Mgmt 1 Midterm study guide
trade surplus
(favorable balance of trade): value of country's exports exceeds its imports
hygiene factors
(maintenance factors): job environment and could cause disatisfaction if missing but would not necessarily motivate employees if increased
trade deficit
(unfavorable balance of trade): when the value of a country's exports is less than its imports
leaders must
- Communicate a vision and rally others around that vision - Establish corp values - Promote corp ethics - Embrace change - Stress accountability and responsibility - Transparency:=
departmentalization disadvantages
- Departments may not communicate well. For example, production may be so isolated from marketing that it does not get needed feedback from customers. - Employees may identify with their department's goals rather than the organization's. The purchasing department may find a good value somewhere and buy a huge volume of goods. That makes purchasing look good, but the high cost of storing the goods hurts overall profitability. - The company's response to external changes may be slow. - People may not be trained to take different managerial responsibilities; rather, they tend to become narrow specialists. - Department members may engage in groupthink (they think alike) and may need input from outside to become more creative.
Nadler and Lawler modified his theory and suggested to improve employee performance need to
- Determine what rewards employees value. - Determine each employee's desired performance standard. - Ensure that performance standards are attainable. - Guarantee rewards tied to performance. - Be certain that employees consider the rewards adequate.
sole proprietorships advantages
- Ease of starting and ending the business - Ability to be your own boss - Pride of ownership - Leaving a legacy - Retention of co profits: owners keep profits and benefit when business grows - No special taxes: have to pay for social security and Medicare
Theory Y Assumptions
- Employees like to work - Employees are creative, and seek responsibility - Employees can exercise self-direction and self-control
matrix organization advantages
- It gives managers flexibility in assigning people to projects. - It encourages interorganizational cooperation and teamwork. - It can produce creative solutions to product development problems. - It makes efficient use of organizational resources.
matrix organization disadvantages
- It's costly and complex. - It can confuse employees about where their loyalty belongs—with the project manager or with their functional unit. - It requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems. - It may be only a temporary solution to a long-term problem.
Small business advantages over larger businesses in international trade
- Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies. - Small companies can usually begin shipping much faster. - Small companies can provide a wide variety of suppliers. - Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them.
Home based businesses has increased because
- Technology - Corp downsizing, outsourcing to smaller co - Social attitudes have changed - New tax laws loosen restrictions for home office
assumptions of theory x mgmt
- The average person dislikes work and will avoid it if possible. - Because of this dislike, workers must be forced, controlled, directed, or threatened with punishment to make them put forth the effort to achieve the organization's goals. - The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security. - Primary motivators are fear and punishment.
mission statement should address
- 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).
potential external opportunities
- ability to serve additional customer groups - expand product lines - ability to transfer skills/technology to new products - falling trade barriers in attractive foreign markets - complacency among rival firms - ability to grow due to increases in market demand
organizing
- allocating resources, assigning taks and establishing procedures for accomplish goals - prep a structure (org chart) showing lines of authority and responsibility - recruiting, selecting, training, and developing employees - placing employees where they'll be most effective
each general partnership should have
- common ownership - shared profits and losses - right to participate in managing the operations of the business
cons of free trade
- domestic workers (particularly in manufacturing-based jobs) can lose their jobs due to increased imports or production shifts to low-wage global markets - workers may be forced to accept pay cuts from employers, who can threaten to move their jobs to lower-cost global markets - moving operations overseas because of intense competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs - domestic companies can lose their comparative advantage when competitors build advanced production operations in low-wage countries
pros of free trade
- over 7.7 billion potential customers - productivity grows when countries produce goods they have a comparitive advantage - global comp and less costly imports keep price down so inflation does not demolish econ growth - free trade inspires innovation - uniterrupted flow of capital gives countries access to foreign investments which helps keep interest rates low
departmentalization advantages
- saves cost and improve efficiency - Employees can develop skills in depth and progress within a department as they master more skills. - The company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area. - Employees can coordinate work within the function, and top management can easily direct and control various departments' activities.
