BA 101 Exam 2

Max Weber's Principles of Organization

-Job Descriptions -Written rules/Guidelines and records -Consistent procedures, regulations, and policies -Staffing and promotion based on qualification

Secured Bond

A bond that was issued with some sort of collateral

Secured Loan

A loan that is backed up by collateral

Unsecured Loan

A loan that is not backed up by collateral

Affirmative Action

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

Just-In-Time (JIT) Inventory Control

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.

Administered Distribution System

A system where producers manage all marketing functions at a retail level

Virtual Corporation

A temporary network, made of replaceable firms that join and leave as they please

Channel of Distribution

A whole set of marketing intermediaries -Agents, brokers, wholesalers, retailers

Job Specification

A written summary of the minimum qualifications a worker needs for a job

Production Management

Activities that helped firms create goods

Staff Personnel

Advise and assist line personnel in meeting their goals

Hierarchy of Authority (Fayol Principle)

All workers should know who they report to

Degree of Centralization (Fayol Principle)

Amount of decision-making power for top managements varies by situation

Financial Planning

Analyzing short and long term money flows to and from the firm

Direct Marketing

Any acting that directly links manufacturers with consumers

Fringe Benefits

Benefits such as sick-leave pay, vacation pay, health plans

Unsecured Bond/Debenture Bond

Bond that is backed only be the reputation of the issuer

Gain-sharing systems

Bonuses are based on improvements over previous performance

Agents and Brokers

Bring buyers and sellers together and assist in negotiation

Computer-Aided Manufacturing (CAM)

Bringing computers directly into production process, guide or control the manufacturing process

Reverse Logistics

Brings goods back to the manufacturer because of defects or recycling materials

Inbound Logisitcs

Brings raw materials, packing, other goods and services, and information from suppliers to producers

Capital Budget

Budget for large purchases such as buildings or land

Form Utility

Changing raw materials into useful products -Baristas make coffee from coffee supplies

ISO 901

Common name given to quality management and assurance standards

Economies of Scale

Companies can reduce production cost by purchasing more raw materials in bulk

Material Requirement Planning (MRP)

Computer-based operations management systems that use sales forecast to make sure needed parts and materials are available at the right time and place

Exit Interview

Confidential meeting that explains why a valued employee chose to leave

Supply Chain

Consists of all linked activities performed to get raw materials to ultimate consumers

Warehouse Club

Costco

Production

Creation of finished goods and services using factors of production

Span of Control

Describes optimal number of employees a manager should supervise -Trend today is to reduce middle managers, and hire talented lower level employees

Flexible Manufacturing

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

Formal Organization

Details lines of responsibility, authority, and position.

Line Organization

Direct two-way lines of responsibility, authority, and communication running from top to bottom

Departmentalization

Divides organizations into separate units. Groups workers according to their skills, expertise, or resource use

Division of Labor

Dividing work up amongst workers

Job Specialization

Diving tasks into smaller jobs

Possession Utility

Doing whatever's necessary to transfer ownership from one party to another

Unity of Command (Fayol)

Each worker only reports to one boss

Golen Handshakes

Early retirement benefits to entice older employees into retirement in the event downsizing is needed

Hay Method

Edward Hay method for pay structure, considers knowledge, problem solving, and accountability

Cash Budget

Estimation of cash inflows through periods of months and quarters

Operating (Mater) Budget

Estimation of the costs and expenses needed to run the business

Performance Appraisal

Evaluation that measures employee performance

Financial Managers

Examine financial data and recommend strategies for improving financial performance

Service Utility

Fast, friendly service during and after the sale

Balance Sheet

Financial condition on a specific date

Finance

Function in a business that acquires funds for the firm and manages those firms

Purchasing

Function that searches for high-quality material resources, finds best suppliers, and negotiates the best price

Division of Labor (Fayol prinicple)

Functions must be divided into areas of specialization, such as production, marketing, and finance

Debt Financing

Funds raised through various forms of borrowing that must be repaid

Line of Credit

Given amount of unsecured funds that a bank will loan out

Job Rotation

Given assignments in a variety of departments. Gives broad picture of organization to be successful

Flextime Plan

Gives employees some freedom to choose which hours they work so long as they meet required hours and get tasks done

360-Degree Review

Gives managers opinions from people at different levels, to get a more accurate idea of a worker's abilities

Output

Goods, services and ideas from the factors of production

Cross-Functional Self-Managed Teams

Groups of employees from different departments who work together on a long-term basis

Merchant Wholesalers

Independently owned firms that take title to the goods they handle

Productive Corporate Culture

Key to a productive culture is mutual trust

Job Sharing

Lets two or more part-time employees do the work of a full time employee

Chain of Command

Line of authority that moves from the top to bottom

Line-and-Staff

Line personnel: Responsible for directly achieving organizational goals

Capital Expenditure

Major investments in long term assets or intangible assets

Time Utility

Making products available when consumers need them -24/7 place provides

Place Utility

Making products where people want them -Convenient store placement provides

Budget

Management expectations and allocates resource usage throughout

Equity (Fayol Principle)

Manager should treat peers and employees with respect

Authority (Fayol Priniciple)

Managers have the right to give orders and enforce obedience

Outbound Logistics

Manages the flow of finished products and information to business buyers and ultimately to consumers

Wholesalers

Market intermediary that sells to other organizations such as retailers

Real Time

Means the present moment or actual time in which an event takes place

Venture Capital

Money invested in new or emerging companies that investors believe will have great profit potential

