share grown from 19.7 2012 to 22.3 percent in 2017 · Emerging renewable energy o 40 million more jobs will be created -Green-collar jobs

Management's role in setting ethical standards

· Organizational ethics begins at the top: resulting in instilled corporate values for the employees and the company at large. · Trust and cooperation between workers and managers must exist. Objectively ethics also: avoid lawsuits, reduce employees leaving, avoid government intervention, please customers

Challenges and opportunities for HRM

· Uncertainty in global politics - attention on hiring immigrants · Technology - talent networks, internal social networks (LinkedIn) · Multigenerational workforce. Older millennials and Gen Xers hold management positions, whereas Gen Zers are entering the workforce · Shortage of trained workers in growth areas · Large number of skilled an unskilled workers from declining industries, such as steel and automobiles o Underemployed workers: those who have more skills or knowledge than their current jobs require or those with part-time jobs who want to work full-time · Less skilled construction trades due to the retirement experienced · Brain drain of baby boomers · Increased number of both single-parent and two-income families · Shift in employee attitudes toward work · ^ for temp and part time · Overseas labor pools where workers are paid less and have fewer laws and regulations · Increased demand for benefits tailored to the individual yet cost-effective to the company · Concerns over care of elderly, disabled, work place violence · Changing health care regulations · Decreased sense of employee loyalty · Implementation of human resource information system