planning
- setting org goals - developing strategies to reach those goals - determining resources needed - setting precise standards
Henri Fayoi mgmt principles
- unity of command - hierarchy of authority - division of labor - subordination of indiv interests to the general intest - authority - degree of centralization - clear communication - order - equity - espirit de corps
Key Economic Indicators
-Gross Domestic Product -Unemployment Rate -Price Indexes
narrow span of control disadvantages
-Less empowerment -Higher costs -Delayed decision making -Less responsiveness to customers
narrow span of control advantages
-More control by top management -More chances for advancement -Greater specialization -Closer supervision
broad span of control advantages
-Reduced costs -More responsiveness to customers -Faster decision making -More empowerment
Potential Internal Strengths
-core competencies in key areas -an acknowledged market leader -well-conceived functional area strategies -proven management -cost advantages -better advertising campaigns
Effects of legislation
-employers must know the law and act accordingly -legislation affects all areas of HRM -court cases highlight that sometimes it's proper to go beyond providing equal rights -changes in law and legislation occur regularly
Advantages of Centralization
-greater top management control -more efficiency -simpler distribution system -stronger brand/corporate image
leading
-guiding and motivating employees to work effectively to accomplish organizational goals and objectives -giving assignments -explaining routines -clarifying policies -providing feedback on performance
controlling
-measuring results against corporate objectives -monitoring performance relative to standards -rewarding outstanding performance -taking corrective action when necessary
Ways to departmentalize
By product By function By customer group By geographic location By process
Both Train and develop include three steps
1. Assign org needs and employee skills to determine training needs 2. Designing training act to meet identified needs 3. Evaluating the trainings effectiveness
Victor's Vroom expectancy theory
1. Can I accomplish the task? 2. If I do accomplish the task what is my reward? 3. Is the reward worth the effort?
outline of business plan
1. Cover letter 2. Exec summary 3. Co background 4. Mgmt team 5. Financial plan 6. Capital required 7. Marketing plan 8. Location analysis 9. Manu plan 10. Appendix
How to motivate through open communication
1. Create org culture that rewards listening 2. Train supervisors and managers to listen 3. Use effective questioning techniques 4. Remove barriers to open communication 5. Avoid vague and ambiguous communication 6. Make it easy to communicate 7. Ask employees what is important to them
6 steps of decision making
1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated (begin implementation). 6. Determine whether the decision was a good one, and follow up.
decision making
Choosing among two or more alternatives.
examples of hygiene factors
Company policy and administration, supervision, working conditions, interpersonal relations, salary, status, and job security.
Country specific culture and legal standards affect HR functions including
Compensation Health and pension standards Paid time off Taxation Communication Regulatory requirements
competitive environment
Customer service, stakeholder recog, employee service Concerns for the environment
the control process
1. Establish clear standards 2. Monitor and record performance 3. Compare results against standards 4. Communicate results 5. If needed, take corrective action
six steps of performance appraisal
1. Establishing performance standards 2. Communicating these standards 3. Eval performance 4. Discuss results with employees 5. Taking corrective action 6. Using result to make decisions
business idea is good if
1. Fills customers needs 2. Have skills and resources for it 3. Sell the product or service at a price customers are willing to pay and can still make a profit 4. Get product or service to customers before window of opp closes 5. Can keep it going
Initiatives to develop female and minority managers understand
1. Grooming women and minorities for mgmt is about legality or morality but about bringing talent in the door 2. Best women and minorities become harder to attract and retain so companies that commit to development early have an edge 3. Having more women and minorities at all levels lets businesses serve their increasing female and minority customers better
disadvantages of corporations
1. Initial cost 2. Extensive paperwork 3. Double taxation 4. Two tax returns 5. Size 6. Difficulty of termination 7. Possible conflict with stockholders and board of directors
Weber's principles of organization
1. Job descriptions 2. Written rules, decision guidelines and detailed records 3. Consistent procedures, regulations and policies 4. Staffing and promotion based on qualifications
disadvantages of franchises
1. Large start-up costs 2. Shared profit 3. Management regulation 4. Coattail effects 5. Restrictions on selling 6. Fraudulent franchisors
advantages of corporations
1. Limited liability 2. Ability to raise more money for investment 3. Size 4. Perpetual life 5. Ease of ownership change 6. Ease of attracting talented employees 7. Separation of ownership from management
advantages of LLC
1. Limited liability 2. Choice of taxation 3. Flexible ownership rules 4. Flexible distribution of profits and losses 5. Operating flexibility
Companies successful in adapting to change have common traits
