Professional Development Chapter 7 Key Terms
Mission statement
A company's statement of purpose
Capital budget
A financial plan used for long-term investments including land and large pieces of equipment
Operational budget
A financial plan used for short-term items including payroll and the day-to-day costs associated with running a business
Strategic plan
A formula document that identifies how the company will secure, organize, utilize, and monitor its resources
Board of directors
A group of individuals responsible for developing the company's overall strategy and major policies
Quality
A predetermined standard that defines how a good is to be produced or a service is to be prvided
Good
A tangible product produced by a company
Goal
A target
Goal
Broad statement or aim
Tactical issues
Business issues that identify how to link the corporate strategy into the reality of day-to-day operations; the time line for tactical issues is one to three years
Creativity
The ability to produce something new and unique
Directional statements
Corporate statements that remind employees that diversity in the workplace is an asset and not a form of prejudice and sterotyping
Internal customer
Customers served internally (coworkers, other departments)
External customer
Customers served outside (customers, vendors, investors)
Operations
Deals with the production and distribution of the company's product
Stakeholder
Entities that have a direct interest in a company
President or chief executive offices (CEO)
The individual responsible for operating the company; this individual takes his or her direction from the board of directors
Operational manager
First-line manager who is typically called a supervisor or assistant manager
Innovation
The process of turning a creative idea into reality
Customer service
The treatment an employee provides the customer
Organizational structure
The way a company is set up
Middle managers
Typically has the title of director or manager; these individuals work on tactical issues
Product
What is produced by a company
Organizational chart
Graphical display of formal lines of authority
Legal counsel
Handles all legal matters relating to the business
Company resources
Human, fiscal, investments (long term capital)
Chain of command
Identifies who reports whom within the company
Senior managers or executives
Individuals who work with the president in identifying and implementing the company strategy
Strategic issues
Major company goals that typically range form three to five years or more
Divisions
Major functions within a business
Operational issues
Organizational issues that typically occur on a daily basis and/or not longer than one year
Strategy
Outlines major goals and objectives and serves as a company roadmap
Vision statement
Part of a company's strategic plan that describes the company's viable view of the future
Productivity
Performing a function that adds value to a company
Marketing
Responsible for creating, pricing, selling, distributing, and promoting the company's product
Human resource area
Responsible for recruiting, hiring, training, and other issues related directly with employees
Finance and accounting area
Responsible for securing the distribution and growth of a company's financial assets
Objective
Short-term goals that are measurable and have specific time lines that occur within one year
Values Statement
Standard of behavior
Information systems area
deals with the electronic management of information within an organization
Values
getting a good deal for the price paid for a product
Objectives
short-term goals (activities) that support a goal; objectives have timelines and are measurable
Service
An intangible product produced by a company that one cannot touch or see
Departmernts
Carry out specific functions within divisions
