MCE TEST 2 KEY TERMS
Economies of scale
factors that cause a producer's average cost per unit to fall as output rises
Accounting
keeping records
Human resources
managing your employees
Effectiveness
meeting the objective
Social Power
the capacity to alter the actions of others
Yerkes-Dodson Law
the principle that performance increases with arousal only up to a point, beyond which performance decreases
Accountability
the requirement of one person to answer to a higher authority
Enacted Values
the values you see a company actually enacting/practicing
Efficiency
using the smaller amount of resources possible
Espoused Values
what an organization says it values
Value Congruence
when espoused and enacted values align
Sustainable
when the advantage persists despite the best efforts of competitors to match or surpass
Productivity
amount of output generated given amount of input
Vision
creates an idealized future state for your organization that everyone is motivated to pursue wholeheartedly
Abandoned strategy
elements that no longer fit with the company's ongoing strategy
Manager
- A person that uses influence to set and achieve goals. - A person who directly supervises, supports, and activates work effort to achieve performance goals of individuals, groups, and organizations.
Informational role
- Exchanging and processing information - Ex: monitoring and disseminating
interpersonal role
- Interacting with people - Ex: building relationships, influencing
Planning
- Mission, vision, and values - Strategic and financial objectives
decisional role
- Using information to make decisions - Ex: resource allocation, address opportunities
Conceptual
- think analytically - work with abstract ideas - solve complex problems
Technical
- use expertise - perform tasks with proficiency - apply strong skill set to operations
Human
- work well with others - relate to people - develop social capital - build and manage relationships
Organization
A group of people who work together to achieve some specific purpose
Middle manager
A manager who supervises first-line managers and is responsible for finding the best way to use resources to achieve organizational goals.
Financing
Budgeting for marketing activities,obtaining the necessary funds needed for operations,and providing financial assistance to customers so they can purchase the business products and service.
Reward power
Ability to control the allocation of rewards valued by others, or remove negative sanctions (e.g., professor can reward with grades)
Coercive power
Ability to harm, penalize, or punish someone (e.g., a mugger with a gun demanding your wallet)
Value drivers
Actions, processes, or results that are needed to deliver a desired value.
Stakeholders
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Objectives
An organization's specific performance targets
Organize
Arranging tasks, people, and other resources to accomplish the work
Positional power
Based on position and authority
Expert power
Capacity to influence others by possessing knowledge or skills that they value. Based on a perception of competence (e.g., Einstein)
Financial Objectives
Communicate management's goals for financial performance
Operations
Deciding on logistics
Mission
Describe the organization's current business operations and purpose
Personal power
Does not need to be associated with position
Lead
Inspiring people to work hard to achieve high performance
Strategic Objectives
Lay out target outcomes concerning a company's market standing, competitive positions, and future business prospects
Front line manager
Lowest level of managers in the hierarchy; responsible for the work of operating employees only and does not supervise other managers
Control
Measuring performance and taking action to ensure desired results
Referent power
Occurs when others idolize, identify with, and/or are inspired by the person (e.g., celebrities, social media influencers).
Broad differentiation strategy
Offer unique product attributes that a wide range of buyers find appealing and worth paying more for
Broad low-cost strategy
Produce goods or services for a broad base of buyers at a lower cost than rivals
Plan
Setting performance objectives and deciding how to achieve them
SMART goals
Specific, Measurable, Attainable, Realistic, Timely
Strategy
The coordinated set of actions that managers take to outperform organization's competitors and achieve superior success
Management
The process of getting things done effectively and efficiently, with and through people.
Governance
The process of governing
Goal Setting Theory
The types of goals we set impact our achievements
SBA
US government agency that advises and assists small businesses by providing management, financial advice, and loans
Upside-down pyramid
View of organizations that puts consumers at the top and positions upper levels of management as supporters of lower levels of management
Realized strategy
a combination of proactive and reactive strategy
Top manager
an upper-level executive who guides and controls the overall fortunes of an organization
Legitimate power
associated with having status or formal job authority. There is a mutual agreement that people in certain roles can request certain behaviors of others (e.g., police officers)
Values
beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission
Crowdfunding
donation based or debt-investment (peer-to-peer lending)
Cost drivers
factors that cause, or drive, the incurrence of costs
Influence
having an effect or impact on the actions, behavior, opinions, etc., of another or others
Venture Capitalists
individuals or companies that invest in new business in exchange for partial ownership of those businesses
Consumer market
people with unsatisfied wants and needs who have both the resources and willingness to buy
Deliberate/proactive strategy
planned initiative to improve the company's financial performance and secure a competitive edge
Angels
private individuals who invest their own money in potentially hot new companies before they go public
Emergent/reactive strategy
responding to unanticipated developments and fresh market conditions
Value chain
set of activities that an organization carries out to create value for its customers
Competitive advantage (sustained)
some type of edge over rivals in attracting buyers and competing with competitive forces