1. Listen to customers 2. Inspirational managers who drive new ideas throughout the organizations 3. Often have had a close call with going out of business
Type Z (Modified American )
1. Long term employment 2. Collective decision making 3. Individual responsibility 4. Slow evaluation and promotion 5. Implicit, informal control with explicit, formalized control 6. Moderately specialized career paths 7. Holistic concern for employees (including family)
6 Steps to improve business ethics
1. MGMT must unconditionally support ethics code 2. Employees understand that expectations for ethic behavior begin at the top of mgmt 3. Managers and other must be ethically trained 4. Ethics office should have place to report unethical behavior anonymously 5. Outsiders (suppliers, customers, etc.) must be told about the ethics program 6. Ethics code must be enforced if broken
advantages of frachises
1. Mgmt and marketing assistance 2. Personal ownership 3. Nationally recog name 4. Financial advice and assistance 5. Lower failure rate
partnership advantages
1. More financial resources 2. Shared management and pooled/complementary skills and knowledge 3. Longer survival 4. No special taxes
disadvantages of LLC
1. No stock 2. Limited life span 3. Fewer incentives 4. Taxes 5. Paperwork
selection process 6 steps
1. Obtaining complete application forms 2. Conducting initial and follow up interviews 3. Giving employments tests 4. Conducting background investigations 5. Obtaining results from phys exams 6. Establishing trial (probationary) periods
free market capitalism four basic rights
1. Right to own private property 2. Right to own a business and keep all bus profits 3. Right to freedom of competition 4. Right to freedom of choice
4 basic rights of consumers
1. Right to safety 2. Right to be informed 3. Right to choose 4. Right to be heard
what creates enthusiasm for workers and makes them work to full potential? asked by Herzberg
1. Sense of achievement. 2. Earned recognition. 3. Interest in the work itself. 4. Opportunity for growth. 5. Possibility for advancement. 6. Importance of responsibility. 7. Peer and group relationships. 8. Pay. 9. Supervisor's fairness. 10. Company policies and rules. 11. Status. 12. Job security. 13. Supervisor's friendliness. 14. Working conditions.
Type A (American)
1. Short-term employment 2. Individual decision making 3. Individual responsibility 4. Rapid evaluation and promotion 5. Explicit, formalized control 6. Specialized career paths 7. Segmented concern for employees
Three major forms of business ownership
1. Sole proprietorships 2. Partnerships 3. Corporations
Five elements in the business environment
1. The economic and legal environment 2. The technological environment 3. The competitive environment 4. The social environment 5. The global business environment
three questions to ask before forming a global franchise
1. Will intellectual property be protected? 2. Can you give proper support to global partners? 3. Are you able to adapt to franchise regulations in other countries?
work at home challenges
1. getting new customers 2. managing time 3. keeping work and family tasks separate 4. abiding by city ordinances 5. managing risks
five factors of production
1. land 2. labor 3. capital 4. entrepreneurship 5. knowledge
disadvantages of centralization
1. less responsive to customers 2. less empowerment 3, interorganizational conflict 4. low morale away from headquarter
strategies for reaching global markets from least amount of commitment to most amount of control
1. licensing 2. exporting 3. franchising 4. contract manufacturing 5. International joint ventures and strategic alliances 6. Foreign direct investment
willing to take risks because
1. opportunity 2. profit 3. Interdependence 4. challenge
five steps in human resources planning process
1. prepare hr inventory 2. prepare job analysis 3. assess future hr demand 4. assess future labor supply 5. establish a strategic plan
What does it take to be an entrepreneur?
1. self-directed 2. self-nurturing 3. action-oriented 4. highly energetic 5. tolerant of uncertainty
5 characteristics are important for motiv and performance
1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback
social audits are conducted by companies and...
1. socially conscious investors 2. socially conscious research organizations 3. environmentalists 4. Union officials 5. customers
partnership disadvantages
1. unlimited liability 2. division of profits 3. disagreements among partners 4. difficult to terminate
social environment
Diversity, demo changes, family changes
economies of scale
: co can reduce production costs by purchasing raw materials in bulk, ave cost of goods dec as production level rise
principle of motion economy
: every job can be broken into a series of elementary motions called a therblig, then they analyzed each motion to make it more efficient
invisible hand
: is used to describe the process that turns self-directed gain into social and economic benefits for all
deflation
: prices are declining
offboarding
: process surrounding employee exits
job enrichment
: strategy that motivates workers through the job itself Based on Herzbergs motivators responsibility, achievement, and recog
informal organization
: system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority separate from the formal org
Mentoring programs provide these benefits
Improved recruiting and retention More engaged employees Cost savings Inc skills and better attitudes
technological environment
Info tech, databases, bar codes, internet
knowledge
Information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired goods and services.