Materials Handling

Movement of goods from a warehouse to factor floor, to various workstations

Information Utility

Opening 2-way flows of information between marketing participants

Flat Organizational Structure

Organizational structure with fewer layers of management and a broad span of control

Marking Intermediaries/Middlemen

Organizations that help move goods and services from producers to businesses, and businesses to consumers

Order (Fayol Principle)

People/materials placed in the proper location

Limited-Function Wholesalers

Perform select functions, like cash-and-carry

Facility Layout

Physical arrangement of resources, including people, to most efficiently produce goods

Process Manufacturing

Physically or chemically changing materials

Trade Credit

Practice of buying goods or services and paying for them later

Short-Term Forecast

Predicts revenue, costs, and expenses for a year or less

Long-Term Forecast

Predicts revenue, costs, and expenses for a year or more

Networking

Process of establishing and maintaining contacts with key managers in your own and other organizations, using it to weave strong business relationships

Selection

Process of gathering information about job applicants and deciding who's best fit

Factoring

Process of selling accounts receivable for cash

Management Development

Process of training and educating employees to become good managers

Lean Manufacturing

Production of goods using less of everything than in mass production

Intermittent Process

Production runs short, and producer adjusts machines frequently to make different products

Retained Earnings

Profits the company keeps and then reinvests

Term-Loan Agreement

Promissory note that requires borrower to repay loan with interest in specified monthly or annual installments

Intensive Distribution

Puts products into as many retail outlets as possible, mainly convenience

Assembly Process

Putting together components to make a product

Six Sigma Quality

Quality measure that allows only 3.4 defects per million opportunities

Leverage

Raising funds through borrowing to increase the firm's rate of return

Direct Selling

Reaches consumers in their homes or workplaces

Restructuring

Redesigning an organization so it can more effectively and efficiently serve customers

Skill-Based Pay

Rewards growth of both individual and team

Retail Sale

Sale of goods and services to consumers for their personal use

Telemarketing

Sale of goods/services over the phone

Wholesale Sale

Sale of goods/services to a business for use in business, or resale usually to retailers/manufacturers and hospitals

Understudy Positions

Selected employees work as assistants to higher-level managers and participate in some manager duties

Online/Electronic Retailing

Selling goods and services to consumers online

Discount Stores

Sells many different products at prices generally lower than department stores

Supermarket

Sells mostly food with some stuff like detergent

Recruitment

Set of activities used to obtain a sufficient number of qualified employees

Departmentalization

Setting up individual departments to do specialized tasks

Commercial Paper

Short-term financing available to large corporations that need funds for a few months

Matrix Organization

Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff

Operations Management

Specialized area in management that converts resources into goods and services

Espirit de corps (Fayol Principle)

Spirit of pride and loyalty created amongst people in the firm

Income Statement

Summarization of revenue/cost of goods sold over a period of time

Statement of Cash Flows

Summary of money coming in and out of the firm

Hierarchy

System in which one person is at the top of the organization, and there's order from top down on the managers

Radio Frequency Identification (RFID)

Tags merchandise so that it can be tracked from it's arrival to retailers from suppliers

Input

The factors of production

Initial Public Offering (IPO)

The first time a company offers to sell it's stock to the general public

Financial Management

The job of managing a firm's resources so it can meet it's goals and objectives

Offboarding

The process employees go through when they leave their job

Human Resource Management (HRM)

The process of determining human resource needs and then getting employees to achieve the organizational goals

Facility Location

The process of selecting a geographic location for a company's operation

Core Competencies

The things the organization doesn't outsource because they're good at it

Computer-Aided Design (CAD)

Use of computers to design products

Exclusive Distribution

Use of only one retail outlet in a given area

3rd Party Logisitcs

Use of outside firms to help move goods from here to there

Social Commerce

Use of social media to help assist social interaction of buying and selling

Selective Distribution

Uses only a preferred group of available retailers in an area

Multilevel Marketing

Uses salespeople who work as independent contractors

Organization Chart

Visual device that shows worker relations and divides work

Utility

Want-satisfying ability, or value, that an organization adds to goods or services

On-the-job Coaching

When a senior manager assists a lower-level manager by teaching skills and giving advice

Employment at will

When companies have the freedom to fire workers whenever they felt like it

Centralized Authority

When decision making is concentrated at the top level of management

Decentralized Authority

When decision making is delegated to lower level managers and employees more familiar with local conditions

Continuous Process

When production runs turn out finished goods over time

Full-Service Wholesalers

Wholesalers perform all distribution functions, provide sales force, maintain inventory

Department Store

Wide variety of goods, in separate departments

Clear Communication Channels (Fayol Principle)

Workers should be able to reach other's in organization quickly and easily

Subordination of Individual Interest to the General Interest (Fayol Principle)

Workers think of themselves as a team, and the goal of the team is more important than the goal of the individual

Promissory Note

Written agreement to pay supplier amount of money by a certain time

Financial Control

a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget

Financial Statement

a summary of all the financial transactions that have occurred over a particular period

Tall Organization Structure

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management

Factors of production

land, labor, capital, entrepreneurship, knowledge

Equity Financing

money raised from within the firm, from operations or through the sale of ownership in the firm (stock or venture capital)

Risk/Return Trade-Off

the greater the risk a lender takes in making a loan, the higher the rate of interest

Critical Path

the sequence of activities that determine the earliest date by which the project can be completed