Three ?s to ask when facing an ethical dilemma
Is my proposed action legal? Is it Balanced (fair)? How does it make me feel about myself
disadvantage of job sharing
Need to train, hire, motivate, and supervise at least twice as many people Move over to a new job instead of up, allows to learn new skills in co with few adv opp
to qualify as an s corp a company must
No more than 100 shareholders (families count as 1) Have shareholders that are indiv or estates and who (as individuals) are citizens or permanent resident of the US Have only one class of stock Derive no more than 25% of income from passive sources (rents, royalties, interest)
Roles and responsibilities of HRM have evolved because of
Org recog of employees as ultimate resource Change in law that rewrote traditional practices
labor (workers)
People have always been an important resource in producing goods and services, but many people are now being replaced by technology.
Civil rights act of 1964
Prohibits discrimination on the basis of race, religion, creed, sex, or national origin, age In 2020, added sexual orientation and gender identity
small business
SBA defines it as an independently owned and operated, not dominant in field of operation and meets certain standards of size in terms of employees or annual receipts
benefits of joint venture
Shared tech and risk Shared marketing and mgmt experts Entry into markets where foreign co are not allowed unless goods are produced locally
tariffs
Taxes on imported goods
degree of centralization
The amount of decision-making power vested in top management should vary by circumstances.
national debt
The sum of government deficits over time.
capital
This includes machines, tools, buildings, or whatever else is used in the production of goods. It might not include money; money is used to buy factors of production but is not always considered a factor by itself.
USMCA (United States-Mexico-Canada Agreement)
This is a regional trade agreement between the United States, Canada, and Mexico that is designed to replace NAFTA. The agreement has been signed by the leaders of all three countries, but at the time of publication has not yet been ratified by the legislatures of those countries.
value of good is based on
What business owns What it earns What makes it unique
decentralized authority
When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.
national surplus
When government takes in more than it spends.
comparitive advantage theory
a country should sell to other countries those products it produces more effectively and efficiently and buy from other other countries those products it cannot produce as effectively or efficiently
business plan:
a detailed written statement that describes the nature of business, target market, adv business has over competition, resources and qualifications of the owner(s)
high value of a dollar
a dollar is trading for more foreign currency than previously
low value of a dollar
a dollar traded for less foreign currency
contract manufacturing
a foreign co produces private-label goods to which a domestic co attaches its own brand name or trademarks
General Agreement on Tariffs and Trade (GATT)
a global forum for reducing trade restrictions on goods, services, ideas, and cultural programs.
monopolistic competition
a large number of sellers produce very similar products that buyers perceive as different
job enlargement
a series of tasks into one challenging and interesting assign
gig
a single project or task for which a worker is hired, often through digital marketplace to work on demand
social auditing
a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs
virtual corporation
a temporary network made of replaceable firms that join and leave as needed
Entreupreneurship
accepted the risk of starting and running a business
coaching
acting as a resource, teaching, guiding and recommending, but not participating actively or doing the task
coattail effect
actions of other franchises have an impact on your future growth and profitability
orientation
activity that initiates new employees into the org
external sources
ads, online sites, referrals, online and walk in applications, etc.
staff personnel
advise and assist line personnel in meeting their goals by doing market research, legal advising, info tech, and HR
capitalism
all or most of the factors of production and distribution—such as land, factories, railroads, and stores—are owned by individuals.
general partnership
all owners share in operating the business and in assuming liability for the business's debts
stakeholders
all people who stand to lose or gain by policies or actions of a business
compassionate capitalism
all stakeholders from customers to environmentalists should get the benefits of capitalism
hierarchy of authority
all workers no who to report, managers should give orders that others follow
mixed economy
allocation or resources made by both market and gov
JOBS act 2012
allows business to use fundraising sites to solicit larger investments in exchange for ownership shares in the business (crowdinvesting or equity crowdfunding)
standard of living
amount of goods and services people can buy with money they have
franchise agreement
an arrangement whereby someone with good idea for business (the franchisor) sells the rights to use the business name and sell a product or service (the franchise) to others (the franchisees
leverage buyout (LBO)
an attempt by employees, mgmt, or a group of private investors to buy out the stockholders in a co, primarily by borrowing the necessary funds
communism
an econ and pol system where gov makes all econ decis and owns all major factors if production
socialism
an econ system based on the premise that basic businesses should be owned by the gov so that profits can be more evenly distributed to the people
gig economy
an economy made up of contingent workers
unity of command
an employee should report to no more than one manager
compressed workweek
an employee works the full # of hrs but in fewer than the standard number of days
Service Corps of Retired Executives (SCORE)
an info source for small businesses
unlimited liability
any debts or damages incurred by the business are your debts and you must pay them
real time
at the present moment or the actual time in which an even takes place
Ethnocentricity
attitude that your own culture is superior to other cultures
gain sharing system
base bonuses on improvements over prev performance Limit: may improve just enough to meet the target but not by much
self-nurturing
believing in yourself when no one else does
brain drain
best and brightest people leave because taxed too high
decentralized advantages
better adaptation to customer wants more empowerment of workers faster decision making higher morale
business cycle steps
boom, recession, depression, recovery
insourcing
bringing more job for a certain company
goals
broad-long term accomplishments an organization wishes to attain
Foreign Direct Investment (FDI)
buying of permanent property and businesses in foreign nations
importing
buying products from another country
absolute advantage
can produce a specific more efficiently than all other countries
conscious capitalism
capitalism to serve all stakeholders not just stockholders
structural unemployment
caused by the restructuring of firms or by a mismatch between the skills (or location) of job seekers and the requirements (or location) of avail jobs
risk
chance entrepreneur takes on losing time and money on a business that may not be profitable
corporate philanthropy
charitable donations to nonprofit groups of all kinds
foreign subsidiary
co owned in a foreign country by another company, the parent company
Self-employment Assistance (SEA) program
collect self employment payments instead of regular unemployment checks when building business
brainstorming
coming up with as many solutions as possible in a short period of time with no censoring of ideas
human relation skills
communicating and motivation
bureaucracy
company's reliance on rules
benchmarking
comparing an org practice, process, and products against the world's best
market based pay structure
compensate people relative to the market value of their job (most common)
embargo
complete ban on the import or export of a certain product
countertrading
complex form of bartering where several countries trade goods or services for other goods or services
Corporate Social Responsibility (CSR)
concern businesses have for the welfare of society, not just for the owners.
inverted organization
contact people (ex: nurses) at top and top mgmt at bottom
outsourcing
contracting with other companies to do some or all the functions of a firm like its a product or accounting tassels
mentor
cop manager who supervises, coaches, guides selected low level employees by introducing them to the right people and generally acting as their org sponsor
corporations
create a business that is separate and distinct from owners
intrapreneurs
creative people who work as entrepreneurs within corporations - Launch new products and generate new profits
external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
seasonal unemployment
demand for labor varies over the year
revenue tariffs
designed to raise money for the gov
formal organization
details lines of responsibility, authority, and position Too bureaucratic and slow
Balance of payments:
difference between money coming into a country (exports) and money leaving the country (imports)
line organization
direct two ways lines of responsibility authority and comm running from top to bottom of org with everyone reporting to one supervisor
division of labor
divided into areas of specialization such as production, marketing, and finance
departmentalization (CH. 8)
dividing organization into separate units
job specialization
dividing tasks into smaller jobs
strategic planning
done by top mgmt and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them
Vestibule training (near the job training):
done in classroom with equip similar to that used on the job
mgmt by objectives
druckers system of goal setting and implementation includes a cycle of discussion, review, and evaluation of objectives among top and middle level managers, supervisors, and employees
stagflation
econ is slowing but prices are going up anyway
mass production
efficiently producing large quantities of goods, processes and bus org became co complex
flextime plan
employee have some freedom to choose which hours they work as long as they work the required number of hours or complete their assigned tasks
cafeteria style fringe benefits
employees can choose the benefits they want up to a certain dollar amount
equity theory
employees perceptions of fairness affect their willingness to perform Perceived inequity may lead to lower productivity, reduced quality, increased absenteeism and voluntary resignation
on-call scheduling
employers call in or cancel workers on little notice
knowledge mgmt
empowering employees by giving them knowledge
corporate social initiatives
enhanced forms of corporate philanthropy directly related to the company's competencies
Office of federal contract compliance Programs (OFCCP)
ensures employers comply with nondiscrimination and affirmative action laws and regulations
corporate responsibility
essential everything has to do with acting responsible within society
networking chapter 11
establishing and maintaining contacts with key managers in your own and other orgs
performance appraisal
eval that measures employee performance against established standards in order to make decis about promotions, compensation, training, or termination
bartering
exchange of merch for merch or service for service
perfect competition
exists when there are many sellers in a market and none is large enough to dictate the price of a product, no true examples of this exist
motivators
factors that make employees more productive and satisfied (job content)
fiscal policy
federal government effort to keep econ stable by inc or dec taxes or gov spending
oligopoly
few sellers dominate a market
flat org structures
fewer layers of mgmt and broad span of control (many people report to each managers)
venture capitalists
finance project for a price
middle mgmt
general mangers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
inflation
general rise in price of goods and services over time
quality of life
general well being of society
continuous performance reviews
give cont feedback via mobile apps to help employees meet their goals
extrinsic rewards
given to you by someone else as recognition for goodwork
empowerment (new)
giving employees the authority to make a decision without consulting the manager and the responsibility to respond quickly to customer requests
directing
giving explicit instructions, telling them what to do to meet goals and objectives of the organization
enabling
giving workers the educations and tools they need to make decisions
Command econ (socialism and communism):
gov decides what goods and services are produced, who gets them, and how econ grows
entrepreneurial team
group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, market a new product
cross-functional self-managed teams
groups of employees from different departments who work together on a long-term basis
general partner
has unlimited liability and is active in managing the firm
top mgmt
highest level, the president and CEO, Chief operating officer (COO), chief financial officer (CFO), and chief information officer (CIO) or in some companies chief knowledge officer (CKO).
"Fair-Disclosure Rule" (Regulation FD)
if co tells anyone, they have to tell everyone at the same time
internal sources
include current employees who can be transferred or promoted or recommended others to hire
Training and developing:
includes all attempts to improve productivity by inc an employees ability to perform
fringe benefits
includes sick pay leave, vacation pay, pension plan, and health plans
internal customers
individuals and units within the firm that receive services from other individuals or units
whistleblowers
insiders who report illegal/unethical behavior
Affirmative action:
intended to right past wrongs by increasing opportunities for minorities and women
Global Business Environment
international forces that affect a business and includes international trade agreements, international economic conditions, and political unrest
Executive Summary
is five mins to convince the reader not to throw the business plan away
core time
is period when all employees are expected to be at their job stations
economics
is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
horizontal merger
joins two firms in the same industry and allows them to diversify or expand their products example: Soda and water
vertical mergers
joins two firms operating in different stages of related businesses example: Soda and artificial sweetener
three key factors of hay method
knowledge, problem solving, and accountability
legality
laws we have written to protect ourselves from fraud, theft, and violence
exit interview
learn why employees by having an expert conduct this
decentralized disadvantages
less efficiency, complex distribution system, less top-management control, weakened corporate image
problem solving
less formal than decision making and usually calls for quicker action to resolve everyday issues
conceptual skills
let the manager picture the organization as a whole and see the relationships among its various parts
On-the-job training
lets the employee learn by doing or watching others
job sharing
lets two or more part-time employees share one full time job
Type J (Japanese) management
lifetime employment, consensual decision making, collective responsibility for the outcomes of decisions, slow evaluation and promotion, implied control mechanisms, nonspecialized career paths, and holistic concern for employees
limited liability
limited partners liability for the debt of the business is limited to the amount they put into the company
limited liability partnership
limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision.
import quota
limits the number of products in certain categories a nation can import
chain of authority
line of authority that moves from the top of hierarchy to lowest level
PMI
list all pluses of solution in one column and all minuses in another, implications in a this, plus>minus
development
long-term abilities
strategic alliance
long-term partnership between 2 or more co established to help each co build competitive market advantages
master limited partnership
looks and acts like a corp but is taxed like a partnership and avoids corp income tax
Microeconomics
looks at the behavior of people and organizations in markets for particular products or services.
s corporation
looks like a corporation but is taxed like sole proprietorships and partnerships
devaluation
lowers the value of a nation's currency relative to others
autocratic leadership
making managerial decisions without consulting others
participative (democratic) leadership
managers and employees work together to make decisions
line-and-staff organization
managers have direct control over the units and employees they supervise but have access to staff specialists for assistance
authority
managers have right to give orders and power to enforce obedience
free-rein leadership
managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives
accommodation
means treating people according to their specific needs
World Trade Organization (WTO)
mediate trade disputes among nations
360 degree review
mgmt gather opinion from all around employee from under, above, and same level
monetary policy
mgmt of money supply and interest rates by the federal reserve bank
Consumer Price Index (CPI)
monthly stats that measure the pace of inflation or deflation
favorable balance of payment
more money flowing in than out
unfavorable balance of payment
more money flowing out than in
vision
more than a goal, broad explanation of why organization exists and where it is trying to go
free trade
movement of goods and services among nations without political or economic barriers
mercantilism
nations sell more goods than what is bought from them
empowerment
need to train more people to respond quickly to customer requests, must make decisions essential to producing high quality goods and services
Potential Internal Weaknesses
no clear strategic direction, obsolete facilities, subpar profitability, lack of managerial depth and talent, weak market image, too narrow a product line
off-the-job training
occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development
cyclical unemployment
occurs because of a recession or a similar downturn in the business cycle (most serious)
centralized authority
occurs when decision making is concentrated at the top level of management
incubators
offer new businesses in critical early development low cost offices with basic accounting, legal, and secretarial help
Mgmt training programs include
on the job coaching Understudy positions: Job rotation Off-the-job courses and training
acquisition
one company's purchase of the property and obligations of another company
limited partnership
one or more general partners and one or more limited partners
monopoly
one seller controls the total supply of a product or service
multinational corporation
one that manufactures and markets products in many different countries and has multinational stock ownership and mgmt
golden handshake
one time cash payments (bene for retiring employees)
Macroeconomics
operation of a nation's economy as a whole (the whole United States)
integrity based ethics code
organizations guiding values create an environment that supports ethically sound behavior and stress shared accountability
tall organizational structures
orgs get bigger, have to add more layers of mgmt
time-motion studies
output over time
cooperative (Co-op)
owned and controlled by the people who use it
limited partner
owner who invests money in business but does not have mgmt responsibility or liability for losses beyond his or her investment
contigent workers
part time workers (less than 35hrs/week), temp workers, seasonal workers, independent contractors, interns, and co-op students
joint venture
partnership with two or more companies to undertake a major project
Hawthorne effect
people's tendency to behave differently when they know they are being studies
business cycle
periodic rise and fall in economy over time
Maslow's Hierarchy of Needs
physiological, safety, love/belonging, esteem, self-actualization
hay method
plan based on job grades, each has a strict pay range
corporate policy
position a firm takes on social and political issues
transparency
present all co facts and figures in a way that is clear to all stakeholders
compliance based ethic codes
preventing unlawful behavior by inc control and and penalizing wrongdoers
hyperinflation
price of goods and services rise by 50% a month
labor intensive
primary cost of operations is the cost of labor Example: service orgs likes hospitals, hotels, airlines
Angel Investors
priv indiv who invest their own money in potentially new co before they go public
small business investment company program
private investment companies licensed by SBA to lend money to small businesses
HRM
process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
tactical planning
process of developing detailed short term statements about what is to be done, who is to do it and how
selection
process of gathering info and deciding who should be hired, under legal guidelines to serve the best interest of the indiv and the org
contingency planning
process of preparing alt course of action the firm can use if its primary plans don't work out
operational planning
process of setting work standards and schedules necessary to implement the company's tactical objectives
mgmt development
process of training, educating employees to be good managers and then monitoring the progress of their managerial skills over time
management
process used to accomplish organization goals thru planning, organizing, leading and controlling people and other organizational resources
job simplification
produces task efficiency by breaking a job into simple steps and assigning people to each
Ban-the-box rule
prohibits asking questions about convictions on job apps and initial interviews
Age discrimination in employment act of 1967
protects indiv aged 40 or older from discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignment and training
frictional unemployment
quit because they didn't like the job, boss, working conditions, haven't found a new job, have not had a job before, took significant time away from job
protective tariffs
raise retail price on imported products so that domestic goods are competitively priced
crowdfunding
raising money for a project or venture by obtaining many small amounts of money from many people
staffing
recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives
restructuring
redesigning an org so it can more effectively and efficiently serve it customers
common market
regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members (Euro union)
Americans with Disabilities Act of 1990:
requires employers to give applicants with phys or mental disabilities the same consideration for employment as people without disabilities
line personnel
responsible for directly achieving org goals and include product workers distribution people and marketing personal
Merger
result of two firms joining to form one company
skill based pay
rewards growth of both individual and team Improves employee skill develop and job satisfaction
scientific management
sci study the most efficient ways to do things, determine the single best way to perform each task and then teach others those methods Requires time, method, rules of work
dumping
selling products in a foreign country at lower prices than those charged in the producing company
exporting
selling products to another country
recruitment
set of act for obtaining the number of qualified people at the right time
Goal Setting Theory
setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback
departmentalization
setting up indiv dept to do specialized tasks
training
short-term skills
organizational chart
shows relationship among people, who is accountable for completion of specific work and who reports to whom
ethics
society's accepted standards of moral behavior
Community development financial institutions (CDFIs)
source of funding for businesses in lower income communities
Matrix organization
specialists from diff parts of org work together temporarily on specific projects
enterprise zones (empowerment zones or enterprise communities):
specific geographic areas which gov attract private business investment by offering lower taxes and other gov support.
objectives
specific, short-term statements detailing how to achieve the organizations goals
Conventional (C) Corporation
state chartered legal entity with authority to act and have liability separate from its owners- stockholders
SWOT analysis
strengths, weaknesses, opportunities, threats
organizing (Chapter 8)
structuring determining what work needs to be done and then dividing up tasks (division of labor)
resource development
study of how to increase resources
online training
tech is improving the efficiency of many off training program
technical skills
the ability to perform tasks in a specific discipline or department
producer price index
the change in prices at a whole sale level, tracks price changes in all industries in the goods producing sectors of the US econ
Free market econ (capitalism):
the market determines which goods and services are produced, who gets them, and how econ grows
job description
the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions
span of control
the optimal number of subordinates a manager supervises or should supervise
unemployment rate
the percentage of civilians who are at least 16 yrs old who are unemployed and tried to find a job in the last four weeks
intrinsic reward
the personal satisfaction you feel when you perform well and complete goals
Keynesian economic theory
theory that gov policy of inc spending and cutting taxes could stimulate the econ in a recession
Sole Proprietorship
A business owned by one person
Limited Liability Company (LLC)
A company similar to an S corporation but without the special eligibility requirements.
hierarchy
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.
Equal Employment Opportunity Act (1972)
Added to civil rights act Issued guidelines for acceptable employer conduct, mandated specific recrodkeeping practices, regulatory force in admin of HRM
entrepreneurship
All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources.
NAFTA (North American Free Trade Agreement)
Allows open trade between the US, Mexico, and Canada.
A carefully managed and competitive compensation and benefit program can accomplish several objectives:
Attracting the kinds of people the organization needs, and in sufficient numbers. Providing employees with the incentive to work efficiently and productively. Keeping valued employees from going to competitors or starting competing firms. Maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce. Providing employees with some sense of financial security through fringe benefits such as health insurance and retirement benefits.
supervisory mgmt
those directly responsible for supervising workers and eval their daily performance
gross output
total sales volume at all stages of production
balance of trade
total value of a nations exports compared to its imports measured over a particular period
apprentice programs
trainee works alongside an experience employee to master the skills and procedures of a craft
partnerships
two or more people legally agree to become co-owners of a business
conglomerate
unites firms in completely unrelated industries in order to diversify business operations and investments example: Soda and snack food company
Disadvantages of Sole Proprietorship
unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span
networking
use comm tech and other means to link org and allow them to work together
job simulation
use of equipment that duplicated job conditions and tasks so trainees can learn skills before attempting on job
trade protectionism
use of gov regulation to limit the import of goods and services
land (or natural resources)
used to make homes, cars, and other products.
Human Resources Information System (HRIS)
uses mult tools and processes to manage an org employees and databases
insider trading
using private co info to further insiders or families fortunes
exchange rate
value of one nation's currency relative to the currencies of other countries
Micropreneurs
want balanced lifestyle while doing this type of work
shadowing
watching experienced people perform
know market
what do consumers want and need and do they have the resources and willingness to pay for theses items
licensing
when a firm gives the right to manufacture its product or use trademark to a foreign company for a fee (royalty)
core competencies
when firm completes outsourcing process, remaining functions are core competencies
disinflation
when price inc are slowing (inflation rate is declining)
expropriated
when relationship with host country falter, so it is taken over by the foreign gov
examples of motivators
work itself, achievement, recognition, responsibility, growth and advancement
job rotation
work more interesting and motiv employees from one job to another
high-context culture
workers build personal relationships and develop group trust before focusing on tasks
low context culture
workers often view relationships building as a waste of time that diverts attention from the task
subordination of individual interest to the general interest
workers think of themselves as a coordinated team
helping
working with employee and doing part of work if necessary
job specifications
written summary of the minimal educ and skills needed for a particular job
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you finished this quizlet
digital natives
young people today who grew up with internet and cell phones, high tech devices is second nature to them
broad span of control disadvantages
Fewer chances for advancement, overworked managers, loss of control, less management expertise
econ and legal department
Freedom of ownership, contract laws, elimination of corruption, tradable currency, minimum taxes and regulation
adam smith view on economics
Freedom to private ownership is key People work for their own self interest, but this results in goods, services, and jobs provided to others
exporting (strategies for global markets)
EACs provide hands-on exporting assistance and trade-finance support for small and medium businesses that wish to directly export goods and services
Benefits of job sharing
Employment opportunities for those who cannot or prefer not to work full-time. An enthusiastic and productive workforce. Reduced absenteeism and tardiness. Ability to schedule part-time workers into peak demand periods. Retention of experienced employees who might otherwise have retired.
potential external threats
Entry of lower-cost foreign competitors, rising sales of substitute products, slower market growth, costly regulatory requirements, vulnerability to recession and business cycles, changing buyer needs and tastes